Concentrated US stock portfolio with strong growth tilt and impressively low costs
Report created on May 24, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 50.00% -
SC Schwab U.S. Broad Market ETF
SCHB - US8085241029 30.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 20.00%
This portfolio is made up of three US stock ETFs, with a clear tilt toward growth. Half of the allocation goes to a large‑cap growth fund, 30% to a broad US market fund, and 20% to a US dividend equity fund. So everything here is in equities, and everything is domestic. The structure mixes high‑growth names with a more diversified core and an income‑oriented sleeve. That blend helps balance pure growth exposure with broader market coverage and dividends. At the same time, holding only three funds leads to relatively low diversification across strategies. The overall setup is straightforward and easy to understand, which many investors like from an implementation and monitoring point of view.
Growth
From 2016 to 2026, $1,000 in this portfolio grew to about $4,674, which is strong absolute growth. The CAGR, or compound annual growth rate, was 16.73% a year, meaning that, on average, the portfolio compounded at that pace over the full period. This comfortably beat both the US market benchmark at 15.42% and the global market at 12.74%. The worst peak‑to‑trough fall, or max drawdown, was around ‑33%, very similar to the benchmarks. So historically, the portfolio has delivered higher returns without meaningfully deeper drawdowns, though that pattern is not guaranteed going forward. A relatively small number of days drove most returns, which is typical of equity markets.
Projection
The forward projection uses a Monte Carlo simulation, which is basically a stress test that reruns many possible market paths based on historical behavior. Here, 1,000 scenarios were modeled over 15 years. The median outcome turns $1,000 into about $2,836, while the middle half of scenarios ranges from roughly $1,792 to $4,220. The wider 5–95% band stretches from just under your starting amount to almost $8,000, showing how uncertain long‑term equity outcomes can be. Average annual returns across all simulations come out to 8.28%, lower than the historical 16.73%, which is a more conservative lens. These are statistical projections, not promises, and real markets can behave differently from the past.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with no exposure to bonds, cash equivalents, or alternative assets. That 100% equity allocation is what drives the growth‑focused risk classification and the relatively high risk score of 5 out of 7. Equities tend to offer higher long‑run return potential than lower‑risk assets, but they also come with bigger ups and downs along the way. Because there is no stabilizing asset class like bonds, short‑term volatility is carried entirely by stock movements. The low diversification score reflects this concentration in a single asset class. As long as someone understands that trade‑off, a single‑asset portfolio can still be a coherent, growth‑oriented structure.
Sectors
- Technology 37%
- Telecommunications 12%
- Consumer Discretionary 11%
- Health Care 10%
- Financials 9%
- Industrials 7%
- Consumer Staples 6%
- Energy 5%
- Basic Materials 1%
- Real Estate 1%
- Utilities 1%
Sector exposure is heavily tilted toward technology at 37%, with telecommunications and consumer discretionary also sizable contributors. Health care and financials provide meaningful secondary exposure, while more defensive or traditionally stable areas like utilities and real estate each sit at about 1%. Compared with broad US benchmarks, this is clearly more tech‑heavy, which has helped during periods when growth and innovation‑driven companies outperformed. The flip side is that such portfolios can feel sharper drawdowns when interest rates rise or when sentiment turns against high‑growth business models. The diversification across several other sectors is still reasonable, but leadership of returns is likely to come from the more cyclical, growth‑oriented parts of the market.
Regions
- North America 100%
Geographically, the portfolio is 100% in North America, specifically US equities. That’s in line with the underlying Schwab products used here, which track US‑focused indexes. While this aligns neatly with a US‑based client and avoids currency swings from foreign markets, it also means the portfolio is entirely tied to one economy, one policy regime, and one market style. Global benchmarks usually include a substantial allocation to non‑US stocks, so this setup is more domestically concentrated than “world” standards. That concentration has been rewarded over the past decade because the US market has led performance, but it does leave the portfolio more exposed if US stocks go through a weaker period compared with other regions.
Market capitalization
- Mega-cap 44%
- Large-cap 36%
- Mid-cap 16%
- Small-cap 3%
- Micro-cap 1%
The market‑cap breakdown shows a clear bias toward the largest companies: 44% in mega‑caps and 36% in large‑caps, with mid‑caps, small‑caps, and micro‑caps together making up just 20%. That kind of size profile is typical when broad market and large‑cap growth funds dominate. Bigger companies often bring more stable earnings, deeper liquidity, and more analyst coverage, which can reduce idiosyncratic risk compared with tiny firms. On the other hand, smaller companies tend to have more room to grow, though with bumpier price paths. Here, returns and risk are likely driven by the behavior of a relatively small group of giant firms that dominate major US indexes, which is consistent with recent US equity market dynamics.
True holdings
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NV NVIDIA Corporation 8.42%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AA Apple Inc 6.57%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 4.60%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 3.95%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class A 3.52%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AV Broadcom Inc 3.12%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class C 2.80%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
TS Tesla Inc 2.52%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
ME Meta Platforms Inc. 2.27%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
LL Eli Lilly and Company 1.41%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Top 10 total 39.18%
Looking through the ETFs to their top holdings, a handful of mega‑cap names stand out: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Tesla, Meta, and Eli Lilly together make up a meaningful slice of the portfolio. For example, NVIDIA alone is around 8.4%, and Apple about 6.6%, all via ETFs rather than direct stock picks. Several of these companies appear in multiple funds, creating overlap that can concentrate risk more than the high‑level ETF count suggests. Because only ETF top‑10 positions are used, this overlap is likely understated. The result is a portfolio whose performance will be strongly influenced by a small cluster of large US growth companies, even though it holds diversified index funds.
Factors
Factor exposures across value, size, momentum, quality, yield, and low volatility all sit in the “neutral” band, around the 40–60% range. Factor exposure is a way of measuring how much a portfolio leans into specific characteristics that research has linked to long‑term returns, like cheapness (value), recent winners (momentum), or stability (low volatility). A neutral reading basically means the portfolio behaves similarly to the broad market on these dimensions, without strong tilts toward or away from any of them. That’s quite consistent with the use of broad, market‑cap‑weighted ETFs. The upside is that the portfolio isn’t making concentrated bets on any single factor style, which supports a well‑balanced risk and return profile.
Risk contribution
-
Schwab U.S. Large-Cap Growth ETF
Weight: 50.00% 56.0% -
Schwab U.S. Broad Market ETF
Weight: 30.00% 29.0% -
Schwab U.S. Dividend Equity ETF
Weight: 20.00% 15.0%
Risk contribution shows how much each holding drives the overall ups and downs of the portfolio, which can differ from simple weights. Here, the large‑cap growth ETF is 50% of assets but contributes about 56% of total risk, so it punches a bit above its weight. The broad market ETF is roughly balanced, with risk contribution close to its 30% weight. The dividend equity ETF contributes only about 15% of risk while being 20% of assets, reflecting its relatively steadier profile. Overall, risk is dominated by the growth ETF, which aligns with the growth‑oriented objective. This pattern explains why changes in growth‑heavy segments of the market will noticeably sway the total portfolio.
Redundant positions
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High correlationSchwab U.S. Broad Market ETFSchwab U.S. Large-Cap Growth ETF
The correlation data shows that the broad US market ETF and the large‑cap growth ETF move almost identically. Correlation measures how closely two investments move together, on a scale from ‑1 to +1, where +1 is perfectly in sync. High correlation means that when one fund goes up or down, the other is very likely doing something similar. From a diversification perspective, that reduces the extent to which these two positions can offset each other in sharp market swings. The dividend ETF helps add a slightly different pattern, but the core of the portfolio still behaves a lot like one concentrated bet on US large‑cap equities, especially in stressed markets when correlations often increase further.
Risk vs. return
This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.
Click on the colored dots to explore allocations.
The efficient frontier chart compares different mixes of these same three funds to see which combinations offer the best trade‑off between risk and return. The Sharpe ratio, which measures return per unit of risk above the risk‑free rate, is a handy summary here. The current portfolio has a Sharpe of 0.7, while the maximum‑Sharpe mix reaches 0.88 and the minimum‑risk mix hits 0.79. Importantly, the analysis notes that the current portfolio lies on or very near the efficient frontier, meaning its allocation is already considered efficient given its holdings and risk level. In other words, there isn’t a big gap between how the portfolio is built now and what optimization suggests with the same building blocks.
Dividends
- Schwab U.S. Broad Market ETF 1.00%
- Schwab U.S. Dividend Equity ETF 3.30%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 1.16%
The blended dividend yield of the portfolio is about 1.16%, with clear differences across the three ETFs. The dividend equity ETF stands out with a yield of roughly 3.3%, the broad market ETF sits around 1%, and the large‑cap growth ETF is at 0.4%. Dividends are cash distributions from companies, and over long periods they can make up a significant part of total return, especially when reinvested. In this portfolio, most of the income contribution comes from the dividend fund, while the growth and broad market funds focus more on price appreciation. That creates a modest income stream but keeps the overall profile tilted toward capital growth rather than high current yield.
Ongoing product costs
- Schwab U.S. Broad Market ETF 0.03%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.04%
Costs are impressively low across the board. The total expense ratio, or TER, for the overall portfolio is about 0.04% per year, with individual ETFs ranging from 0.03% to 0.06%. TER is the ongoing annual fee charged by a fund, and lower fees leave more of the portfolio’s returns in the investor’s pocket. Over long horizons, even small percentage differences can compound into meaningful sums. Compared with typical active funds and even many index products, these fees are very competitive. This cost profile is a real strength of the portfolio structure and supports better long‑term performance potential, all else equal, without needing to take on extra investment risk to overcome high charges.
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