Highly concentrated US tech driven growth portfolio with strong historic returns and meaningful drawdown risk
Report created on May 9, 2026Risk profile
6/7
Diversification profile
2/5
Positions
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AV Broadcom Inc
AVGO - US11135F1012 33.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 22.80% -
NV NVIDIA Corporation
NVDA - US67066G1040 17.10% -
AM Amazon.com Inc
AMZN - US0231351067 8.40% -
MS Microsoft Corporation
MSFT - US5949181045 7.40% -
ME Meta Platforms Inc.
META - US30303M1027 6.20% -
TT Take-Two Interactive Software Inc
TTWO - US8740541094 5.10%
This portfolio is made up entirely of US-listed stocks and one US equity ETF, with a very concentrated structure. Broadcom alone is one-third of the total, while NVIDIA and the Schwab U.S. Dividend Equity ETF add another roughly 40%. The remaining positions are large individual growth names, each under 10%. This kind of concentration means the portfolio’s behavior is heavily driven by a few companies rather than a broad basket. That can magnify both gains and losses. Compared with more evenly spread portfolios, the overall diversification score being low (2/5) fits the numbers: a handful of positions largely determines what happens here.
Growth
Historically, the portfolio’s performance has been exceptional. From 2016 to 2026, $1,000 grew to about $55,888, a compound annual growth rate (CAGR) of 49.72%. CAGR is like the average speed of a car on a long trip — it smooths out bumps along the way. This return far exceeded both the US market (15.40% CAGR) and global market (12.78% CAGR. However, the max drawdown was steep at -52.51%, meaning the portfolio once lost over half its value before recovering. That depth and length of drawdown highlight how concentrated, aggressive portfolios can swing much more than broad indices.
Projection
The forward projection uses a Monte Carlo simulation, which basically runs the portfolio’s historical ups and downs thousands of times in different random orders to estimate future ranges. It shows a median outcome of about $2,722 from $1,000 over 15 years, implying an annualized return of 8.15% across all simulations. The range is wide: roughly $952 to $7,892 for most scenarios. This spread illustrates that even with strong historical returns, future paths can vary a lot. Monte Carlo results are not predictions, just statistics built from past data, and they can’t anticipate structural changes, new regulations, or shifts in company fundamentals.
Asset classes
- Stocks 100%
The portfolio is 100% in stocks, with no bonds, cash-like instruments, or alternative assets in the mix. Asset classes are broad categories such as equities, fixed income, or real estate, each with different typical risk and return patterns. Being entirely in stocks usually implies higher volatility and stronger sensitivity to economic cycles compared with mixed-asset portfolios. This all-equity profile helps explain the “Aggressive” risk classification and the high risk score of 6/7. Historically, equities have offered higher growth potential over long periods, but they can also experience sharp, sudden losses, especially when there’s no stabilizing exposure to other asset classes.
Sectors
- Technology 61%
- Telecommunications 13%
- Consumer Discretionary 10%
- Consumer Staples 4%
- Health Care 4%
- Energy 4%
- Financials 2%
- Industrials 2%
Sector-wise, the portfolio is clearly tilted. About 61% is in technology, with additional exposure to telecommunications, consumer discretionary, and smaller slices in staples, health care, energy, financials, and industrials. Sector allocation matters because different parts of the economy react differently to interest rates, regulation, and growth trends. Tech-heavy portfolios often benefit when innovation, digital spending, and growth narratives are strong, but they can be more sensitive during rate hikes or sentiment shifts away from growth. The high tech and telecom weight is much larger than in broad market benchmarks, which typically spread more across financials, industrials, and other sectors, reinforcing the concentrated growth profile.
Regions
- North America 100%
Geographically, the portfolio is 100% in North America, entirely focused on the US market. Geography influences exposure to different economies, currencies, and policy environments. A US-only portfolio avoids foreign currency fluctuations and leans into US corporate and regulatory structures, which have been supportive for large tech and growth names over the past decade. At the same time, it misses potential diversification from other regions that may perform differently across cycles. Compared with global benchmarks, which usually hold a large share outside the US, this portfolio is highly home-biased. That single-country focus helps explain why its fate is so tightly tied to US equity sentiment.
Market capitalization
- Mega-cap 72%
- Large-cap 22%
- Mid-cap 5%
- Small-cap 1%
By market capitalization, this is dominated by mega-cap and large-cap companies, with about 72% in mega-caps and 22% in large-caps. Market cap is essentially company size in the stock market, and larger firms often have more diversified businesses and stronger balance sheets than smaller peers. The remaining 6% across mid- and small-caps is relatively minor, so the portfolio mostly tracks the behavior of very large, well-known companies. That mega-cap tilt often brings high liquidity and strong index representation, but it reduces exposure to the “size” factor — historically, smaller companies have sometimes delivered different return patterns. Here, size diversification is quite limited.
True holdings
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TX Texas Instruments Incorporated 1.27%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
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QC Qualcomm Incorporated 1.17%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
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UN UnitedHealth Group Incorporated 1.14%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
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CV Chevron Corp 0.94%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 81.72%
Looking through the ETF into its top holdings, overlap with the direct stocks appears modest in the top-10 data: Broadcom, NVIDIA, Amazon, Microsoft, Meta, and Take-Two are all held directly but not re-appearing via the ETF’s top holdings. Instead, the ETF adds names like Texas Instruments, Qualcomm, UnitedHealth, and Chevron in small weights around 1%. This suggests most concentration comes from direct company positions rather than hidden duplication through the ETF. Still, ETF top-10 coverage is only partial, so some overlap might be understated. Overall, the look-through confirms that risk and return are dominated by a few large, single-stock bets rather than by the diversified ETF sleeve.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows very high quality and very low size, with high momentum as well. Factors are characteristics like “quality” or “momentum” that research links to returns, similar to understanding the ingredients in a recipe. A very high quality tilt (86%) suggests holdings with strong profitability, balance sheets, and stability, which can help during periods when markets favor financially solid companies. The very low size score (14%) reflects the heavy focus on mega- and large-caps rather than smaller firms, so the portfolio doesn’t really tap into the small-cap premium. High momentum (63%) means many holdings have had strong recent performance, which can work well in trends but can also amplify reversals when market leadership changes.
Risk contribution
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Broadcom Inc
Weight: 33.00% 42.7% -
NVIDIA Corporation
Weight: 17.10% 26.6% -
Schwab U.S. Dividend Equity ETF
Weight: 22.80% 9.2% -
Amazon.com Inc
Weight: 8.40% 7.0% -
Meta Platforms Inc.
Weight: 6.20% 5.7% - Top 5 risk contribution 91.2%
Risk contribution highlights how much each holding drives overall volatility, which can differ from its weight. Broadcom, at 33% of the portfolio, contributes about 43% of total risk; NVIDIA, at 17.1%, adds roughly 26.6%. In contrast, the Schwab U.S. Dividend Equity ETF is 22.8% of the portfolio but only around 9.2% of risk. This shows that the ETF behaves as a relatively stabilizing component, while Broadcom and NVIDIA dominate the portfolio’s ups and downs. The top three holdings together make up about 78.5% of total risk, confirming that portfolio behavior is tightly linked to a small number of names rather than spread evenly across all positions.
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 risk vs. return chart shows the current portfolio sitting below the efficient frontier by 1.87 percentage points at its current risk level. The efficient frontier represents the best possible tradeoff between risk and return using just these holdings in different weightings. The current Sharpe ratio, a measure of risk-adjusted return (how much excess return per unit of risk), is 1.19, while the optimal portfolio on the frontier reaches 1.38. This suggests that, historically, a different mix of the same positions could have delivered better risk-adjusted results. The minimum variance portfolio on the chart offers lower risk but also lower expected return, illustrating the typical tradeoff between stability and growth.
Dividends
- Broadcom Inc 0.60%
- Meta Platforms Inc. 0.30%
- Microsoft Corporation 0.80%
- Schwab U.S. Dividend Equity ETF 3.30%
- Weighted yield (per year) 1.03%
The portfolio’s overall dividend yield is about 1.03%, with the Schwab U.S. Dividend Equity ETF providing the highest yield at 3.3%. Yield is the annual income from dividends as a percentage of the investment value. Several core growth stocks such as Broadcom, Microsoft, and Meta have relatively low yields, reflecting a focus on reinvesting profits rather than paying large dividends. This means most of the portfolio’s historical return has come from price appreciation rather than income. For someone tracking this portfolio, it’s helpful to see that dividends are a secondary component; the main driver of results is capital growth, which tends to be more volatile than steady cash distributions.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Weighted costs total (per year) 0.01%
Costs are very low overall, with the Schwab U.S. Dividend Equity ETF charging a total expense ratio (TER) of 0.06% and the portfolio’s blended TER rounding to 0.01% because individual stocks don’t charge ongoing fund fees. TER is the annual fee as a percentage of assets, and small differences compound over many years. Here, the cost structure is impressively low and well-aligned with best practices for long-term investing. That means more of the portfolio’s return stays in the investor’s pocket instead of going to fund managers. With such a concentrated, stock-heavy approach, trading costs and taxes (not shown here) would be the other cost dimensions to keep in mind.
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