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A high-flying growth portfolio that might need a reality check on diversification and risk

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio is perfect for the investor who loves riding the roller coaster of the stock market with their hands in the air. It's for someone who equates investing with skydiving - exhilarating, high-risk, and not for the faint of heart. This investor likely has a high risk tolerance, a preference for growth over stability, and a time horizon that's either very optimistic or perhaps a bit undefined. They're the financial equivalent of a thrill-seeker, always chasing the next big rush, but possibly underestimating the value of a good safety harness.

Positions

  • Schwab U.S. Large-Cap Growth ETF
    SCHG - US8085243009
    23.92%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    19.98%
  • iShares Bitcoin Trust
    IBIT - US46438F1012
    17.20%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    10.77%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    10.50%
  • Meta Platforms Inc.
    META - US30303M1027
    7.83%
  • SCHWAB 1000 INDEX FUND INVESTOR SHARES
    SNXFX - US8085171069
    5.37%
  • Alphabet Inc Class A
    GOOGL - US02079K3059
    3.18%
  • Berkshire Hathaway Inc
    BRK-B - US0846707026
    1.26%

This portfolio gleefully dances on the high wire of growth and momentum, with a notable disregard for the safety net of diversification. Stacking up on three S&P 500 variants like they're going out of style isn't diversity; it's a thematic echo chamber. It's akin to ordering three different types of vanilla ice cream and calling it a flavor journey. The heavy tilt towards large-cap and tech, with a spicy sprinkle of Bitcoin, suggests a cocktail of optimism and adrenaline over a well-rounded investment meal.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

With a CAGR that would make most investors swoon, this portfolio's past performance reads like a fairy tale. However, relying on a handful of days for the bulk of returns is the financial equivalent of betting your retirement on a royal flush. High returns are enticing, but they often come with the kind of volatility that can turn stomachs and prematurely gray hair. It's worth remembering that past performance is like relying on yesterday's lottery numbers to play today's game.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations are great at showing us the range of possible futures, but they're not crystal balls. This portfolio's projections seem to defy gravity, but remember, simulations assume the past is a good predictor of the future, ignoring the potential for black swan events or changes in market dynamics. Betting the farm on such optimistic projections is like planning your budget around winning the lottery. Hope is not a strategy.

Asset classes Info

  • Stocks
    82%
  • Other
    17%
  • Cash
    0%
  • No data
    0%

With 82% in stocks and a mysterious 17% labeled "Other" (presumably where the Bitcoin hides), this portfolio is like a diet consisting mostly of steak and candy bars. Sure, it's exciting, but where are the vegetables? The absence of bonds, real estate, or commodities as stabilizers might leave this portfolio vulnerable to market indigestion.

Sectors Info

  • Technology
    24%
  • Telecommunications
    19%
  • Financials
    11%
  • Consumer Discretionary
    8%
  • Industrials
    6%
  • Health Care
    5%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    1%
  • Basic Materials
    1%
  • Real Estate
    1%
  • Consumer Discretionary
    1%

The tech and communication services sectors are so overweight in this portfolio, they're practically begging for a market correction to put them on a diet. While tech has been the belle of the ball, history tells us that sector rotations can be brutal. It's like being all in on disco in the '80s, right before grunge hit the scene.

Regions Info

  • North America
    73%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    0%
  • Africa/Middle East
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

With 73% parked in North America, this portfolio has a home team bias that could leave it on the sidelines of global growth opportunities. Ignoring the rest of the world isn't just insular; it's like refusing to eat anything but fast food because you've never tried sushi. You don't know what you're missing.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    21%
  • Mid-cap
    10%
  • Small-cap
    1%
  • Micro-cap
    0%

A 50% allocation to mega-cap stocks is like having a basketball team where half the players are over seven feet tall. Sure, they'll score some points, but what happens when you need to run a fast break? A more balanced mix across market caps can add agility and resilience to your portfolio.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    Invesco S&P 500® Momentum ETF
    High correlation

The high correlation among the S&P 500-focused ETFs in this portfolio is like having three remotes for the same TV. It gives the illusion of control but adds no real value. Diversification means having investments that don't all move in the same direction at the same time, not collecting variations on a theme.

Dividends Info

  • Alphabet Inc Class A 0.40%
  • Meta Platforms Inc. 0.30%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SCHWAB 1000 INDEX FUND INVESTOR SHARES 11.30%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.27%

While the dividend yield provides a nice cherry on top, relying on it for income in a growth-heavy portfolio is like expecting a Chihuahua to pull a sled. It's not the main event. A more balanced approach to income might involve higher-yielding assets or a broader mix of dividend payers.

Ongoing product costs Info

  • iShares Bitcoin Trust 0.12%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SCHWAB 1000 INDEX FUND INVESTOR SHARES 0.05%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

The total expense ratio (TER) is commendably low, suggesting at least some level of restraint amidst the growth frenzy. It's like realizing you should probably check the price tag after tossing everything you liked into the shopping cart. Still, cost-consciousness in an otherwise exuberant strategy is a silver lining worth acknowledging.

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.

This portfolio's risk-return profile is like a sports car that's all engine and no brakes. Sure, it's thrilling when everything's going smoothly, but a little balance could prevent a crash. Optimizing for a more efficient frontier would involve bringing in some non-correlated assets to smooth out the ride without necessarily sacrificing all the speed.

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