A growth-focused portfolio with a strong emphasis on US large-cap and international equities
Report created on Jul 20, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 45.00% -
SC Schwab International Equity ETF
SCHF - US8085248057 30.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 15.00% -
SC Schwab U.S. Small-Cap ETF
SCHA - US8085246077 10.00%
This portfolio is heavily weighted towards equities, with a significant 45% allocation in US large-cap growth ETFs, and a 30% allocation in international equity ETFs. The remaining portion is split between US dividend equity (15%) and US small-cap ETFs (10%). This composition suggests a growth-oriented strategy with a tilt towards larger companies in the US and broad international exposure. The diversification across different market capitalizations and geographic regions enhances the portfolio's potential for capturing global market growth while attempting to mitigate risk through spreading investments.
Growth
Historical performance data shows a Compound Annual Growth Rate (CAGR) of 13.24%, with a maximum drawdown of -33.55%. This performance, characterized by substantial growth, also reflects the portfolio's higher risk profile, as indicated by its risk score of 5 out of 7. The days contributing to 90% of returns being concentrated in 29.0 days highlight the portfolio's volatility and the importance of being invested during key growth periods to realize potential gains.
Projection
Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. With a median (50th percentile) increase of 330.4%, and a significant majority (983 out of 1,000 simulations) showing positive returns, the projections suggest a strong potential for growth. However, investors should note that Monte Carlo simulations rely on past performance, which is not a reliable indicator of future results, and the wide range of outcomes underscores the inherent uncertainty in investing.
Asset classes
- Stocks 100%
The portfolio's allocation is exclusively in stocks, with no presence in bonds, cash, or other asset classes. This singular focus on equities is typical for growth-oriented investors willing to accept higher volatility for the potential of greater returns. However, the absence of bonds or cash may limit the portfolio's ability to buffer against market downturns, suggesting a need for investors to have a high risk tolerance and a long-term investment horizon.
Sectors
- Technology 28%
- Financials 14%
- Consumer Discretionary 11%
- Industrials 11%
- Health Care 10%
- Telecommunications 9%
- Consumer Staples 6%
- Energy 5%
- Basic Materials 3%
- Real Estate 2%
- Utilities 1%
The sector allocation is well-diversified, with the largest exposures being in technology (28%), financial services (14%), and consumer cyclicals (11%). This sector distribution aligns with a growth-focused strategy, as these sectors often lead market expansions. However, the heavy weighting in technology also introduces sector-specific risks, including potential volatility from regulatory changes or market sentiment shifts.
Regions
- North America 73%
- Europe Developed 16%
- Japan 6%
- Asia Developed 2%
- Australasia 2%
Geographic exposure is predominantly in North America (73%), with significant positions in developed Europe (16%) and Japan (6%). This distribution provides a balanced exposure to both the stability of developed markets and the growth potential of the US market. However, the minimal exposure to emerging markets may limit potential gains from these faster-growing regions.
Market capitalization
- Mega-cap 44%
- Large-cap 29%
- Mid-cap 15%
- Small-cap 8%
- Micro-cap 3%
The market capitalization breakdown shows a preference for larger companies, with 44% in mega-cap and 29% in large-cap stocks. This focus on larger, more established companies typically offers stability and lower volatility relative to smaller companies, aligning with the portfolio's growth objectives while managing risk.
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 current allocation suggests that the portfolio is positioned near the Efficient Frontier, indicating an optimized risk-return profile based on historical data. However, investors should consider whether the current asset allocation aligns with their risk tolerance and investment goals, as the Efficient Frontier is based on past performance and does not guarantee future results.
Dividends
- Schwab U.S. Small-Cap ETF 1.50%
- Schwab U.S. Dividend Equity ETF 3.80%
- Schwab International Equity ETF 2.60%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 1.68%
The portfolio's dividend yield stands at 1.68%, with the highest yield coming from the US Dividend Equity ETF at 3.80%. While the focus on growth equities typically results in lower dividend yields, the inclusion of a dividend-focused ETF provides income, which can contribute to total returns, especially in volatile or down markets.
Ongoing product costs
- Schwab U.S. Small-Cap ETF 0.04%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab International Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.05%
With a total expense ratio (TER) of 0.05%, the portfolio benefits from low costs, which can significantly enhance long-term returns. The emphasis on low-cost ETFs is a prudent strategy, minimizing the drag on performance that higher fees can cause over time.
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