A growth focused stock heavy portfolio with strong US tilt and impressively low ongoing costs

Report created on Aug 12, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is almost entirely in stocks, with a clear growth tilt: a broad US fund at the core, plus dedicated chunks to dividends, large‑cap growth, small‑cap value, and a modest slice of international stocks. Compared with a typical growth benchmark, this mix is more concentrated in US equities and has no bonds or cash buffer. That matters because being 99% in stocks usually means bigger ups and downs in account value. Anyone using this setup might want to pair it with an emergency fund elsewhere and be mentally prepared to ride through sharp swings instead of reacting to short‑term noise.

Growth Info

Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of about 16.25%. CAGR is just the “average yearly speed” of growth over time, smoothing out the bumps. A $10,000 starting amount growing at that rate for a decade would look extremely impressive, and roughly in line with or better than many growth‑oriented benchmarks. The trade‑off shows up in the max drawdown of about ‑35%, meaning at one point the value was roughly a third lower than its peak. That kind of drop is normal for stock‑heavy portfolios, but it can be emotionally tough, so expectations and risk comfort need to match.

Projection Info

The Monte Carlo analysis uses 1,000 simulations to project future outcomes by remixing historical return and volatility patterns in many random paths. Think of it as running 1,000 “what if the market behaved like the past, but in different orders?” scenarios. Here, the median (50th percentile) outcome suggests a potential several‑fold increase over the horizon, with even the pessimistic 5th percentile still showing a smaller but positive gain. The average simulated annual return above 17% looks very strong, though real markets may differ. Monte Carlo outputs are only guides; they rely on past patterns that might not repeat, so they’re useful for setting expectations, not as guarantees.

Asset classes Info

  • Stocks
    99%

All investable assets here are essentially in one asset class: stocks. That creates a very pure growth engine but limits diversification across different return drivers like bonds, real assets, or cash. Diversification across asset classes helps because they often react differently to interest rates, recessions, or inflation shocks. A portfolio that stays 99% in stocks usually shines over long stretches but can suffer steep temporary drops during big market stress. Someone using this structure might think about whether they’re comfortable relying on outside savings or separate accounts for stability, rather than expecting smoothing from within this specific portfolio.

Sectors Info

  • Technology
    27%
  • Financials
    13%
  • Consumer Discretionary
    12%
  • Health Care
    10%
  • Industrials
    10%
  • Telecommunications
    9%
  • Energy
    7%
  • Consumer Staples
    7%
  • Basic Materials
    2%
  • Real Estate
    1%
  • Utilities
    1%

Sector exposure is nicely spread across major areas: technology leads around a quarter of the portfolio, with meaningful stakes in financials, consumer cyclicals, healthcare, industrials, and communication services. This aligns reasonably well with broad market benchmarks and is a strong indicator of healthy diversification across the business cycle. The tech and growth tilt can boost long‑run returns but can also magnify volatility when interest rates rise or when markets rotate toward more defensive areas. Overall, this sector mix looks well‑balanced for a growth profile, and sticking with a consistent allocation rather than chasing recent hot sectors tends to work better over long horizons.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

Geographically, this portfolio leans very heavily toward North America, especially the US, with only about 10% combined in international stocks. Many global benchmarks give more space to developed markets outside the US and some to emerging markets, so this represents a clear home‑country tilt. That’s been helpful over the last decade because US stocks outperformed many regions, but it does leave results more tied to the fortunes of one economy and currency. Adding a bit more global balance could reduce reliance on US outcomes, though sticking with a US tilt is also a perfectly reasonable choice if that bias is intentional and understood.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    32%
  • Mid-cap
    18%
  • Small-cap
    9%
  • Micro-cap
    6%

The market capitalization mix is nicely layered: roughly two‑thirds in mega and big companies, with the rest spread across mid, small, and even some micro caps. Market cap is just company size by total stock value. Larger firms tend to be more stable and widely followed, while smaller ones can be more volatile but sometimes offer higher growth or value opportunities. This allocation is well‑balanced and aligns closely with global norms, giving both stability from giants and extra return potential from smaller names. Keeping all size buckets represented can help smooth out periods when either large or small companies temporarily lag.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

A key pattern here is the high correlation between the broad US total market ETF and the dedicated large‑cap growth ETF. Correlation measures how often things move together; high correlation means they tend to rise and fall at the same time, which limits diversification. In this case, much of the growth ETF’s behavior is already embedded inside the total market fund, since big growth companies are major index components. That overlap isn’t “bad,” but it adds complexity without much extra diversification. Simplifying overlapping positions while keeping the overall risk level similar can make the portfolio easier to manage and monitor without sacrificing long‑term potential.

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.

On a risk‑return basis, this mix could potentially be tuned along an Efficient Frontier. The Efficient Frontier is just the set of all allocations between current holdings that give either the highest expected return for a given risk or the lowest risk for a given return. Here, since all holdings are stock ETFs and some are overlapping, the focus would be on simplifying highly correlated pieces and adjusting weights between growth, value, large, and small. “Efficiency” in this sense is purely about mathematical risk‑return trade‑offs; it doesn’t judge other goals like simplicity, behavioral comfort, or income needs, which still matter a lot in real life.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.71%

The overall dividend yield of about 1.7% is modest but reasonable for a growth‑oriented stock portfolio. Yield is boosted by the dedicated dividend ETF and the international fund, while the growth ETF naturally sits at a low payout. Dividends matter because they contribute a steady return component that doesn’t rely on selling shares, which some investors like for psychological comfort or future income needs. At the same time, companies that reinvest more of their profits instead of paying them out can drive faster growth. This mix strikes a middle ground: some income, but clearly tilted toward total return and capital appreciation rather than high cash flow.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The total expense ratio (TER) of roughly 0.06% is impressively low for an actively built ETF mix. TER is like an annual “membership fee” taken as a percentage of assets; paying less leaves more of the return in your pocket. Over decades, even a difference of 0.3–0.5 percentage points per year can compound into a surprisingly large gap in final wealth. This cost structure aligns with best practices and supports stronger long‑term performance. The slightly higher fee of the small‑cap value piece is still modest for that niche. Overall, costs are a clear strength here and do not appear to be a drag on outcomes.

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