Growth-focused portfolio with high exposure to US large-cap stocks and low diversification

Report created on Jul 9, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards U.S. large-cap stocks, with a 50% allocation in the Schwab U.S. Large-Cap Growth ETF, 30% in the SPDR® Portfolio S&P 500 ETF, and 20% in the Invesco S&P 500 Revenue ETF. This composition indicates a strong focus on growth within the U.S. equity market, leveraging the performance of large-cap companies. The low diversification score reflects a concentrated risk in the U.S. market and a specific asset class, which can be both a strength and a vulnerability.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.70%, with a maximum drawdown of -33.42%. This performance highlights the portfolio's ability to generate significant returns, albeit with considerable volatility. The days contributing most to returns emphasize the impact of short-term gains, which is typical for growth-oriented investments but requires an investor to withstand potential sharp downturns.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 615.6% in portfolio value. This suggests a strong potential for growth, albeit with significant uncertainty. The high percentage of simulations resulting in positive returns underscores the portfolio's robustness, though the wide spread between the 5th and 67th percentiles indicates a considerable risk of variance in outcomes.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, with no diversification into other asset classes like bonds or real estate. This singular focus enhances growth potential but also increases volatility and risk, especially during market downturns. Diversifying across asset classes can help mitigate these risks while still aiming for growth.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Health Care
    11%
  • Financials
    11%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation is heavily weighted towards technology, followed by consumer cyclicals, communication services, healthcare, and financial services. This concentration in tech and growth sectors is conducive to high returns but also exposes the portfolio to sector-specific downturns, such as regulatory changes or economic cycles affecting tech valuations.

Regions Info

  • North America
    100%

Geographic exposure is entirely within North America, specifically the U.S. This focus simplifies the investment landscape but neglects the potential benefits of global diversification, such as reduced volatility and exposure to emerging market growth. Expanding geographic allocation could enhance risk-adjusted returns.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    29%
  • Mid-cap
    18%
  • Small-cap
    2%

The portfolio favors mega and large-cap stocks, which are typically more stable and have lower volatility than smaller companies. However, this focus may limit exposure to high-growth potential found in smaller, emerging companies. Balancing market cap exposure can provide a mix of stability and growth.

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.

Based on the Efficient Frontier analysis, there may be opportunities to optimize the risk-return ratio by adjusting asset allocation. While the current focus on growth stocks aligns with the portfolio's objectives, exploring diversification across asset classes and geographies could potentially offer improved risk-adjusted returns without sacrificing growth.

Dividends Info

  • Invesco S&P 500 Revenue ETF 1.40%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.84%

The portfolio's dividend yield is modest, reflecting its growth orientation. While dividends contribute to total return, the primary focus here is on capital appreciation. Investors seeking income in addition to growth might consider assets with higher dividend yields.

Ongoing product costs Info

  • Invesco S&P 500 Revenue ETF 0.39%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Weighted costs total (per year) 0.10%

The portfolio's overall expense ratio is low, enhancing long-term returns by minimizing costs. This cost efficiency is particularly beneficial in a growth-focused portfolio, where compounding returns can significantly impact investment outcomes.

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