A growth heavy equity portfolio with broad diversification and notable US concentration

Report created on Dec 11, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is mostly equity driven with five ETFs split across total market and targeted strategies roughly 35% total US market 30% total international 15% momentum and 20% split across two dividend ETFs. Compared with a full market cap weighted global benchmark it tilts toward U.S. large caps and dividend strategies. That matters because overlapping exposures can reduce the benefit of diversification and inflate risk for no extra return. Recommendation: simplify overlapping exposures by consolidating redundant ETFs and keep a core holding approach so each position adds distinct return or risk characteristics.

Growth Info

Historical returns show a strong CAGR of 15.97% where CAGR means Compound Annual Growth Rate and measures average annual growth like the steady speed of a car over a long trip. For example a hypothetical $10,000 invested over ten years at that CAGR would grow roughly to about $44,000 illustrating material long term gains. At the same time the max drawdown of -33.67% highlights meaningful downside risk and the fact that 90% of returns came from only 32 days shows return concentration. Recommendation: expect volatile periods and maintain a rebalancing plan to avoid emotionally driven trades.

Projection Info

Forward projection used 1,000-run Monte Carlo simulation a method that creates many possible future paths by repeatedly sampling returns to estimate a range of outcomes. Results show end values concentrated above the starting point with the 5th percentile at 154.8% and median at 722.2% suggesting generally positive simulated outcomes given past return patterns. This is useful for scenario planning but Monte Carlo relies on historical return behavior and assumed distributions so it can understate extreme events. Recommendation: use these projections for planning not certainty and run stress cases with lower returns and larger drawdowns.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Asset class exposure is overwhelmingly equities at about 99% with 1% cash and effectively no fixed income or alternatives. That structure boosts expected long-term growth but increases short-term volatility and sequence of returns risk. Typical growth portfolios often include a modest allocation to bonds or alternatives to dampen drawdowns and provide liquidity. Recommendation: consider introducing a low-duration bond sleeve or diversifying alternatives to reduce volatility and improve the portfolio’s behavior during market stress while preserving long-term growth potential.

Sectors Info

  • Technology
    25%
  • Financials
    17%
  • Industrials
    11%
  • Health Care
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure shows technology at 25% financial services 17% industrials 11% healthcare 10% and the rest spread across consumer and cyclical areas. Compared with broad benchmarks technology looks slightly overweight which can raise sensitivity to rate moves and sentiment shifts. Sector concentration matters because macro or regulatory shocks can disproportionately affect returns. Recommendation: implement rules to cap single sector exposure and rebalance periodically so no sector drift becomes an unintended risk driver while keeping exposure to secular growth themes.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation is heavily tilted to North America at 72% with developed Europe at 11% and limited emerging market exposure around 5%. Relative to a global market weight this is U.S. heavy which has benefited returns historically but reduces geographic diversification and increases home market risk. Underweighting emerging and some Asia developed markets may miss region specific growth cycles. Recommendation: consider modest increases to non U.S. developed and emerging market allocations to smooth country specific volatility and capture broader economic rotations over time.

Market capitalization Info

  • Large-cap
    37%
  • Mega-cap
    37%
  • Mid-cap
    19%
  • Small-cap
    4%
  • Micro-cap
    1%

Market cap breakdown shows a large and mega cap concentration with about 74% combined big and mega caps medium caps around 19% and small plus micro making up roughly 5%. Large cap focus typically reduces volatility and offers liquidity but can limit exposure to higher growth smaller companies. For long term growth investors adding a measured small and mid cap allocation can boost return potential and diversification. Recommendation: evaluate gradually increasing mid and small cap exposure via a single targeted ETF to gain broader market capture without significantly raising turnover.

Redundant positions Info

  • Schwab U.S. Dividend Equity ETF
    iShares Core Dividend Growth ETF
    High correlation

The portfolio contains a highly correlated pair the two dividend ETFs which appear to move together historically. Correlation measures how similarly two assets move where +1 means they move in lockstep and -1 means opposite directions. Highly correlated holdings reduce diversification benefits because they tend to fall together in downturns. Recommendation: remove or replace one of the overlapping dividend ETFs or swap one for an asset with low correlation such as short-term fixed income or a global small cap fund to improve true diversification without increasing complexity.

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.

Before running formal mean variance optimization focus on removing overlapping assets because optimization only shifts weights among present holdings and cannot create exposure that isn’t there. Efficient Frontier is a concept showing the set of portfolios that maximize expected return for a given level of risk like choosing the highest hill on a skyline for each slope. Optimization can show a more efficient risk return point but is constrained by inputs and assumes stable correlations and returns. Recommendation: simplify holdings first then use optimization as a tool to set target weights within practical constraints.

Dividends Info

  • iShares Core Dividend Growth ETF 2.00%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.86%

The portfolio’s blended dividend yield is about 1.86% driven mainly by the two dividend ETFs with yields of 2.00% and 3.70% and lower yields from total market and international holdings. Dividends contribute to total return and can provide income or be reinvested for compounding. For a growth profile moderate dividend yield is acceptable but duplicated dividend strategies can add overlap without significantly raising income. Recommendation: clarify whether income is a goal; if not, consider consolidating dividend exposure and reinvesting distributions to maximize long term growth.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Invesco S&P 500® Momentum ETF 0.13%
  • 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%

Total expense ratio averaged across holdings is low at roughly 0.06% with Vanguard funds particularly cheap while the momentum ETF and dividend ETFs are slightly higher. TER stands for Total Expense Ratio and is the annual cost to own an ETF similar to the ongoing maintenance cost for a vehicle. Low costs are a clear strength because lower fees compound into noticeably better returns over decades. Recommendation: keep core holdings in low cost funds and consider replacing higher cost overlapping ETFs if they do not demonstrably add expected excess return net of fees.

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