Growth-oriented portfolio with strong focus on US large-cap equities and technology sector

Report created on Aug 1, 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 exhibits a concentrated allocation towards U.S. large-cap equities, with a significant emphasis on the technology sector. The combination of three ETFs focusing on U.S. equities and a specific technology ETF indicates a growth-oriented strategy, albeit with low diversification across asset classes and geographies. The heavy reliance on large-cap stocks, particularly from the technology sector, suggests an aggressive pursuit of capital appreciation, which aligns with the portfolio's growth profile classification.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 16.43%, with a maximum drawdown of -32.71%. The days contributing to 90% of returns being concentrated in a relatively short period indicates significant performance spikes, likely tied to the tech sector's volatility. While the historical performance appears robust, it's essential to remember that past performance is not indicative of future results, especially in a portfolio with concentrated sector exposure.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential performances for this portfolio. With 995 out of 1,000 simulations showing positive returns and a median projected increase of 938.9%, the forward-looking outlook seems optimistic. However, the broad spread between the 5th and 67th percentiles underscores the high level of uncertainty and risk associated with this concentrated investment strategy.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, with no presence in other asset classes like bonds or real estate. This singular focus on equities, particularly within a specific geographic region, amplifies both potential returns and volatility. Diversifying across different asset classes can help mitigate risk and reduce the impact of stock market fluctuations on the portfolio's overall performance.

Sectors Info

  • Technology
    38%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Financials
    9%
  • Telecommunications
    8%
  • Consumer Staples
    8%
  • Energy
    7%
  • Industrials
    7%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation reveals a heavy tilt towards technology, comprising 38% of the portfolio. While technology stocks have historically provided substantial growth opportunities, they also come with higher volatility and risk, especially during market downturns or interest rate hikes. The presence of other sectors like consumer cyclicals and healthcare offers some balance, but the overall sector concentration may increase the portfolio's susceptibility to sector-specific risks.

Regions Info

  • North America
    98%
  • Asia Developed
    1%
  • Europe Developed
    1%

Geographic exposure is heavily skewed towards North America, with 98% of the portfolio's assets. This concentration in a single region, while potentially capitalizing on the growth of the U.S. market, limits exposure to international diversification benefits. Including assets from developed markets in Europe or Asia, or even emerging markets, could provide a more balanced geographic distribution and access to global growth opportunities.

Market capitalization Info

  • Large-cap
    39%
  • Mega-cap
    38%
  • Mid-cap
    19%
  • Small-cap
    3%

The focus on big and mega-cap companies (77% combined) aligns with the portfolio's growth and risk profile, leveraging the stability and potential of large, established companies. However, the minimal exposure to medium, small, and micro-cap stocks limits opportunities for higher growth rates that smaller companies might offer, albeit with increased risk.

Redundant positions Info

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

The high correlation observed between the Vanguard S&P 500 ETF and the Schwab U.S. Large-Cap Growth ETF indicates overlapping investments that may not contribute significantly to diversification. Reducing exposure to similar assets can help achieve a more efficient portfolio by minimizing redundant holdings and potentially lowering risk without sacrificing returns.

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 portfolio's current structure suggests room for optimization, particularly in reducing asset correlation and enhancing diversification. Adjusting the asset allocation to decrease overlap and incorporating investments in other asset classes or geographies could improve the risk-return profile. Employing the Efficient Frontier concept could identify the optimal balance between risk and return, potentially leading to enhanced performance with lower volatility.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.69%

The portfolio's dividend yield stands at 1.69%, with the Schwab U.S. Dividend Equity ETF contributing the most to this income stream. While dividends provide a source of regular income, the overall yield reflects the portfolio's growth orientation over income generation. Investors prioritizing growth may find this acceptable, but those seeking higher income might consider increasing allocations to higher-yielding assets.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio benefits from relatively low costs, which is commendable. Lower costs directly translate to higher net returns over time, making cost-efficiency a crucial aspect of long-term investment success. The selection of low-cost ETFs demonstrates a strategic approach to maximizing returns by minimizing expenses.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey