A focused portfolio with high exposure to US large-cap stocks and dividends

Report created on Nov 7, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio primarily consists of two ETFs: the Schwab U.S. Dividend Equity ETF, making up 70% of the allocation, and the Schwab U.S. Large-Cap Growth ETF, covering the remaining 30%. Such a composition indicates a strong focus on the U.S. equity market, particularly within the large-cap space, with an emphasis on dividend-paying stocks. While this concentration enhances the portfolio's potential for dividend income and growth through large-cap equities, it also limits diversification across different asset classes and geographic regions.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.97%, with a maximum drawdown of -32.65%. These figures suggest robust growth potential, albeit with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 32.0 days highlight the portfolio's reliance on short-term gains, which may increase risk during market downturns.

Projection Info

Monte Carlo simulations, based on historical data, project a wide range of potential outcomes for this portfolio. With 996 out of 1,000 simulations showing positive returns and an annualized return of 16.76% across all simulations, the forward-looking projections are optimistic. However, it's important to note that while Monte Carlo simulations provide a spectrum of possible futures, they cannot predict unexpected market shifts or black swan events.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in other asset classes such as bonds, real estate, or commodities. This singular focus on equities, particularly within a specific geographic region, amplifies both the potential for high returns and the risk of significant losses. Diversifying across different asset classes can help mitigate risk and smooth out returns over time.

Sectors Info

  • Technology
    22%
  • Consumer Staples
    14%
  • Health Care
    14%
  • Energy
    13%
  • Consumer Discretionary
    11%
  • Industrials
    9%
  • Financials
    8%
  • Telecommunications
    8%
  • Basic Materials
    1%

Sector allocation shows a concentration in technology, consumer defensive, and healthcare, which are sectors that can offer growth and stability. However, the lack of significant exposure to sectors like utilities and real estate may limit the portfolio's ability to hedge against market volatility. Diversifying across a broader range of sectors could provide a more stable return profile.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely invested in North America, with a negligible exposure to developed Europe. This heavy concentration in the U.S. market exposes the portfolio to regional economic and political risks. Expanding geographic diversification, especially into emerging markets or other developed regions, could offer growth opportunities and reduce country-specific risks.

Market capitalization Info

  • Large-cap
    47%
  • Mid-cap
    28%
  • Mega-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio’s market capitalization breakdown shows a preference for big and mega-cap stocks, which tend to be more stable and less volatile than smaller companies. However, the relatively lower allocation to small and micro-cap stocks may limit the portfolio's potential for explosive growth, as these segments can offer higher returns, albeit with increased 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.

Considering the Efficient Frontier, this portfolio may not be fully optimized for the best possible risk-return ratio due to its limited diversification. While the current asset allocation has historically provided satisfactory returns, exploring a broader range of asset classes and geographic exposure could potentially offer a more efficient risk-return balance.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 2.85%

The dividend yield of the portfolio stands at 2.85%, driven primarily by the Schwab U.S. Dividend Equity ETF. This focus on dividend-yielding stocks can provide a steady income stream, which is beneficial in volatile or declining markets. However, it's important to balance the pursuit of dividends with the potential for capital appreciation across various sectors and asset classes.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from low costs, with a Total Expense Ratio (TER) of 0.05%. Lower costs translate directly into higher net returns for investors, making this an attractive feature of the portfolio. Maintaining low investment costs is crucial for enhancing long-term portfolio performance.

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