High growth stock portfolio with heavy mega cap tilt and limited diversification outside the US

Report created on Aug 17, 2024

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 100% in stocks, mixing one broad index ETF with a big tilt to a handful of individual names. Around a quarter is in a diversified fund, while the rest is spread across concentrated single-stock positions of roughly 5–10% each. Compared with a typical growth benchmark that holds hundreds of companies, this setup is more concentrated and more volatile. That concentration can boost returns when picks do well but can also magnify losses if a few names struggle. It may help to decide what percentage you want in broad, diversified funds versus single stocks and slowly adjust toward that target as your situation or comfort with risk evolves.

Growth Info

Historically, this portfolio’s compound annual growth rate (CAGR) of about 35% is extremely high. CAGR is like your “average yearly speed” on a long road trip, smoothing out the bumps. For context, a broad US stock benchmark has returned closer to 8–10% per year long term, so this result is far above normal. At the same time, the max drawdown of roughly –50% shows that the ride has been very rough at times. Past performance is useful to understand behavior, but it doesn’t guarantee repeat results. It can help to mentally prepare for similar swings and check if that level of volatility matches your long-term comfort.

Projection Info

The Monte Carlo analysis shows a very wide range of future outcomes, from small losses to huge gains. Monte Carlo simulations use many random “what if” paths based on historical volatility and returns to estimate possible futures, like running thousands of alternate timelines. The median result being far above 100% suggests strong growth potential, but the 5th percentile sitting just below breakeven reminds you that poor outcomes are still possible. These projections are only as good as the historical data and assumptions used; they can’t foresee new crises, bubbles, or regime changes. Treat the numbers as rough guideposts, not promises, and consider whether you’d stay invested if the real path looked more like the pessimistic scenarios.

Asset classes Info

  • Stocks
    100%

All holdings are in one asset class: stocks. This pure-equity approach fits a growth style and can be powerful over long timeframes, but it also means the full portfolio rises and falls with equity markets. Many standard benchmarks mix in some bonds or cash to smooth volatility, especially for more conservative profiles. Being 100% in stocks is usually best suited to investors who can ride out deep market drops without needing to sell for cash needs. If stability, capital preservation, or shorter-term goals become more important, gradually adding a second asset class, like high-quality bonds or cash reserves, could make the overall ride smoother while still keeping a growth focus.

Sectors Info

  • Technology
    34%
  • Consumer Discretionary
    18%
  • Industrials
    12%
  • Financials
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    6%
  • Utilities
    6%
  • Telecommunications
    3%

Sector exposure is tilted toward technology and consumer-oriented businesses, with additional stakes in industrials, financials, healthcare, energy, utilities, and more. This broad spread across nine sectors is a plus and aligns fairly well with how many benchmarks diversify, but the heavy concentration in technology and growth-sensitive areas means performance may be very tied to market narratives around innovation, rates, and economic cycles. Tech-heavy setups can do very well in low-rate, high-growth environments but may swing harder when interest rates rise or sentiment turns. It can help to decide how intentional this tilt is and whether you’d be comfortable if tech and growth shares went through a long, cold stretch like they have in certain past market cycles.

Regions Info

  • North America
    100%

Geographically, everything is in North America, specifically US-listed companies and a US-focused fund. This home bias is extremely common, and it has worked well over the past decade as US markets outperformed many others. However, global benchmarks usually give 30–40% weight to non-US markets, providing some diversification when different regions move out of sync. A 100% US stance means results depend heavily on the US economy, policy, currency, and corporate landscape. If you want more balance, you could slowly introduce a modest slice of non-US exposure over time, checking that it still fits your comfort with risk and your views on where you want your long-term wealth tied.

Market capitalization Info

  • Mega-cap
    62%
  • Large-cap
    34%
  • Mid-cap
    4%

The portfolio leans heavily into mega and large-cap companies, with only a small slice in mid caps and none in small caps. Mega caps tend to be more stable and widely followed, which can reduce single-name risk compared to very small companies. This tilt is similar to many major benchmarks and generally supports liquidity and transparency. However, it can also limit exposure to some of the faster-growing but more volatile smaller firms. That trade-off is not inherently good or bad; it just defines the type of ride you get. If you ever want more growth potential at the cost of choppier swings, a small allocation to smaller companies could be phased in cautiously.

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 chart, this portfolio sits firmly in the high-risk, high-return zone, with huge upside but large drawdowns. The Efficient Frontier is the set of portfolios that offer the highest expected return for each level of risk, using only your existing building blocks but mixing them in different weights. Efficiency here is about the best risk-return trade-off, not about being perfectly diversified or matching any benchmark. Given your heavy single-stock tilts, some alternative mixes using more of the broad ETF and slightly smaller weights in the most volatile names could potentially land closer to that frontier. That might keep much of the growth potential while softening the most extreme swings.

Dividends Info

  • Apple Inc 0.40%
  • AbbVie Inc 2.90%
  • Bank of America Corp 1.40%
  • Carpenter Technology Corporation 0.20%
  • Diamondback Energy Inc 2.60%
  • Nextera Energy Inc 2.80%
  • Vanguard S&P 500 ETF 1.10%
  • Waste Management Inc 1.10%
  • Walmart Inc 0.60%
  • Weighted yield (per year) 0.90%

The overall dividend yield around 0.9% is relatively low, which is typical for a growth-oriented equity mix tilted toward large US names. Dividends are cash payments from companies to shareholders; they can act like a small “paycheck” from your portfolio and form a bigger part of returns in more income-focused setups. Here, the main story is capital appreciation rather than income, and that’s consistent with many growth benchmarks. This alignment is perfectly fine if your priority is long-term growth over current cash flow. If, in the future, generating spendable income becomes more important, you might gradually increase the share of dividend-paying or income-oriented holdings while still keeping an eye on total return.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.01%

Costs are impressively low, especially with the very cheap index ETF at the core. The reported overall TER near 0.01% is far below what many investors pay and is a real strength of this portfolio. Fees act like friction on a car; the higher they are, the more they slow you down over decades. Keeping costs this low gives you more of the gross return and is strongly aligned with best practices and long-term wealth building. As you make changes over time, it’s worth using this as a benchmark and trying to avoid layering on higher-cost products that could quietly erode results without adding clear, meaningful benefits.

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