Concentrated US stock portfolio with strong large cap tilt and efficient risk return balance
Report created on Jun 5, 2026Risk profile
4/7
Diversification profile
2/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 60.00% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 30.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 10.00%
This portfolio is simple and very focused, holding three US stock funds with a 60/30/10 split. The core is a broad US large-cap index fund, complemented by a sizeable allocation to a NASDAQ 100 ETF and a smaller slice to a US dividend equity ETF. That structure creates a clear hierarchy: broad market at the center, growth-heavy satellite, and an income-oriented piece. A setup like this is easy to understand and monitor because there are only a few moving parts. At the same time, having all assets in one country and one asset class means diversification is limited, so portfolio behavior will closely track the ups and downs of the US stock market.
Growth
Over the period from late 2020 to mid‑2026, a $1,000 investment in this portfolio grew to about $2,391. The compound annual growth rate (CAGR) was 16.82%, meaning it grew on average 16.82% per year, like measuring average speed over a road trip. This slightly outpaced the US market benchmark and clearly beat the global market benchmark over the same window. The max drawdown was -26.40%, similar to the global market and a bit deeper than the US benchmark, with a drawdown lasting well over a year. That mix—strong returns with sizeable but not extreme declines—fits a stock‑only portfolio with a growth tilt.
Projection
The Monte Carlo projection uses past return and volatility patterns to simulate many possible future paths for a $1,000 investment over 15 years. Think of it as running 1,000 alternate futures based on how similar portfolios have behaved historically, then summarizing the range of outcomes. The median result lands around $2,842, with most simulations falling between roughly $1,834 and $4,367. There’s also a wide “tail,” from just under flat to more than $7,500. This shows that while stock-heavy portfolios often grow meaningfully over long periods, the final result can vary a lot. These are model-based estimates, not promises, and real markets can behave differently.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with no bonds, cash-like assets, or alternatives. That creates a very clear asset class profile: high growth potential paired with higher sensitivity to market swings. In asset allocation terms, there is no built‑in cushion from more stable assets that might soften downturns. Compared with a multi‑asset benchmark that mixes stocks and bonds, this setup will likely show larger ups and downs over time. The flip side is simplicity and full participation in equity market growth when conditions are favorable. The “Balanced Investors” label here reflects a scoring system, but the actual building blocks are 100% equities.
Sectors
- Technology 40%
- Telecommunications 11%
- Health Care 9%
- Financials 8%
- Consumer Staples 7%
- Industrials 7%
- Consumer Discretionary 6%
- Energy 4%
- Consumer Discretionary 4%
- Utilities 2%
- Basic Materials 1%
- Real Estate 1%
Sector-wise, the portfolio leans heavily into technology at about 40%, with notable exposure to telecoms, health care, financials, consumer areas, and smaller slices in energy, utilities, materials, and real estate. This tech emphasis is common in US large‑cap and NASDAQ‑tilted portfolios, but it does mean results are strongly tied to how tech and related industries perform. When interest rates rise or tech valuations reset, portfolios with this kind of tilt can see sharper short‑term swings. On the positive side, the remaining sectors still provide some balance, so it’s not a single‑sector bet, just a market‑style portfolio where tech plays the starring role.
Regions
- North America 99%
- Europe Developed 1%
Geographically, almost all exposure is to North America, with a tiny allocation to developed Europe. That means performance is highly linked to the US economy, US corporate earnings, and the dollar. This has been a strength in recent years, as US markets have led global returns, which helps explain why the portfolio beat the global benchmark. However, it also means very little participation in other regions that together make up a large chunk of global market value. In practice, this is a clear US‑centric equity portfolio, not a globally diversified one, and its diversification score being “low” lines up with that picture.
Market capitalization
- Mega-cap 44%
- Large-cap 39%
- Mid-cap 16%
- Small-cap 1%
By market capitalization, there is a strong tilt toward the very largest companies: about 44% in mega-caps and 39% in large-caps, with only modest mid-cap and minimal small-cap exposure. Market cap simply measures a company’s size based on its share price times shares outstanding. This structure means portfolio behavior will be dominated by the biggest household names, which tend to be more stable than smaller firms but can also be more closely tied to broad index moves. The limited small-cap slice keeps volatility in check compared with a portfolio heavier in smaller companies, but it also reduces exposure to that potential extra growth source.
True holdings
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NV NVIDIA Corporation 2.49%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
AA Apple Inc 2.19%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
MS Microsoft Corporation 1.52%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
AM Amazon.com Inc 1.41%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
MU Micron Technology Inc 1.37%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
AM Advanced Micro Devices Inc 1.11%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
GO Alphabet Inc Class A 1.09%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
TS Tesla Inc 1.05%
Part of fund(s):- Invesco NASDAQ 100 ETF
- LS 1x Tesla Tracker ETP Securities GBP
-
GO Alphabet Inc Class C 1.00%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
AV Broadcom Inc 0.97%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Top 10 total 14.20%
The look‑through view shows notable exposure to a handful of giant US tech and internet names such as NVIDIA, Apple, Microsoft, Amazon, and Alphabet across multiple funds. Even though only ETF top‑10 holdings are counted, you can already see overlap: several of these companies appear in more than one fund, which quietly increases concentration. For example, NVIDIA alone is around 2.49% of the portfolio, and the top ten underlying holdings together form a meaningful chunk of total exposure despite limited coverage. This kind of hidden overlap is common in US index‑plus‑growth setups and helps explain why a few mega‑caps have an outsized impact on overall performance.
Factors
Factor exposures are broadly market‑like across value, size, momentum, quality, and low volatility, with yield showing a mild tilt away from high‑dividend stocks. Factors are like underlying “personality traits” of investments—such as favoring cheap stocks (value) or stable ones (low volatility)—that research links to returns over time. Here, the neutral readings suggest the portfolio behaves similarly to a broad market basket on most dimensions, without a strong bet on any single style. The only modest exception is yield, which sits below market average, consistent with the growth‑oriented slice. Overall, the factor mix is well‑balanced, which tends to produce behavior close to mainstream equity indices.
Risk contribution
-
Fidelity 500 Index Fund
Weight: 60.00% 57.0% -
Invesco NASDAQ 100 ETF
Weight: 30.00% 36.7% -
Schwab U.S. Dividend Equity ETF
Weight: 10.00% 6.3%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from its weight. The core index fund is 60% of the portfolio and contributes about 57% of overall risk, quite proportional. The NASDAQ 100 ETF is 30% by weight but adds nearly 37% of risk, meaning it punches above its size in volatility terms—typical for a growth‑heavy fund. The dividend ETF is 10% of assets yet only about 6% of risk, reflecting its steadier profile. This setup means that changes in the NASDAQ ETF and the core index fund will largely dictate day‑to‑day portfolio movement.
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 efficient frontier analysis suggests the current mix is already on or very close to the best risk/return trade‑off available using these three holdings. The Sharpe ratio, which measures return per unit of risk above a risk‑free rate, is 0.75 for the current portfolio and higher—0.96—for the mathematically optimal mix. However, the note indicates the portfolio sits essentially on the frontier for its risk level, meaning it uses these funds in a broadly efficient way. Reweighting could change risk and return slightly, but there’s no sign of a glaring inefficiency. For a three‑fund, stock‑only setup, that’s a solid structural outcome.
Dividends
- Fidelity 500 Index Fund 1.00%
- Invesco NASDAQ 100 ETF 0.40%
- Schwab U.S. Dividend Equity ETF 3.20%
- Weighted yield (per year) 1.04%
The blended dividend yield of the portfolio is about 1.04% a year, driven mainly by the core index fund and especially the dividend ETF, with the NASDAQ 100 slice contributing a much lower yield. Dividend yield is the annual cash payout as a percentage of the current price, like a “cash back” rate from holdings. In this portfolio, dividends are a modest but steady part of total return, with most of the growth historically coming from price appreciation rather than income. The dedicated dividend fund adds a bit of income tilt, but the substantial growth allocation keeps the overall yield relatively low versus classic income‑focused strategies.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- Invesco NASDAQ 100 ETF 0.15%
- Schwab U.S. Dividend Equity ETF 0.06%
- Weighted costs total (per year) 0.06%
Total costs are impressively low, with a blended total expense ratio (TER) of about 0.06% per year. TER is the ongoing fee the funds charge, taken directly from fund assets, and it quietly reduces returns over time. Here, the core index fund is extremely cheap, the dividend ETF is also low‑cost, and even the NASDAQ 100 ETF comes in at a reasonable fee. Over long periods, keeping costs this low can make a meaningful difference because every dollar not spent on fees stays invested and compounds. From a structural point of view, this cost profile is a clear strength of the portfolio.
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