A growth-focused portfolio with strong US large-cap and technology sector exposure

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

Your portfolio is heavily concentrated in U.S. large-cap equities, with a significant emphasis on growth stocks. This is evident from the 55% allocation to a U.S. Large-Cap Growth ETF and a 30% allocation to a Vanguard S&P 500 ETF, both of which primarily focus on large-cap companies. The remaining 15% is invested in a U.S. Dividend Equity ETF, adding an income component. This composition suggests a strong belief in the continued growth of large U.S. companies but comes with low diversification across asset classes and geographies.

Growth Info

Historically, your portfolio has achieved a compound annual growth rate (CAGR) of 16.07%, with a maximum drawdown of -32.91%. This performance is indicative of the high-growth but also high-volatility nature of your investments. The days contributing most to returns are relatively few, highlighting the impact of significant market movements on performance. While past success is commendable, it's important to remember that such high returns can come with substantial risk, especially in market downturns.

Projection Info

The Monte Carlo simulation, which runs 1,000 different scenarios to forecast potential future outcomes, shows a wide range of results with a median increase of 557.3% in portfolio value. This suggests optimism about future growth but also underscores the uncertainty and risk inherent in your current strategy. While the majority of simulations predict positive returns, the variation between the 5th and 67th percentiles is vast, indicating a high degree of uncertainty.

Asset classes Info

  • Stocks
    100%

Your portfolio is entirely composed of stocks, which aligns with a growth-oriented investment strategy but lacks diversification across asset classes like bonds or real estate. This single-class approach amplifies both potential returns and volatility, making it suitable for investors with a high-risk tolerance and a long-term horizon. Diversifying across asset classes could reduce volatility without necessarily compromising long-term returns.

Sectors Info

  • Technology
    39%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Health Care
    10%
  • Financials
    9%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

The sector allocation is heavily weighted towards technology, consumer cyclicals, and communication services, which are sectors that typically offer high growth potential. However, this concentration increases susceptibility to sector-specific risks. Broadening exposure to include more defensive sectors like healthcare or utilities could provide balance, especially during economic downturns or sector rotations.

Regions Info

  • North America
    100%

With 100% of assets allocated to North America, your portfolio lacks international diversification. This concentration in the U.S. market can expose you to region-specific risks and volatility. Incorporating investments from developed and emerging markets outside the U.S. could offer growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    2%

The focus on mega and large-cap companies (81% combined) is consistent with the portfolio's growth and stability objectives. However, the limited exposure to medium and small-cap stocks (19% combined) may mean missing out on the higher growth potential these companies can offer. Increasing exposure to smaller companies could enhance returns, albeit with higher risk.

Redundant positions Info

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

The high correlation between the Vanguard S&P 500 ETF and the Schwab U.S. Large-Cap Growth ETF indicates overlapping holdings that contribute little to diversification. This redundancy can amplify risks during market downturns. Reallocating funds from one of these ETFs into assets with lower correlation could improve portfolio resilience.

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 optimizing for the Efficient Frontier, which aims to maximize returns for a given level of risk, it's advisable to address the high correlation between your ETFs. This process involves identifying and potentially reducing overlapping investments to enhance diversification. By doing so, you can achieve a more efficient risk-return profile, even within the constraints of a growth-focused strategy.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.16%

The portfolio's overall dividend yield of 1.16% adds an income component to your growth-focused strategy. While the yield is modest, it can provide a steady income stream and potential tax advantages. Considering the low yield from growth-oriented assets, the allocation to a dividend equity ETF helps balance income generation with capital appreciation.

Ongoing product costs Info

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

The overall portfolio cost, represented by a Total Expense Ratio (TER) of 0.04%, is impressively low, which is beneficial for long-term performance. Keeping costs minimal is crucial in maximizing net returns, especially in a growth-oriented portfolio where compound growth plays a significant role.

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