A growth-focused portfolio with a strong tilt towards technology and large-cap stocks
Report created on Aug 2, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 47.77% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 32.99% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 19.24%
This portfolio predominantly invests in equities, with a significant emphasis on the US market, evidenced by a 47.77% allocation to the Vanguard Total Stock Market Index Fund ETF Shares and a 32.99% stake in the Schwab U.S. Large-Cap Growth ETF. The international exposure, though less pronounced, is maintained through a 19.24% investment in the Vanguard Total International Stock Index Fund ETF Shares. Such a composition underlines a growth-oriented strategy with a broad diversification across sectors and geographies, albeit with a heavy tilt towards North America and the technology sector.
Growth
The portfolio has shown a robust Compound Annual Growth Rate (CAGR) of 13.91%, with a maximum drawdown of -33.80%, indicating a relatively high risk but rewarding investment approach. The performance is further highlighted by the fact that a significant portion of returns came from a limited number of days, emphasizing the importance of staying invested over the long term to capture peak market movements.
Projection
Monte Carlo simulations, using historical data to forecast potential future outcomes, suggest a wide range of scenarios for this portfolio. With the 50th percentile projecting a 418.7% increase, it underscores the potential for substantial growth. However, the presence of a 5th percentile at a 50.4% increase also indicates considerable risk, illustrating the variability inherent in growth-focused investments.
Asset classes
- Stocks 99%
- Cash 1%
The allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%), reflecting a strategy geared towards capital appreciation over liquidity or income. Such a concentration in equities is typical for growth-oriented investors who are willing to accept higher volatility for the potential of greater long-term returns.
Sectors
- Technology 34%
- Financials 14%
- Consumer Discretionary 11%
- Telecommunications 10%
- Health Care 9%
- Industrials 9%
- Consumer Staples 4%
- Basic Materials 3%
- Energy 3%
- Real Estate 2%
- Utilities 2%
The sector allocation is notably heavy in technology (34%), followed by financial services (14%) and consumer cyclicals (11%), which aligns with a growth investment strategy, aiming for high returns through sectors with significant growth potential. However, this concentration increases susceptibility to sector-specific risks, particularly in the technology sector, which can be highly volatile.
Regions
- North America 82%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the portfolio is heavily weighted towards North America (82%), with modest allocations to developed Europe (8%) and emerging Asia (3%). This geographic distribution reflects a preference for the stability and growth potential of the US market but may underrepresent the diversification benefits and growth opportunities available in emerging markets and other developed regions.
Market capitalization
- Mega-cap 50%
- Large-cap 28%
- Mid-cap 16%
- Small-cap 4%
- Micro-cap 1%
The market capitalization breakdown shows a preference for mega (50%) and big (28%) cap stocks, indicative of a strategy favoring established, large companies known for their stability and potential for steady growth. However, the limited exposure to small (4%) and micro (1%) cap stocks suggests a missed opportunity for higher growth, albeit at increased risk.
Redundant positions
-
High correlationSchwab U.S. Large-Cap Growth ETFVanguard Total Stock Market Index Fund ETF Shares
The high correlation between the Vanguard Total Stock Market Index Fund ETF Shares and the Schwab U.S. Large-Cap Growth ETF indicates overlapping investments that may not contribute to diversification. Diversification benefits are limited when portfolio assets move in tandem, as this does not effectively spread 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.
Optimizing the portfolio involves addressing the high correlation between certain assets to enhance diversification benefits. By reallocating funds from overlapping investments into areas with lower correlation, the portfolio can achieve a more efficient risk-return profile, potentially moving closer to the Efficient Frontier, where the highest possible return is achieved for a given level of risk.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.90%
- Weighted yield (per year) 1.26%
The portfolio's dividend yield stands at an overall 1.26%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares at 2.90%. This yield contributes to the portfolio's total return, providing a source of income alongside capital appreciation, albeit the focus remains on growth rather than income generation.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
The portfolio benefits from low total expense ratios (TER), averaging 0.04%, which is favorable for long-term growth. Lower costs translate directly into higher net returns for investors, emphasizing the portfolio's efficient design in terms of cost management.
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