A focused strategy with high allocation to US dividend and growth stocks

Report created on Jul 31, 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 is highly concentrated in two ETFs focusing on U.S. dividend equity and large-cap growth, with a 60/40 split respectively. Such a composition indicates a preference for established, large-cap U.S. companies, potentially offering a blend of growth and income. However, this concentration also suggests limited diversification across asset classes and geographies, with a complete focus on stocks and a significant lean towards North American markets.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.50%, with a maximum drawdown of -32.59%. These figures highlight a strong performance trend, albeit with significant volatility as evidenced by the drawdown. The days contributing to 90% of returns being concentrated in just 33 days indicate that much of the portfolio's gains can be attributed to short, sharp market movements, underscoring the importance of timing in this investment strategy.

Projection Info

The Monte Carlo simulation, based on 1,000 runs, suggests a wide range of outcomes but with a strong skew towards positive returns, as 995 simulations ended up in the green. The median outcome of a 555.5% return is impressive, yet it's crucial to remember that such simulations are based on historical data, which is not a reliable predictor of future performance. They do, however, offer a broad sense of potential volatility and reward.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, there's a clear emphasis on capital growth over income or preservation of capital. This all-equity strategy is suitable for investors with a higher risk tolerance but might not be appropriate for those seeking regular income or with a shorter investment horizon. The absence of other asset classes like bonds or real estate limits the portfolio's ability to hedge against stock market volatility.

Sectors Info

  • Technology
    27%
  • Health Care
    13%
  • Energy
    12%
  • Consumer Staples
    12%
  • Consumer Discretionary
    11%
  • Financials
    8%
  • Telecommunications
    8%
  • Industrials
    8%
  • Basic Materials
    2%

The sectoral allocation shows a heavy tilt towards technology, healthcare, and energy, mirroring some of the most dynamic segments of the U.S. economy. While this can offer significant growth opportunities, it also exposes the portfolio to sector-specific risks. The underrepresentation of sectors like utilities and real estate further emphasizes the growth-focused nature of this investment strategy.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

With 99% of assets in North America, the portfolio's geographic exposure is highly concentrated. This focus on developed markets, particularly the U.S., can offer stability and access to some of the world's largest companies. However, it also means missing out on potential growth opportunities and diversification benefits that emerging markets might offer.

Market capitalization Info

  • Large-cap
    44%
  • Mega-cap
    26%
  • Mid-cap
    24%
  • Small-cap
    4%
  • Micro-cap
    1%

The allocation across market capitalizations shows a balanced mix of big, mega, and medium-sized companies, with a small portion in small and micro caps. This blend can provide a good balance between stability offered by large companies and growth potential from smaller ones. However, the limited exposure to smaller companies might reduce the portfolio's overall growth potential.

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 current allocation suggests a focus on maximizing returns through a blend of dividend-paying and growth-oriented stocks. While the Efficient Frontier concept would recommend diversification to optimize the risk-return ratio, the portfolio's current setup is designed for those comfortable with higher risk levels for potentially higher returns. Adjusting the allocation could improve diversification without necessarily sacrificing returns, but it would require introducing new asset classes or geographic regions.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 2.44%

The dividend yield of 2.44% combines growth potential with income generation, suitable for investors looking for a balance between the two. The higher yield from the dividend equity ETF provides a steady income stream, while the lower yield from the large-cap growth ETF reflects its growth orientation. This setup can be appealing for those seeking both capital appreciation and income.

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%

With a total expense ratio (TER) of only 0.05%, the portfolio is extremely cost-efficient, maximizing the potential for net returns. Low costs are crucial for long-term investment success, as they compound over time, and this portfolio benefits from being positioned well below industry average costs.

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