Growth-focused portfolio with a strong tilt towards technology and large-cap stocks

Report created on Jun 7, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio is heavily weighted towards Exchange-Traded Funds (ETFs) focused on U.S. large-cap growth stocks, technology, and the S&P 500, comprising 80% of the allocation. The remaining 20% is invested in a U.S. dividend equity ETF. This composition indicates a growth-oriented strategy with a significant emphasis on technology and large-cap companies. While the focus on ETFs suggests an attempt at diversification, the heavy concentration in similar sectors and asset classes limits the portfolio's overall diversity.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.04%, with a maximum drawdown of -32.75%. These figures highlight a strong performance with significant volatility. The days contributing to 90% of the returns number just 34, illustrating that the portfolio's gains are concentrated in short, strong bursts of market performance. This pattern is typical for growth-oriented investments, especially those with a heavy tech sector weighting.

Projection Info

Monte Carlo simulations, based on historical data, project a wide range of outcomes for this portfolio. With 992 out of 1,000 simulations showing positive returns, the median projected growth is substantial. However, it's important to note that these simulations, while useful for understanding potential variability, cannot predict future market conditions. The high degree of positive simulations underscores the portfolio's growth potential but also emphasizes the need for caution given the inherent uncertainties in market behavior.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocation to bonds, real estate, or other asset classes. This singular focus on equities, particularly within specific sectors, enhances the portfolio's growth prospects but also increases its risk profile. Diversification across different asset classes could provide a buffer against stock market volatility, potentially smoothing out returns over time.

Sectors Info

  • Technology
    46%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Financials
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Industrials
    6%
  • Energy
    5%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

The sector allocation is heavily skewed towards technology, which makes up nearly half of the portfolio. Other significant allocations include consumer cyclicals, healthcare, and financial services. This concentration in tech and growth sectors can lead to higher volatility, especially during market downturns or sector-specific shocks. Diversifying across a broader range of sectors could mitigate some of this risk.

Regions Info

  • North America
    100%

Geographically, the portfolio is entirely invested in North America, with no exposure to international markets. This geographic concentration increases the portfolio's vulnerability to regional economic shifts and misses out on potential growth opportunities in emerging and developed markets outside of North America.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown reveals a strong preference for mega and big-cap stocks, which constitute 77% of the allocation. While these companies generally offer more stability than their smaller counterparts, the portfolio's limited exposure to mid, small, and micro-cap stocks may restrict its potential for higher returns, as smaller companies often outperform larger ones in bull markets.

Redundant positions Info

  • Vanguard Information Technology Index Fund ETF Shares
    Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the ETFs focused on U.S. large-cap growth, technology, and the S&P 500 indicates a redundancy that diminishes the portfolio's diversification benefits. This overlap suggests that the portfolio could be exposed to amplified losses during market downturns in these sectors.

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 presence of highly correlated assets suggests an opportunity for optimization by reducing overlap. This adjustment could enhance the portfolio's diversification without necessarily compromising its growth objectives. By reallocating some of the funds from overlapping ETFs into less correlated assets or sectors, the investor could achieve a more balanced risk-return profile.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 4.00%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.30%
  • Weighted yield (per year) 1.41%

The dividend yield of the portfolio averages 1.41%, with the highest yield coming from the Schwab U.S. Dividend Equity ETF. While dividends contribute to the portfolio's total return, the overall low yield reflects the growth-focused nature of the allocation, where capital appreciation is prioritized over income.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from low total expense ratios (TER), averaging 0.05% across all holdings. This efficient cost structure is commendable, as lower costs can significantly enhance long-term returns by minimizing the drag on performance.

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