Broad low-cost stock portfolio with a strong US tilt and balanced style characteristics
Report created on Aug 11, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
SW Schwab S&P 500 Index Fund
SWPPX - US8085098551 60.00% -
SC Schwab International Equity ETF
SCHF - US8085248057 15.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 15.00% -
SC Schwab Emerging Markets Equity ETF
SCHE - US8085247067 10.00%
This portfolio is a straightforward stock-only mix built from four broad funds. Around 60% sits in a total US large-cap index, 15% in a dedicated US large-cap growth fund, 15% in developed international stocks, and 10% in emerging markets. That means most of the weight is in large, established companies, with some allocation to overseas and faster-growing regions. A structure like this is easy to understand because each fund has a clear role: core US exposure, extra growth tilt, and global diversification. With a risk score of 5/7, it leans clearly toward growth, so the main driver of returns and ups-and-downs is the stock market rather than bonds or cash.
Growth
From 2016-08-15 to 2026-08-04, a $1,000 hypothetical investment grew to about $3,911, which is a compound annual growth rate (CAGR) of 14.7%. CAGR is like your average speed on a long road trip, smoothing out the bumps along the way. Over this period, the portfolio slightly lagged the US market but clearly beat the global market benchmark, showing that its US tilt helped. The worst drop, or max drawdown, was around -33% during early 2020, similar to both benchmarks, and it recovered within a few months. This shows strong long-term growth but also confirms that deep short-term declines are part of its behavior. Past results, of course, don’t guarantee anything going forward.
Projection
The Monte Carlo projection looks at thousands of possible 15-year paths using historical patterns to estimate future ranges. Think of it as running the same movie many times with small variations to see different endings. The median outcome grows $1,000 to around $2,757, with most simulations landing between about $1,824 and $4,072. There’s roughly a 74% chance of ending with more than you started, and the average simulated annual return is about 7.8%. These ranges highlight that outcomes can vary widely even with the same starting portfolio. Importantly, Monte Carlo models rely on past volatility and returns, so they’re rough planning tools, not forecasts or promises.
Asset classes
- Stocks 100%
All of this portfolio is invested in stocks, with 0% in bonds, cash, or alternative assets. That creates a very clear risk profile: high exposure to the growth of companies and the global economy, but also to stock market downturns. In calmer times, a stock-only mix can compound quickly; in sharp selloffs, there’s no built-in cushion from more stable assets. Compared with many blended portfolios that mix stocks and bonds, this one is intentionally more aggressive. The upside is participation in equity growth worldwide. The trade-off is that portfolio value can swing significantly in either direction, especially over shorter periods, until stock markets stabilize again.
Sectors
- Technology 35%
- Financials 14%
- Industrials 9%
- Telecommunications 9%
- Health Care 8%
- Consumer Discretionary 6%
- Consumer Staples 4%
- Consumer Discretionary 4%
- Energy 3%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector-wise, the portfolio is clearly tech-leaning, with technology around 35%, ahead of other areas like financials, industrials, and telecoms. That tech concentration is quite typical for modern broad equity funds, since tech-related companies have grown large and influential in global indexes. This kind of tilt often helps during periods when innovation and digital businesses are driving markets, but it can also mean sharper moves when interest rates are rising or when sentiment turns against growth and tech names. The rest of the sectors are reasonably spread out, so while technology is the standout, there is still exposure to more defensive areas like health care and consumer staples.
Regions
- North America 76%
- Europe Developed 8%
- Asia Emerging 5%
- Asia Developed 5%
- Japan 3%
- Africa/Middle East 1%
- Australasia 1%
- Latin America 1%
Geographically, about 76% of the portfolio is in North America, mainly the US, with the rest spread across developed Europe, Japan, other developed Asia, and emerging markets. That’s a noticeable US tilt compared with many global benchmarks, where the US usually sits closer to 60%. This tilt has been beneficial over the past decade because US stocks have generally outperformed many regions. At the same time, it means portfolio results are heavily tied to the US economy, policy, and currency. The non-US slice still adds diversification, giving exposure to different growth drivers and interest-rate environments that don’t always move in lockstep with the US.
Market capitalization
- Mega-cap 48%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 1%
By market cap, the portfolio is dominated by mega-cap and large-cap companies, together making up about 81%, with mid-caps at 17% and a small slice in small-caps. Market capitalization is just the total value of a company’s shares, and larger companies tend to be more stable and widely followed. A large-cap-heavy mix often experiences smoother rides than a portfolio packed with small, more volatile firms. The modest mid- and small-cap exposure still brings some extra growth potential and diversification, but the behavior will mainly resemble broad, big-company stock indexes rather than a more adventurous small-cap strategy.
True holdings
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23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.64%
Part of fund(s):- Schwab Emerging Markets Equity ETF
-
NV NVIDIA Corporation 1.62%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AA Apple Inc. 1.37%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 1.11%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 0.80%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class A 0.62%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AV Broadcom Inc 0.60%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class C 0.50%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
LL Eli Lilly and Company 0.45%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
ME Meta Platforms Inc. 0.39%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Top 10 total 9.10%
Looking through to the biggest underlying holdings, many of the top exposures are well-known global giants like Taiwan Semiconductor, NVIDIA, Apple, Microsoft, Amazon, and Alphabet. These show up across multiple funds, especially the US index and large-cap growth ETF, so there is some overlap even though each fund looks diversified on its own. Because only ETF top-10 lists are used, this overlap is probably underestimated. The main takeaway is that a portion of the portfolio’s risk and return is driven by a relatively small group of mega-cap leaders. That’s very typical for index-based portfolios today, not necessarily a concern, just useful to be aware of.
Factors
Factor exposure here is very balanced, with all six factors — value, size, momentum, quality, low volatility, and yield — sitting in the neutral, market-like range. Factors are just characteristics that help explain why groups of stocks behave the way they do, like preferring cheap stocks (value) or stable ones (low volatility). A neutral profile means this portfolio is behaving much like the overall global equity market rather than making big bets on any particular style. In practice, this helps avoid strong style-driven swings, such as value booms or growth crashes, because it isn’t heavily tilted to or away from any one of these long-term drivers.
Risk contribution
-
Schwab S&P 500 Index Fund
Weight: 60.00% 60.7% -
Schwab U.S. Large-Cap Growth ETF
Weight: 15.00% 17.5% -
Schwab International Equity ETF
Weight: 15.00% 13.0% -
Schwab Emerging Markets Equity ETF
Weight: 10.00% 8.9%
Risk contribution tells you how much each holding adds to total ups and downs, which can differ from its weight. Here, the S&P 500 fund is 60% of the portfolio but contributes about 61% of the risk, which is very proportional. The US large-cap growth ETF at 15% weight contributes about 17.5% of the risk, a bit more than its size, reflecting growth stocks’ higher volatility. The international and emerging markets funds each contribute slightly less risk than their weights. Overall, the top three holdings drive about 91% of total risk, which matches the concentrated allocation but doesn’t show any single fund dominating risk beyond expectations.
Redundant positions
-
High correlationSchwab S&P 500 Index FundSchwab U.S. Large-Cap Growth ETF
The correlation data highlight that the US large-cap growth ETF and the S&P 500 fund move almost identically. Correlation measures how often two investments move together; when it’s very high, they tend to go up and down at the same time. That makes sense here because both are heavily tied to big US companies, with a lot of overlapping names. From a diversification angle, this means the separate growth fund amplifies your exposure to the same broad US equity engine rather than giving a very different risk pattern. Diversification benefits are more likely to come from the international and emerging markets positions.
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.
On the efficient frontier chart, the current portfolio sits on or very close to the frontier, which means that, given these four holdings, the mix is using risk efficiently. The efficient frontier is just the curve showing the best expected return for each risk level using different weight combinations. The current Sharpe ratio — a measure of return per unit of risk — is 0.62, compared with 0.85 for the optimal mix and 0.68 for the minimum-variance version. While there is a theoretical blend that offers better risk-adjusted returns, the existing allocation already lines up closely with what’s considered efficient for its chosen risk level.
Dividends
- Schwab Emerging Markets Equity ETF 2.60%
- Schwab International Equity ETF 3.00%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Schwab S&P 500 Index Fund 1.00%
- Weighted yield (per year) 1.37%
The overall dividend yield is about 1.37%, with the international and emerging markets funds paying the highest yields and the US large-cap growth ETF paying the lowest. Dividend yield is simply the annual cash payout as a percentage of the fund’s price. In this portfolio, income is modest because growth-oriented US stocks tend to reinvest profits rather than distribute them. Most of the long-term return here is expected to come from price appreciation rather than high ongoing cash payouts. That’s very typical for growth-tilted equity portfolios and lines up with the focus on capital growth rather than steady income.
Ongoing product costs
- Schwab Emerging Markets Equity ETF 0.11%
- Schwab International Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Schwab S&P 500 Index Fund 0.02%
- Weighted costs total (per year) 0.04%
Total ongoing costs, measured by TER (Total Expense Ratio), are very low at around 0.04% per year. TER is the annual fee charged by funds as a percentage of assets, quietly reducing returns over time. Here, each fund is priced efficiently, and the combined cost is impressively low compared with many active or niche strategies. Over long periods, even small fee differences compound, so starting with a near-rock-bottom fee level gives more of the portfolio’s gross return back to the investor. This cost profile is a clear strength and supports better long-term compounding without requiring any extra effort or oversight.
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