Growth-oriented portfolio with high concentration in large-cap technology stocks and minimal diversification

Report created on Aug 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio exhibits a strong focus on growth, with 80% allocated to a U.S. Large-Cap Growth ETF and 15% in a single common stock, Hims & Hers Health Inc. The remaining 5% is invested in a U.S. Dividend Equity ETF. Such a composition indicates a preference for growth over diversification, as evidenced by the significant concentration in a few large-cap stocks and sectors, particularly technology. This approach aligns with the portfolio's growth profile but carries higher volatility and risk due to its low diversification score.

Growth Info

Historical performance showcases a Compound Annual Growth Rate (CAGR) of 26.41%, which is impressive but comes with a maximum drawdown of -34.80%. These figures suggest that while the portfolio has experienced significant growth, it has also faced substantial volatility. The days contributing to 90% of returns being limited to 23 indicates that a small number of exceptionally positive trading days have driven most of the portfolio's gains, underscoring the risk of relying on sporadic growth spurts.

Projection Info

Forward projections based on Monte Carlo simulations, with a median projected growth of 1,285.1% and a positive return in 927 out of 1,000 simulations, suggest strong growth potential. However, the wide range between the 5th percentile (a significant loss) and higher percentiles underscores the high risk and volatility associated with this portfolio. While the projections are promising, they rely on historical data, which does not guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no exposure to other asset classes such as bonds or real estate. This singular focus on equities enhances growth potential but also increases susceptibility to market fluctuations. Incorporating a variety of asset classes can mitigate risk and provide more stable returns over time, especially in turbulent markets.

Sectors Info

  • Technology
    41%
  • Consumer Staples
    17%
  • Telecommunications
    11%
  • Consumer Discretionary
    10%
  • Health Care
    7%
  • Financials
    6%
  • Industrials
    4%
  • Energy
    2%
  • Basic Materials
    1%

Sector allocation is heavily weighted towards technology, comprising 41% of the portfolio. This concentration in a single sector, along with significant investments in consumer defensive and communication services, increases exposure to sector-specific risks. Diversifying across a broader range of sectors could reduce volatility and improve the portfolio's resilience to sector-specific downturns.

Regions Info

  • North America
    100%

Geographic exposure is limited to North America, excluding international markets. This geographic concentration may limit growth opportunities and increase vulnerability to regional economic fluctuations. Expanding into developed European or emerging markets could offer additional growth prospects and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    35%
  • Mid-cap
    11%
  • Small-cap
    1%

The portfolio's market capitalization exposure is predominantly in mega (52%) and big (35%) cap stocks, with minimal allocation to medium, small, and micro-cap stocks. This bias towards larger companies aligns with the portfolio's growth and risk profile but may limit potential upside from smaller, high-growth companies.

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.

Considering the Efficient Frontier, this portfolio could potentially optimize its risk-return profile by adjusting its asset allocation. While its current composition has favored growth, diversifying across different asset classes, sectors, and geographies could achieve a more efficient balance between risk and return, enhancing long-term outcomes without significantly increasing risk.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 0.50%

The dividend yield of the portfolio is relatively low at 0.50%, with a significant portion of income stemming from the Schwab U.S. Dividend Equity ETF. While the focus on growth stocks typically comes with lower dividend yields, incorporating higher-yielding assets could provide a steady income stream and reduce volatility.

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) 0.04%

The portfolio benefits from low costs, with a total expense ratio (TER) of 0.04%. This efficient cost structure supports better long-term performance by minimizing the drag on returns. Maintaining low costs is crucial for enhancing net returns, especially in a growth-oriented portfolio.

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