A growth-focused portfolio with high tech exposure and dividend income potential
Report created on Dec 1, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 50.00% -
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 50.00%
This portfolio is characterized by a 50-50 split between the Schwab U.S. Dividend Equity ETF and the Vanguard Information Technology Index Fund ETF Shares, indicating a blend of growth and income-focused strategies. The concentration in technology (54%) through the Vanguard ETF, coupled with the broad market exposure of the Schwab ETF, suggests an aggressive growth orientation. However, the portfolio's low diversity score reflects a significant concentration risk, particularly within the technology sector and North American markets.
Growth
With a Compound Annual Growth Rate (CAGR) of 17.59% and a maximum drawdown of -32.22%, the portfolio has demonstrated strong growth potential, albeit with significant volatility. The days contributing most to returns highlight its susceptibility to market swings. This performance, while impressive, underscores the importance of understanding the inherent risks and the potential for wide fluctuations in value.
Projection
Monte Carlo simulations, running 1,000 scenarios, project a wide range of outcomes with an average annualized return of 19.14%. The 50th percentile outcome suggests a potential 805% return, highlighting the portfolio's growth prospects. However, the broad range between the 5th and 67th percentiles indicates substantial uncertainty, underscoring the importance of risk tolerance in such growth-oriented investments.
Asset classes
- Stocks 100%
The portfolio's allocation is entirely in stocks, with no presence in other asset classes like bonds or real estate. This singular focus on equities enhances growth potential but also increases volatility and risk, particularly in market downturns. Diversifying across different asset classes can provide a buffer against stock market fluctuations.
Sectors
- Technology 54%
- Energy 10%
- Consumer Staples 9%
- Health Care 9%
- Industrials 5%
- Consumer Discretionary 5%
- Financials 5%
- Telecommunications 3%
- Basic Materials 1%
The technology sector's dominance, at 54%, aligns with the portfolio's growth profile but introduces sector-specific risks, such as regulatory changes or tech market downturns. The presence of defensive sectors like consumer defensive and healthcare offers some balance, yet the overall sectoral spread still leans heavily towards high volatility areas.
Regions
- North America 99%
- Europe Developed 1%
With 99% of assets allocated to North America, the portfolio's geographic exposure is highly concentrated, limiting its global diversification. This concentration can amplify region-specific risks, such as economic downturns or political instability in North America. Expanding into other developed or emerging markets could mitigate some of these risks.
Market capitalization
- Large-cap 42%
- Mega-cap 25%
- Mid-cap 22%
- Small-cap 8%
- Micro-cap 2%
The mix of big (42%), mega (25%), and medium (22%) cap stocks provides a foundation of stability and growth potential. However, the modest allocation to small (8%) and micro (2%) caps suggests room for enhanced diversification and potential for higher returns, albeit with increased 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.
Considering the Efficient Frontier, this portfolio's current allocation suggests a focus on maximizing returns, possibly at the expense of higher volatility. Adjusting the asset allocation to include a broader range of asset classes and sectors could achieve a more optimal risk-return balance, aligning closer to the Efficient Frontier.
Dividends
- Schwab U.S. Dividend Equity ETF 3.70%
- Vanguard Information Technology Index Fund ETF Shares 0.40%
- Weighted yield (per year) 2.05%
The portfolio's total dividend yield of 2.05% combines growth with income, offering a steady income stream through the Schwab U.S. Dividend Equity ETF's 3.70% yield. This is balanced against the lower yield (0.40%) from the Vanguard Information Technology Index Fund ETF Shares, reflecting the trade-off between growth and income.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Weighted costs total (per year) 0.08%
With a total Expense Ratio (TER) of 0.08%, the portfolio benefits from low costs, enhancing long-term return potential. Lower costs mean more of the portfolio's returns are retained by the investor, a crucial factor in compounding growth over time.
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