Growth-focused portfolio with high exposure to US large-cap stocks and low diversification

Report created on Jun 27, 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 predominantly invests in US large-cap stocks through three ETFs, with a heavy allocation towards the SPDR® Portfolio S&P 500 ETF, Schwab U.S. Dividend Equity ETF, and Schwab U.S. Large-Cap Growth ETF. This setup reflects a clear growth orientation, focusing on established companies within the S&P 500. However, its diversification is low, concentrating risk in the performance of the US stock market and limiting exposure to international markets and other asset classes.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.73%, with a maximum drawdown of -33.10%. This performance indicates a strong growth trajectory but also highlights periods of significant volatility. The reliance on a few sectors and large-cap stocks may contribute to these swings, suggesting a need for broader diversification to mitigate risks during market downturns.

Projection Info

Monte Carlo simulations, projecting future performance based on historical data, suggest a wide range of outcomes with a median increase of 560.2%. While these simulations show a high likelihood of positive returns, they also underscore the portfolio's risk level, given its growth profile. It's crucial to remember that such projections are not guarantees of future performance and depend heavily on past market behavior.

Asset classes Info

  • Stocks
    100%

The portfolio's assets are entirely in stocks, with no allocation to bonds, cash, or alternative investments. This allocation supports its growth profile but increases volatility and risk, especially during market downturns. Diversifying across asset classes could provide a buffer against stock market fluctuations and contribute to more stable long-term returns.

Sectors Info

  • Technology
    31%
  • Consumer Discretionary
    11%
  • Health Care
    11%
  • Financials
    10%
  • Telecommunications
    9%
  • Consumer Staples
    9%
  • Industrials
    8%
  • Energy
    8%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation is heavily weighted towards technology, consumer cyclicals, and healthcare, reflecting a growth-oriented strategy. However, this concentration can expose the portfolio to sector-specific risks. Diversifying across a broader range of sectors could reduce volatility and improve resilience to sector-specific downturns.

Regions Info

  • North America
    100%

Geographic exposure is entirely focused on North America, missing out on potential growth opportunities in developed and emerging markets outside the US. This lack of international diversification can limit the portfolio's growth potential and increase its vulnerability to US market downturns.

Market capitalization Info

  • Large-cap
    38%
  • Mega-cap
    38%
  • Mid-cap
    21%
  • Small-cap
    3%

The portfolio is balanced between big and mega-cap stocks, with a smaller allocation to medium and very little in small caps. This focus on larger companies aligns with its growth and stability goals but may miss out on the higher growth potential of smaller 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.

Regarding risk vs. return optimization, the current allocation suggests room for improvement. By diversifying more broadly across asset classes, sectors, and geographies, the portfolio could achieve a more favorable position on the Efficient Frontier, enhancing the risk-return profile without necessarily sacrificing growth potential.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 0.90%
  • Weighted yield (per year) 1.65%

The portfolio generates a modest dividend yield, contributing to its total return. The Schwab U.S. Dividend Equity ETF, with a yield of 3.90%, significantly boosts the portfolio's income component. Balancing growth and income-focused investments can provide a more diversified income stream and support total returns.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Weighted costs total (per year) 0.04%

With an average total expense ratio (TER) of 0.04%, the portfolio benefits from low costs, enhancing net returns over the long term. This efficient cost structure is commendable, as lower costs directly translate to better performance by reducing the drag on investment returns.

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