A growth-focused portfolio with high exposure to large-cap stocks and technology sector
Report created on Jul 9, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 79.86% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 20.14%
This portfolio is heavily concentrated, with 79.86% allocated to a U.S. Large-Cap Growth ETF and 20.14% in a U.S. Dividend Equity ETF. Both ETFs are focused on the U.S. market, leading to a low diversification score. The overwhelming emphasis on large-cap stocks, particularly in the technology sector, indicates a growth-oriented strategy but introduces significant sector-specific and market concentration risks.
Growth
Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.58%, with a maximum drawdown of -32.45%. These figures suggest robust growth potential but also highlight periods of significant volatility. The days contributing to 90% of returns being concentrated in just 34 days underscores the portfolio's reliance on sharp, short-term gains, which could be unsettling for those averse to volatility.
Projection
Using Monte Carlo simulations, the portfolio's future performance shows a wide range of outcomes, with a median 50th percentile increase of 510.9% over the simulation period. While 995 out of 1,000 simulations resulted in positive returns, indicating a high likelihood of growth, the broad spread between the 5th and 67th percentiles (87.8% to 762.0%) illustrates potential volatility and uncertainty in future returns.
Asset classes
- Stocks 100%
The portfolio's assets are entirely in stocks, with no allocation to bonds, cash, or alternative investments. This singular focus on equities maximizes growth potential but also increases risk, particularly in market downturns. Diversifying across different asset classes could provide a buffer against volatility.
Sectors
- Technology 41%
- Consumer Discretionary 12%
- Telecommunications 12%
- Health Care 10%
- Financials 7%
- Industrials 5%
- Consumer Staples 5%
- Energy 5%
- Basic Materials 2%
With 41% of the portfolio in technology, followed by consumer cyclicals and communication services, the sector allocation underscores a strong growth focus. However, this concentration can lead to increased volatility, especially given the tech sector's sensitivity to interest rate changes and economic cycles.
Regions
- North America 100%
The geographic allocation is entirely to North America, missing out on potential growth and diversification benefits from developed and emerging markets outside the U.S. This geographic concentration increases exposure to U.S.-specific economic and political risks.
Market capitalization
- Mega-cap 51%
- Large-cap 30%
- Mid-cap 17%
- Small-cap 2%
The portfolio's market capitalization focus is on mega (51%) and big (30%) cap stocks, with minimal exposure to medium, small, and micro caps. This allocation supports the portfolio's growth orientation but limits opportunities for outsized returns from smaller companies and emerging industries.
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 portfolio's current composition, optimizing for the Efficient Frontier could involve diversifying across more asset classes and geographic regions to improve the risk-return profile. While the portfolio shows strong growth potential, its heavy concentration in U.S. large-cap stocks, particularly in the technology sector, suggests room for strategic reallocation to achieve a more balanced risk-reward ratio.
Dividends
- Schwab U.S. Dividend Equity ETF 3.80%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 1.08%
The dividend yield of the portfolio averages to 1.08%, with the U.S. Dividend Equity ETF contributing a higher yield of 3.80% compared to the Large-Cap Growth ETF's 0.40%. While dividends contribute to total returns, the portfolio's primary focus is clearly on capital appreciation rather than income generation.
Ongoing product costs
- 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 management costs, with a Total Expense Ratio (TER) of just 0.04%. This cost efficiency is commendable and supports better net performance over the long term by minimizing the drag on returns due to fees.
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