Growth-focused portfolio with heavy reliance on US large-cap stocks and minimal international exposure

Report created on Aug 8, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is highly concentrated, with 96.19% in the Vanguard S&P 500 ETF, 3.80% in the Schwab U.S. Large-Cap Growth ETF, and a negligible 0.01% in the Invesco S&P International Developed Momentum ETF. This composition indicates a strong focus on U.S. large-cap stocks, offering limited diversification across geographies and asset classes. The portfolio's diversification score is low, reflecting its concentrated nature and potential vulnerability to market fluctuations within the U.S. equity market.

Growth Info

Historically, the portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 19.87%. However, it's important to note that past performance is not indicative of future results. The maximum drawdown of -33.91% highlights the portfolio's susceptibility to significant declines during market downturns. The concentration in large-cap U.S. equities has contributed to these returns but also poses a risk of volatility.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, show a wide range of potential returns, with the median outcome suggesting a significant increase. However, these projections should be approached with caution, as they are based on past performance and cannot account for unforeseen market changes. The high correlation between assets indicates a need for diversification to mitigate risk.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to cash or other asset classes. This singular focus on equities enhances growth potential but also increases risk, particularly in volatile markets. Diversifying across different asset classes can provide a buffer against stock market downturns and contribute to more stable long-term returns.

Sectors Info

  • Technology
    34%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    10%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation is heavily weighted towards technology, financial services, and consumer cyclicals. While this has likely contributed to the portfolio's strong historical performance, given the growth in these sectors, it also increases vulnerability to sector-specific downturns. Diversification across a broader range of sectors could reduce risk and smooth out returns over time.

Regions Info

  • North America
    99%

The portfolio's geographic allocation is almost exclusively North American, with a negligible international exposure. This concentration in a single region can limit opportunities for growth in emerging markets and increase sensitivity to U.S. economic conditions. Expanding geographic exposure could enhance returns and reduce risk through global diversification.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    1%

The focus on mega and big-cap stocks (81% combined) aligns with the portfolio's growth profile but may miss opportunities in smaller companies, which can offer higher growth potential. Including medium, small, and possibly micro-cap stocks could enhance returns and diversification.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Schwab U.S. Large-Cap Growth ETF indicates overlapping investments that do not contribute to diversification. Reducing exposure to similar assets can decrease the portfolio's volatility and improve its risk-adjusted returns.

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.

Optimizing the portfolio involves reducing highly correlated assets to improve diversification. This can enhance the risk-return profile by including assets with different performance patterns, thereby reducing overall portfolio volatility and improving the chances of achieving long-term financial goals.

Dividends Info

  • Invesco S&P International Developed Momentum ETF 2.00%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.17%

The portfolio's dividend yield is modest, reflecting its growth orientation. While dividends contribute to total returns, the primary focus appears to be on capital appreciation. Investors seeking income might consider increasing exposure to assets with higher dividend yields.

Ongoing product costs Info

  • Invesco S&P International Developed Momentum ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.03%

The portfolio's costs are low, with a total expense ratio (TER) of 0.03%, which is favorable for long-term growth. Low costs are crucial for maximizing returns, especially in a growth-focused portfolio where every percentage point counts towards compounding gains.

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