Growth-focused portfolio with heavy tech exposure and a solid dividend foundation

Report created on Jul 9, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in three ETFs, with a significant emphasis on technology through the VanEck Semiconductor ETF and a strong foundation in dividend-paying stocks via the Schwab U.S. Dividend Equity ETF. The inclusion of the Schwab U.S. Large-Cap Growth ETF indicates a focus on growth-oriented large-cap companies. The heavy allocation to just three ETFs suggests a moderately diversified approach, leaning heavily on the tech sector and large-cap stocks, which could influence volatility and return profiles.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 18.67% and a maximum drawdown of -33.29%, the portfolio has shown robust growth with significant volatility. The days contributing to 90% of returns are relatively few, indicating that the portfolio's performance is heavily reliant on strong market days. This performance pattern underscores the growth-oriented and potentially volatile nature of the portfolio, reflecting the risk profile associated with high-growth tech investments and large-cap equities.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with the median scenario suggesting substantial growth. However, the reliance on historical data means these projections do not guarantee future performance. Given the portfolio's heavy tech exposure, it's important to consider how sector-specific risks could impact future returns. Diversifying across more sectors or asset classes could mitigate some risks while still capturing growth opportunities.

Asset classes Info

  • Stocks
    100%

The portfolio is 100% allocated to stocks, with no exposure to bonds, real estate, or alternative investments. This singular focus on equities enhances growth potential but also increases volatility and risk, especially during market downturns. Diversifying into other asset classes could provide income, reduce volatility, and offer protection against stock market corrections.

Sectors Info

  • Technology
    46%
  • Energy
    10%
  • Consumer Staples
    9%
  • Health Care
    9%
  • Consumer Discretionary
    8%
  • Industrials
    6%
  • Financials
    6%
  • Telecommunications
    6%
  • Basic Materials
    1%

The portfolio's sector allocation is heavily weighted towards technology, which can offer high growth but also comes with higher volatility and risk of significant drawdowns. The presence of consumer defensive, healthcare, and financial services sectors provides some balance, yet the dominance of tech and the lack of exposure to utilities or real estate limits diversification benefits.

Regions Info

  • North America
    94%
  • Asia Developed
    3%
  • Europe Developed
    2%

With 94% of assets in North America and minimal exposure to developed markets in Asia and Europe, the portfolio is heavily reliant on the performance of the U.S. market. This geographic concentration increases exposure to country-specific economic risks. Broadening geographic diversification could mitigate some of these risks and tap into growth opportunities in other regions.

Market capitalization Info

  • Large-cap
    46%
  • Mega-cap
    29%
  • Mid-cap
    20%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on big and mega-cap stocks aligns with the portfolio's growth and dividend objectives, providing a foundation of stability and potential for income. However, the limited exposure to small and micro-cap stocks restricts opportunities for higher growth rates that these segments can offer. Increasing exposure to smaller cap stocks could enhance growth potential, albeit with added volatility.

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.

The current allocation shows a strong growth orientation but limited diversification across asset classes and sectors. Utilizing the Efficient Frontier concept could identify opportunities to adjust allocations for an optimal risk-return balance. However, it's important to remember that optimization is based on historical data and does not guarantee future performance. Adjusting the portfolio to include a broader mix of assets could improve diversification and risk management.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • Weighted yield (per year) 1.97%

The dividend yield of the portfolio averages 1.97%, bolstered by the Schwab U.S. Dividend Equity ETF. This yield contributes to the portfolio's total return and provides a source of income, which is particularly valuable during market downturns. Focusing on maintaining a balance between growth stocks and dividend-paying stocks could enhance income without significantly compromising growth potential.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • Weighted costs total (per year) 0.14%

With a total expense ratio (TER) of 0.14%, the portfolio benefits from relatively low costs, which can significantly enhance long-term returns. The low costs are commendable, especially given the growth focus of the portfolio. Continuing to prioritize low-cost investments will ensure more of the portfolio's returns are retained over time.

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