A growth-focused portfolio with high concentration in select stocks and index funds

Report created on Jul 28, 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 characterized by a significant concentration in Target Corporation and Stanley Black & Decker Inc, making up nearly half of the portfolio. The inclusion of broad market funds like the Vanguard Total Stock Market Index Fund and the Schwab S&P 500 Index Fund suggests an attempt at diversification. However, the heavy weighting in individual stocks alongside the funds may increase volatility. The minimal exposure to international markets through the SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES indicates a preference for domestic equities.

Growth Info

Historical performance shows a Compound Annual Growth Rate (CAGR) of 11.40%, with a significant maximum drawdown of -37.34%. This suggests that while the portfolio has delivered strong returns, it has also experienced substantial volatility. The days contributing to 90% of returns being concentrated in just 17.0 days highlights the portfolio's exposure to significant market movements, which can be both an opportunity and a risk.

Projection Info

Monte Carlo simulations, using 1,000 iterations, project a wide range of potential outcomes, with a median 50th percentile increase of 178.5%. While these simulations suggest a favorable outcome, it's important to note that they rely on historical data, which is not a guaranteed predictor of future performance. The presence of 867 simulations with positive returns underscores the growth potential but also highlights the inherent uncertainties in market-based investments.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocation to cash, bonds, or other asset classes. This singular focus on equities enhances growth potential but also increases risk, particularly in market downturns. Diversifying across different asset classes could provide a buffer against volatility and reduce overall portfolio risk.

Sectors Info

  • Consumer Staples
    35%
  • Industrials
    20%
  • Technology
    15%
  • Financials
    8%
  • Consumer Discretionary
    6%
  • Health Care
    5%
  • Telecommunications
    5%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation is heavily weighted towards Consumer Defensive and Industrials, with notable positions in Technology and Financial Services. This sectoral distribution suggests a blend of stability and growth, with Consumer Defensive stocks potentially offering resilience during economic downturns and Technology and Industrials providing growth opportunities. However, the concentration in a few sectors could increase susceptibility to sector-specific risks.

Regions Info

  • North America
    93%
  • Europe Developed
    4%
  • Japan
    1%

The portfolio's geographic allocation is heavily skewed towards North America, with minimal exposure to international markets. This domestic focus may limit diversification benefits and exposure to global growth opportunities. Expanding international exposure, particularly in developed and emerging markets, could enhance portfolio diversification and potential for returns.

Market capitalization Info

  • Large-cap
    64%
  • Mega-cap
    24%
  • Mid-cap
    9%
  • Small-cap
    2%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for Big and Mega cap stocks, which are typically less volatile than their smaller counterparts. However, the limited exposure to Medium, Small, and Micro cap stocks restricts the portfolio's potential to benefit from the higher growth rates often seen in smaller companies.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund Admiral Shares
    Schwab S&P 500 Index Fund
    High correlation

The high correlation between the Vanguard Total Stock Market Index Fund and the Schwab S&P 500 Index Fund indicates overlapping exposures, which may not contribute significantly to diversification. Reducing redundancy by reallocating from one of these funds could enhance the portfolio's efficiency without sacrificing performance.

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 along the Efficient Frontier could improve the risk-return ratio by adjusting asset allocation. Considering the high correlation between certain holdings, diversification could be enhanced by reallocating funds from overlapping investments to underrepresented sectors or asset classes, thereby potentially improving the portfolio's overall efficiency.

Dividends Info

  • SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES 2.70%
  • Stanley Black & Decker Inc 4.40%
  • Schwab S&P 500 Index Fund 1.10%
  • Target Corporation 4.20%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Weighted yield (per year) 2.63%

The portfolio's dividend yield of 2.63% contributes to its total return, providing a steady income stream in addition to potential capital gains. The yields from individual stocks and the international index fund complement the lower yields from the broad market index funds, balancing income with growth.

Ongoing product costs Info

  • SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES 0.06%
  • Schwab S&P 500 Index Fund 0.02%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Weighted costs total (per year) 0.02%

The portfolio benefits from low costs, with total expense ratios (TER) for the included funds being exceptionally competitive. This cost efficiency supports better long-term performance by minimizing the drag on returns. Maintaining a focus on low-cost investments is a prudent strategy for enhancing net returns.

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