Growth-oriented portfolio with a strong tilt towards technology and large-cap stocks
Report created on Oct 6, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
SW SCHWAB TARGET 2060 INDEX FUND INSTITUTIONAL SHARES
SWYNX - US80850L7423 58.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 42.00%
This portfolio is heavily weighted towards equities, with a 97% allocation in stocks and a minimal bond presence at 3%. The dual-fund strategy, combining the SCHWAB TARGET 2060 INDEX FUND INSTITUTIONAL SHARES and the Schwab U.S. Large-Cap Growth ETF, aims to capitalize on long-term growth opportunities, particularly in the technology sector. This composition reflects a growth-focused investment approach, leveraging the broad diversification offered by the target date fund and the concentrated growth potential from the large-cap ETF.
Growth
Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.33%, with a maximum drawdown of -32.79%. The days contributing to 90% of returns being concentrated in just 33.0 days highlights the volatility and the significant impact of short-term gains. This performance, while impressive, underscores the inherent risks and the importance of understanding the volatility associated with growth-oriented investments.
Projection
Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, suggest a wide variance in potential portfolio values. With 999 out of 1,000 simulations showing positive returns and a median projected increase of 657.4%, the forward-looking analysis indicates strong growth potential. However, it's crucial to remember that these projections are not guarantees but rather probabilistic forecasts based on past performance.
Asset classes
- Stocks 97%
- Bonds 3%
The vast majority of this portfolio is invested in stocks, with a small bond component to provide a slight cushion against market volatility. This high allocation to equities is typical for growth-oriented portfolios aiming for higher returns, albeit at the cost of increased risk. The absence of alternative asset classes like real estate or commodities limits diversification benefits outside of traditional stocks and bonds.
Sectors
- Technology 34%
- Financials 13%
- Telecommunications 10%
- Health Care 8%
- Industrials 8%
- Consumer Discretionary 6%
- Consumer Discretionary 5%
- Real Estate 5%
- Consumer Staples 4%
- Basic Materials 3%
- Energy 2%
- Utilities 2%
Technology's dominant 34% sector allocation reflects a bullish outlook on tech growth but also introduces sector-specific risk. Financial Services and Communication Services round out the top three sectors, creating a tech-heavy portfolio that may be more volatile during market downturns or sector-specific setbacks. Balancing sector exposures could mitigate some of this risk while still capturing growth opportunities.
Regions
- North America 83%
- Europe Developed 8%
- Japan 3%
- Asia Emerging 2%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
With 83% of assets in North America, the portfolio exhibits a strong home bias, potentially missing out on diversification and growth opportunities in international markets. While this concentration aligns with the investor's region, increasing exposure to developed and emerging markets outside of North America could enhance returns and reduce geographic risk.
Market capitalization
- Mega-cap 49%
- Large-cap 27%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 1%
The emphasis on mega (49%) and big (27%) cap stocks underlines the portfolio's preference for established, large-scale companies, likely due to their perceived stability and growth potential. However, incorporating more mid, small, or micro-cap stocks could offer higher growth potential and further diversification benefits, albeit with higher 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 portfolio's current allocation suggests a strong position on the Efficient Frontier, indicating an optimal risk-return balance given its current composition. However, exploring diversification into other asset classes or rebalancing sector and geographic exposures could further optimize its position on the frontier, potentially enhancing returns for the same level of risk.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.40%
- SCHWAB TARGET 2060 INDEX FUND INSTITUTIONAL SHARES 1.70%
- Weighted yield (per year) 1.15%
The overall dividend yield of 1.15% contributes to the portfolio's total returns, balancing the growth-focused strategy with a modest income component. While the yield is not the primary focus for this portfolio, it offers a slight buffer during market volatility and a source of reinvestment for compounding growth.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- SCHWAB TARGET 2060 INDEX FUND INSTITUTIONAL SHARES 0.08%
- Weighted costs total (per year) 0.06%
With a total expense ratio (TER) of 0.06%, the portfolio benefits from low costs, maximizing the potential for net returns. This efficient cost structure is commendable, as lower fees directly correlate with higher long-term investment returns, especially important in growth-oriented strategies where every percentage point counts.
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