Concentrated US growth portfolio with strong past returns and efficient risk balance but limited diversification
Report created on Aug 7, 2026Risk profile
5/7
Diversification profile
2/5
Positions
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SC Schwab U.S. Broad Market ETF
SCHB - US8085241029 40.96% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 37.69% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 21.35%
This portfolio is a three‑ETF mix fully invested in US stocks, with no bonds or cash. The broad US market fund is the anchor at about 41%, providing exposure across company sizes and industries. A large‑cap growth fund at nearly 38% leans into faster‑growing names, while a 21% allocation to a dividend ETF adds an income tilt. With only three holdings and all in the same region and asset class, the structure is straightforward but concentrated. This simplicity makes it easy to understand and track, and it keeps ongoing costs clear. At the same time, the low diversification score reflects that most of the portfolio’s behavior is driven by one country and a relatively narrow set of large companies.
Growth
From 2016 to 2026, a hypothetical $1,000 in this portfolio grew to about $4,406, which is strong compounding. The CAGR, or Compound Annual Growth Rate, was 16.05%, meaning the investment grew roughly 16% per year on average, like measuring a car’s average speed over a long trip. That’s higher than both the US market benchmark at 14.99% and the global market at 12.38%. The worst peak‑to‑trough drop was about -33.6%, very similar to the benchmarks during the 2020 crash, and it recovered in around four months. This shows that while the portfolio has taken equity‑like hits, its risk level has been in line with broad markets, with somewhat stronger returns over this particular decade.
Projection
The Monte Carlo projection uses many random “what if” paths based on historical behavior to model future possibilities. Here, 1,000 simulations of a $1,000 investment over 15 years produced a median outcome of about $2,712, or an annualized return of 8.18%. Monte Carlo doesn’t predict exactly what will happen; it shows a range of plausible futures, including good and bad markets. The likely middle band (25th to 75th percentile) runs from roughly $1,751 to $4,174, while the wider 5th to 95th range spans from about $986 to $8,287. This wide spread underlines that long‑term stock investing can meaningfully compound, but future results can still vary a lot around the averages.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% in bonds, cash, or alternative assets. That all‑equity structure is consistent with the “growth” classification and helps explain both the strong historic returns and the higher risk score of 5/7. Asset classes behave differently: stocks tend to have higher long‑term return potential but larger and more frequent ups and downs, while bonds and cash typically smooth the ride but grow more slowly. Because this portfolio doesn’t include those diversifiers, its value will move more in line with equity market cycles. The growth focus is clear and coherent, but it also means there’s no built‑in cushion from other asset types when stock markets are under stress.
Sectors
- Technology 35%
- Health Care 12%
- Telecommunications 10%
- Financials 10%
- Consumer Discretionary 10%
- Industrials 8%
- Consumer Staples 7%
- Energy 5%
- Basic Materials 1%
- Real Estate 1%
- Utilities 1%
Sector exposure is tilted toward Technology at 35%, with additional weight across Health Care, Telecommunications, Financials, Consumer Discretionary, and Industrials. This broad spread is reasonably aligned with common US equity benchmarks, which is a positive sign for diversification within the stock portion. However, a technology‑heavy profile means returns can be more sensitive to shifts in innovation trends, regulation, and interest rates, since high‑growth companies often react strongly to those changes. Smaller allocations to sectors like Energy, Real Estate, and Utilities provide some cyclical and defensive balance but don’t dominate the picture. Overall, sector risk is skewed toward growth‑oriented businesses, helping power performance but potentially amplifying volatility when growth stocks fall out of favor.
Regions
- North America 100%
Geographically, the portfolio is 100% in North America, specifically US‑listed companies. That home‑market focus aligns with the benchmarks used here and has historically been beneficial over the last decade, when US stocks outperformed many other markets. A geography breakdown matters because different regions respond differently to economic cycles, currencies, and policy changes. For example, global indices usually hold a meaningful share in non‑US markets, reflecting that more than half of global stock market value sits outside the US. In this case, the regional concentration means portfolio outcomes are tightly linked to the US economy, US policy, and the dollar, with limited balance from other parts of the world.
Market capitalization
- Mega-cap 38%
- Large-cap 38%
- Mid-cap 19%
- Small-cap 4%
- Micro-cap 1%
By market capitalization, this portfolio leans heavily into the largest companies: about 38% in mega‑caps and 38% in large‑caps, with smaller slices in mid‑caps, small‑caps, and micro‑caps. Market cap is just a way of describing company size by total market value. Large companies tend to be more stable and widely followed, while smaller ones can be more volatile but sometimes faster‑growing. This size mix is broadly similar to a standard US market index, which is a helpful sign of balance within the equity slice. The modest exposure to mid and small‑caps adds some growth potential and diversification, but the overall behavior will be driven mainly by the biggest household‑name companies.
True holdings
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NV NVIDIA Corporation 6.67%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AA Apple Inc. 6.15%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 4.46%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 3.44%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class A 2.84%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AV Broadcom Inc 2.51%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class C 2.28%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
ME Meta Platforms Inc. 1.78%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
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LL Eli Lilly and Company 1.07%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
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AB Abbott Laboratories 1.01%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 32.22%
Looking through the ETFs’ top holdings, a handful of large tech and growth names show up prominently: NVIDIA, Apple, Microsoft, Amazon, both Alphabet share classes, Broadcom, and Meta each make up meaningful slices. These appear across multiple funds, which creates hidden overlap — owning the same company through different ETFs. For example, NVIDIA alone totals about 6.7% of the portfolio, and Apple about 6.1%. Because only ETF top‑10 holdings are captured, true overlap is likely a bit higher than shown. This concentration in a small group of mega‑caps helps explain past outperformance but also means portfolio results are closely tied to how this select group of companies performs.
Factors
Factor exposure, which shows how the portfolio leans toward characteristics like value, size, momentum, quality, low volatility, and yield, is generally neutral across the board. With scores clustered around 45–55%, these exposures are close to market averages rather than showing strong tilts. Think of factors as the underlying “personality traits” of stocks; some portfolios lean hard into cheap stocks (value) or high‑dividend stocks (yield), for example. Here, the neutral profile suggests the mix behaves a lot like a broad market portfolio in terms of these academic drivers of return. That can help avoid over‑reliance on a single style, so performance is less likely to hinge on one factor environment.
Risk contribution
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Schwab U.S. Large-Cap Growth ETF
Weight: 37.69% 42.8% -
Schwab U.S. Broad Market ETF
Weight: 40.96% 40.6% -
Schwab U.S. Dividend Equity ETF
Weight: 21.35% 16.6%
Risk contribution measures how much each holding drives the portfolio’s overall ups and downs, which can differ from its simple weight. The large‑cap growth ETF is 37.69% of the portfolio but contributes about 42.78% of total risk, showing it’s a bit more volatile than the others. The broad market ETF contributes risk roughly in line with its weight, while the dividend ETF contributes less risk (16.61%) than its 21.35% allocation. This pattern is typical: growth‑oriented funds often swing more, and dividend‑focused funds often smooth things out. Overall, all three funds are meaningful drivers of risk, but the growth ETF is the loudest “instrument” in the mix, while the dividend ETF modestly dampens volatility.
Redundant positions
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High correlationSchwab U.S. Large-Cap Growth ETFSchwab U.S. Broad Market ETF
The correlation data highlights that the broad market ETF and the large‑cap growth ETF move almost identically. Correlation is a measure of how often assets move together; high correlation means they tend to go up and down at the same time. When two holdings are highly correlated, they provide less diversification benefit because they react similarly to market events. In this portfolio, the strong linkage between these two core positions helps explain why performance, drawdowns, and day‑to‑day swings look very “US equity‑like.” The dividend ETF likely adds some differentiation, but the overall correlation structure suggests that, in sharp market sell‑offs, most of the portfolio will still move in the same direction.
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 risk vs. return chart shows this portfolio sitting right on or very near the efficient frontier, which is the curve representing the best possible return for each risk level using these same holdings. The current Sharpe ratio, at 0.68, is lower than the optimal portfolio’s 0.87 but above the minimum‑risk portfolio’s 0.77. The Sharpe ratio compares excess return to volatility, like measuring how much “reward” you’re getting per unit of “bumpiness.” Being close to the frontier suggests the existing allocation makes effective use of these three ETFs in risk/return terms. Any potential improvement would come from reweighting these same funds, not necessarily from changing what’s in the lineup.
Dividends
- Schwab U.S. Broad Market ETF 1.00%
- Schwab U.S. Dividend Equity ETF 3.10%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 1.22%
The portfolio’s total dividend yield is about 1.22%, combining a higher‑yield dividend ETF (around 3.10%), a moderate yield from the broad market fund (1.00%), and a low yield from the growth ETF (0.40%). Dividends are cash payments from companies that can provide a steadier component of total return, especially when markets are choppy. Here, the relatively low overall yield reflects the strong growth emphasis and the heavy weight in large‑cap growth stocks, which often reinvest profits instead of paying them out. The dividend ETF does meaningfully lift income compared with a pure growth mix, so dividends contribute something, but capital appreciation is clearly the main driver of this portfolio’s long‑term results.
Ongoing product costs
- Schwab U.S. Broad Market ETF 0.03%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.04%
Total ongoing fund costs are very low, with a blended TER (Total Expense Ratio) of about 0.04%. TER is the annual fee charged by each ETF, expressed as a percentage of assets, covering management and operating expenses. In plain terms, you’re paying roughly $0.40 per year on every $1,000 invested. That’s impressively low by industry standards and supportive of long‑term compounding, since less return is lost to fees each year. All three ETFs are low‑cost, and the simple three‑fund structure helps keep the overall average down. This cost profile is a clear strength of the portfolio and aligns well with best practices for building long‑term, market‑linked exposure.
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