Diversified US growth portfolio with balanced style factors and low costs focused on long term equity returns
Report created on Aug 5, 2026Risk profile
5/7
Diversification profile
3/5
Positions
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SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 41.99% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 37.57% -
SC Schwab U.S. Small-Cap ETF
SCHA - US8085246077 11.05% -
SC Schwab International Equity ETF
SCHF - US8085248057 9.39%
This portfolio is a four‑ETF equity mix with a clear tilt toward US stocks and growth. The largest piece is a US large‑cap growth fund at about 42%, paired with a sizable 38% allocation to a US dividend equity fund. Around 11% goes to a broad US small‑cap ETF, and roughly 9% is in an international equity ETF. This structure creates a core built from simple, broad funds rather than many small positions. The mix combines growth, dividends, and smaller companies, which can behave differently across market cycles. Overall, the portfolio is intentionally stock‑only and oriented toward capital growth, with some diversification from dividends, size segments, and non‑US exposure.
Growth
Over the period from 2016 to mid‑2026, a hypothetical $1,000 in this portfolio grew to about $3,965. That translates to a compound annual growth rate (CAGR) of 14.84%, meaning the average yearly growth, smoothed out, was just under 15%. This result has been almost identical to the broad US market and clearly ahead of the global market benchmark. The deepest drop, or max drawdown, was about –33% during early 2020, similar to major indices. This shows that the portfolio has captured equity‑like upside while sharing the same kind of sharp downturns typical for stock markets. Past performance, though, is not a guarantee of future results.
Projection
The Monte Carlo projection uses past return and volatility patterns to simulate many possible 15‑year futures for this mix. Think of it as rolling the market dice 1,000 times using historical tendencies as a guide. The median outcome grows $1,000 to about $2,684, with a “likely” middle band between roughly $1,876 and $3,987. Extreme but still plausible paths range from about $1,022 to $7,829. These numbers highlight both the potential for meaningful growth and the wide uncertainty around it. The average simulated annual return of 8% is lower than the historical figure, reflecting more conservative assumptions. Simulations are only models, not predictions, so real‑world outcomes can land outside these ranges.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with 0% in bonds, cash, or alternatives. That makes its return path closely tied to how global equity markets behave, especially in the US. Equities tend to offer higher long‑term growth potential than bonds but with larger and more frequent swings. Compared to a more blended asset mix, this structure puts diversification fully inside the stock bucket: different styles, sizes, and regions rather than different asset classes. In practice, this means that when markets fall, there is no built‑in stabilizer like high‑quality bonds. The upside is that every dollar is working in growth‑oriented assets, fully embracing equity risk for potential long‑run returns.
Sectors
- Technology 27%
- Health Care 15%
- Financials 11%
- Consumer Staples 9%
- Industrials 9%
- Consumer Discretionary 9%
- Telecommunications 9%
- Energy 7%
- Basic Materials 2%
- Real Estate 1%
- Utilities 1%
Sector‑wise, the portfolio is led by technology at 27%, with health care and financials together making up another quarter. Consumer staples and consumer discretionary each hold meaningful slices, while areas like energy, telecom, and industrials add additional variety. Real estate, basic materials, and utilities are relatively small. This spread looks reasonably similar to broad US benchmarks, with a healthy technology presence but not an extreme tech concentration. A tech‑tilted mix can benefit when innovation‑driven companies outperform, but may be more sensitive to interest rate changes or shifts in growth expectations. The presence of defensive areas like health care and consumer staples helps smooth some of that cyclicality, adding resilience across different environments.
Regions
- North America 91%
- Europe Developed 5%
- Japan 2%
- Asia Developed 1%
- Australasia 1%
Geographically, this is very much a US‑anchored portfolio: about 91% sits in North America, with modest slices in developed Europe, Japan, and other developed regions. Compared to a global equity index, this is a stronger US tilt, since the US usually makes up a bit over half of world market value rather than more than 90%. A home‑country focus can benefit from familiarity and has historically done well over the last decade as US markets led. At the same time, it ties results heavily to one economy, currency, and policy environment. The smaller international sleeve still adds some diversification, but global returns will be dominated by what happens in US equities.
Market capitalization
- Large-cap 41%
- Mega-cap 27%
- Mid-cap 19%
- Small-cap 8%
- Micro-cap 4%
By market cap, the portfolio balances mega and large‑cap stocks with a meaningful allocation down the size spectrum. Around two‑thirds of exposure lies in mega and large caps, which are generally more established and liquid. The remaining third is spread across mid, small, and even micro caps, partly through the dedicated small‑cap ETF. Smaller companies often experience bigger price swings and can outperform or lag significantly over cycles. This size mix gives the portfolio both stability from very large names and growth potential from smaller firms. It also means performance will not perfectly mirror a pure large‑cap index, since smaller stocks can move differently during economic expansions or stress periods.
True holdings
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AA Apple Inc. 4.46%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
NV NVIDIA Corporation 4.13%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 2.60%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 1.99%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class A 1.77%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AB Abbott Laboratories 1.77%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AM Amgen Inc 1.64%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
MR Merck & Company Inc 1.62%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
KO The Coca-Cola Company 1.61%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
UN UnitedHealth Group Incorporated 1.59%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 23.19%
Looking through the ETFs’ top holdings, a handful of big names appear as meaningful overlapping positions. Apple, NVIDIA, Microsoft, Amazon, Alphabet, and several large health‑care and consumer brands each represent around 1.5–4.5% of the total portfolio via multiple funds. This overlap can create hidden concentration: even without owning single stocks directly, the same companies influence returns across funds. It’s also worth noting that only top‑10 ETF holdings are captured here, so actual overlap is likely a bit higher. The positive side is that these are widely followed, liquid companies; the trade‑off is that portfolio behavior will be strongly tied to how these giants perform over time.
Factors
Factor exposure for this portfolio is strikingly balanced across value, size, momentum, quality, yield, and low volatility, all sitting close to neutral. Factors are like the underlying “flavors” of stocks — characteristics such as being cheap (value), stable (low volatility), or fast‑rising (momentum) that academic research links to returns. A neutral profile suggests this mix behaves similarly to the broad market rather than leaning hard into any single style. That can help avoid the boom‑and‑bust cycles that sometimes come from strong tilts toward one factor. In practice, it means performance will likely track general equity trends more than specialized factor themes, which is consistent with the core index‑style building blocks used here.
Risk contribution
-
Schwab U.S. Large-Cap Growth ETF
Weight: 41.99% 47.8% -
Schwab U.S. Dividend Equity ETF
Weight: 37.57% 31.6% -
Schwab U.S. Small-Cap ETF
Weight: 11.05% 12.9% -
Schwab International Equity ETF
Weight: 9.39% 7.8%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from its simple weight. The large‑cap growth ETF is about 42% of the portfolio but contributes nearly 48% of total risk, reflecting its somewhat higher volatility. The small‑cap ETF also adds slightly more risk than its weight, which is typical for smaller stocks. Meanwhile, the dividend and international funds contribute less risk than their allocations, suggesting a stabilizing influence. The top three ETFs together account for over 92% of portfolio risk, so changes in those funds dominate day‑to‑day movements. This pattern is normal for a concentrated four‑holding structure built mainly from growth and dividend equities.
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 efficient frontier analysis suggests this portfolio sits on or very close to the curve of best possible risk‑return mixes using these four ETFs. The Sharpe ratio — a measure of return earned per unit of risk — for the current allocation is 0.64, while a mathematically “optimal” mix of the same ingredients reaches 0.85 with slightly higher risk. The minimum‑variance version lowers risk but also reduces expected return. Being near the frontier means the current weights already use these holdings in a broadly efficient way. Any potential improvements from reweighting would be incremental rather than transformational, which is a positive sign for the portfolio’s overall construction quality.
Dividends
- Schwab U.S. Small-Cap ETF 1.00%
- Schwab U.S. Dividend Equity ETF 3.10%
- Schwab International Equity ETF 3.00%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 1.72%
The portfolio’s blended dividend yield is about 1.72%, coming mainly from the US dividend equity ETF and the international equity fund, both around 3%. The large‑cap growth ETF contributes a much lower yield, which is typical for growth‑oriented stocks that reinvest more of their profits. Dividends represent cash paid out by companies and can be an important component of total return over time, especially when reinvested. Here, the yield is modest compared with high‑income strategies but meaningful relative to pure growth portfolios. It adds a steady income stream on top of price appreciation without dominating the portfolio’s overall return profile, keeping the focus primarily on long‑term capital growth.
Ongoing product costs
- Schwab U.S. Small-Cap ETF 0.04%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab International Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.05%
The total expense ratio (TER) for this portfolio sits around 0.05%, which is impressively low by industry standards. TER is the annual fee charged by the funds, expressed as a percentage of assets — like a small haircut taken each year to run the ETFs. Keeping costs this lean means less return is lost to fees, and that difference compounds over long periods. All four Schwab ETFs used here are in the ultra‑low‑cost range, which aligns closely with best practices for index‑style investing. This cost structure provides a strong foundation: it allows the portfolio’s performance to reflect market returns rather than being dragged down by expensive management.
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