A growth focused US heavy portfolio with strong tech tilt and impressively low investment costs

Report created on Nov 19, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is built almost entirely from US stock ETFs, with a big core in a broad large cap index and smaller tilts toward dividends, growth, semiconductors, and a tiny slice of real estate. Compared with a typical growth benchmark that mixes stocks and some bonds, this setup is more aggressive and more concentrated in one market. That matters because when US stocks rise, this structure can do very well, but pullbacks can also feel sharper. One useful next step could be deciding which tilts are truly intentional and trimming overlapping broad funds so every holding has a clear role.

Growth Info

Historically, the portfolio shows a very strong compound annual growth rate (CAGR) around 16%. CAGR is just the “average yearly speed” of growth, smoothing out ups and downs like a long road trip. Compared with many broad equity benchmarks, that’s excellent and suggests the growth and tech tilt has helped. The tradeoff shows up in the maximum drawdown of about -34%, meaning at one point it was roughly a third below a prior peak. That’s normal for growth-leaning stock portfolios but can be emotionally tough. It’s worth checking whether that level of temporary loss would feel tolerable in a future bear market.

Projection Info

The forward-looking Monte Carlo analysis uses past return and volatility patterns to generate 1,000 random future paths. Think of it as running many “what if” scenarios using shuffled historical behavior. The median outcome shows strong potential growth, and even the weaker 5th percentile roughly preserves capital over the test period, which is encouraging. But it’s important to remember that Monte Carlo depends on the past being at least somewhat similar to the future, which is never guaranteed. Instead of treating the numbers as predictions, it’s better to use them as a rough range-check and ask whether both the good and bad scenarios fit your comfort level and plans.

Asset classes Info

  • Stocks
    99%

Almost everything here is in stocks, with a tiny allocation to listed real estate and no meaningful cash or bond exposure. Relative to more diversified benchmarks that include several asset classes, this is a pure-growth, equity-dominant structure. That’s powerful for long-term wealth building but can be bumpy in recessions or market panics, since there’s very little in the mix that typically holds up when stocks slide. One practical tweak could be deciding whether to introduce even a small stabilizing sleeve, like safer assets elsewhere in your overall finances, so you’re not forced to sell stocks at bad moments if you need cash.

Sectors Info

  • Technology
    36%
  • Financials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Telecommunications
    10%
  • Industrials
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Real Estate
    2%
  • Utilities
    2%
  • Basic Materials
    1%

Sector-wise, the portfolio is clearly tech-tilted, with technology around a third of the total plus an extra bump from the semiconductor ETF. Compared with broad market benchmarks, that’s a noticeable overweight. This has likely contributed to the strong historical returns but can also mean higher volatility, especially when interest rates rise or sentiment turns against growth and chip-related names. The rest of the sectors are reasonably spread across financials, consumer, healthcare, and others, which helps. It’s worth deciding if this tech bias is a deliberate bet; if not, gradually nudging closer to a more neutral sector mix could smooth the ride without completely sacrificing growth.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely tied to North America, especially the US, with only a token exposure to other developed regions. Many standard global benchmarks allocate a significant portion to non-US markets, including both developed and emerging economies. The upside of this US-heavy stance is simplicity and exposure to some of the world’s most profitable and innovative companies. The downside is concentration risk: if the US market underperforms other regions for a period, the portfolio may lag more globally diversified setups. A useful question is whether you want to keep that home bias or slowly add more non-US exposure for extra diversification.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    37%
  • Mid-cap
    19%
  • Small-cap
    2%

By market capitalization, the mix is strongly tilted to mega and large caps, which make up most of the holdings, with a moderate slice of mid caps and only a small allocation to small caps. That lines up fairly well with common benchmarks, which are also dominated by large, established companies. This is generally positive for stability and liquidity, since big names tend to be less fragile than tiny firms. However, it can slightly limit exposure to the sometimes higher long-term growth potential of smaller companies. If you ever look to tweak, a modest increase in diversified small or mid-cap exposure could add an extra growth and diversification angle.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

Most of the portfolio’s core funds move very similarly, especially the broad S&P 500 ETF, the large-cap growth ETF, and the total stock market ETF. This is called high correlation, meaning when one goes up or down, the others usually move in the same direction. High correlation is normal within the same market segment, but too much of it limits diversification benefits during downturns. The good news is your core exposure is efficient and simple. A helpful clean-up step could be reviewing whether you need multiple overlapping broad US funds, using one or two main building blocks instead so that every extra ETF adds something genuinely distinct.

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.

From a risk–return optimization perspective, the portfolio could likely sit fairly close to an efficient frontier built from its current ingredients. The “efficient frontier” is just the set of allocations that offer the best tradeoff between volatility and expected return using the same building blocks. Efficiency does not always mean maximum diversification or simplicity; it just means no other mix of these same assets would clearly give more return for the same risk. Because several holdings are highly correlated, first simplifying the lineup and then exploring slightly different weightings between core broad exposure, dividend tilt, and growth tilt might help sharpen that risk–return balance further.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 2.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.30%
  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Weighted yield (per year) 1.25%

The overall dividend yield is modest, around 1.25%, with the dedicated dividend ETF and the real estate slice providing the highest cash payouts. Dividends are the regular cash payments companies distribute, and they can be especially useful for investors who like some income without selling shares. For a growth-oriented profile, this modest yield makes sense; more of the return is expected from price appreciation rather than payouts. If future goals shift toward higher income, it would be straightforward to gradually increase the share of dividend-focused or income-oriented holdings. For now, the income stream can be seen as a small bonus on top of growth.

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%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.05%

The cost structure here is a real strength. The weighted total expense ratio (TER) is about 0.05%, which is extremely low. TER is the annual fee charged by the funds, and keeping it low is like minimizing friction on a long journey: more of the return stays in your pocket each year. This aligns very well with best practices and with many benchmark low-cost index portfolios. The only slightly higher-cost piece is the specialized semiconductor ETF, but even that is reasonable for a niche exposure. There’s no urgent need to change anything cost-wise; this area already supports strong long-term compounding.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey