A growth focused stock only portfolio with strong US tilt and notable tech concentration

Report created on Sep 17, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is built entirely from stock ETFs, with about three‑fifths in a broad US large‑cap fund and the rest spread across international stocks, small‑cap value, US growth, and a focused semiconductor fund. Compared with a typical broad benchmark, this is more concentrated in US equities and has no bonds or cash cushion. That structure matters because it increases both return potential and the size of short‑term swings. For someone with a growth profile, this setup is directionally aligned, but it leans aggressive. If downside swings feel uncomfortable, shifting a slice into stabilizing assets or trimming the most overlapping positions could help smooth the ride.

Growth Info

Historically, a 10,000 dollar investment in this mix would have grown impressively given the 17.56% CAGR (Compound Annual Growth Rate, or average yearly growth). That level of return is well above long‑term equity market averages, which is encouraging and shows the portfolio has captured strong bull markets. The tradeoff shows up in the max drawdown of about ‑34.7%, meaning at one point it could have dropped to roughly 6,500 dollars before recovering. This is normal for an all‑stock, growth‑tilted mix but can be emotionally tough. It’s important to remember past performance doesn’t guarantee future results, so future returns and drawdowns may look very different.

Projection Info

The Monte Carlo analysis ran 1,000 simulations using historical return and volatility patterns to estimate a range of future outcomes. Monte Carlo basically “replays” many alternate futures by shuffling returns in different sequences. The median (50th percentile) result of about 1,083% growth suggests strong potential if markets behave similarly to the past, while the 5th percentile near 115% shows that even weak paths can still end modestly higher. The very high average simulated return of 22.47% is optimistic and likely reflects a strong historical sample. Since markets evolve, it’s safer to treat these numbers as rough scenario guides, not promises.

Asset classes Info

  • Stocks
    100%

All investable assets here are in one asset class: stocks. That keeps things simple and tightly focused on long‑term growth, and it lines up with the “growth” risk profile. However, it also means the portfolio moves almost entirely with equity markets, with no natural buffer from bonds, cash, or other diversifiers. In big market sell‑offs, everything can drop at once. Many long‑term investors choose to keep at least a small stabilizing sleeve so they have “dry powder” to rebalance during downturns. If the goal is maximum growth and volatility is tolerable, staying 100% stocks can still be reasonable, but it should be a deliberate, eyes‑open choice.

Sectors Info

  • Technology
    35%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Industrials
    9%
  • Health Care
    8%
  • Consumer Staples
    4%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is nicely spread across most of the economy, with representation in 11 sectors, which is a solid diversification strength. At the same time, technology sits at about 35%, and semiconductors add an extra focused tilt, which is above typical broad‑market levels. This tech and growth emphasis can be powerful in innovation‑driven bull markets, helping explain the strong historical returns. The flip side is higher sensitivity to interest rates, regulation, and sentiment shifts in high‑growth businesses. This sector mix is broadly aligned with current market trends but leans more aggressive. Dialing back the most concentrated growth themes could make the sector profile more resilient across different economic environments.

Regions Info

  • North America
    85%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Japan
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is strongly US‑centric, with roughly 85% in North America and only about 15% spread across developed and emerging markets abroad. That US tilt has been beneficial in the last decade because US equities outperformed many international markets. This allocation aligns closely with how many US‑based investors naturally invest and keeps things intuitive. Still, foreign markets can lead at different times, and currencies and regional cycles can add useful diversification. Modestly lifting non‑US exposure would create a more globally balanced mix and reduce reliance on the US market continuing to dominate, while still keeping the US as the core driver of returns.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    6%
  • Micro-cap
    5%

Market cap exposure is anchored in mega and big companies (about 73% combined), with smaller slices in mid, small, and micro caps. This mirrors common benchmarks while adding a meaningful small‑cap value tilt through the dedicated ETF. Large companies usually bring more stability and better liquidity, while smaller firms add growth potential and sometimes higher long‑term returns, but with bumpier rides. This blend is a real strength: it’s broadly in line with global norms yet adds a factor tilt that can enhance returns over long horizons. Keeping a clear sense of comfort with small‑cap volatility is key when sticking with this structure through rough patches.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    High correlation

Most holdings move together because they are all equities, and the analysis flagged especially high correlation between the US large‑cap growth ETF and the broad S&P 500 ETF. Correlation simply means how similarly two investments move; highly correlated holdings don’t add much diversification when markets drop. The overlap here suggests that part of the growth ETF may be doubling up on positions already well represented in the S&P 500 fund. Trimming the most redundant piece and reallocating into something either more defensive or truly different in style, region, or factor could improve diversification without necessarily reducing expected returns.

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.

On a risk‑return basis, this mix likely sits above average thanks to its strong growth tilt, but it may not sit exactly on the Efficient Frontier. The Efficient Frontier is the set of portfolios that give the best possible return for each risk level using the same building blocks. Because some holdings are highly correlated and somewhat overlapping, small reallocations among the existing funds could improve the risk‑return tradeoff without adding new products. For example, adjusting the balance between broad market exposure and narrower growth or semiconductor exposure could lower volatility for a similar expected return, or target a slightly higher expected return for roughly the same risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.30%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.28%

The overall dividend yield sits around 1.28%, which is modest but fully consistent with a growth‑oriented, equity‑heavy portfolio. Some holdings, like the international and small‑cap value funds, pay somewhat higher yields, while the growth and semiconductor funds are lower. Dividends can provide a small, steady income stream and help total returns, especially when reinvested automatically. For investors focused primarily on building wealth rather than generating current cash flow, this level of yield is perfectly reasonable and even advantageous, as companies often reinvest profits into growth. If future income becomes more important, gradually tilting toward higher‑yielding holdings could support that goal without abandoning growth entirely.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

The portfolio’s average expense ratio of about 0.07% is impressively low and a major strength. Expense ratios are annual fees charged by funds; paying 0.07% instead of, say, 1% can leave tens of thousands more in your pocket over decades, since less is being skimmed off returns each year. Here, almost all funds are rock‑bottom cost, with only the small‑cap value and semiconductor ETFs charging meaningfully more, yet still within reasonable ranges for what they offer. This cost profile is well‑aligned with best practices and directly supports better long‑term performance. Keeping costs at this level while making any future tweaks is a smart long‑run approach.

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