Growth-focused portfolio with high tech exposure and low diversification
Report created on Aug 15, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 55.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 45.00%
The portfolio is heavily weighted towards U.S. large-cap growth stocks and global equities, with a 55% allocation in the Schwab U.S. Large-Cap Growth ETF and a 45% allocation in the Vanguard Total World Stock Index Fund ETF Shares. This composition reflects a clear growth orientation but exhibits low diversification across asset classes, concentrating primarily on stocks with minimal cash holdings. Such a structure leans heavily on the performance of the equity market, particularly in large-cap segments.
Growth
Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.14%, with a maximum drawdown of -33.09%. This performance indicates strong growth potential but comes with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being limited to 32.0 suggests that the portfolio's gains are concentrated in short bursts, highlighting the importance of timing and market conditions in achieving positive outcomes.
Projection
Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. With 994 out of 1,000 simulations resulting in positive returns, the median projection suggests a 528.0% increase in value, indicating strong growth potential. However, it's crucial to remember that these projections are based on past performance, which is not a reliable indicator of future results.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's allocation is almost entirely in stocks (99%), with a negligible portion in cash (1%). This composition underscores the growth-focused strategy but also indicates a high-risk profile given the volatility associated with equity investments. Diversification across different asset classes could provide a buffer against market downturns.
Sectors
- Technology 39%
- Consumer Discretionary 12%
- Financials 12%
- Telecommunications 11%
- Health Care 8%
- Industrials 7%
- Consumer Staples 3%
- Basic Materials 2%
- Energy 2%
- Real Estate 1%
- Utilities 1%
The sectoral allocation shows a heavy emphasis on technology (39%), followed by consumer cyclicals and financial services. This concentration in high-growth sectors can drive significant returns but also increases vulnerability to sector-specific downturns. Diversifying across more sectors could reduce risk without significantly compromising growth potential.
Regions
- North America 55%
Geographically, the portfolio is predominantly invested in North America (55%), with no exposure to developed European markets. This geographic concentration benefits from the robust performance of the U.S. market but lacks international diversification, which could mitigate risk and capture global growth opportunities.
Market capitalization
- Mega-cap 55%
- Large-cap 26%
- Mid-cap 15%
- Small-cap 3%
The portfolio's market capitalization breakdown shows a strong preference for mega-cap (55%) and big-cap (26%) companies, which are typically less volatile than smaller companies but may offer lower growth potential. Including a broader range of market caps could enhance diversification and growth prospects.
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 suggests that the portfolio's current allocation provides a favorable risk-return balance based on historical data. However, considering the low diversification score, there may be opportunities to achieve a similar or improved risk-return ratio with a more diversified asset mix, enhancing the portfolio's resilience against market fluctuations.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 0.98%
The dividend yield of the portfolio averages at 0.98%, with the Vanguard ETF contributing a higher yield than the Schwab ETF. While dividends are not the primary focus of this growth-oriented portfolio, they can provide a steady income stream and contribute to total returns, especially during market volatility.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.05%
The portfolio benefits from low costs, with a total expense ratio (TER) of 0.05%. Low costs are crucial for long-term growth, as they directly enhance net returns. This efficient cost structure is a significant strength of the portfolio.
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