A strongly growth tilted equity portfolio with heavy US large cap tech focus and low costs

Report created on Aug 22, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is almost entirely in broad US stock ETFs, with a big 61% anchor in a major US large cap index plus several overlapping growth and tech-heavy funds. There is a small tilt to international stocks and a modest slice of US small cap value, but everything is still 100% stocks. That makes it more aggressive than a typical blended benchmark that mixes stocks and bonds. Being this stock-heavy is powerful for long-term growth but can feel rough in deep market drops. If smoother ride and downside control matter, shifting a portion into stabilizing assets or trimming overlapping growth funds could help balance things out.

Growth Info

Historically, turning $10,000 into this mix and holding might have grown at about 16.1% per year (CAGR, or compound annual growth rate, which is like your average “speed” per year). That’s a very strong result and likely ahead of many standard benchmarks, but it came with a max drawdown of about -27%, meaning at one point you would’ve seen a drop of more than a quarter from peak value. Historical numbers are useful, but they’re rearview-mirror data; markets change. It can help to ask whether you’d be comfortable living through that kind of decline again and still stay invested.

Projection Info

The Monte Carlo analysis ran 1,000 simulations using historical volatility and relationships between assets to project future ranges. Monte Carlo basically “re-rolls the dice” on returns many times to see possible paths, not just a single forecast. Here, the 5th percentile outcome was about 122%, while the median (50th) was around 681% and the 67th near 1,037%, with most simulations positive. That looks optimistic, but it’s all based on past patterns and assumptions. It’s useful for gauging risk and spread of outcomes, not predicting an exact future. Treat these results as rough weather maps, not a flight plan.

Asset classes Info

  • Stocks
    100%

All of the allocation is in stocks, with zero in cash, bonds, or other asset types. Benchmarks for a “growth” profile often still hold some defensive assets, like bonds, to help cushion big drops and provide dry powder during downturns. Being 100% in stocks increases both upside potential and emotional whiplash when markets stumble. This is totally fine for some long-horizon investors, but it’s not “moderate” risk. If you ever feel tempted to sell in crashes, introducing a modest slice of a more stable asset class could make it easier to stay the course when volatility spikes.

Sectors Info

  • Technology
    40%
  • Telecommunications
    12%
  • Consumer Discretionary
    12%
  • Financials
    10%
  • Health Care
    8%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

Sector exposure is clearly tilted toward technology (about 40%), with additional weight in communication services and consumer cyclicals. That’s typical for portfolios using US large cap and growth indexes, and it lines up with recent market leadership, which has helped returns. The flip side is that tech-heavy portfolios often swing more when interest rates move or when growth expectations cool. Defensive areas like utilities, consumer defensive, and real estate are relatively small. If you like the growth tilt but worry about big swings, you could consider slowly nudging toward a more balanced sector mix over time rather than piling further into similar growth themes.

Regions Info

  • North America
    95%
  • Europe Developed
    2%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

Geographically, around 95% is in North America, with only about 5% spread across developed Europe, Japan, and other regions. That’s a much stronger home-country tilt than many global benchmarks, which usually give more weight to non-US markets. This has worked well in the last decade because US large caps, especially tech, have dominated. But no region leads forever, and being this concentrated ties results heavily to one economy, one currency, and one policy regime. Gradually increasing non-US exposure, if desired, can add another layer of diversification and reduce dependence on any single country’s fortunes.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    33%
  • Mid-cap
    15%
  • Small-cap
    2%
  • Micro-cap
    2%

By market cap, the portfolio leans heavily into mega and big companies (about 80% combined), with only a small slice in mid, small, and micro caps. That’s very similar to standard large-cap benchmarks and is a big strength: these huge firms are more established and typically less fragile than tiny stocks. The small allocation to US small cap value adds a nice diversification twist, since those stocks often behave differently than mega-cap growth. If you want more factor balance, a slightly larger exposure to smaller or value-tilted companies could help spread risk beyond the biggest household names while still staying equities-focused.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco QQQ Trust
    Invesco NASDAQ 100 ETF
    High correlation

The growth-focused ETFs—Schwab US Large-Cap Growth, Invesco QQQ Trust, and Invesco NASDAQ 100—are highly correlated, meaning they tend to move together. Correlation is just a measure of how similarly assets behave; when it’s high, you get less diversification benefit. Owning several funds that track very similar stocks can create “illusion of diversification,” more tickers but not much new behavior in a downturn. Trimming overlapping growth funds and consolidating into fewer, more distinct building blocks can simplify tracking, keep your intended tilts, and possibly open room for holdings that actually behave differently when markets get choppy.

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 angle, this portfolio sits in a high-return, high-volatility zone of the Efficient Frontier. The Efficient Frontier is the set of mixes that offer the best possible return for each level of risk, given a set of assets. Right now, multiple overlapping growth funds likely push risk up without adding much diversification. Optimizing purely within your current menu would mean adjusting the weights between existing ETFs—especially trimming highly correlated ones—to hit a better risk–return ratio. Efficiency here doesn’t automatically mean more diversification overall, but it does mean getting more “expected return per unit of roller-coaster ride.”

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco QQQ Trust 0.50%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.00%

The overall dividend yield is about 1%, with the highest yield coming from the international fund and the small cap value ETF. Growth-focused funds like QQQ and the large-cap growth ETF naturally pay less because those companies tend to reinvest profits instead of distributing them. For a growth-oriented strategy, that low yield is not a problem; total return (price gains plus dividends) matters more than cash payouts alone. If steady income were a big priority, this setup might feel light. Otherwise, reinvesting those modest dividends automatically can quietly boost compounding over time without needing higher-yield, slower-growth holdings.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco QQQ Trust 0.20%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

The total expense ratio is around 0.08%, which is impressively low and a major strength. Costs are like friction on a moving car—tiny each year, but over decades they add up dramatically. You’ve mainly chosen ultra-low-cost index funds, with only a modestly higher fee on the small cap value ETF. This aligns really well with best practices and gives you more of the market’s return instead of handing it over in fees. There isn’t much to squeeze here; any tweaks are more about simplification or risk balance rather than saving big additional basis points on expenses.

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