Growth-focused portfolio with a strong tilt towards US equities and technology sector

Report created on Jun 12, 2025

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 heavily weighted towards US equities, with a significant allocation to the Vanguard S&P 500 ETF and Schwab U.S. Large-Cap Growth ETF. The inclusion of the Schwab U.S. Dividend Equity ETF and Schwab International Equity ETF adds a layer of dividend focus and international exposure, albeit limited. The overall structure suggests a growth-oriented strategy, prioritizing large-cap stocks across a few sectors, with a notable absence of bonds or alternative asset classes for risk mitigation.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.95%, with a maximum drawdown of -33.43%. These figures indicate strong past performance but also highlight potential volatility, as evidenced by the significant drawdown. The days contributing most to returns suggest that performance peaks are concentrated, which is typical for growth-oriented equity investments. Comparing this to a benchmark would be essential for context, but the high CAGR suggests outperformance in a bullish market.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The median projection suggests a potential for substantial growth, with 50% of simulations indicating a 406.3% increase. However, the broad range between the 5th and 67th percentiles underscores the risk of volatility. It's important to remember that these projections are not guarantees but tools for understanding potential risk and reward.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, which aligns with a growth-focused investment strategy but introduces heightened market risk. The absence of bonds, cash, or alternative investments limits opportunities for risk diversification. While this may be suitable for investors with a high risk tolerance and a long-term horizon, incorporating other asset classes could provide a buffer against stock market volatility.

Sectors Info

  • Technology
    30%
  • Financials
    13%
  • Health Care
    11%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Industrials
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is concentrated in technology, financial services, healthcare, and consumer cyclicals, reflecting a typical growth portfolio's bias towards sectors expected to outperform in expanding economies. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or economic shifts affecting these industries. Diversifying across a broader range of sectors could mitigate such risks.

Regions Info

  • North America
    90%
  • Europe Developed
    6%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographically, this portfolio is heavily invested in North America, with minimal exposure to international markets. This focus may have benefitted from strong US market performance but also concentrates geopolitical and currency risk. Increasing allocations to developed and emerging markets outside the US could enhance diversification and capture growth opportunities globally.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    2%

The emphasis on mega and big-cap stocks supports the portfolio's growth and stability objectives, as these companies often have more established business models and global reach. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities these segments may offer. Considering a modest increase in smaller cap investments could introduce more growth potential, albeit with added volatility.

Redundant positions Info

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

The high correlation between the Vanguard S&P 500 ETF and Schwab U.S. Large-Cap Growth ETF indicates overlapping investments, reducing the portfolio's diversification benefits. This redundancy suggests that the portfolio might not be as diversified as intended, potentially amplifying risk during market downturns. Reallocating funds from one of these ETFs into less correlated assets could enhance diversification.

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.

Optimizing this portfolio involves addressing the high correlation between certain assets to improve diversification. The Efficient Frontier model could suggest reallocating investments to reduce overlap and potentially enhance the risk-return profile. However, any adjustments should consider the investor's risk tolerance and investment objectives, aiming to maintain a balance between growth potential and risk management.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • Schwab International Equity ETF 2.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.30%
  • Weighted yield (per year) 1.61%

The dividend yields from the Schwab U.S. Dividend Equity ETF and Schwab International Equity ETF contribute to the portfolio's total yield of 1.61%, providing a source of passive income. While the focus on growth stocks typically results in lower dividend yields, the presence of dividend-focused ETFs offers a balanced approach, combining growth potential with income generation.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.04%

The portfolio's overall expense ratio is impressively low at 0.04%, which is beneficial for long-term growth as lower costs translate directly into higher net returns. This efficient cost structure is a strong aspect of the portfolio, ensuring that more of the investment's returns are retained by the investor rather than being eroded by fees.

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