Growth-focused portfolio with a strong emphasis on US large-cap technology stocks
Report created on Aug 19, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 100.00%
This portfolio is entirely allocated to the Schwab U.S. Large-Cap Growth ETF, indicating a singular focus on U.S. large-cap growth stocks. Such a concentration in one ETF, especially in large-cap growth equities, suggests a high growth potential but comes with increased volatility and risk. The portfolio's diversification is notably low, with a complete absence of international stocks, bonds, or alternative asset classes. This concentration in one asset class and predominantly in one sector (technology) significantly impacts the portfolio's risk profile and diversification score.
Growth
Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 19.19%, which is impressive. However, the maximum drawdown of -34.58% underscores the high volatility and risk associated with this growth-focused strategy. It's important to note that while the high CAGR is enticing, the substantial drawdown indicates potential periods of significant value decrease, which could be distressing for investors not prepared for such fluctuations.
Projection
Monte Carlo simulations project a wide range of outcomes for this portfolio, with a median increase of 1,066.2% which is remarkably optimistic. However, it's crucial to understand that these projections, while useful for planning, are based on historical data and cannot guarantee future performance. The simulations suggest high growth potential but also underscore the need for risk tolerance, given the portfolio's high growth focus.
Asset classes
- Stocks 100%
The portfolio's allocation is 100% in stocks, specifically within the U.S. large-cap growth sector. This allocation reflects a straightforward, high-risk, high-reward investment strategy but lacks diversification across different asset classes. Diversifying across asset classes can reduce risk and smooth out returns over time, which is particularly important for investors who may be concerned about market volatility.
Sectors
- Technology 51%
- Telecommunications 14%
- Consumer Discretionary 12%
- Health Care 8%
- Financials 7%
- Industrials 4%
- Consumer Staples 2%
- Basic Materials 1%
- Energy 1%
The heavy weighting towards technology (51%) and other growth-oriented sectors like communication services and consumer cyclicals emphasizes the portfolio's growth strategy. However, this sector concentration increases susceptibility to sector-specific risks. Diversification across a broader range of sectors could mitigate some of this risk and potentially stabilize returns during technology sector downturns.
Regions
- North America 100%
With 100% of assets allocated to North America, the portfolio lacks international exposure, which could limit growth opportunities and diversification benefits. Expanding geographic allocation can introduce exposure to different economic cycles and growth opportunities, potentially reducing volatility and enhancing returns over the long term.
Market capitalization
- Mega-cap 65%
- Large-cap 22%
- Mid-cap 11%
- Small-cap 1%
The portfolio's focus on mega (65%) and big-cap (22%) stocks aligns with its growth strategy but may limit exposure to the higher growth potential sometimes found in smaller companies. Including medium, small, or micro-cap stocks could offer additional growth opportunities and further diversification benefits.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 0.40%
The dividend yield of 0.40% is relatively low, which is typical for growth-focused portfolios prioritizing capital appreciation over income. Investors seeking regular income alongside growth may want to consider diversifying into assets with higher dividend yields.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.04%
The portfolio benefits from a very low total expense ratio (TER) of 0.04%, which is excellent for maximizing long-term growth by minimizing costs. Keeping costs low is crucial for enhancing returns over time, especially in growth-focused strategies where compounding plays a significant role.
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