Balanced growth focused US equity portfolio with strong multi cap exposure and moderate factor tilts
Report created on May 4, 2024Risk profile
4/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 35.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 25.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00% -
XM Invesco S&P MidCap Quality ETF
XMHQ - US46137V4721 15.00% -
AV American Century ETF Trust
AVNM - US0250721745 10.00%
The portfolio is a concentrated all‑equity mix with five ETFs, entirely focused on stocks. Roughly a third sits in a broad large‑cap index, a quarter in large‑cap growth, and the remaining chunk is split across small‑cap value, mid‑cap quality, and one diversified active ETF. Structurally, it leans toward growth and quality while still keeping a healthy slice in smaller companies. This kind of setup matters because asset type and mix drive most long‑term outcomes. With everything in equities, the ride will be bumpier, but the long‑run growth potential is higher than a stock‑bond blend. The key takeaway is that this structure fits a growth‑oriented mindset, not a capital‑preservation one.
Growth
Over the recent period, $1,000 grew to about $1,494, with a compound annual growth rate (CAGR) of 15.82%. CAGR is like your average speed on a long road trip, smoothing out the ups and downs. That pace has almost matched the U.S. market and slightly beaten the global market, which is a positive sign of alignment with broad benchmarks. The max drawdown of about -20.6% shows that the portfolio can drop sharply during rough patches, a typical trait of all‑equity allocations. It’s notable that just 14 days produced 90% of returns, underscoring how missing a few strong days can damage results. As always, past returns don’t guarantee similar future performance.
Asset classes
- Stocks 100%
All of the money is in stocks, with 0% in bonds, cash, or alternatives. That means growth potential is front and center, but so is equity volatility. In a downturn, there is no stabilizing ballast from high‑quality bonds or cash‑like assets; the entire portfolio will generally move with the equity cycle. This is perfectly fine for long‑horizon investors who can ride out large drawdowns and don’t need to tap the money soon. However, anyone with near‑term spending needs would usually want some non‑equity exposure. The structure is well aligned with a growth objective but not with goals that require smoother year‑to‑year results or reliable short‑term liquidity.
Sectors
- Technology 27%
- Financials 14%
- Industrials 12%
- Consumer Discretionary 12%
- Health Care 10%
- Telecommunications 9%
- Energy 6%
- Consumer Staples 4%
- Basic Materials 4%
- Utilities 2%
- Real Estate 1%
Sector‑wise, the portfolio leans heavily into technology and related growth areas, alongside solid exposure to financials, industrials, and consumer‑oriented businesses. Tech at around 27% is somewhat higher than many broad benchmarks, which typically sit a bit lower, boosting sensitivity to innovation cycles and interest‑rate moves. During periods of falling rates and strong digital adoption, this can be a tailwind; in environments where rates rise or tech sentiment cools, swings may be sharper. The presence of health care, energy, staples, and utilities adds some balance, helping reduce single‑theme risk. Overall, this allocation is broadly diversified by sector, but with a clear growth‑tilted flavor that will drive much of the experience.
Regions
- North America 90%
- Europe Developed 4%
- Japan 2%
- Asia Emerging 1%
- Asia Developed 1%
Geographically, the portfolio is overwhelmingly anchored in North America at about 90%, with only small slices of developed Europe, Japan, and other Asian markets. That’s more home‑biased than common global benchmarks, which give a noticeably higher share to non‑U.S. regions. The upside is strong alignment with the U.S. market, which has been a standout performer in recent years and offers deep, liquid companies. The tradeoff is less diversification against a period where U.S. stocks might lag other regions. Currency risk is relatively contained because most exposure is dollar‑based. Overall, the geographic stance is clear: a confident bet on North American markets rather than a fully global spread.
Market capitalization
- Mega-cap 35%
- Large-cap 21%
- Small-cap 18%
- Mid-cap 18%
- Micro-cap 7%
The market‑cap breakdown is nicely spread: meaningful exposure to mega and large caps, with substantial positions in mid and small caps plus a smaller micro‑cap sleeve. This is broader than a plain S&P 500 approach, which typically skews much more to mega and large companies. Larger firms often bring stability and liquidity, acting as the portfolio’s “anchor,” while small and mid caps add higher growth and higher volatility potential. That combination can help over long horizons because smaller companies have historically offered a return premium, albeit with bumpier rides. This multi‑cap mix is well‑balanced and aligns closely with global best practices for equity diversification across company sizes.
True holdings
-
NV NVIDIA Corporation 5.44%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
AA Apple Inc 4.82%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.65%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.60%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.26%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.93%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.80%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.76%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.63%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Large-Cap Growth ETF
- Vanguard S&P 500 ETF
-
FT TechnipFMC PLC 0.70%
Part of fund(s):- Invesco S&P MidCap Quality ETF
- Top 10 total 26.60%
Looking through the ETFs, there is meaningful overlap in the big growth names: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Broadcom appear across multiple funds. This kind of overlap creates hidden concentration because several ETFs move together when those mega‑caps move. It’s not necessarily bad; these companies have driven much of the recent market gains. But it does mean the portfolio is more tied to the fortunes of a handful of giants than the top‑level ETF list suggests. Since only top‑10 ETF positions are counted, real overlap is likely even higher. The key takeaway: diversification by ticker is good, but diversification by underlying company exposure is what really matters.
Factors
Factor exposure is broadly market‑like, with most factors sitting in the neutral band. The one notable tilt is toward size, with a “High” reading, reflecting meaningful small‑ and mid‑cap allocation. Factors are like the underlying ingredients that explain why investments behave the way they do. A size tilt can boost returns in periods when smaller companies outperform but also tends to increase volatility and deepen drawdowns in stress episodes. The neutral stance in value, momentum, quality, yield, and low volatility means the portfolio shouldn’t behave too differently from the broad market on those dimensions. Overall, factor balance is solid, with a deliberate extra dose of smaller companies for added growth potential.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 35.00% 31.8% -
Schwab U.S. Large-Cap Growth ETF
Weight: 25.00% 28.3% -
Avantis® U.S. Small Cap Value ETF
Weight: 15.00% 16.8% -
Invesco S&P MidCap Quality ETF
Weight: 15.00% 15.9% -
American Century ETF Trust
Weight: 10.00% 7.2%
Risk contribution shows how much each ETF actually drives the portfolio’s ups and downs, which can differ from simple weights. The three largest positions account for about 77% of total risk, so most volatility is coming from the S&P 500 ETF, the large‑cap growth ETF, and the small‑cap value ETF. Notably, the large‑cap growth and small‑cap value funds punch a bit above their weight in risk terms, while the American Century ETF contributes less risk than its size would suggest. This pattern is normal for growthy and small‑cap exposure. If the goal is to smooth the ride, one way is to gradually adjust allocations so that no single sleeve dominates the portfolio’s overall volatility profile.
Redundant positions
-
High correlationVanguard S&P 500 ETFSchwab U.S. Large-Cap Growth ETF
Correlation measures how investments move together, from -1 (opposite) to 1 (identical). Here, the Schwab U.S. Large‑Cap Growth ETF and the Vanguard S&P 500 ETF have a very high correlation of 0.96, meaning they tend to rise and fall almost in lockstep. Holding both still has benefits—growth tilts and index breadth differ—but they add less diversification than funds that march to a more independent beat. In practical terms, when large U.S. growth stocks are booming or slumping, both ETFs will likely respond similarly. For anyone wanting more diversification without leaving equities, it can be useful to consider whether part of this highly correlated pair could be shifted into something with a different pattern of 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 the risk‑return chart, the current portfolio has a Sharpe ratio of 0.89, while the optimal mix of the same holdings reaches 1.20 with lower volatility. The Sharpe ratio is simply return per unit of risk, like miles per gallon for your investments. Being about 2 percentage points below the efficient frontier at the current risk level means that, with different weights in the same ETFs, the portfolio could target similar returns with noticeably less volatility—or somewhat higher returns at similar risk. The encouraging part is that no new products are needed; it’s purely a question of fine‑tuning allocations. Regular, rules‑based rebalancing can help nudge things closer to that more efficient mix over time.
Dividends
- American Century ETF Trust 2.80%
- Avantis® U.S. Small Cap Value ETF 1.40%
- Schwab U.S. Large-Cap Growth ETF 0.30%
- Vanguard S&P 500 ETF 1.20%
- Invesco S&P MidCap Quality ETF 0.60%
- Weighted yield (per year) 1.08%
The portfolio’s overall dividend yield sits around 1.08%, which is on the lower side and consistent with a growth‑oriented equity mix. Higher‑yield pieces like the American Century ETF and small‑cap value help, but large‑cap growth and broad indexes pull the yield down. Dividends are just one part of total return, but they can be especially valuable for investors seeking regular cash flow or a bit of downside cushion. A lower yield means more of the expected return is coming from price appreciation rather than income. For long‑term accumulators who are reinvesting everything, this is usually fine; income‑focused investors might prefer a somewhat higher‑yielding tilt over time.
Ongoing product costs
- American Century ETF Trust 0.31%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Vanguard S&P 500 ETF 0.03%
- Invesco S&P MidCap Quality ETF 0.25%
- Weighted costs total (per year) 0.13%
The blended total expense ratio (TER) of about 0.13% is impressively low, especially for a portfolio that mixes broad index funds with more specialized ETFs. TER is the annual fee charged by funds, and keeping it low leaves more of the market’s return in your pocket each year. Over decades, even small fee differences compound into meaningful dollar amounts. Here, the ultra‑low‑cost S&P 500 and large‑cap growth ETFs do the heavy lifting in keeping costs down, while the higher‑fee small‑cap value, mid‑cap quality, and active ETF still sit at reasonable levels. This cost profile strongly supports better long‑term performance and is a real strength of the overall setup.
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