Dual large cap index blend with strong growth profile and tight focus on the US market
Report created on Mar 18, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap ETF
SCHX - US8085242019 50.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00%
The portfolio is extremely simple: two US large cap index ETFs, each at 50%, tracking almost the same slice of the market. That creates a pure equity, fully invested structure with no bonds or cash buffer. Simplicity like this is easy to monitor and rebalance, and it keeps behavior aligned with the broad US stock market. The flip side is that there’s no built‑in cushion when stocks fall. For someone comfortable riding full equity swings, this structure is clean and purposeful; for anyone wanting smoother returns, adding genuinely different assets would usually be the lever.
Growth
Historically, the portfolio shows a strong compound annual growth rate (CAGR) of 15.17%, meaning it grew about 15% per year on average over the measured period. That’s competitive with, and often similar to, broad US benchmarks like the S&P 500. The max drawdown of -34.15% reflects a deep but not unusual equity decline, consistent with major market selloffs. The fact that 90% of returns came in just 34 days highlights how a few big up days drive long‑term results. Staying invested and avoiding panic selling during sharp drops is crucial for capturing that strong long‑run growth.
Projection
The forward projection uses Monte Carlo simulation, which basically runs thousands of “what if” paths by remixing historical return patterns to estimate a range of future outcomes. Here, all 1,000 simulations showed positive returns, with a median ending value around 621% of the starting amount and a 5th percentile near 143.1%. That suggests a wide but generally favorable distribution for a growth‑oriented equity mix. However, simulations rely on past data and assume relationships stay similar, which reality often challenges. It’s best to treat these numbers as rough weather forecasts, not promises, and to make sure the downside range still feels livable.
Asset classes
- Stocks 100%
Asset‑class exposure is 100% stocks, with no allocation to bonds, cash, or alternatives. This is a textbook growth posture: maximum participation in equity upside, but also maximum exposure to market downturns. Compared with more diversified mixes that blend stocks and bonds, this kind of structure will usually outperform over very long periods but can be far more volatile year to year. For someone with a long horizon and steady nerves, that can be fine. For anyone with nearer‑term spending needs, carving out some stabilizing assets could reduce the risk of having to sell during a bad market.
Sectors
- Technology 34%
- Financials 12%
- Telecommunications 11%
- Consumer Discretionary 10%
- Health Care 10%
- Industrials 9%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector exposure leans heavily toward technology at 34%, with meaningful stakes in financial services, communication services, consumer cyclicals, healthcare, and industrials, plus smaller slices in defensives and resources. This mirrors the current US large‑cap landscape, which is quite tech‑tilted. That alignment with major benchmarks is actually a strength: it means the portfolio isn’t making big sector bets beyond what the market itself is doing. The tradeoff is that tech‑heavy markets can be more sensitive to interest rates and shifts in growth expectations. If tech experiences a long slump, short‑term returns may feel more painful than a more evenly spread mix.
Regions
- North America 99%
Geographic exposure is almost entirely North America at 99%, with essentially no direct allocation to Europe, Asia, or other regions. This home‑country focus tracks US large‑cap benchmarks closely, so it’s well aligned with common US index investing practice. The benefit is clear visibility and reliance on one of the world’s most developed markets. The potential drawback is that returns become highly tied to US economic and policy conditions. Investors wanting more global diversification might consider whether adding foreign exposure elsewhere in their broader finances balances that, or whether a US‑centric stance fits their comfort level and outlook.
Market capitalization
- Mega-cap 45%
- Large-cap 34%
- Mid-cap 19%
- Small-cap 2%
Market cap exposure is dominated by mega and big companies, with 45% in mega caps and 34% in big caps, plus smaller allocations to mid and small caps. That’s very similar to a typical US large‑cap index, where the largest companies drive index behavior. Larger firms tend to be more stable and diversified businesses, which often means slightly lower volatility than pure small‑cap strategies but also less dramatic upside in certain cycles. The small 2% small‑cap slice adds a bit of growth potential but won’t meaningfully change the ride. Overall, this tilt toward giants supports reliability over extreme swings.
True holdings
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NV NVIDIA Corporation 7.34%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
AA Apple Inc 6.45%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 4.95%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.42%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 3.00%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.60%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.40%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 2.35%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.88%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.53%
Part of fund(s):- Schwab U.S. Large-Cap ETF
- Vanguard S&P 500 ETF
- Top 10 total 35.92%
Looking through the ETFs, the top underlying exposures are heavily concentrated in a small group of mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet. Because both ETFs hold similar indexes, the same companies appear in each, creating hidden concentration even though there are only two visible positions. The top tech and platform companies together already make up a sizable chunk of the portfolio. While these businesses have driven recent gains, they also introduce dependence on a narrow leadership group. Being aware of this overlap helps set expectations: when those giants surge, the portfolio will likely shine; when they stumble, performance can lag.
Factors
Factor exposure, where “factors” are characteristics like size or momentum that help explain returns, shows dominant tilts to low volatility, momentum, and size. A 60% low volatility exposure suggests a preference for historically steadier names within the equity universe, which can soften some drawdowns compared with a pure high‑beta mix. Momentum at 50% means the portfolio tilts toward recent winners, which can help in strong, trending markets but may hurt when leadership abruptly rotates. Size at 20% indicates only a mild lean away from the very largest firms. Sparse data on other factors limits precision, so these tilts should be seen as directional, not exact.
Risk contribution
-
Schwab U.S. Large-Cap ETF
Weight: 50.00% 50.2% -
Vanguard S&P 500 ETF
Weight: 50.00% 49.8%
Risk contribution, which measures how much each holding adds to total portfolio ups and downs, is almost perfectly split: each ETF is about 50% of risk, matching its 50% weight. That’s expected since they behave very similarly and have comparable volatility. There’s no single position dominating risk beyond its size. However, because both ETFs track overlapping indexes, the true drivers of risk are the underlying mega‑cap stocks already noted, even if they’re not held directly. If more differentiated holdings were added, risk contribution would become more varied, and intentional size adjustments could be used to align perceived importance with actual impact.
Redundant positions
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High correlationSchwab U.S. Large-Cap ETFVanguard S&P 500 ETF
The two ETFs are highly correlated, meaning they tend to move together almost in lockstep. Correlation is a measure of how similarly assets move; when it’s very high, combining them brings little diversification benefit. In this case, owning both is functionally similar to holding one, just split between two tickers. That’s not harmful, but it’s also not adding resilience. If the goal is to simplify and boost diversification, replacing one with a genuinely different exposure elsewhere in a broader plan could create more meaningful risk spreading without sacrificing the core US large‑cap anchor.
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 a risk‑return chart, the portfolio would sit roughly where a pure US large‑cap index lands: solid expected return for a relatively high volatility level. The efficient frontier, which shows the best possible return for each risk level using the current holdings, would likely reveal that simply reweighting between these two highly similar ETFs doesn’t change much. Because they’re so correlated, the current mix is close to what’s achievable with this limited toolset. The bigger optimization opportunity lies not in adjusting weights between them, but in considering whether introducing truly different assets could shift the portfolio closer to a more attractive frontier.
Dividends
- Schwab U.S. Large-Cap ETF 1.10%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.10%
The total dividend yield sits around 1.10%, reflecting the typical payout level of large US companies today. That’s modest income, but for a growth‑tilted equity portfolio, it’s in line with expectations. Most of the return here is intended to come from price appreciation rather than cash flow. For investors focused on building wealth over time, reinvesting those dividends can quietly boost compounding, especially over long horizons. Anyone relying on current income, though, would usually need additional higher‑yielding assets elsewhere, since this yield alone won’t generate substantial cash relative to the volatility being taken on.
Ongoing product costs
- Schwab U.S. Large-Cap ETF 0.03%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
Costs are impressively low, with both ETFs charging about 0.03% annually and the blended total expense ratio at 0.03%. That’s well below average and a real strength of this setup. Low fees mean more of the portfolio’s return stays in the investor’s pocket every single year. Over decades, the difference between 0.03% and even 0.5% compounds into a meaningful gap in ending wealth. This cost discipline aligns very closely with best practices in index investing and supports strong long‑term outcomes, especially since no performance edge is being sacrificed to get those low expenses.
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