Growth-oriented portfolio with a strong focus on US large-cap stocks and low diversity

Report created on May 30, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US large-cap stocks, with a significant 70% allocation in an S&P 500 index fund, 20% in a US large-cap growth ETF, and 10% in a US dividend equity ETF. This composition reflects a clear preference for growth and income within the US equity market, with an emphasis on large-cap stocks. However, the portfolio's diversification is low, concentrating risk in a single asset class and geographic region.

Growth Info

The portfolio has demonstrated a robust historical performance with a Compound Annual Growth Rate (CAGR) of 14.23% and a maximum drawdown of -33.39%. Notably, a significant portion of returns came from a limited number of days, highlighting the impact of short-term market movements. While past performance is impressive, it's important to remember that it doesn't guarantee future results, especially given the portfolio's narrow focus.

Projection Info

Using Monte Carlo simulations, which project potential outcomes based on historical data, the portfolio shows a wide range of future performance scenarios. The 50th percentile outcome suggests a 500.8% return, indicating strong growth potential. However, the reliance on historical data means these projections cannot account for unforeseen market changes or new economic conditions, underscoring the importance of regular portfolio reviews.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, lacking exposure to other asset classes like bonds or real estate. This allocation aligns with a growth-focused strategy but limits diversification benefits, potentially increasing volatility. Including different asset classes could offer a buffer against stock market fluctuations and contribute to a more balanced risk-return profile.

Sectors Info

  • Technology
    33%
  • Financials
    12%
  • Health Care
    11%
  • Telecommunications
    10%
  • Consumer Discretionary
    7%
  • Industrials
    7%
  • Consumer Staples
    7%
  • Energy
    4%
  • Consumer Discretionary
    4%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

Sector allocation shows a heavy tilt towards technology, which comprises a third of the portfolio. This concentration in tech, alongside significant allocations to financial services and healthcare, may enhance growth prospects but also increases susceptibility to sector-specific risks. Diversifying across a broader range of sectors could mitigate this risk while potentially capturing growth in other areas.

Regions Info

  • North America
    100%

The portfolio's geographic allocation is exclusively focused on North America, missing out on potential opportunities in developed and emerging markets outside the US. This concentration increases exposure to US market risk. Expanding into international markets could offer additional growth opportunities and reduce the portfolio's overall risk through geographic diversification.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    1%

The market capitalization breakdown reveals a strong emphasis on mega and big-cap stocks, which can offer stability and lower volatility compared to smaller companies. However, the minimal exposure to small and micro-cap stocks limits the portfolio's potential for high growth rates from these more nimble companies. Considering a small allocation to smaller caps could enhance growth prospects while adding moderate risk.

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.

Considering the portfolio's current composition and its alignment with the Efficient Frontier, there's room for optimization to achieve a better risk-return balance. While it's already positioned towards the growth end of the spectrum, diversifying across more asset classes and geographies could enhance returns for the same level of risk or achieve the current return level with reduced risk.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 4.00%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Schwab S&P 500 Index Fund 1.20%
  • Weighted yield (per year) 1.32%

The portfolio's dividend yield is influenced by its allocation to a US dividend equity ETF, contributing to a total yield of 1.32%. This yield can provide a steady income stream, which is beneficial in a growth-oriented strategy. However, focusing too heavily on dividend-yielding stocks might limit exposure to high-growth companies that reinvest earnings rather than pay dividends.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Schwab S&P 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from low total expense ratios (TER), averaging 0.03% across its holdings. These low costs are advantageous, allowing more of the investment's return to compound over time. Maintaining focus on cost efficiency is crucial, especially in a low-diversity portfolio where the impact of fees on net returns can be more pronounced.

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