Aggressive growth-focused portfolio with high exposure to large-cap US stocks and technology

Report created on Aug 21, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards large-cap U.S. equities, with a significant emphasis on growth-oriented assets. The allocation includes 50% in a U.S. Large-Cap Growth ETF, 40% in an S&P 500 Index Fund, and a 10% direct investment in Tesla Inc., a high-growth stock. This composition reflects a clear focus on the American market and sectors known for robust growth, particularly technology. While this strategy aligns with aggressive growth objectives, the concentration in large-cap stocks and limited asset class diversification present heightened risks and reduced resilience against market volatility.

Growth Info

Historically, this portfolio has demonstrated impressive performance with a Compound Annual Growth Rate (CAGR) of 33.01%. However, it's important to note the significant maximum drawdown of -39.50%, indicating substantial volatility and potential for large losses during downturns. The days contributing to 90% of returns are notably few, suggesting that the portfolio's gains are heavily reliant on short periods of exceptional performance. This pattern underscores the aggressive nature of the portfolio and the importance of timing in realizing returns.

Projection Info

Monte Carlo simulations project a wide range of outcomes for this portfolio, with a median increase of 3,600.3% and an annualized return across all simulations of 43.19%. While these projections offer a bullish outlook, it's crucial to understand that such simulations use historical data, which may not accurately predict future performance. The high variability in potential outcomes also highlights the portfolio's risk level, suggesting that while the upside is significant, so is the potential for loss.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, with no diversification into other asset classes like bonds or real estate. This singular focus on equities, particularly within a specific geographic region and market cap range, magnifies both potential returns and volatility. Diversifying across different asset classes can help mitigate risk by providing a buffer against stock market fluctuations, potentially leading to a more stable performance over time.

Sectors Info

  • Technology
    39%
  • Consumer Discretionary
    16%
  • Telecommunications
    11%
  • Financials
    9%
  • Health Care
    8%
  • Industrials
    5%
  • Consumer Discretionary
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation is heavily skewed towards technology, consumer cyclicals, and communication services, which are sectors known for their growth potential but also for their volatility. This concentration can lead to significant gains during bullish market phases but can also expose the portfolio to higher risk during market corrections or downturns. Expanding into more defensive sectors or diversifying across a broader range of industries could help balance the portfolio's risk-reward profile.

Regions Info

  • North America
    100%

The portfolio's geographic allocation is entirely focused on North America, missing out on potential growth opportunities and diversification benefits from developed European or Asian markets, as well as emerging markets. This geographic concentration increases exposure to region-specific risks, such as economic downturns or policy changes in the U.S. Incorporating international equities could enhance diversification and potentially reduce volatility.

Market capitalization Info

  • Mega-cap
    61%
  • Large-cap
    25%
  • Mid-cap
    13%
  • Small-cap
    1%

With 61% in mega-cap, 25% in large-cap, and the remainder in mid to small-cap stocks, the portfolio leans heavily towards companies with large market capitalizations. While this can offer stability and lower volatility compared to smaller companies, it may also limit growth potential and diversification benefits. A more balanced allocation across different market caps could provide a more nuanced risk-return profile.

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.

Given its current composition, there's an opportunity to optimize the portfolio using the Efficient Frontier concept, aiming for the best possible risk-return ratio. Adjusting the allocation could potentially achieve a more favorable balance, enhancing returns for a given level of risk. This might involve diversifying into other asset classes, sectors, or geographies to reduce volatility while maintaining, or even improving, expected returns.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Schwab S&P 500 Index Fund 6.70%
  • Weighted yield (per year) 2.88%

The portfolio's dividend yield, driven by the S&P 500 Index Fund and the U.S. Large-Cap Growth ETF, averages to 2.88%. While not the primary focus of this growth-oriented strategy, dividends contribute to the portfolio's total return and provide a source of income, which can be particularly beneficial during market downturns. Considering investments with higher dividend yields or diversifying into dividend-focused assets could offer additional income and risk mitigation.

Ongoing product costs Info

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

With an average Total Expense Ratio (TER) of 0.03%, the portfolio benefits from low costs, which is commendable. Lower costs translate to higher net returns over time, a crucial factor in long-term investment success. Maintaining a focus on cost efficiency, especially when considering new investments or rebalancing, will continue to support the portfolio's performance.

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