A growth-oriented portfolio with a strong focus on US large-cap stocks and low diversification

Report created on Oct 19, 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 concentrated in two ETFs: the Vanguard S&P 500 ETF and the Schwab U.S. Large-Cap Growth ETF, with a 70/30 split respectively. Both funds focus on U.S. equities, particularly in the large-cap space, which indicates a strong bias towards growth. However, this allocation results in low diversification across asset classes and sectors, as it exposes the portfolio predominantly to the performance of the U.S. stock market.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.29% with a maximum drawdown of -33.46%. The days contributing to 90% of the returns are notably few, highlighting the portfolio's reliance on significant market movements for gains. This performance, while impressive, underscores the portfolio's high risk and volatility, aligning with its growth profile but also indicating potential for large fluctuations in value.

Projection Info

Using Monte Carlo simulations, the portfolio's forward projection suggests a wide range of outcomes with a median increase of 827.2%. While the simulations show a high likelihood of positive returns, they also reflect the portfolio's significant risk, as evidenced by the broad spread between the 5th and 67th percentiles. It's important to note that simulations rely on historical data and cannot predict future market conditions with certainty.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to other asset classes such as bonds or real estate. This singular focus enhances potential returns but also increases risk, particularly in volatile market periods. Diversifying across different asset classes could provide a buffer during stock market downturns.

Sectors Info

  • Technology
    39%
  • Financials
    11%
  • Telecommunications
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Industrials
    7%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

Sector allocation is heavily weighted towards technology at 39%, followed by financial services, communication services, and consumer cyclicals. This concentration in high-growth sectors can drive strong returns but also subjects the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting technology and consumer spending.

Regions Info

  • North America
    100%

Geographically, the portfolio is entirely allocated to North America, missing out on potential growth and diversification benefits from developed and emerging markets outside the U.S. This geographic concentration increases exposure to U.S.-specific economic and political risks.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    1%

The focus on mega (52%) and big (31%) cap stocks suggests a preference for established companies with potentially lower growth rates compared to smaller companies. While this can offer stability, it may also limit opportunities for higher returns from mid and small-cap investments.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The two ETFs in the portfolio are highly correlated, as they both track large-cap U.S. stocks. This redundancy limits diversification benefits, effectively increasing the portfolio's risk without necessarily adding to its return potential. Diversifying across less correlated assets could reduce volatility and improve overall portfolio performance.

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.

Optimizing the portfolio involves addressing the high correlation between its components. Reducing overlap by diversifying across different asset classes, sectors, and geographies could enhance returns for the same level of risk. The current allocation, while streamlined, misses out on the benefits of broader diversification.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.96%

The portfolio's dividend yield is modest at 0.96%, reflecting its growth orientation over income generation. While dividends contribute to total returns, the primary focus here is on capital appreciation. Investors seeking regular income might consider higher-yielding investments.

Ongoing product costs Info

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

The portfolio benefits from low costs, with a total Expense Ratio (TER) of just 0.03%. This efficiency supports better long-term performance by minimizing the drag on returns due to fees. Keeping costs low is a sound strategy, particularly in a growth-focused portfolio where every percentage point of return counts.

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