A growth tilted diversified portfolio with strong income and impressive historical risk adjusted results
Report created on Dec 17, 2025Risk profile
4/7
Diversification profile
5/5
Positions
-
VU Vanguard Growth Index Fund ETF Shares
VUG - US9229087369 25.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 25.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 20.00% -
SW SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES
SWTSX - US8085097561 20.00% -
BT BTCI
BTCI 10.00%
This portfolio is built mostly from broad stock index funds with a clear tilt toward growth and dividends, plus a small cash and “other” sleeve. Overall stock exposure is high relative to many balanced benchmarks, which would typically hold more bonds. That matters because heavy stock weight usually boosts long‑term growth but also increases short‑term swings. The mix between total market, growth, and dividend funds is thoughtfully spread and supports the “highly diversified” label. However, there is some overlap between the broad US index and the US growth ETF. Trimming duplicate exposure and simplifying positions could keep the same general profile while making the portfolio easier to manage and monitor.
Growth
Starting with a hypothetical 10,000 dollars, a 16.46 percent Compound Annual Growth Rate (CAGR) would have grown the investment to roughly 44,000 dollars in ten years. CAGR is like average speed on a road trip: it smooths the ups and downs to show the long‑term pace. A maximum drawdown of about 17 percent is actually mild for a mostly stock portfolio and suggests the mix has handled volatility well so far. This lines up nicely with a “balanced but growth‑oriented” risk level. Still, past performance only shows how this mix behaved under previous conditions; it’s not a promise that future returns or drawdowns will look the same.
Projection
The Monte Carlo analysis uses 1,000 simulated future paths based on historical patterns to estimate a range of outcomes, kind of like running 1,000 different weather forecasts. An annualized return around 18 percent across simulations is very strong, with a median outcome of about 6.7 times the starting amount and even the pessimistic 5th percentile still above break‑even. This suggests the current mix is tilted toward growth with a favorable risk‑reward trade‑off. But simulations depend heavily on the past data and assumptions fed into the model. They can’t foresee new regimes like tax changes, wars, or long slowdowns, so results should be treated as a guidepost, not a guarantee.
Asset classes
- Stocks 89%
- Cash 8%
- Other 3%
With 89 percent in stocks, 8 percent in cash, and 3 percent in “other,” this setup is clearly equity‑heavy compared with a textbook balanced benchmark that might hold a large slice of bonds. High stock weight increases growth potential and has historically supported the strong performance you see, but it also means larger swings during market stress. The cash slice adds a small stability buffer and some optionality to rebalance after dips. For someone wanting more capital preservation or smoother returns, gradually shifting a portion of cash and “other” into more defensive assets could lower volatility. As it stands, this allocation is well‑balanced for a growth‑leaning balanced investor rather than a conservative one.
Sectors
- Technology 26%
- Financials 12%
- Industrials 9%
- Health Care 9%
- Consumer Discretionary 8%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 6%
- Basic Materials 3%
- Consumer Discretionary 2%
- Real Estate 2%
- Utilities 1%
Sector exposure is broad and generally lines up with common market benchmarks, with technology leading at 26 percent, followed by financials, industrials, healthcare, and consumer areas. This spread is a strong indicator of diversification, and your portfolio’s sector composition matches benchmark data in a way that supports resilience across different economic cycles. The tech tilt is normal in modern index‑style portfolios but can amplify sensitivity to interest rates or sentiment shifts about innovation and profitability. Dividend and total‑market holdings help balance this with more mature, cash‑generating businesses. Keeping an eye on whether one sector drifts too far above its market weight over time can help avoid becoming unintentionally concentrated in a single economic theme.
Regions
- North America 67%
- Europe Developed 9%
- Asia Emerging 4%
- Japan 4%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about two‑thirds in North America with the rest spread across Europe, Asia, and other regions is quite close to global equity benchmarks. This alignment is beneficial because it reflects the actual size of different markets worldwide and reduces home‑country bias. The allocation to developed and emerging Asia, Japan, and smaller regions adds a useful growth and diversification layer beyond the US. International stocks can lag domestic markets for long stretches, but they can also lead in other periods, helping smooth long‑term results. This allocation is well‑balanced and aligns closely with global standards. Periodically checking whether non‑US exposure still matches your comfort level with currency moves and foreign economic risk is a good habit.
Market capitalization
- Mega-cap 36%
- Large-cap 32%
- Mid-cap 17%
- Small-cap 4%
- Micro-cap 1%
The spread across company sizes—36 percent mega cap, 32 percent large, 17 percent mid, and smaller amounts in small and micro caps—mirrors a typical total‑market tilt. This is positive because mega and large companies usually bring stability and liquidity, while mids and smalls add growth potential and diversification. Many broad benchmarks look similar, so being close to that pattern suggests healthy exposure across the business spectrum. Smaller companies can be more volatile and sensitive to economic cycles, but they also tend to drive innovation and long‑term growth. Keeping them as a minority slice, as you have here, helps capture upside without making the portfolio overly dependent on their more erratic price swings.
Redundant positions
-
High correlationVanguard Growth Index Fund ETF SharesSCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES
The highly correlated pair—your growth ETF and total US stock fund—basically move in the same direction most of the time. Correlation describes how two investments tend to move together; when it’s high, they behave almost like a single holding, which limits diversification benefits. That’s why the current optimization note points out overlapping assets that bring little extra risk reduction. Simplifying here by favoring one broad exposure instead of two near‑twins would keep your US equity stance intact while reducing complexity. The good news: correlation is strong mostly between similar US positions, while the mix of dividends, growth, and international holdings still supports meaningful overall diversification.
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 called the Efficient Frontier, which shows the best possible return for each level of risk using your existing building blocks, this portfolio would likely sit in the upper‑middle area: growth‑oriented but not extreme. “Efficiency” here means getting the highest expected return for the amount of volatility you’re willing to accept, without adding new products. Because your broad US growth and total‑market fund are highly correlated, shifting weight between them and the dividend and international holdings could move the portfolio closer to that efficient curve. This is about fine‑tuning the mix to sharpen the risk‑return ratio, not about chasing maximum diversification or adding complexity.
Dividends
- Schwab U.S. Dividend Equity ETF 3.80%
- Vanguard Growth Index Fund ETF Shares 0.40%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- BTCI 36.70%
- Weighted yield (per year) 5.20%
A total yield around 5.2 percent is notably high for a diversified, growth‑tilted mix, largely driven by the dedicated dividend ETF and the very high yield in BTCI. Dividends are the cash payments companies make to shareholders and can be a big part of total return, especially when reinvested. For income‑minded investors, this setup is attractive because it combines current cash flow with long‑term growth potential. The flip side is that unusually high yields can signal elevated risk or less stable payouts, particularly in niche holdings. Periodically reviewing whether the income level is sustainable and fits your tax situation helps avoid chasing yield at the expense of overall portfolio quality and stability.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 0.03%
- Vanguard Growth Index Fund ETF Shares 0.04%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
With a blended ongoing cost (Total Expense Ratio, or TER) of about 0.04 percent, this portfolio is impressively cheap. TER is like a small yearly service fee taken out of your investments; low fees leave more of the return in your pocket. Your lineup of broad, index‑style funds is a big reason costs are so low, and this is a major long‑term advantage. Over decades, even a difference of 0.5 percent per year can meaningfully change final outcomes. The costs here are already aligned with best practices and support better long‑term performance. At this point, fee focus is more about maintaining these low‑cost choices rather than searching for additional savings.
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