Growth-oriented portfolio with a strong focus on US large-cap stocks and technology sector
Report created on Aug 19, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 90.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 10.00%
The portfolio is heavily weighted towards the Schwab U.S. Large-Cap Growth ETF, comprising 90% of the total, with the remaining 10% in the Schwab U.S. Dividend Equity ETF. This allocation indicates a strong growth orientation, leaning heavily on large-cap stocks within the U.S. market. However, this also highlights a low level of diversification across asset classes and geographic regions, with a complete focus on stocks and a sole exposure to North America.
Growth
Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 18.59%, which is impressive. However, it's important to note the maximum drawdown of -32.54%, indicating significant volatility and potential risk during market downturns. The days contributing to 90% of the returns being concentrated in just 38 days further underscores the portfolio's reliance on short periods of high returns.
Projection
Monte Carlo simulations, running 1,000 scenarios, suggest a wide range of outcomes with a median projected growth of 744% over the simulation period. While 998 simulations resulted in positive returns, indicating a high likelihood of growth, the broad spread between the 5th and 67th percentiles (133.5% to 1,070.5%) reflects substantial uncertainty and risk.
Asset classes
- Stocks 100%
The portfolio's allocation is entirely in stocks, with no presence in other asset classes such as bonds or real estate. This singular focus on equities, while potentially lucrative in terms of growth, lacks the risk mitigation that comes with a more diversified asset class mix. Including different asset classes could provide a buffer against stock market volatility.
Sectors
- Technology 47%
- Telecommunications 13%
- Consumer Discretionary 12%
- Health Care 9%
- Financials 7%
- Industrials 5%
- Consumer Staples 3%
- Energy 3%
- Basic Materials 1%
The sectoral allocation is heavily skewed towards technology, making up nearly half of the portfolio. While the tech sector has historically provided strong growth, this concentration increases susceptibility to sector-specific downturns. The portfolio also has exposures to communication services and consumer cyclicals, but is underrepresented in defensive sectors like utilities and real estate.
Regions
- North America 100%
Geographic allocation is exclusively focused on North America, missing out on potential growth opportunities and diversification benefits from developed and emerging markets outside the U.S. This geographic concentration could expose the portfolio to region-specific risks, such as policy changes or economic downturns in the U.S.
Market capitalization
- Mega-cap 59%
- Large-cap 26%
- Mid-cap 14%
- Small-cap 2%
The emphasis on mega and big-cap stocks (85% combined) aligns with the portfolio's growth and risk profile, favoring established companies with potentially more stable returns. However, the minimal exposure to small and micro-cap stocks limits opportunities for higher growth rates that these riskier, smaller companies can offer.
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 performance, there's room for optimization towards achieving a better risk-return balance. Using the Efficient Frontier model could help in identifying an asset allocation that maximizes returns for a given level of risk. This might involve diversifying across more asset classes and geographies or adjusting sector exposures.
Dividends
- Schwab U.S. Dividend Equity ETF 3.80%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 0.74%
The dividend yield of the portfolio is relatively low at 0.74%, reflecting its growth focus over income generation. For investors seeking regular income, increasing exposure to higher-dividend-yielding assets could be beneficial. However, for growth-oriented investors, reinvesting these dividends can compound growth over time.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.04%
The portfolio benefits from low costs, with a total expense ratio (TER) of 0.04%. This efficient cost structure supports better net returns over the long term, which is particularly important in a growth-focused portfolio where every percentage point of return can significantly impact compound growth.
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