A portfolio that thinks diversification is just a word in the dictionary
Report created on Aug 9, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 70.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 30.00%
This portfolio is like a diet consisting of 70% chocolate and 30% assorted candies, where the chocolate is the Schwab U.S. Large-Cap Growth ETF and the candies are the Vanguard Total Stock Market Index Fund ETF Shares. Sure, it sounds sweet with a heavy lean on U.S. large caps, but it's missing some key food groups. With 100% in stocks and nothing else, it's like planning to run a marathon fueled only by sugar. Great for a sprint, maybe, but questionable for the long haul.
Growth
Historically, this portfolio has been like a roller coaster that only goes up, boasting a CAGR of 16.91%. But don't forget, the max drawdown was a stomach-churning -33.10%. It's all fun and games until the ride drops, reminding us that past performance is a shaky foundation to bet your future on, like using last year's weather forecast to plan today's picnic.
Projection
Monte Carlo simulations predict a future as volatile as a soap opera plotline, with potential outcomes swinging from "early retirement" to "working forever." While the median projection looks like a dream, remember, Monte Carlo is less fortune-telling and more educated guessing. Banking on the best-case scenario is like expecting to win the lottery because you bought a ticket.
Asset classes
- Stocks 100%
Sticking solely to stocks with zero diversification across other asset classes is akin to playing soccer with one shoe. Sure, you can do it, but why would you? It's a bold move, ignoring bonds, real estate, or even a sprinkle of commodities for flavor. This one-track mind approach is like betting it all on red; thrilling, but unnecessarily risky.
Sectors
- Technology 45%
- Telecommunications 12%
- Consumer Discretionary 12%
- Financials 9%
- Health Care 8%
- Industrials 5%
- Consumer Staples 3%
- Basic Materials 2%
- Energy 1%
- Real Estate 1%
- Utilities 1%
With 45% in technology, this portfolio is less diversified and more a tech fanboy's dream. It's like building a sports team but only recruiting quarterbacks. Sure, they're star players, but what happens when you need defense? Diversifying across sectors is key unless you're gunning for the title of "Most likely to panic when tech stocks sneeze."
Regions
- North America 100%
Geographically, this portfolio is all in on North America, turning a blind eye to the rest of the world. It's like believing the best parties are only in your backyard. Ignoring international markets is a missed opportunity for growth and a hedge against domestic downturns. Global diversification is the spice of life, or in this case, the portfolio.
Market capitalization
- Mega-cap 58%
- Large-cap 24%
- Mid-cap 14%
- Small-cap 3%
- Micro-cap 1%
With a heavy lean on mega and big caps, this portfolio is playing it safe, like only swimming in the kiddie pool. While it's less likely to encounter sharks, it's also less exciting. Diversifying across market caps can add depth and potential for growth, much like venturing into deeper waters with a lifeguard on duty.
Redundant positions
-
High correlationSchwab U.S. Large-Cap Growth ETFVanguard Total Stock Market Index Fund ETF Shares
The correlation between the two ETFs in this portfolio is like having twins in the same class; they're going to move together. This redundancy adds about as much diversification as wearing two left shoes. It's essential to mix in assets that zig when others zag, ensuring one bad day doesn't turn into a portfolio-wide meltdown.
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.
Talking about the Efficient Frontier for this portfolio is like discussing the health benefits of deep-fried butter. Sure, there's potential for high returns, but the risk-return trade-off is as balanced as a seesaw with an elephant on one end. Diversifying across asset classes and reducing correlated assets could move this portfolio closer to an optimal mix, rather than a gamble disguised as strategy.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Weighted yield (per year) 0.64%
With a dividend yield that's more a trickle than a stream, this portfolio won't be winning any income awards. It's like expecting a cactus to quench your thirst. While growth is the main game, a balanced approach could provide a steady cash flow, softening the blow during market downturns and adding a cushion for reinvestment.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.04%
On the bright side, the costs are impressively low, like finding a luxury car with an economy sticker price. At a total expense ratio of 0.04%, it's one area where this portfolio shines, proving even a broken clock is right twice a day. However, even low costs can't save a one-dimensional investment strategy.
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