Growth-oriented portfolio with high exposure to large-cap tech and emerging market risks

Report created on Aug 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the Schwab U.S. Large-Cap Growth ETF, making up 80% of the allocation, followed by a 10% stake in Jiayin Group Inc, a common stock, and another 10% in the Schwab U.S. Broad Market ETF. The dominant presence of large-cap growth ETFs indicates a strong growth orientation but raises questions about diversification, given the significant overlap between large-cap growth stocks and the broad market. This composition suggests a high concentration in specific sectors, notably technology, which may increase volatility and risk.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 24.91%, with a maximum drawdown of -33.39%. These figures highlight the portfolio's high growth potential but also its susceptibility to significant losses during market downturns. The fact that 90% of returns are concentrated in just 20 days emphasizes the portfolio's reliance on short-term gains, underscoring the importance of timing in this investment strategy.

Projection Info

Monte Carlo simulations, based on historical data, suggest a wide range of outcomes, from a 97.2% loss to a 955% gain, with a median projection of 197.4% growth. While these simulations offer a broad view of potential future performance, it's crucial to remember that they rely heavily on past trends, which may not accurately predict future movements. The significant spread in projected outcomes underscores the portfolio's high risk and high reward nature.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to bonds, real estate, or other asset classes. This singular focus on equities enhances growth potential but also increases risk, especially during market downturns. Diversifying across different asset classes could provide a buffer against stock market volatility and contribute to more stable long-term returns.

Sectors Info

  • Technology
    44%
  • Telecommunications
    22%
  • Consumer Discretionary
    11%
  • Health Care
    7%
  • Financials
    7%
  • Industrials
    4%
  • Consumer Staples
    2%
  • Basic Materials
    1%
  • Energy
    1%
  • Real Estate
    1%

The sector allocation is heavily skewed towards technology (44%), communication services (22%), and consumer cyclicals (11%), reflecting a strong bet on high-growth areas. While this sector concentration can offer significant upside during bull markets, it also exposes the portfolio to sector-specific risks, such as regulatory changes or shifts in consumer behavior, which could impact performance.

Regions Info

  • North America
    90%
  • Asia Emerging
    10%

Geographic exposure is predominantly in North America (90%), with a small allocation to Asia Emerging (10%). This geographic distribution indicates a focus on developed markets, with limited exposure to potentially higher-growth emerging markets. Expanding geographic diversity could help mitigate regional risks and tap into growth opportunities in other parts of the world.

Market capitalization Info

  • Mega-cap
    56%
  • Large-cap
    21%
  • Small-cap
    12%
  • Mid-cap
    11%

The portfolio's market capitalization breakdown shows a bias towards mega (56%) and big (21%) cap stocks, with smaller allocations to small (12%) and medium (11%) caps. This skew towards larger companies is consistent with the portfolio's growth and risk profile, as these firms often offer more stability and less volatility than their smaller counterparts. However, including more small and medium-cap stocks could enhance growth potential and diversification.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Schwab U.S. Broad Market ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Schwab U.S. Broad Market ETF indicates overlapping holdings, which may limit the benefits of diversification. Reducing exposure to correlated assets can help spread risk more effectively across the portfolio, potentially leading to improved risk-adjusted returns.

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 the portfolio's high correlation among its major holdings, optimization should focus on reducing overlap to achieve better diversification. This could involve reallocating some assets from highly correlated ETFs to other asset classes or sectors with lower correlation, thereby potentially improving the portfolio's risk-return profile.

Dividends Info

  • Jiayin Group Inc 10.10%
  • Schwab U.S. Broad Market ETF 1.20%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.45%

The portfolio's overall dividend yield is 1.45%, with a notable 10.10% yield from Jiayin Group Inc. While the focus on growth stocks typically results in lower dividend yields, the income from Jiayin Group Inc provides some cash flow. Investors should consider the role of dividends in their overall investment strategy, balancing the pursuit of growth with the potential for income.

Ongoing product costs Info

  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low total expense ratios (TER) on its ETF holdings, averaging 0.04%, which supports better net returns over the long term. Keeping investment costs low is crucial for enhancing portfolio performance, especially in growth-oriented strategies where compound returns can significantly impact final outcomes.

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