Growth-oriented portfolio with a strong focus on US stocks and technology

Report created on Aug 9, 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 predominantly invested in U.S. equities, with a significant allocation towards technology stocks. The largest holding is in the SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES, making up 55% of the portfolio, indicating a broad exposure to the U.S. stock market. Other notable allocations include sector-specific ETFs focusing on the NASDAQ 100, S&P 500 momentum stocks, large-cap growth, and dividend-paying stocks. The minimal exposure to international stocks, at just 3%, suggests a strong home country bias. The portfolio's overall composition leans heavily towards growth-oriented investments, with a low level of diversification across asset classes and geographic regions.

Growth Info

The portfolio has shown a robust Compound Annual Growth Rate (CAGR) of 15.35%, with a maximum drawdown of -25.70%. These figures indicate a high-growth trajectory, albeit with significant volatility. The days contributing most to returns are relatively few, highlighting the portfolio's reliance on short bursts of strong performance. This pattern is typical for growth-focused portfolios, where periods of rapid gains are offset by sharp declines. The performance metrics underscore the portfolio's aggressive growth stance but also hint at the potential for substantial short-term losses.

Projection Info

Using Monte Carlo simulation, the forward projection of this portfolio shows a wide range of potential outcomes, from a 5th percentile growth of 114.3% to a 67th percentile growth of 891.1%. These projections, based on historical data, indicate a high likelihood of positive returns, with 995 out of 1,000 simulations showing growth. However, it's crucial to remember that such simulations are inherently uncertain and depend heavily on past market behavior, which may not predict future performance accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no diversification into other asset classes such as bonds, real estate, or commodities. This allocation aligns with the portfolio's growth-focused risk profile but increases susceptibility to market volatility. Diversifying across different asset classes can help mitigate risk and smooth out returns over time, especially in turbulent markets. Considering the portfolio's aggressive stance, adding non-correlated assets could offer a more balanced risk-return profile.

Sectors Info

  • Technology
    33%
  • Financials
    12%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    7%
  • Consumer Discretionary
    6%
  • Consumer Discretionary
    6%
  • Energy
    4%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

The sector allocation reveals a heavy emphasis on technology, financial services, and communication services, which align with the growth and momentum strategies evident in the choice of ETFs. This concentration in high-growth sectors can lead to higher volatility and sector-specific risks, such as regulatory changes or rapid technological shifts. While this sector focus is appropriate for a growth-oriented investor, diversifying into more defensive sectors could provide stability during market downturns.

Regions Info

  • North America
    97%
  • Europe Developed
    2%
  • Asia Emerging
    1%

Geographic exposure is heavily concentrated in North America, with minimal investments in developed Europe and emerging Asian markets. This concentration enhances exposure to the U.S. economy's growth potential but limits global diversification. Expanding into more international markets could reduce the portfolio's vulnerability to U.S.-specific economic cycles and offer access to growth opportunities in emerging markets.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for mega and large-cap stocks, which is consistent with the portfolio's focus on established, high-growth companies. While these companies often provide more stability than their smaller counterparts, the underrepresentation of mid, small, and micro-cap stocks might limit exposure to potentially higher-growth opportunities. Increasing the allocation to smaller caps could enhance diversification and growth potential.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Invesco NASDAQ 100 ETF indicates overlapping investments that may not provide the intended diversification benefits. Such redundancy can amplify risks during market downturns, particularly in the technology sector, where both ETFs are heavily invested. Reducing exposure to one of these ETFs or reallocating to less correlated assets could improve the portfolio's overall risk management.

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 this portfolio involves addressing the high correlation between certain assets and the overall low diversification. Applying the Efficient Frontier concept could identify a mix of assets that maximizes returns for a given level of risk. However, this optimization should consider introducing non-correlated assets and perhaps reducing the overlap in technology sector exposure. The goal is to achieve a more balanced risk-return profile without compromising the growth objective.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.20%

The portfolio's dividend yield stands at an average of 1.20%, with the Schwab U.S. Dividend Equity ETF offering the highest yield. While the focus on growth stocks typically results in lower dividend yields, the inclusion of a dividend-focused ETF adds a source of passive income and potential stability. For investors seeking growth with a side of income, this allocation strikes a balance, though increasing exposure to higher-yielding assets could further enhance income generation.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) averages to a low 0.06%, indicating cost-efficient management. This low cost structure is beneficial for long-term growth, as higher costs can significantly erode returns over time. The selection of low-cost ETFs and index funds aligns with best practices for maximizing investment efficiency. Maintaining this focus on cost-efficiency is advisable, especially in a growth-oriented portfolio where compound returns play a crucial role.

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