Growth-oriented portfolio heavily invested in US stocks with low diversification and cost efficiency

Report created on Aug 19, 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 emphasis on large-cap ETFs, particularly those tracking the S&P 500 and U.S. Large-Cap stocks. The allocation reflects a growth-focused strategy but exhibits low diversity, both in terms of asset classes and geographic exposure. The heavy concentration in similar ETFs suggests an overlap in holdings, potentially limiting the benefits of diversification.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.43%, with a maximum drawdown of -34.31%. These figures indicate a high growth potential but also suggest significant volatility and risk, as evidenced by the substantial drawdown. The performance, heavily reliant on a few sectors and large-cap stocks, may be susceptible to market fluctuations.

Projection Info

Using a Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. While the majority of simulations predict positive returns, the significant spread between the 5th and 67th percentiles indicates a high level of uncertainty. This underscores the risk inherent in the portfolio's current configuration.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocation to bonds, cash, or other asset classes. This singular focus on equities enhances growth potential but also increases volatility and risk. Diversifying across different asset classes could provide a buffer against market downturns and reduce portfolio volatility.

Sectors Info

  • Technology
    32%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    9%
  • Industrials
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    3%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation is heavily weighted towards technology, financial services, and consumer cyclicals, which are sectors known for their growth potential. However, this concentration also exposes the portfolio to sector-specific risks. Diversifying across a broader range of sectors could mitigate these risks and potentially smooth out returns over time.

Regions Info

  • North America
    98%
  • Asia Emerging
    1%

Geographic exposure is almost entirely focused on North America, with minimal investment in emerging markets or other developed regions. This geographic concentration may limit exposure to global growth opportunities and increase vulnerability to U.S. market downturns. Expanding geographic diversity could enhance returns and reduce risk.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    32%
  • Mid-cap
    23%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization exposure is skewed towards mega and big-cap stocks, which are typically less volatile than smaller companies but may also offer lower growth potential. Including a broader mix of market capitalizations could balance the trade-off between risk and return, potentially leading to a more resilient portfolio.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    Invesco QQQ Trust
    Vanguard Mid-Cap Index Fund ETF Shares
    Schwab U.S. Large-Cap ETF
    High correlation

The high correlation among several ETFs within the portfolio, particularly those tracking large-cap stocks, indicates a redundancy that does not contribute to diversification. Reducing overlap by reallocating assets into less correlated investments could enhance portfolio efficiency without significantly increasing risk.

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 the portfolio involves addressing the high correlation among assets to enhance diversification. By reallocating from overlapping ETFs to underrepresented sectors, asset classes, or geographies, the portfolio could achieve a more efficient risk-return profile. This approach aligns with the Efficient Frontier concept, aiming to maximize returns for a given level of risk.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Schwab Emerging Markets Equity ETF 2.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Schwab U.S. Large-Cap ETF 1.10%
  • Vanguard Mid-Cap Index Fund ETF Shares 1.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Russell 2000 Growth Index Fund ETF Shares 0.60%
  • Vanguard High Dividend Yield Index Fund ETF Shares 2.60%
  • Weighted yield (per year) 1.20%

The overall dividend yield of the portfolio stands at 1.20%, which contributes to the total return. While the focus is on growth, dividends provide a steady income stream and can offer a cushion during market downturns. Balancing growth and income-generating assets could improve the portfolio's risk-adjusted returns.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Schwab U.S. Large-Cap ETF 0.03%
  • Vanguard Mid-Cap Index Fund ETF Shares 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Russell 2000 Growth Index Fund ETF Shares 0.15%
  • Vanguard High Dividend Yield Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) is remarkably low at 0.04%, which is beneficial for long-term growth as lower costs translate to higher net returns. This cost efficiency is a positive aspect of the portfolio, helping to maximize the investor's return on investment.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey