Concentrated US stock portfolio with balanced style tilts and strong historic growth but limited diversification
Report created on Jul 11, 2026Risk profile
5/7
Diversification profile
2/5
Positions
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SC Schwab U.S. Broad Market ETF
SCHB - US8085241029 50.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 25.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 25.00%
This portfolio is built from three Schwab US equity ETFs, all fully invested in stocks, with no bonds or cash. Half the portfolio sits in a broad US market fund, while the remaining half is split equally between a large‑cap growth fund and a dividend‑focused fund. So structurally, it’s a single‑country, single‑asset‑class portfolio with a mild tilt toward both high‑growth and higher‑dividend companies. This kind of setup keeps things simple: one core building block plus two satellites that push the style mix in different directions. The trade‑off is that simplicity and focus come with less diversification across regions or asset types, so portfolio ups and downs will be tightly linked to the US stock market.
Growth
Over the last decade, a $1,000 investment in this mix grew to about $4,151, giving a compound annual growth rate (CAGR) of 15.35%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. That’s slightly ahead of the broad US market and clearly ahead of the global market over the same period. The worst peak‑to‑trough fall, or max drawdown, was about ‑34%, very similar to both benchmarks. That shows the portfolio captured strong upside without adding extra downside historically. Still, those sharp drops are a reminder that even diversified stock portfolios can fall quickly, especially during market shocks.
Projection
The forward projection uses a Monte Carlo simulation, which basically re‑mixes past return and volatility patterns thousands of times to create many possible futures. In this case, 1,000 simulations over 15 years suggest a median outcome of around $2,676 from $1,000, implying an annualized return near 7.9%. The “likely range” shows that a big chunk of scenarios fall between roughly $1,766 and $4,049. Importantly, this is not a forecast but a probability map based on historical behavior. Markets can change in ways the model hasn’t seen before, so the numbers are best viewed as rough weather‑style scenarios, not promises.
Asset classes
- Stocks 100%
Asset‑class‑wise, the portfolio is 100% in equities, with no bonds, real estate funds, or alternative assets. That creates strong exposure to stock market growth but also exposes the portfolio fully to equity volatility. In calmer times, this all‑equity stance can feel straightforward and rewarding. During deep market downturns, it means there’s no built‑in “shock absorber” asset class in the mix. Compared with many blended portfolios that combine stocks and bonds, this portfolio leans clearly toward higher risk and potentially higher long‑term returns, with the understanding that short‑term swings can be substantial.
Sectors
- Technology 35%
- Health Care 11%
- Telecommunications 10%
- Financials 10%
- Consumer Discretionary 9%
- Industrials 8%
- Consumer Staples 7%
- Energy 6%
- Basic Materials 1%
- Real Estate 1%
- Utilities 1%
Sector exposure is heavily tilted toward technology at 35%, with the rest spread across health care, telecom, financials, consumer areas, and smaller slices in energy, materials, real estate, and utilities. This tech‑heavy profile is common in US index‑based portfolios because large tech and tech‑like companies dominate today’s US market. This can boost growth when innovation and digital trends are strong, but it can also mean more sensitivity to things like interest rate changes or shifts in investor sentiment toward high‑growth companies. The encouraging part is that other sectors are still present, which adds some balance across different parts of the economy.
Regions
- North America 100%
Geographically, everything is in North America, and practically speaking, this means full exposure to the US. That’s aligned with the stated funds and is consistent with many US‑centric portfolios, especially when domestic markets have led global performance. However, it also means the portfolio’s fate is tightly tied to one economy, one political system, and largely one currency. Global benchmarks usually spread investments across multiple regions, so this concentrated US focus differs from broad world market exposure. That focus has helped in the last decade but would also magnify the impact if US markets underperform relative to other regions.
Market capitalization
- Large-cap 40%
- Mega-cap 35%
- Mid-cap 19%
- Small-cap 4%
- Micro-cap 1%
The portfolio leans strongly into large and mega‑cap companies, which together make up about 75% of exposure, with smaller allocations to mid, small, and micro caps. Large and mega caps tend to be more established businesses, often with deeper resources and greater index presence, which can reduce company‑specific risk compared to a portfolio dominated by tiny firms. At the same time, the presence of mid and small caps adds some extra growth potential and volatility. This mix roughly mirrors a typical broad US market structure, so from a size perspective the portfolio looks well‑aligned with common index‑based approaches.
True holdings
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NV NVIDIA Corporation 6.27%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AA Apple Inc. 5.49%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 3.73%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 2.98%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class A 2.67%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
AV Broadcom Inc 2.29%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class C 2.14%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
TS Tesla Inc 1.70%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
ME Meta Platforms Inc. 1.70%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Schwab U.S. Large-Cap Growth ETF
-
TX Texas Instruments Incorporated 1.43%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 30.41%
Looking through the ETFs, a handful of mega‑cap names show up prominently, with NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Tesla, and Meta all featuring in the combined top exposures. Because these companies appear across more than one ETF, their true influence is larger than it might seem from any single fund’s fact sheet. For instance, NVIDIA alone totals over 6%, and Apple around 5.5%, even though there’s no individual stock picking here. This is normal for US index products today, but it does create hidden concentration: portfolio performance will be meaningfully shaped by how these big technology‑focused companies behave.
Factors
Factor exposure is quite balanced across the six main dimensions: value, size, momentum, quality, yield, and low volatility all sit close to neutral. Think of factors as the underlying “personality traits” of stocks that academic research links to returns and risk patterns. A neutral profile means the portfolio behaves broadly like the overall market on these characteristics, without a strong tilt toward cheap stocks, small caps, recent winners, high‑quality names, high‑yielders, or calmer stocks. This alignment with market‑like factor exposure can be a positive, as it avoids making big bets on any single factor theme, which can go in and out of favor.
Risk contribution
-
Schwab U.S. Broad Market ETF
Weight: 50.00% 50.8% -
Schwab U.S. Large-Cap Growth ETF
Weight: 25.00% 28.6% -
Schwab U.S. Dividend Equity ETF
Weight: 25.00% 20.6%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the broad market ETF is 50% of the allocation and contributes about 51% of the risk, so it behaves almost exactly in line with its size. The large‑cap growth ETF is 25% of the portfolio but contributes around 29% of the risk, meaning its movements are a bit more impactful than its weight suggests. The dividend fund contributes slightly less risk than its 25% weight. Overall, risk is spread relatively proportionately across the three funds, without an extreme concentration in a single position.
Redundant positions
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High correlationSchwab U.S. Large-Cap Growth ETFSchwab U.S. Broad Market ETF
The broad market ETF and the large‑cap growth ETF are highly correlated, meaning they tend to move almost in lockstep. Correlation is a measure of how similarly two investments move; when it’s very high, gains and losses tend to arrive at the same time. This is not surprising, since both funds are drawn from overlapping parts of the US equity universe, with growth names heavily represented in the overall index. The dividend ETF likely brings somewhat different behavior, especially around income and volatility, but the core of the portfolio remains strongly tied to the same underlying US stock market cycle.
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.
On the risk‑return chart, the current portfolio sits on or very close to the efficient frontier, which is the set of allocations that offer the best expected return for each level of risk using the existing holdings. The Sharpe ratio, which measures return per unit of risk above a risk‑free rate, is 0.66 for the current mix. The maximum‑Sharpe version using the same three funds reaches 0.86 with slightly higher risk, while the minimum‑variance mix has lower risk and a Sharpe of 0.75. The key takeaway is that, given these building blocks, your current weighting is already broadly efficient, with only modest theoretical gains from reweighting.
Dividends
- Schwab U.S. Broad Market ETF 1.00%
- Schwab U.S. Dividend Equity ETF 3.20%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 1.40%
The overall dividend yield is about 1.4%, combining a higher‑yielding dividend ETF with a lower‑yielding growth ETF and a broad market core. Dividend yield is the cash income paid out each year relative to the portfolio value, like “rent” from your stocks. In this setup, the dividend ETF plays a key role, with a yield above 3%, while the growth ETF sits closer to 0.4%, reflecting its focus on reinvestment and expansion rather than payouts. This mix means total return is likely to be driven more by price changes than by income, even though there is a modest income component built in.
Ongoing product costs
- Schwab U.S. Broad Market ETF 0.03%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.04%
Costs are impressively low, with a blended total expense ratio around 0.04% per year. The expense ratio is the annual fee charged by the funds, similar to a small management toll. In practical terms, paying 0.04% means only $0.40 per year on a $1,000 investment, which is extremely low by industry standards. Over long periods, keeping fees this lean helps more of the portfolio’s gross return stay in your pocket instead of going to fund providers. This cost profile aligns very well with best practices for passive investing and supports stronger compounding over decades.
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