Growth-focused portfolio with heavy emphasis on technology and large-cap stocks

Report created on Jun 4, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily weighted towards the Schwab S&P 500 Index Fund, constituting nearly 70% of the total, followed by significant positions in leading technology companies like Microsoft, Amazon, and NVIDIA. This composition suggests a strong focus on growth, leveraging the broad market exposure of the S&P 500 and the high-growth potential of tech stocks. However, this heavy concentration in a single fund and sector indicates low diversity, increasing potential volatility and risk.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 17.18% and a maximum drawdown of -32.47%, the portfolio has demonstrated robust growth but not without significant volatility. The days contributing to 90% of returns being limited to just 25 suggests high returns are concentrated in short, unpredictable bursts. Such performance is characteristic of growth-oriented portfolios, where investors are rewarded for tolerating higher risk, especially in tech-heavy allocations.

Projection Info

Monte Carlo simulations, which project future portfolio performance by running numerous potential scenarios, show a wide range of outcomes with a median increase of 1,517.7%. While 992 out of 1,000 simulations predict positive returns, indicating a strong likelihood of growth, the broad spread underscores the inherent uncertainty and risk, particularly given the portfolio's low diversification.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in bonds, real estate, or alternative investments. This singular focus on equities enhances growth potential but also increases exposure to market volatility. Diversifying across different asset classes can mitigate risk by providing a buffer during stock market downturns.

Sectors Info

  • Technology
    35%
  • Industrials
    13%
  • Telecommunications
    13%
  • Financials
    10%
  • Health Care
    8%
  • Consumer Discretionary
    7%
  • Consumer Staples
    4%
  • Consumer Discretionary
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    1%

The sectoral allocation is heavily skewed towards technology, with significant investments in industrials and communication services. This concentration in high-growth sectors can lead to higher volatility, particularly during market corrections or when these sectors underperform. Diversifying across a broader range of sectors could reduce sector-specific risks.

Regions Info

  • North America
    100%

Geographic allocation is entirely focused on North America, missing out on potential opportunities and risk mitigation offered by international markets. Global diversification can enhance returns and reduce portfolio volatility over time, as different markets may perform well under varying economic conditions.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    30%
  • Mid-cap
    18%
  • Small-cap
    1%

The portfolio favors mega and large-cap stocks, which tend to be more stable and less volatile than their smaller counterparts. While this can offer a degree of protection during market downturns, the underrepresentation of mid and small-cap stocks limits potential for higher growth rates these segments can offer.

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 current composition, optimizing for the Efficient Frontier could involve diversifying across more asset classes and sectors, and incorporating international exposure. This would aim to achieve the best possible risk-return ratio, enhancing the portfolio's efficiency by balancing potential gains with volatility.

Dividends Info

  • Microsoft Corporation 0.50%
  • Schwab S&P 500 Index Fund 1.20%
  • Communication Services Select Sector SPDR® Fund 1.00%
  • Industrial Select Sector SPDR® Fund 1.30%
  • Weighted yield (per year) 1.05%

The overall dividend yield of the portfolio is moderate at 1.05%, with individual yields ranging from 0.50% to 1.30%. While dividends contribute to total returns and can provide a stable income stream, the portfolio's focus seems to be more on capital appreciation than on income generation.

Ongoing product costs Info

  • Schwab S&P 500 Index Fund 0.02%
  • Communication Services Select Sector SPDR® Fund 0.09%
  • Industrial Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of just 0.03%. Low costs are crucial for long-term growth, as they allow a greater portion of investment returns to compound over time. This is a strong positive aspect of the portfolio, enhancing its efficiency.

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