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A growth portfolio that thinks diversification means owning the same US stocks three different ways

Report created on Dec 27, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This setup is basically one big love letter to US stocks with some minor side quests abroad. Sixty percent in a broad US market fund and another twenty percent in a US large-cap growth fund is like ordering two versions of the same burger and calling it a tasting menu. They overlap heavily, so the “four funds” vibe is more illusion than reality. Compared with a classic global 60/40 portfolio, this thing is all gas no brakes. If the goal is growth, fine, but trimming duplicate US exposure and adding truly different stuff (like stabilizing assets or other return drivers) would make the structure less one-dimensional and less hostage to one market.

Growth Info

Historically, this thing has been on a heater. A 14.86% CAGR (Compound Annual Growth Rate — your average speed over the whole trip) is elite. Turn $10,000 into roughly $40,000+ over a decade and you feel like a genius. But a -34% max drawdown is the “oh” moment: your $100k becoming $66k in a rough patch. Against a more balanced portfolio, you’ve probably smoked it in good years and cried harder in bad ones. And past data is like yesterday’s weather — helpful, not prophetic. Sanity check: assume future returns are lower, and plan life based on a more boring, realistic range instead of the highlight reel.

Projection Info

The Monte Carlo results are basically saying, “Most futures look good, but don’t get cocky.” Monte Carlo is just a fancy way of running thousands of “what if” market paths using historical-style randomness. Median outcome of +441.9% is great, but that ugly 5th percentile at +58.1% is the rude scenario where long stretches of meh returns and untimely crashes happen. Also, 991 out of 1,000 positive simulations sounds comforting until you remember the model is built on past behavior, which markets don’t always repeat. Treat projections as a weather forecast: pack an umbrella anyway by planning for lower returns and longer bad patches than the glossy charts imply.

Asset classes Info

  • Stocks
    100%

One hundred percent in stocks, zero in bonds, zero cash, zero anything else — this is not asset allocation, this is an equity cult. Asset classes are basically food groups for portfolios; you’re currently doing an all-protein diet and pretending fiber is a myth. In a raging bull market, you look brilliant. In a nasty bear market, you just sit there and take the full punch. Even a modest slice of more stable stuff (bonds, cash buffer, or other diversifiers) can turn “gut-wrenching roller coaster” into “still bumpy but survivable.” If the time horizon is long and the stomach is iron, fine — but this setup leaves zero room for life happening at the wrong market moment.

Sectors Info

  • Technology
    33%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    9%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Tech addiction: confirmed. With roughly a third in Technology and another big chunk in Communication Services (which hides a lot of “tech-ish” names), this leans heavily on one story — growth darlings staying darlings. Financials, consumer cyclicals, and healthcare show up, but they’re clearly supporting actors. This is more concentrated than a broad global index, which spreads sector bets more evenly. When tech is hot, you look like a genius; when it gets punched (think 2000 or 2022), you eat that pain straight. Adding more balance across sectors, or toning down the ultra-growth tilt, would help avoid having your entire mood tied to a handful of mega-cap narratives.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

“America or bust” is the theme here: 81% North America, and the rest of the world gets whatever loose change falls behind the couch. A bit of Europe, Japan, and emerging Asia does show up, so it’s not fully US-only, but compared to a global market portfolio, this is still USA-max. That works great as long as the US keeps dominating — which it has for the last decade-plus — but histories of other regions remind us leadership rotates. International exposure here is more like seasoning than a real second engine. Gradually shifting toward a more balanced global split would reduce the risk that “US underperforms for a decade” becomes your personal nightmare scenario.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    30%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    1%

Market cap mix is pretty textbook: heavily mega and large caps, with a polite nod to mid and a tiny sprinkle of small and micro. In other words, you basically own the corporate equivalent of household-name celebrities plus a few B-listers. This is fine for stability compared to a small-cap madhouse, but don’t kid yourself into thinking you’re tapping the full “small-cap premium” story with 4–5% in the little guys. Also, layering a US growth ETF on top of a broad US market ETF just doubles down on the same mega/large names. If someone actually wanted a tilt, they’d do it more deliberately, not by accidentally echoing the same exposure twice.

Redundant positions Info

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

Your two big US funds are highly correlated — fancy way of saying they move almost in lockstep. Correlation is like how often two kids on a trampoline jump at the same time; you’ve effectively put the same kid on there twice and called it a team. That means when US large-cap growth sneezes, both of your main holdings catch the flu. This adds drama without adding real diversification. Swapping one of the overlappy funds for something that behaves differently in bad markets (or at least in different regions or styles) would actually smooth the ride instead of just giving you extra lines on a statement that all tank together.

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.

In risk–return terms, this portfolio is like driving a sports car with no seatbelt: fast, fun, and not exactly optimized for impact. “Efficient” in investing just means getting the most expected return for a given level of stomach-churning. Here, risk is clearly on the high side, and some of it is pointless — like doubling up on highly correlated US growth exposure instead of adding something that behaves differently. A more efficient mix would keep a solid growth tilt while shaving unnecessary overlap and maybe introducing a stabilizer so that every correction doesn’t feel like a personality test. You’re not chasing impossible “high return low risk” magic, just trying not to pay for the same risk twice.

Dividends Info

  • Schwab U.S. Broad Market ETF 1.10%
  • Schwab Emerging Markets Equity ETF 2.90%
  • Schwab International Equity ETF 3.40%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.40%

A 1.4% yield is basically the market’s way of saying, “You’re here for growth, not a paycheck.” The international piece is doing most of the dividend heavy lifting, while the US growth slice is almost proudly allergic to payouts. That’s fine if the focus is on long-term compounding and not on living off the income. Just don’t confuse this setup with an income strategy; this is not a “pay the bills” portfolio unless those bills are very small. If stable cash flow ever matters, you’d need more deliberate income exposure instead of hoping these growth-obsessed holdings suddenly turn into generous landlords.

Ongoing product costs Info

  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.04%

The costs are almost suspiciously good. A 0.04% total expense ratio is “did you bribe someone at Schwab?” level cheap. Fees are the silent leak in most portfolios, but here it’s more of an occasional drip. That said, low cost doesn’t fix structural problems like overconcentration or duplication; it just means you’re efficiently making the same mistakes. With costs this low, you’ve removed one of the big long-term drags, so the next level-up move is to clean up the overlap and rethink the all-equity approach rather than hunting for another basis point or two of fee savings. You’ve already won the fee game; now fix the rest.

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