Growth-focused portfolio with heavy reliance on US large-cap stocks and minimal international exposure

Report created on Aug 25, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in U.S. large-cap growth stocks, with a significant 83.88% allocation to the Schwab U.S. Large-Cap Growth ETF. The Vanguard Total International Stock Index Fund ETF Shares and Vanguard Growth Index Fund ETF Shares complement this position with smaller allocations, aimed at broadening international exposure and growth opportunities respectively. The inclusion of a single stock, EPAM Systems Inc, although minimal, adds a slight tilt towards individual equity risk and potential reward.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 17.25%, with a maximum drawdown of -34.23%. These figures suggest a high-growth trajectory, albeit with significant volatility. The fact that 90% of returns came from just 35 days highlights the portfolio's reliance on short-term gains, which is characteristic of growth-focused investments. This performance must be balanced against the risk of sharp downturns as seen in the drawdown figure.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a wide range of possible performances. The median outcome suggests a significant potential for growth (478.6% increase), but the 5th percentile indicates a slight risk of loss (-1.1%). While these simulations offer valuable insights, it's crucial to remember they are based on past data and cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no presence in bonds, cash, or alternative investments. This allocation underscores a high-risk, high-reward strategy typical of growth-oriented investors. While stocks have historically delivered superior long-term returns, they come with higher volatility, making this portfolio unsuitable for those with a low risk tolerance or short investment horizon.

Sectors Info

  • Technology
    46%
  • Telecommunications
    13%
  • Consumer Discretionary
    12%
  • Financials
    9%
  • Health Care
    8%
  • Industrials
    6%
  • Consumer Staples
    2%
  • Basic Materials
    2%
  • Energy
    1%
  • Real Estate
    1%
  • Utilities
    1%

Sector allocation is heavily skewed towards technology (46%), followed by communication services and consumer cyclicals. This concentration in high-growth sectors aligns with the portfolio's overall growth strategy but also increases susceptibility to sector-specific downturns. Diversifying across a broader range of sectors could mitigate this risk.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographic exposure is heavily concentrated in North America (88%), with minimal allocations to developed Europe, emerging Asia, and other regions. This concentration benefits from the robust performance of the U.S. market but limits exposure to potential growth in international markets. Increasing international diversification could reduce geographic risk and tap into global growth opportunities.

Market capitalization Info

  • Mega-cap
    61%
  • Large-cap
    23%
  • Mid-cap
    13%
  • Small-cap
    2%

The portfolio's market capitalization breakdown—61% mega, 23% big, 13% medium, and a negligible allocation to small caps—emphasizes stability and growth potential of large companies but may miss out on the high growth potential of smaller firms. Considering a broader mix could enhance returns while adding a layer of diversification.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Growth Index Fund ETF Shares
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Vanguard Growth Index Fund ETF Shares suggests redundancy, limiting the portfolio's diversification benefits. Diversifying into assets with lower correlation could reduce overall portfolio volatility and improve risk-adjusted returns.

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.

The portfolio could benefit from optimization to improve the risk-return ratio. Current high correlation between assets suggests a need to diversify further. By reallocating funds from overlapping assets into less correlated investments, the portfolio could achieve a more efficient frontier, enhancing returns for a given level of risk.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 0.70%

The portfolio's overall dividend yield is relatively low at 0.70%, reflecting its growth focus over income generation. Given the portfolio's strategy, this is not surprising, but investors seeking income alongside growth might consider assets with higher dividend yields.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With total portfolio costs averaging 0.04%, the portfolio is efficiently managed in terms of expenses. Lower costs translate to higher net returns over time, indicating good cost management in the selection of low-fee ETFs. This is a positive aspect, especially given the growth orientation, where cost efficiency plays a crucial role in maximizing investment returns.

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