Growth-oriented portfolio with a strong focus on US large-cap and momentum stocks
Report created on Aug 8, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 50.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 50.00%
The portfolio is heavily weighted towards two ETFs: the Schwab U.S. Large-Cap Growth ETF and the Invesco S&P 500® Momentum ETF, each constituting half of the portfolio. This allocation underscores a clear growth strategy, focusing on large-cap companies in the United States with growth and momentum characteristics. However, this concentration also indicates low diversification, both in terms of asset classes and geographical exposure, as it is entirely invested in stocks and solely within North America.
Growth
Historical performance showcases a Compound Annual Growth Rate (CAGR) of 22.17%, with a maximum drawdown of -31.69%. The days contributing to 90% of returns number at 38, highlighting significant returns concentrated in brief periods. This suggests a portfolio that has experienced substantial growth, albeit with periods of sharp declines. The performance, while impressive, should be evaluated in the context of overall market conditions during the period assessed.
Projection
Monte Carlo simulations, based on 1,000 iterations, predict a wide range of outcomes with a 5th percentile at a 344.3% return and a 50th percentile at a 1,742.6% return. All simulations resulted in positive returns, with an annualized return average of 24.99%. While these projections are optimistic, they rely on historical data and assumptions that may not accurately predict future market conditions.
Asset classes
- Stocks 100%
The portfolio is exclusively allocated to stocks, with no presence of bonds, real estate, commodities, or other asset classes that could provide diversification benefits. This singular focus enhances potential for high returns but also increases vulnerability to market volatility. Diversifying across different asset classes could mitigate risk without necessarily compromising growth potential.
Sectors
- Technology 38%
- Telecommunications 14%
- Consumer Discretionary 14%
- Financials 13%
- Industrials 7%
- Consumer Staples 5%
- Health Care 5%
- Utilities 2%
- Energy 1%
- Real Estate 1%
- Basic Materials 1%
Sector allocation is concentrated in Technology (38%), Communication Services (14%), and Consumer Cyclicals (14%), with lesser exposure to other sectors. This concentration in high-growth sectors aligns with the portfolio's overall growth strategy but may increase sensitivity to sector-specific risks. Diversifying across a broader range of sectors could help reduce volatility.
Regions
- North America 100%
Geographic exposure is entirely focused on North America, specifically the United States. While this concentration benefits from the robust performance of the US market, it lacks international diversification, which could offer additional growth opportunities and risk mitigation through exposure to different economic cycles and market conditions.
Market capitalization
- Mega-cap 60%
- Large-cap 27%
- Mid-cap 12%
- Small-cap 1%
The portfolio's market capitalization breakdown shows a heavy tilt towards Mega (60%) and Big (27%) cap stocks, with minimal exposure to Medium, Small, and Micro caps. This composition favors stability and growth potential of large companies but may miss out on the higher growth rates sometimes found in smaller companies.
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's current expected return is below the optimal level identified by Efficient Frontier analysis, which suggests a potential return of 22.28% at a similar risk level. Rebalancing the portfolio to align more closely with this optimal allocation could enhance returns without increasing risk, indicating room for improvement in the current strategy.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Invesco S&P 500® Momentum ETF 0.60%
- Weighted yield (per year) 0.50%
The dividend yields from the Schwab U.S. Large-Cap Growth ETF and Invesco S&P 500® Momentum ETF contribute to a total portfolio yield of 0.50%. While dividends are not the primary focus of this growth-oriented strategy, they provide a modest income stream and potential for reinvestment to compound growth.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Invesco S&P 500® Momentum ETF 0.13%
- Weighted costs total (per year) 0.08%
The portfolio's total expense ratio (TER) of 0.08% is impressively low, enhancing net returns by minimizing costs. This efficiency in cost management is commendable, as lower costs directly contribute to higher long-term investment returns.
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