Growth-focused portfolio with a strong emphasis on US equities and technology sector

Report created on Jul 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, with a significant concentration in the technology sector. The Vanguard S&P 500 ETF, Schwab U.S. Large-Cap Growth ETF, and Invesco NASDAQ 100 ETF collectively contribute to this focus, while the Vanguard Total World Stock Index Fund ETF Shares provide some global exposure. The Schwab U.S. Dividend Equity ETF introduces income through dividends. The overall composition suggests a growth-oriented strategy with moderate diversification across sectors and geographies, but with a clear bias towards the US market and large-cap stocks.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 14.87%, is impressive. The maximum drawdown of -27.15% indicates a relatively high risk, consistent with the growth profile and the portfolio's risk score of 5 out of 7. The days contributing most to returns highlight the portfolio's sensitivity to market highs and lows. This performance is indicative of the high-growth potential of technology and large-cap stocks, though it also underscores the volatility and risk associated with such a focused strategy.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with a median increase of 537.1% in portfolio value, suggesting strong growth potential. However, the wide spread between the 5th and 67th percentiles (97.5% to 773.9%) underscores the uncertainty and risk inherent in this growth-focused strategy. It's important to remember that these projections are based on historical data and assumptions that may not accurately predict future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, which aligns with its growth-oriented strategy but introduces higher volatility and risk compared to more diversified allocations that include bonds or other asset classes. This concentration in stocks, particularly in large-cap and technology stocks, can offer significant growth opportunities but also increases exposure to market downturns and sector-specific risks.

Sectors Info

  • Technology
    35%
  • Consumer Discretionary
    11%
  • Financials
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

The technology sector's 35% allocation underscores the portfolio's growth focus but also its vulnerability to sector-specific downturns. The diversification across other sectors like consumer cyclicals, financial services, and healthcare helps mitigate this risk to some extent. However, the heavy emphasis on technology suggests a bet on continued innovation and market leadership in this sector, which has historically driven high returns but can be unpredictable.

Regions Info

  • North America
    91%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    1%
  • Asia Developed
    1%

With 91% of assets in North America, the portfolio is heavily skewed towards the US market. This concentration enhances exposure to the US economy's growth potential but also increases vulnerability to regional economic shifts. The minimal exposure to emerging markets and other developed regions limits global diversification, potentially missing out on growth opportunities elsewhere.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    3%

The focus on mega and large-cap stocks (79% combined) supports the portfolio's growth and risk profile, as these companies are typically more established and stable compared to smaller companies. However, this concentration may limit opportunities for outsized returns that smaller, more agile companies can offer, especially in rapidly evolving sectors.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation
  • Vanguard Total World Stock Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation between certain ETFs, particularly those focused on the NASDAQ and S&P 500, indicates overlapping exposures that may not provide the diversification benefits intended. This redundancy could amplify risk during market downturns affecting these indices. Diversifying into assets with lower correlations could help mitigate this risk.

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.

To optimize risk vs. return, consider reducing overlap between highly correlated assets, such as the NASDAQ and S&P 500 ETFs. Diversifying into less correlated assets or sectors could improve the portfolio's resilience against market volatility while maintaining its growth potential. This adjustment could enhance returns without proportionately increasing risk.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.32%

The overall dividend yield of 1.32% contributes to the portfolio's total return, with the Schwab U.S. Dividend Equity ETF offering a significant yield of 3.80%. While dividends are not the primary focus of this growth-oriented portfolio, they provide a source of income and potential downside protection during market volatility.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.06%

The portfolio's average Total Expense Ratio (TER) of 0.06% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term growth, as even small differences in fees can significantly impact compounded returns over time.

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