High growth concentrated US stock portfolio with strong tech tilt and efficient risk allocation
Report created on May 31, 2024Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 40.00% -
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 30.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 20.00% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 10.00%
The portfolio is built from just four ETFs and sits 100% in stocks, with a big tilt toward growth and technology-focused strategies. A large-cap growth fund and a broad tech ETF together make up 70%, a small-cap value ETF takes 20%, and a semiconductor ETF rounds out the final 10%. This kind of focused structure is simple to understand and easy to maintain, but it leans heavily on one main theme: U.S. growth and tech. That concentration can supercharge returns when conditions are favorable, but it also means bigger swings. The key takeaway is that this setup favors aggressive capital growth over stability or income.
Growth
Over the period from late 2019, a $1,000 investment grew to about $3,193, with a compound annual growth rate (CAGR) of 19.61%. CAGR is like your average “speed” per year over the trip, smoothing out ups and downs. This comfortably beat both the U.S. market and the global market, which grew around 14.07% and 11.68% per year respectively. Max drawdown, the worst peak-to-trough drop, was about -34.61%, similar to broader markets. That mix of strong outperformance with no dramatically worse drawdowns shows the growth tilt has been very rewarding historically, though past returns can’t be relied on going forward.
Asset classes
- Stocks 100%
All assets sit in a single asset class: equities. That creates a very clear growth profile but means no built‑in buffer from bonds, cash, or alternatives during rough markets. When stocks fall, everything in this portfolio is likely to drop together, which can be emotionally and financially challenging. Relative to a more balanced mix that blends stocks with safer assets, this design aims for higher long‑term growth at the cost of bigger drawdowns. For someone comfortable riding out deep declines and staying invested, this can be acceptable. For anyone needing stability or shorter‑term access to cash, adding other asset classes would generally smooth the ride.
Sectors
- Technology 59%
- Consumer Discretionary 9%
- Financials 8%
- Telecommunications 7%
- Industrials 6%
- Energy 4%
- Health Care 4%
- Consumer Staples 2%
- Basic Materials 2%
Sector exposure is dominated by technology at 59%, with everything else far behind. Consumer discretionary and financials are the next largest, but they’re small in comparison. Compared to broad equity benchmarks, this is a very tech‑heavy allocation. That can be powerful when innovation and growth stocks lead, as they often have recently, but tech can be more sensitive to interest rates, regulation, and sentiment swings. In periods where tech lags, this portfolio is likely to underperform more diversified setups. The upside is clear thematic conviction; the tradeoff is that performance will be tightly tied to the health of the tech and digital economy.
Regions
- North America 97%
- Asia Developed 1%
- Europe Developed 1%
Geographically, the portfolio is overwhelmingly tilted toward North America at 97%, with only token exposure to developed Europe and Asia. This home-region dominance has matched recent market leadership, since U.S. stocks have outpaced many global peers. However, it also means returns will be heavily driven by one economy, one currency, and one policy environment. Global benchmarks typically spread more across regions, which can cushion regional slowdowns. Sticking mainly to one region keeps things simple and familiar, but it increases vulnerability if that market experiences a prolonged slump. A key takeaway is that regional diversification can help smooth the ride across different economic cycles.
Market capitalization
- Mega-cap 46%
- Large-cap 21%
- Small-cap 13%
- Micro-cap 10%
- Mid-cap 10%
Market cap exposure blends a strong tilt to mega‑caps (46%) and large‑caps (21%) with notable allocations down the spectrum, including small and micro‑caps. This creates a barbell effect: very big, established names at one end and more volatile smaller companies at the other. Mega‑caps often provide stability and liquidity, while small and micro‑caps can offer higher growth but more dramatic swings. Compared with many broad equity portfolios that lean mostly to large and mid‑caps, this setup is more adventurous on the smaller end. That mix supports long‑term growth potential but may amplify volatility, especially when smaller companies come under pressure.
True holdings
-
NV NVIDIA Corporation 11.94%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- VanEck Semiconductor ETF
- Vanguard Information Technology Index Fund ETF Shares
-
AA Apple Inc 8.73%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard Information Technology Index Fund ETF Shares
-
MS Microsoft Corporation 6.19%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard Information Technology Index Fund ETF Shares
-
AV Broadcom Inc 3.73%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- VanEck Semiconductor ETF
- Vanguard Information Technology Index Fund ETF Shares
-
AM Amazon.com Inc 2.21%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class A 1.90%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
TS Tesla Inc 1.53%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class C 1.51%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
ME Meta Platforms Inc. 1.47%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
MU Micron Technology Inc 1.19%
Part of fund(s):- VanEck Semiconductor ETF
- Vanguard Information Technology Index Fund ETF Shares
- Top 10 total 40.41%
Looking through the ETFs, the top underlying names are highly concentrated in a handful of major U.S. tech and growth companies. NVIDIA alone shows up at nearly 12%, with Apple and Microsoft adding another ~15% combined. Several of these giants appear across multiple ETFs, creating hidden overlap: holding three different funds can still mean owning the same stocks several times. This overlap can be fine if the goal is to lean hard into those winners, but it reduces diversification. One general takeaway is that using fewer themes that all hold similar top names can make the portfolio behave more like a single concentrated bet.
Factors
Factor exposure shows mild tilts away from value, yield, and low volatility, with size, momentum, and quality roughly neutral. Factors are like investing “ingredients” that drive returns — for example, value stocks are cheaper, momentum stocks have been recent winners, and low‑volatility stocks move less. Low exposure to value and yield means a preference for growth and reinvestment over cheap, income‑producing names. The lower low‑volatility score indicates a bias toward more aggressive stocks that can move sharply. The neutral readings elsewhere are actually healthy; they suggest no big unintended tilts. Overall, this factor profile fits a growth‑first mindset rather than an income or defensiveness focus.
Risk contribution
-
Schwab U.S. Large-Cap Growth ETF
Weight: 40.00% 37.8% -
Vanguard Information Technology Index Fund ETF Shares
Weight: 30.00% 31.7% -
Avantis® U.S. Small Cap Value ETF
Weight: 20.00% 17.5% -
VanEck Semiconductor ETF
Weight: 10.00% 13.0%
Risk contribution looks at how much each holding adds to the portfolio’s ups and downs, which can differ from its simple weight. Here, the three larger ETFs account for about 87% of total risk, broadly in line with their combined 90% weight, which is quite balanced. The semiconductor ETF is a standout: at 10% weight, it contributes almost 13% of risk, showing it’s particularly volatile. A risk/weight ratio above 1.0 is a sign that an asset “punches above its weight” in volatility terms. The positive message is that risk isn’t wildly concentrated in a single fund, though the smallest, most specialized piece is the spiciest.
Redundant positions
-
High correlationSchwab U.S. Large-Cap Growth ETFVanguard Information Technology Index Fund ETF Shares
Correlation measures how assets move together, from -1 (opposite) to +1 (identical). The two largest positions — the large‑cap growth ETF and the broad tech ETF — have a correlation of 0.98, meaning they behave almost the same day to day. That limits diversification benefits between them: when one zigs, the other is almost always zigging too. High correlation isn’t automatically bad, especially when it reflects a deliberate theme like U.S. growth and tech. It simply means that real diversification will come mainly from other types of assets or strategies, not from juggling multiple funds that all respond to the same drivers in similar ways.
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.
On the risk‑return chart, the current portfolio sits very close to the efficient frontier, with a Sharpe ratio of 0.75. The Sharpe ratio compares return to volatility — like checking how much “reward” you get for each unit of bumpiness. The optimal mix of these same holdings could raise the Sharpe to about 0.96 but at higher overall risk and return, while the minimum‑variance mix slightly lowers risk with a similar Sharpe. Being on or near the frontier means the existing allocation is already highly efficient for its risk level. Any changes would be about adjusting risk appetite or concentration, not fixing an obviously inefficient setup.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.40%
- Schwab U.S. Large-Cap Growth ETF 0.30%
- VanEck Semiconductor ETF 0.30%
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Weighted yield (per year) 0.46%
The overall dividend yield is low, at about 0.46%, with the small‑cap value ETF contributing the bulk of the income. Dividend yield is the annual cash payout as a percentage of the current price; it can be appealing for investors who want regular cash flow. Here, most holdings focus on growth companies that tend to reinvest profits rather than pay them out, which fits a capital‑appreciation objective. For someone prioritizing long‑term growth over current income, a low yield is not a problem and may even reflect the intended strategy. Those wanting more cash flow would usually need higher‑yield holdings or separate income‑oriented assets.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- VanEck Semiconductor ETF 0.35%
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Weighted costs total (per year) 0.13%
The weighted average TER (total expense ratio) is a very low 0.13%, with the core large‑cap growth ETF charging just 0.04% and the tech ETF 0.10%. TER is the annual fee the fund takes to cover management and operations, quietly reducing returns each year. Keeping costs low is one of the few things an investor can fully control, and the difference compounds over decades. This portfolio is impressively cost‑efficient given its specialized tilts, which supports better long‑term outcomes. That alignment with cost best practices is a major positive and leaves more of the portfolio’s performance in the investor’s pocket.
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