A balanced growth-focused portfolio with high US equity concentration and notable dividend strategies

Report created on Jul 22, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, with a 60% concentration in large-cap stocks through the Schwab U.S. Large-Cap Growth ETF and the Vanguard S&P 500 ETF. The inclusion of the Strategy Shares Nasdaq 7 Handl Index ETF and the Schwab U.S. Dividend Equity ETF adds a mix of income-generating assets and growth-oriented investments. This composition suggests a strategy focused on leveraging the growth potential of large-cap stocks while seeking income through dividends. However, the diversification is primarily within the US market, limiting exposure to international growth opportunities and potentially increasing vulnerability to domestic market fluctuations.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 13.30%, with a maximum drawdown of -30.66%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the steep drawdown. The days contributing most to returns highlight the portfolio's sensitivity to market highs and lows. While past performance is impressive, it's important to remember that it doesn't guarantee future results. Investors should consider whether the level of risk taken to achieve these returns aligns with their risk tolerance and investment goals.

Projection Info

Monte Carlo simulations, which use historical data to forecast various future outcomes, suggest a wide range of potential portfolio values. With 984 out of 1,000 simulations showing positive returns, the forecast is generally optimistic. However, the broad spread from the 5th to the 67th percentile underscores the uncertainty and risk involved. Investors should use these projections as one of many tools in decision-making, keeping in mind the inherent limitations of relying solely on historical data for future predictions.

Asset classes Info

  • Stocks
    87%
  • Bonds
    7%
  • Other
    5%
  • No data
    1%

The portfolio's asset allocation is predominantly in stocks (87%), with a minimal presence in bonds (7%) and a small portion in other categories (5%). This distribution supports a growth-oriented strategy but comes with higher volatility and risk compared to more balanced or conservative allocations. The almost negligible allocation to bonds and other asset classes limits the portfolio's ability to hedge against stock market downturns, suggesting an aggressive stance towards capital appreciation over capital preservation.

Sectors Info

  • Technology
    32%
  • Consumer Discretionary
    10%
  • Financials
    10%
  • Health Care
    10%
  • Telecommunications
    9%
  • Energy
    8%
  • Consumer Staples
    7%
  • Industrials
    7%
  • Utilities
    4%
  • Real Estate
    3%
  • Basic Materials
    1%

Sector allocation is heavily skewed towards technology (32%), which is common in growth-focused portfolios but increases exposure to sector-specific risks, such as regulatory changes or rapid innovation cycles. Other significant allocations include consumer cyclicals, financial services, and healthcare, each constituting 10% of the portfolio. This sector diversity supports growth while providing some level of balance; however, the heavy reliance on technology underscores the need for careful monitoring of sector-specific developments.

Regions Info

  • North America
    100%

The portfolio's geographic allocation is exclusively focused on North America, specifically the US market. This concentration enhances exposure to the US economy's growth potential but also increases susceptibility to its market risks and economic downturns. Expanding geographic diversification could mitigate some of this risk by capturing growth in other developed or emerging markets.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    2%

With 36% in mega-cap, 31% in large-cap, 18% in mid-cap, and a minimal allocation to small and micro-cap stocks, the portfolio is positioned to benefit from the stability and growth potential of the world's largest companies. However, this focus may limit the potential high returns associated with smaller companies' growth. Diversifying across different market capitalizations could enhance returns and reduce volatility.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Vanguard S&P 500 ETF indicates redundancy, diminishing the portfolio's diversification benefits. Reducing overlap by reallocating assets could enhance the portfolio's risk-adjusted returns by broadening exposure to different growth drivers and reducing vulnerability to any single market movement.

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 composition suggests room for optimization, particularly by addressing the overlap between the Schwab U.S. Large-Cap Growth ETF and the Vanguard S&P 500 ETF. Utilizing the Efficient Frontier concept could identify an asset allocation that offers the best possible risk-return trade-off based on historical data. However, it's crucial to remember that this optimization is theoretical and assumes that future returns will mirror the past, which is not guaranteed.

Dividends Info

  • Strategy Shares Nasdaq 7 Handl Index ETF 7.00%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 2.64%

The portfolio's dividend yield strategy, led by the Strategy Shares Nasdaq 7 Handl Index ETF and the Schwab U.S. Dividend Equity ETF, contributes to its total yield of 2.64%. This approach provides a steady income stream, which can be particularly valuable during market downturns or for investors seeking regular income. However, focusing too heavily on dividend-yielding assets might limit growth potential, suggesting a need to balance income and growth objectives.

Ongoing product costs Info

  • Strategy Shares Nasdaq 7 Handl Index ETF 0.96%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.22%

The total expense ratio (TER) of 0.22% is relatively low, which is beneficial for long-term growth as lower costs directly translate to higher returns. However, the Strategy Shares Nasdaq 7 Handl Index ETF has a notably higher cost compared to the other holdings. Investors should weigh the benefits of this ETF's strategy against its cost to determine if it aligns with their investment goals and if cheaper alternatives could achieve similar outcomes.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey