Growth-focused portfolio with high concentration in US large-cap stocks and technology sector
Report created on Aug 19, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 82.61% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 17.39%
This portfolio is heavily weighted towards US large-cap stocks, with a significant 82.61% in a growth ETF and 17.39% in a dividend equity ETF. Such a concentration in large-cap equities, particularly within the growth category, indicates a strong bias towards companies expected to increase their earnings at an above-average rate. However, this comes with low diversification across asset classes and sectors, potentially increasing volatility and risk.
Growth
Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 18.15%, with a maximum drawdown of -32.47%. This performance suggests the portfolio has the potential for high returns but also carries significant risk, as evidenced by the steep drawdown. The days contributing most to returns being concentrated in a small number highlights the portfolio's reliance on short-term gains, which may not be sustainable long-term.
Projection
Monte Carlo simulations, projecting future performance based on historical data, suggest a wide range of outcomes, from a 5th percentile growth of 141.3% to a 67th percentile growth of 987.8%. While all simulations returned positive outcomes, the wide range underscores the high level of uncertainty and risk in the portfolio's performance. It's important to remember that these projections are not guarantees but rather possible outcomes based on past trends.
Asset classes
- Stocks 100%
The portfolio's allocation is entirely in stocks, with no diversification into other asset classes such as bonds or real estate. This singular focus enhances the portfolio's growth potential but also increases its susceptibility to market volatility. Diversifying across different asset classes can reduce risk and smooth out returns over time.
Sectors
- Technology 44%
- Consumer Discretionary 12%
- Telecommunications 12%
- Health Care 9%
- Financials 7%
- Industrials 5%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 1%
With 44% in technology and significant allocations in consumer cyclicals and communication services, the portfolio is heavily tilted towards sectors that can exhibit high growth but also higher volatility. This sector concentration aligns with the portfolio's growth objectives but may benefit from a broader sectoral spread to mitigate risk.
Regions
- North America 100%
The geographic allocation is entirely focused on North America, lacking exposure to international markets. This concentration in a single region can limit diversification benefits and expose the portfolio to region-specific risks. Incorporating international equities could provide a buffer against domestic market fluctuations.
Market capitalization
- Mega-cap 54%
- Large-cap 28%
- Mid-cap 15%
- Small-cap 2%
The portfolio's market capitalization breakdown shows a strong preference for mega and big-cap stocks, which tend to be more stable than smaller companies but can still experience significant fluctuations. A small allocation to medium and even smaller cap stocks might introduce more growth potential, albeit with added 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.
Considering the portfolio's current allocation, optimizing for the Efficient Frontier could enhance the risk-return profile. This involves adjusting the asset mix to achieve the highest possible returns for a given level of risk. However, it's important to note that such optimization is based on historical data and does not guarantee future performance.
Dividends
- Schwab U.S. Dividend Equity ETF 3.80%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 0.99%
The dividend yield from the portfolio is relatively low, at 0.99%, reflecting its growth orientation over income generation. Investors seeking income alongside growth might consider increasing the allocation to higher-yielding assets without significantly compromising the portfolio's growth potential.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.04%
The portfolio benefits from low costs, with a total expense ratio (TER) of 0.04%, which is favorable for long-term growth. Keeping costs low is crucial in maximizing returns, especially in growth-oriented portfolios where the compound effect of high fees can be detrimental over time.
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