A growth-oriented portfolio with a strong tilt towards US large-cap and international equities

Report created on Jul 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equities, with a significant 45% allocation in U.S. large-cap growth stocks and 30% in international equities. The focus on large-cap growth stocks is indicative of a strategy aiming for high growth potential, albeit with a corresponding level of risk. The international equity component enhances diversification, potentially mitigating risk and capturing growth outside the U.S. However, the small allocation to U.S. small-cap stocks (5%) suggests a cautious approach to the higher volatility associated with smaller companies.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 13.35%, with a maximum drawdown of -33.13%. This performance is indicative of the portfolio's growth orientation but also highlights its susceptibility to significant market downturns. The days contributing to 90% of the returns being concentrated in just 30 days suggest that the portfolio's performance can be highly dependent on short periods of significant gains, a characteristic often associated with growth investing.

Projection Info

The Monte Carlo simulation, using 1,000 iterations, projects a wide range of outcomes with a median increase of 321.5%, emphasizing the potential for substantial growth. However, the 5th percentile outcome at just 23% growth underscores the inherent risk and the possibility of lower-than-expected returns. Such simulations are useful for understanding potential volatility and outcomes but should be viewed as one of many tools in investment decision-making, given their reliance on historical data.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, the portfolio is positioned for growth but lacks the balance that bonds or other asset classes could provide. This allocation aligns with the portfolio's growth focus but increases its sensitivity to market fluctuations. Incorporating a broader mix of asset classes could help in managing volatility and providing more stable returns over different market cycles.

Sectors Info

  • Technology
    28%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    10%
  • Telecommunications
    9%
  • Consumer Staples
    7%
  • Energy
    6%
  • Basic Materials
    3%
  • Real Estate
    1%
  • Utilities
    1%

The sector allocation shows a heavy emphasis on technology, financial services, and consumer cyclicals, which are sectors often associated with growth but also with higher volatility. The underrepresentation of more defensive sectors like utilities and real estate may limit the portfolio's ability to hedge against market downturns. Balancing growth-oriented sectors with more stable ones could enhance the portfolio's resilience in various market conditions.

Regions Info

  • North America
    73%
  • Europe Developed
    16%
  • Japan
    6%
  • Asia Developed
    2%
  • Australasia
    2%

The geographic allocation heavily favors North America (73%), with a meaningful exposure to developed Europe and Japan. This distribution suggests a focus on established markets, which may offer stability and reliable growth. However, the lack of exposure to emerging markets and certain developed regions might limit opportunities for higher growth and diversification. Expanding geographic exposure could capture growth in dynamic economies and further diversify risks.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's market capitalization exposure is skewed towards mega and big cap stocks, which tend to be more stable and less volatile than their smaller counterparts. This is consistent with the portfolio's growth but somewhat risk-averse strategy. However, the limited exposure to small and micro-cap stocks may mean missing out on potential high-growth opportunities in these segments.

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 asset allocation and risk-return profile, there may be room for optimization towards the Efficient Frontier, where the portfolio could achieve the highest expected return for a given level of risk. This might involve adjusting the allocation towards asset classes or sectors with lower correlation or exploring opportunities in underrepresented geographic regions or market capitalizations. However, any adjustments should be carefully considered in the context of the investor's risk tolerance and investment horizon.

Dividends Info

  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab International Equity ETF 2.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.80%

The portfolio's overall dividend yield of 1.80% contributes to its total return, with a notable 3.80% yield from the U.S. Dividend Equity ETF. While growth is the primary goal, dividends provide a secondary income stream, which can be particularly beneficial in flat or declining markets. However, the focus on growth stocks, which typically have lower dividend yields, means the portfolio may not fully capitalize on the compounding benefits of higher-yielding investments.

Ongoing product costs Info

  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from low costs, with a total expense ratio (TER) of 0.05%, which is impressive and supports better long-term performance. Lower costs mean more of the portfolio's returns are kept by the investor, a critical factor in building wealth over time. Maintaining a focus on cost efficiency is advisable, especially in a growth-oriented portfolio where transaction costs and management fees can erode returns.

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