A growth-focused portfolio with high exposure to large-cap stocks and dividends

Report created on Jul 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily invested in two ETFs: 70% in Schwab U.S. Large-Cap Growth ETF and 30% in Schwab U.S. Dividend Equity ETF, resulting in a strong focus on large-cap growth stocks and dividend-paying equities. The asset allocation is entirely in stocks, with no diversification into other asset classes such as bonds or real estate. This composition aligns with a growth-oriented investment strategy but exhibits low diversity across asset classes, increasing potential volatility and risk.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.05%, with a significant maximum drawdown of -32.50%. The days contributing to 90% of returns being concentrated in just 34.0 days indicates that the portfolio's performance heavily relies on short, substantial growth spurts. This performance pattern underscores the portfolio's growth orientation but also highlights its susceptibility to market volatility.

Projection Info

Utilizing Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The 50th percentile projection suggests a potential 568.8% return, indicating optimism for future growth. However, the significant spread between the 5th and 67th percentiles (92.8% to 806.0%) illustrates the uncertainty and risk inherent in this growth-focused strategy.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in other asset classes such as bonds, commodities, or real estate. This singular focus on equities enhances growth potential but also increases risk, especially in market downturns. Diversifying across different asset classes can mitigate risk and smooth out returns over time.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Health Care
    10%
  • Financials
    8%
  • Consumer Staples
    7%
  • Energy
    7%
  • Industrials
    6%
  • Basic Materials
    2%

Sector allocation is heavily weighted towards technology (37%), with significant positions in consumer cyclicals, communication services, and healthcare. This sector composition is typical for growth-focused portfolios but may lead to heightened volatility during sector-specific downturns. Diversifying more evenly across sectors could reduce risk without significantly compromising growth potential.

Regions Info

  • North America
    100%

The portfolio's geographic allocation is exclusively North American, lacking exposure to international markets. This concentration in a single region can amplify risks related to local economic and political events. Incorporating developed and emerging market equities could enhance diversification and potentially tap into higher growth rates abroad.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    33%
  • Mid-cap
    19%
  • Small-cap
    3%

The focus on mega (45%) and big (33%) cap stocks supports the portfolio's growth and dividend objectives but may limit exposure to the higher growth potential of smaller companies. Increasing the allocation to medium, small, and possibly micro-cap stocks could introduce more growth opportunities, 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.

Given the portfolio's current composition, optimizing for the Efficient Frontier could entail adjusting asset allocations to achieve a better risk-return ratio. However, this strategy is based on historical data, which may not predict future performance accurately. Balancing growth objectives with diversification and risk management can lead to more sustainable long-term returns.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.42%

The dividend yield of the portfolio averages 1.42%, with the Schwab U.S. Dividend Equity ETF contributing a significant portion of this income. While dividends can provide a steady income stream and contribute to total returns, the focus on growth stocks typically results in lower yield percentages. Balancing growth and income objectives may require adjusting allocations to include higher-yielding assets.

Ongoing product costs Info

  • Schwab U.S. Dividend 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%. Low costs are crucial for long-term investment success, as they directly enhance net returns. This cost efficiency is a strong aspect of the portfolio, supporting better performance over time.

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