Growth-focused portfolio with heavy tech exposure and low international diversification

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

The portfolio is heavily weighted towards U.S. large-cap equities, with a significant emphasis on technology through both individual stocks and ETFs. The presence of multiple S&P 500 and broad market index funds indicates a strong focus on the U.S. equity market, which comprises 97% of the asset allocation. This concentration in similar asset classes and sectors suggests limited diversification, despite the portfolio's growth-oriented strategy. The inclusion of a minimal bond and cash allocation does little to offset the high equity concentration, pointing towards a growth-focused but risk-prone investment approach.

Growth Info

Historically, this portfolio has shown an impressive Compound Annual Growth Rate (CAGR) of 25.16%, though it experienced a significant maximum drawdown of -33.42%. Days contributing to 90% of returns being concentrated in just 20 days highlight the portfolio's volatility and the impact of short-term gains. This performance, while strong, underscores the portfolio's high-risk profile, driven by its concentration in high-growth sectors and large-cap stocks. Investors should consider whether such past performance aligns with their risk tolerance and long-term investment goals.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential returns for this portfolio. With 941 out of 1,000 simulations showing positive returns, the median outcome is highly optimistic. However, the significant spread between the 5th and 67th percentiles indicates a high level of uncertainty. Investors should understand that while these projections are based on past data, they cannot guarantee future performance, and the high growth potential comes with considerable risk.

Asset classes Info

  • Stocks
    97%
  • Bonds
    1%

The portfolio's asset allocation is overwhelmingly in stocks (97%), with a nominal presence in bonds (1%) and negligible cash holdings. This allocation supports a growth-oriented strategy but also exposes the portfolio to higher market volatility. The lack of significant investment in alternative asset classes, such as real estate or commodities, further narrows diversification. For investors seeking growth, this allocation may be appealing, but it's important to balance such concentration with the need for risk management through broader diversification.

Sectors Info

  • Technology
    44%
  • Financials
    9%
  • Health Care
    7%
  • Telecommunications
    7%
  • Industrials
    6%
  • Consumer Discretionary
    6%
  • Consumer Staples
    5%
  • Utilities
    5%
  • Energy
    3%
  • Consumer Discretionary
    3%
  • Basic Materials
    1%
  • Real Estate
    1%

With 44% allocated to technology, the portfolio is heavily exposed to sector-specific risks, such as regulatory changes or market sentiment shifts. While tech stocks have historically provided substantial returns, their volatility can significantly impact the portfolio's overall performance. The remaining allocation spans various sectors, but with less emphasis, suggesting a potential overreliance on tech for growth. Diversifying into other sectors with growth potential could mitigate some risk without drastically altering the portfolio's growth trajectory.

Regions Info

  • North America
    94%
  • Europe Developed
    1%
  • No data
    1%

The geographic allocation is heavily skewed towards North America (94%), with minimal exposure to developed Europe (1%) and no significant investment in emerging markets or other developed regions. This concentration enhances exposure to U.S. market risks and limits potential gains from global economic growth. Expanding into international markets could provide additional diversification benefits, reduce volatility, and potentially enhance returns by capturing growth in emerging and developed markets outside the U.S.

Market capitalization Info

  • Mega-cap
    53%
  • Large-cap
    24%
  • Mid-cap
    17%
  • Small-cap
    2%

The portfolio's market capitalization breakdown shows a preference for mega (53%) and big (24%) cap stocks, aligning with its growth and large-cap focus. While these companies often offer stability and consistent growth, they may also limit the portfolio's potential for higher returns from mid or small-cap investments. Diversifying into smaller cap stocks could introduce more growth opportunities, albeit with increased risk, which may be acceptable for a growth-oriented investor.

Redundant positions Info

  • Schwab U.S. Broad Market ETF
    Schwab S&P 500 Index Fund
    VANGUARD 500 INDEX FUND ADMIRAL SHARES
    Schwab U.S. Large-Cap Growth ETF
    Fidelity 500 Index Fund
    High correlation

A high correlation exists among several assets, particularly the S&P 500 and broad market index funds. This redundancy limits the portfolio's diversification benefits, as these correlated assets are likely to respond similarly to market conditions. Reducing overlap by consolidating investments into fewer, more distinct funds or asset classes can improve diversification without sacrificing the growth objective. This approach would streamline the portfolio and potentially reduce volatility.

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 current portfolio's risk-return profile suggests room for optimization towards the Efficient Frontier, where expected returns could be maximized for a given level of risk. By addressing the high correlation among assets and enhancing diversification, the portfolio could achieve a more efficient allocation. This optimization does not necessarily mean sacrificing growth potential but rather reallocating investments to reduce overlap and improve the risk-return balance.

Dividends Info

  • Fidelity 500 Index Fund 0.90%
  • Schwab U.S. Broad Market ETF 1.20%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • The Charles Schwab Family of Funds - Schwab U.S. Treasury Money Fund 3.80%
  • Schwab S&P 500 Index Fund 1.10%
  • Vanguard Total Bond Market Index Fund Admiral Shares 3.50%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.90%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • Weighted yield (per year) 1.03%

The portfolio's dividend yield stands at an overall 1.03%, with specific assets like the Schwab U.S. Dividend Equity ETF offering higher yields. While dividends contribute to total returns, the portfolio's focus on growth over income is evident in its low average yield. Investors seeking growth may prioritize capital appreciation over dividend income, but incorporating higher-yielding assets could provide a steady income stream and reduce volatility through market downturns.

Ongoing product costs Info

  • Fidelity 500 Index Fund 0.02%
  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Schwab S&P 500 Index Fund 0.02%
  • Vanguard Total Bond Market Index Fund Admiral Shares 0.04%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.04%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • Weighted costs total (per year) 0.03%

The portfolio's total expense ratio (TER) of 0.03% is impressively low, enhancing its long-term return potential by minimizing costs. Low-cost index funds and ETFs are well-represented, aligning with best practices for cost-efficient investing. Keeping costs low is crucial for maximizing returns, especially in growth-oriented portfolios where compounding plays a significant role. This cost efficiency is a strong aspect of the portfolio, supporting better performance over time.

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