Growth-oriented portfolio with heavy emphasis on large-cap stocks and US markets

Report created on Sep 29, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio exhibits a strong focus on large-cap stocks, particularly with a significant allocation to Amazon.com Inc, which comprises 41% of the portfolio. The inclusion of three ETFs, notably the Schwab U.S. Large-Cap Growth ETF and the Vanguard FTSE All-World ex-US Index Fund ETF, suggests an attempt at diversification. However, the overwhelming presence of Amazon and a heavy tilt towards U.S. equities indicate a concentration risk and a moderate diversification level. This setup aligns with a growth investment strategy but carries inherent volatility and geographic concentration risks.

Growth Info

The portfolio has experienced a Compound Annual Growth Rate (CAGR) of 20.27%, which is impressive but comes with a significant maximum drawdown of -44.87%. This volatility is indicative of the portfolio's high-risk, high-reward nature. The days contributing to 90% of the returns being concentrated in just 35 days further underscores the portfolio's susceptibility to significant market movements. While past performance is a useful indicator, it's critical to remember it does not guarantee future results.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median simulation suggesting a 679.9% increase, which underscores the portfolio's growth potential. However, the significant spread between the 5th and 67th percentiles highlights the high level of uncertainty and risk. It's important to note that while Monte Carlo simulations provide a spectrum of possible future scenarios based on historical data, they cannot predict unforeseen market shifts or changes in economic conditions.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to cash, bonds, or alternative investments. This single-asset class focus maximizes growth potential but also increases risk, especially during market downturns. Diversifying across different asset classes can help mitigate risk without significantly compromising potential returns.

Sectors Info

  • Consumer Discretionary
    48%
  • Technology
    20%
  • Financials
    7%
  • Telecommunications
    7%
  • Health Care
    6%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    3%
  • Basic Materials
    1%
  • Utilities
    1%

The sectoral allocation shows a heavy emphasis on Consumer Cyclicals and Technology, making up 68% of the portfolio. This concentration enhances exposure to sectors with high growth potential but also increases sensitivity to market cycles and sector-specific risks. Broadening the sectoral exposure could reduce volatility and improve resilience against market fluctuations.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

With 88% of assets in North America, primarily the U.S., the portfolio's geographic distribution is heavily skewed. This concentration benefits from the robust performance of U.S. markets but limits exposure to potential growth in other regions. Increasing allocations to developed and emerging markets outside the U.S. could offer diversification benefits and access to global growth opportunities.

Market capitalization Info

  • Mega-cap
    70%
  • Large-cap
    18%
  • Mid-cap
    9%
  • Small-cap
    1%

The portfolio's focus on mega and large-cap stocks, constituting 88% of the allocation, aligns with its growth and risk profile, offering stability and potential for appreciation. However, incorporating medium to small-cap stocks could enhance diversification and potentially offer higher growth prospects, albeit with increased 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 setup shows potential for risk-return optimization. By adjusting allocations based on the Efficient Frontier, it's possible to achieve a more favorable balance between risk and return. This might involve diversifying across more asset classes and sectors, reducing the oversized position in Amazon, and considering global exposure to enhance potential returns for the given level of risk.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard FTSE All-World ex-US Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 0.89%

The dividend yield from the ETFs contributes to the portfolio's income, complementing growth strategies with a steady income stream. However, the overall yield is modest due to the growth focus. Investors seeking higher income might consider increasing allocations to higher-yielding assets, balancing growth and income.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from low costs, with Total Expense Ratios (TERs) for the included ETFs being notably competitive. This cost efficiency supports better net returns over the long term. Maintaining focus on low-cost investments is crucial for maximizing long-term growth.

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