A masterclass in putting all your eggs in one basket and calling it a diversified portfolio
Report created on May 23, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 75.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 25.00%
At first glance, this portfolio screams, "I love the S&P 500 so much, I bought it twice!" With 75% in the Vanguard S&P 500 ETF and the remaining 25% in the Schwab U.S. Large-Cap Growth ETF, you've essentially doubled down on large-cap U.S. stocks with a side of extra tech. It's like ordering a cheese pizza and then adding more cheese as your topping. The diversification here is so low, calling it "low" feels generous.
Growth
Historically, you've ridden the S&P 500 wave to a 14.53% CAGR, which sounds great until you realize you've basically strapped yourself to a rocket with only one trajectory: up or down with the largest U.S. companies. With a max drawdown of -33.53%, it's like enjoying a roller coaster ride until it suddenly drops, reminding you that what goes up can come down hard. Those 30 days that make up 90% of returns? That's not investing; that's playing financial roulette.
Projection
Monte Carlo simulations suggest a wild ride ahead, with a 5th percentile at 94.3% (hello, almost breaking even) and a median increase of 630%. While these numbers might make you feel like a future mogul, remember, these simulations assume the past is a perfect predictor of the future, which is about as reliable as a weather forecast for next year. Betting the farm on simulations is like planning your retirement around winning the lottery.
Asset classes
- Stocks 100%
With 100% in stocks and precisely 0% in anything else, calling this portfolio "growth-oriented" is an understatement. It's like saying Usain Bolt is "kind of fast." This all-in approach to equities leaves you as exposed as a sunbather in a desert, with absolutely no shade (or bonds, or real estate, or commodities) to mitigate the burn of a market downturn.
Sectors
- Technology 36%
- Financials 12%
- Consumer Discretionary 11%
- Telecommunications 10%
- Health Care 10%
- Industrials 7%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Your tech sector weighting is 36%, making your portfolio look more like a Silicon Valley fan club than a diversified investment. It's as if you've mistaken the stock market for a tech-exclusive party. While tech can be the life of the party during bull markets, it's often the first to leave when the cops (market corrections) show up. The other sector allocations feel more like afterthoughts, rounding out the guest list but not really impacting the vibe.
Regions
- North America 100%
Geographically, this portfolio is the financial equivalent of believing the world is flat—and that flat world consists solely of North America. With 100% of your assets in the U.S., you're missing out on the global party, where emerging markets and developed countries outside the U.S. could spice up your investment returns and reduce the risk of home-country bias. It's like traveling the world but never leaving your hotel room.
Market capitalization
- Mega-cap 51%
- Large-cap 31%
- Mid-cap 16%
- Small-cap 1%
Your market cap tilt towards mega (51%) and big (31%) caps means you're riding on the shoulders of giants, hoping they won't stumble. While there's safety in size, the 1% in small caps is like tipping the valet with pocket lint—insignificant and slightly insulting. This mega-cap love affair might feel safe until you realize that even giants can fall.
Redundant positions
-
High correlationSchwab U.S. Large-Cap Growth ETFVanguard S&P 500 ETF
The high correlation between your two ETFs is like buying two different brands of plain white T-shirts and calling it a wardrobe. These ETFs move together like synchronized swimmers, which is great for aesthetics but terrible for diversification. In a market downturn, they'll hold hands and jump together, offering you no protection from the fall.
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.
Your portfolio's idea of optimization seems to be "more of the same, please." Before even considering the Efficient Frontier, you need to introduce some variety to your asset mix. Right now, you're so far from optimal diversification, the Efficient Frontier is a dot to you. It's like trying to balance your diet by eating different flavors of ice cream and nothing else.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Vanguard S&P 500 ETF 1.30%
- Weighted yield (per year) 1.08%
With a total yield of 1.08%, your portfolio's dividend strategy is about as aggressive as a sloth on tranquilizers. It's clear that income isn't your goal, but even for growth-focused investors, a sprinkle of dividend-generating assets could add a nice flavor to the overall meal, offering some income to reinvest or buffer losses.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
One thing you've got right is keeping costs low, with total TER at a lean 0.03%. It's like finding a cheap, efficient car that only drives on one road. Cost efficiency is commendable, but when the road takes a sharp turn (market correction), you'll wish you'd invested in something with a bit more maneuverability.
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