Focused high growth US portfolio with strong industrial tilt and concentrated thematic bets
Report created on Mar 31, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Growth Investors
An investor well-matched to this kind of portfolio is comfortable with meaningful volatility and cares more about long-term growth than near-term stability or income. They likely have a multi-decade horizon, such as saving for retirement far in the future or building long-term wealth, and don’t need to draw regular cash from their investments. They’re okay with thematic and sector concentration as long as the upside potential is compelling and accept that drawdowns of 30–40% can and will happen. This person tends to be engaged, willing to follow market developments, and emotionally prepared to hold through rough patches without abandoning the plan.
Positions
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SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 46.70% -
AI First Trust RBA American Industrial RenaissanceTM ETF
AIRR - US33738R7044 20.39% -
XA SPDR® S&P Aerospace & Defense ETF
XAR - US78464A6313 18.35% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 14.56%
This portfolio is tightly focused: four US stock ETFs, all growth-leaning, with zero bonds or cash. Almost half sits in a broad large-cap growth fund, while the rest is split across industrial renaissance, aerospace and defense, and semiconductors. That means you’re taking “pure equity” risk with a strong thematic flavor. This structure matters because concentrated equity-only setups can grow fast but also swing hard during downturns. The big positive is simplicity and clear intent: it’s a growth engine, not a balanced all-weather mix. For someone comfortable with ups and downs, this design can be appropriate, but it relies on your willingness and ability to ride through big equity drawdowns without panicking.
Growth
Historically, this portfolio has been a powerhouse. A hypothetical $1,000 grew to about $6,593, far ahead of both the US market and global market over the same period. The portfolio’s compound annual growth rate (CAGR) of around 20.9% handily beats the US at 13.8% and global at 11.4%. CAGR is like average speed on a long road trip, smoothing the bumps. The trade-off is a max drawdown of about -36%, slightly worse than market drawdowns. That’s a big temporary loss on paper. The strong outperformance is impressive, and it shows the growth tilt has paid off historically, but it doesn’t guarantee similar future outperformance.
Asset classes
- Stocks 100%
Asset class exposure is straightforward: 100% stocks, no bonds, no cash, no alternatives. That’s perfectly aligned with a growth-oriented risk profile and keeps things simple. Equities historically offer higher returns than bonds over long periods but with more frequent and sharper drawdowns. Without any stabilizers like bonds, there’s nowhere to hide in a broad equity selloff; the whole portfolio moves with the stock market, often more aggressively. The upside is strong long-term growth potential if you can stay invested through rough patches. The key question becomes whether your time horizon and temperament truly match an all-equity approach.
Sectors
- Industrials 40%
- Technology 36%
- Telecommunications 7%
- Consumer Discretionary 6%
- Financials 5%
- Health Care 4%
- Consumer Staples 1%
- Basic Materials 1%
Sector-wise, the portfolio is heavily tilted toward industrials and technology, together making up more than three-quarters of exposure. Industrials include manufacturing, engineering, and related businesses, while tech covers software, chips, and digital platforms. This skew can be attractive when innovation, reshoring, and defense spending trends are favorable, as they’ve often been recently. However, such concentration also means more sensitivity to economic cycles, capital spending, and interest rate changes. The allocation is far from broad-market sector weights, but that’s by design. For an investor deliberately targeting these themes, this is a focused, conviction-driven setup rather than a neutral, benchmark-like sector mix.
Regions
- North America 97%
- Asia Developed 2%
- Europe Developed 1%
Geographically, almost everything is in North America, with only tiny slivers in developed Asia and Europe. That’s a strong home bias toward the US and a bit of its closest peers. This has worked very well over the past decade, as US markets, especially growth and tech, have led global performance. The flip side is reliance on one main economy, political system, and currency. If US stocks underperform other regions for a stretch, this portfolio won’t benefit much from strength elsewhere. The concentration isn’t inherently wrong, but it does mean global diversification benefits are limited compared with a more worldwide allocation.
Market capitalization
- Mega-cap 37%
- Mid-cap 21%
- Large-cap 21%
- Small-cap 20%
- Micro-cap 2%
Market cap exposure is nicely spread across mega, large, mid, and small caps, with even a bit in micro-cap names. That’s relatively diverse for such a focused portfolio and brings different risk/return profiles to the table. Mega-caps tend to be more stable, brand-dominant companies, while small and micro-caps can offer higher growth potential with more volatility and liquidity risk. This blend supports a growth objective while avoiding an extreme tilt toward either only giants or only smaller, riskier firms. The balance across size buckets is a quiet strength here, helping smooth some bumps without sacrificing upside entirely.
True holdings
-
NV NVIDIA Corporation 8.21%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- VanEck Semiconductor ETF
-
AA Apple Inc 4.80%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 3.51%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AV Broadcom Inc 3.04%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- VanEck Semiconductor ETF
-
AM Amazon.com Inc 2.62%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class A 2.11%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
TS Tesla Inc 1.79%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class C 1.70%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
TS Taiwan Semiconductor Manufacturing 1.68%
Part of fund(s):- VanEck Semiconductor ETF
-
ME Meta Platforms Inc. 1.60%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Top 10 total 31.05%
Looking through to the underlying companies, there’s meaningful overlap in mega-cap growth names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. NVIDIA alone shows up at over 8% of total exposure via the ETFs, and several other “Magnificent 7” names appear multiple times. This hidden concentration means more of the portfolio’s fate is tied to a small set of tech giants than the individual ETF weights suggest. Overlap isn’t necessarily bad—it’s helped returns recently—but it does weaken diversification. If a few of these stars stumble, the impact on overall performance could be larger than the ETF list makes it look at first glance.
Factors
On factor exposure, the standout tilt is toward smaller companies (size factor is “High”), while value, momentum, and quality sit near neutral, and yield and low volatility are low. Factors are like underlying “personalities” of stocks—size, value, momentum, etc.—that research has tied to long-term patterns. A higher size exposure means more emphasis on mid and small caps, which can boost returns in expansions but often fall harder in downturns. Low yield and low volatility tilts reinforce the growth, risk-on nature: you’re favoring fast growers over dividend payers and stability. Overall, this is a pro-growth, pro-cyclical factor profile rather than a defensive one.
Risk contribution
-
Schwab U.S. Large-Cap Growth ETF
Weight: 46.70% 43.2% -
First Trust RBA American Industrial RenaissanceTM ETF
Weight: 20.39% 20.7% -
VanEck Semiconductor ETF
Weight: 14.56% 18.9% -
SPDR® S&P Aerospace & Defense ETF
Weight: 18.35% 17.2%
Risk contribution shows how much each ETF drives overall portfolio volatility, which isn’t always the same as its weight. Here, the Schwab large-cap growth fund is about 47% of the portfolio and contributes around 43% of the risk—pretty proportional. The semiconductor ETF, though, is under 15% by weight but almost 19% of total risk, reflecting how volatile chip stocks are. The top three positions drive more than 80% of overall risk, so the portfolio’s ups and downs are dominated by a few key buckets. That’s acceptable if intentional, but anyone wanting smoother rides might usually aim for more even risk sharing.
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.
On the risk–return chart, your current mix sits right on or very close to the efficient frontier, which is excellent. The efficient frontier is the curve showing the best possible return for each risk level using just these holdings in different weights. Sharpe ratios—return per unit of risk—are strong, with the current portfolio at 0.87 and the theoretical optimal at 1.01. That gap suggests only modest improvement is possible through reweighting, not a drastic overhaul. The takeaway: for someone targeting this risk level and these specific themes, the allocation is already highly efficient in turning volatility into return.
Dividends
- First Trust RBA American Industrial RenaissanceTM ETF 0.20%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- VanEck Semiconductor ETF 0.30%
- SPDR® S&P Aerospace & Defense ETF 0.40%
- Weighted yield (per year) 0.34%
Dividend yield is low across all positions, with the overall portfolio around 0.34%. That’s much lower than broad equity markets, which is typical for growth-focused strategies. Companies here generally reinvest earnings into expansion, R&D, and acquisitions instead of paying them out as cash. For investors looking for regular income, this setup won’t do much heavy lifting. However, for someone prioritizing capital appreciation and willing to forgo dividends today for potential higher growth tomorrow, the low yield is consistent with the portfolio’s philosophy and not a red flag by itself.
Ongoing product costs
- First Trust RBA American Industrial RenaissanceTM ETF 0.70%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- VanEck Semiconductor ETF 0.35%
- SPDR® S&P Aerospace & Defense ETF 0.35%
- Weighted costs total (per year) 0.28%
Costs are reasonably good overall, with a blended total expense ratio (TER) of about 0.28%. The Schwab large-cap growth ETF is impressively cheap at 0.04%, which is a real plus. The industrial, aerospace, and semiconductor funds sit higher at 0.35–0.70%, reflecting their more specialized, thematic nature. Costs matter because they quietly chip away at returns every year, and even small differences compound over time. Here, the portfolio strikes a fair balance: using a low-cost core plus more expensive satellites. From a cost perspective alone, this structure supports long-term performance reasonably well compared to many actively managed or niche strategies.
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