Growth-oriented portfolio heavily weighted in US large-cap stocks with low diversification

Report created on Aug 20, 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 predominantly invested in U.S. large-cap growth stocks, with an 80% allocation to a Schwab U.S. Large-Cap Growth ETF, 15% in Hims & Hers Health Inc common stock, and a 5% allocation to the Vanguard Total Stock Market Index Fund ETF Shares. This composition indicates a strong focus on growth, particularly within the technology sector, but it also highlights a significant lack of diversification across asset classes and geography, with a complete concentration in North American equities.

Growth Info

Historically, the portfolio has shown a robust Compound Annual Growth Rate (CAGR) of 26.61%, despite experiencing a maximum drawdown of -34.94%. This performance is indicative of the high-risk, high-reward nature of growth-focused investing, particularly in the technology and consumer sectors. The days contributing to 90% of the returns being so few suggests volatility and the importance of timing in this investment strategy.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The median simulation suggests a potential 1,667.7% return, with a significant portion of simulations (92.6%) resulting in positive returns. This optimistic projection, however, should be approached with caution, as past performance is not a reliable indicator of future results, and the simulation does not account for unforeseen market changes.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, lacking exposure to other asset classes such as bonds, real estate, or commodities. This allocation maximizes potential returns but also increases volatility and risk. Diversifying across different asset classes can reduce risk without significantly compromising potential returns, offering a more balanced approach to growth investing.

Sectors Info

  • Technology
    42%
  • Consumer Staples
    17%
  • Telecommunications
    11%
  • Consumer Discretionary
    11%
  • Health Care
    7%
  • Financials
    6%
  • Industrials
    4%
  • Basic Materials
    1%
  • Energy
    1%

Sector allocation is heavily skewed towards technology, which comprises 42% of the portfolio. This concentration in a single sector amplifies both the potential for high returns and the risk of significant losses, particularly in market downturns. Diversifying across more sectors could mitigate some of this risk while still allowing for substantial growth opportunities.

Regions Info

  • North America
    100%

The geographic allocation is entirely focused on North America, specifically the U.S. This lack of international exposure limits the portfolio's diversification and potential for capturing global growth opportunities. Expanding into developed or emerging markets outside of North America could provide additional growth avenues and risk mitigation.

Market capitalization Info

  • Mega-cap
    54%
  • Large-cap
    34%
  • Mid-cap
    10%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a heavy emphasis on mega and big-cap stocks, which tend to be more stable than smaller companies but may offer lower growth potential in the long run. Incorporating a broader mix of medium, small, and micro-cap stocks could enhance growth prospects and diversification.

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.

Considering the portfolio's current composition, there is room for optimization towards achieving a more efficient risk-return profile, possibly by diversifying across more asset classes, sectors, and geographies. The Efficient Frontier concept suggests that diversification can lead to better risk-adjusted returns, even if it means accepting slightly lower returns for significantly reduced risk.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.38%

The dividend yields from the ETFs in the portfolio are relatively low, with a total yield of 0.38%. This is typical for growth-focused investments, where the expectation of return is primarily from capital appreciation rather than income. Investors should be aware of their income needs and consider whether a higher dividend yield portfolio might better suit their financial goals.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from exceptionally low costs, with Total Expense Ratios (TERs) of 0.04% and 0.03% for the ETFs. Low costs are crucial for long-term investment success, as they directly enhance net returns. This aspect of the portfolio is well-optimized, aligning with best practices for maximizing investment efficiency.

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