Highly concentrated US growth and semiconductor focused equity portfolio with strong historical performance
Report created on Jun 6, 2024Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 90.00% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 10.00%
This portfolio is extremely focused: 100% in stocks, all via just two ETFs. About 90% sits in a broad US large-cap growth fund, with the remaining 10% in a more niche semiconductor ETF. That creates a pure growth-equity profile with no bonds, cash, or defensive assets to dampen swings. Structure like this is simple to monitor and easy to keep aligned with a clear growth objective. The trade-off is that volatility can be high, especially during equity selloffs. As a general takeaway, such a setup tends to fit investors who prioritize long-term upside and can emotionally handle large temporary drops without feeling forced to sell.
Growth
Historically, this mix has been very powerful: $1,000 grew to about $5,636, with a compound annual growth rate (CAGR) near 18.9%. CAGR is the “average speed” of growth per year over the full period. That clearly beat both the US market and the broader global market by a wide margin. Max drawdown — the worst peak-to-trough decline — was about -36%, only slightly worse than the benchmarks. This shows you’ve been paid well for the extra risk. At the same time, past performance simply shows how this style behaved in one window; it can’t guarantee that such a return gap over the market will repeat in the next decade.
Asset classes
- Stocks 100%
Every dollar is in equities, with no allocation to bonds, cash, or alternatives. That makes the portfolio very growth oriented and sensitive to the stock market cycle. In calm or rising markets, this can be a powerful engine for compounding. During sharp downturns or recessions, though, there is no natural buffer from safer assets, so account values can fall quickly. Relative to a typical diversified portfolio that blends stocks and bonds, this structure trades downside protection for higher long-term expected return. For someone wanting smoother ride-through volatility, gradually mixing in some lower-risk assets is a common way to balance growth with stability.
Sectors
- Technology 51%
- Telecommunications 14%
- Consumer Discretionary 11%
- Health Care 8%
- Financials 6%
- Industrials 5%
- Consumer Staples 2%
- Basic Materials 1%
- Energy 1%
Sector-wise, technology is the clear driver, making up just over half of the equity exposure, with semiconductors adding extra punch. Other sectors such as telecom-related, consumer-oriented, financial, and healthcare appear, but in clearly secondary roles. Compared with broad equity benchmarks, this is a strong tech and innovation tilt, which has benefited from recent trends like digitalization and AI. The flip side is that this kind of portfolio often feels especially bumpy when interest rates jump or when markets rotate toward more defensive or cyclical areas. Being aware that sector swings can heavily influence performance helps set reasonable expectations during future rotations.
Regions
- North America 98%
- Asia Developed 1%
- Europe Developed 1%
Geographically, nearly all exposure is in North America, with very small slices in developed Europe and Asia. That means results are closely tied to one major market’s economy, interest-rate policy, and currency. The positive angle is that this region has delivered excellent long-term returns and is home to many global leaders, so this alignment has been rewarding. However, it also means limited diversification benefits from other parts of the world when regional shocks occur. Investors who prefer spreading risk globally often hold a larger share in non-domestic markets so that different economies, political systems, and currencies can partially offset each other over time.
Market capitalization
- Mega-cap 62%
- Large-cap 25%
- Mid-cap 12%
- Small-cap 1%
The portfolio is dominated by mega-cap and large-cap companies, with only a thin slice in mid- and small-cap stocks. Mega-caps tend to be more stable businesses with global footprints, strong balance sheets, and deep liquidity, which can reduce company-specific risk compared with a heavy small-cap tilt. At the same time, smaller companies sometimes lead during certain parts of the cycle, so this profile may miss some of that potential “small-cap premium.” Overall, this large-cap bias is quite common and aligns well with many broad benchmarks, which is a positive indicator of stability and familiarity in how the holdings behave relative to headline markets.
True holdings
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NV NVIDIA Corporation 12.29%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- VanEck Semiconductor ETF
-
AA Apple Inc 8.97%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 6.91%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 4.98%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AV Broadcom Inc 4.50%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- VanEck Semiconductor ETF
-
GO Alphabet Inc Class A 4.27%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
TS Tesla Inc 3.43%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class C 3.40%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
ME Meta Platforms Inc. 3.31%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
LL Eli Lilly and Company 2.53%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Top 10 total 54.58%
Looking through the ETFs, the portfolio leans heavily on a handful of mega-cap growth names: NVIDIA, Apple, Microsoft, Amazon, Broadcom, both Alphabet share classes, Tesla, Meta, and Eli Lilly dominate the top exposures. Several of these appear in multiple funds, so the true dependence on a small group of companies is higher than it first looks. Overlap is likely understated because only top-10 holdings are used, but even this partial view shows a meaningful concentration in a few leaders. The upside is strong participation in market winners; the downside is that problems in these specific names could move the overall portfolio more than expected.
Factors
Factor exposure — the portfolio’s tilt toward characteristics like value, size, momentum, quality, yield, and low volatility — looks distinctive but coherent. There is a mild tilt away from value, yield, and low volatility, which fits a growth-heavy profile that prioritizes future earnings potential over current dividends or steadiness. Size, momentum, and quality sit near neutral, suggesting the portfolio broadly reflects the market on those fronts rather than making big bets. This combination tends to shine when growth and innovation are in favor but can lag when markets rotate toward cheaper, higher-dividend, or more defensive names. Understanding these tilts helps explain performance patterns across cycles.
Risk contribution
-
Schwab U.S. Large-Cap Growth ETF
Weight: 90.00% 87.1% -
VanEck Semiconductor ETF
Weight: 10.00% 13.0%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs. Although the semiconductor ETF is only 10% of the capital, it contributes nearly 13% of the risk, reflecting its higher volatility relative to the broader growth fund. The large-cap growth ETF carries most of the risk simply because it dominates the allocation. None of this is inherently bad; it just confirms that one high-octane sleeve can punch above its weight in turbulence. If an investor ever wanted to dial down risk without changing holdings, trimming that more volatile slice is one straightforward way to make the ride somewhat smoother.
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, the portfolio sits right on or very close to the efficient frontier. The efficient frontier represents the best possible return you could historically have achieved for each level of risk using your existing holdings in different weightings. Your current Sharpe ratio, a measure of return per unit of risk, is solid and quite close to the minimum-variance option, with the optimal mix offering somewhat higher risk and higher return. Since you’re already positioned efficiently, there’s no structural need to overhaul allocations. Any future tweaks would be more about adjusting your comfort with volatility rather than fixing a risk/return inefficiency.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.30%
- VanEck Semiconductor ETF 0.30%
- Weighted yield (per year) 0.30%
The portfolio’s overall dividend yield sits around 0.3%, reflecting a clear emphasis on companies that reinvest profits for growth rather than paying out income. For investors focused on building wealth over time rather than drawing regular cash, this can be perfectly aligned; retained earnings often fund innovation, expansion, and buybacks, which can support price appreciation. Income-oriented investors, though, would find this setup too lean for meeting spending needs. In that case, adding higher-yielding assets elsewhere could fill the gap. It’s helpful to view this portfolio primarily as a capital-growth engine, not as a meaningful source of steady cash distributions.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- VanEck Semiconductor ETF 0.35%
- Weighted costs total (per year) 0.07%
Costs are a bright spot here. The blended total expense ratio of about 0.07% is impressively low, especially for a growth-oriented and sector-tilted mix. Expense ratios are like a small annual haircut on your returns: the less you lose to fees, the more stays invested and compounding for you. Over long periods, even a difference of 0.3–0.5 percentage points per year can add up to thousands of dollars. This cost efficiency is strongly aligned with best practices and supports better long-term performance. From a fee perspective, this portfolio is already in excellent shape and doesn’t need much improvement.
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