Growth-focused portfolio with a strong tilt towards large-cap technology stocks
Report created on Aug 26, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 90.00% -
NO ProShares S&P 500 Dividend Aristocrats ETF
NOBL - US74348A4673 10.00%
This portfolio is heavily weighted towards the Schwab U.S. Large-Cap Growth ETF, comprising 90% of the allocation, with the remaining 10% in the ProShares S&P 500 Dividend Aristocrats ETF. This composition indicates a strong growth orientation, focusing predominantly on large-cap stocks within the technology sector. The high concentration in a single asset class (stocks) and a significant tilt towards technology showcases a low level of diversification, aligning with a growth but risk-tolerant investment strategy.
Growth
Historically, this portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 17.80%, with a maximum drawdown of -32.91%. These figures suggest that while the portfolio has generated substantial returns, it has also experienced significant volatility, particularly in downturns. The days contributing to 90% of returns being concentrated in 36.0 days indicates that its performance is heavily reliant on short, sharp gains, typical for growth-oriented investments in sectors like technology.
Projection
Utilizing Monte Carlo simulations, which forecast potential outcomes based on historical data, this portfolio shows a wide range of future scenarios. With a 5th percentile projection at 105.0% and a median (50th percentile) projection at 551.7%, the simulations suggest a high likelihood of positive returns. However, it's important to note that these projections, while useful, cannot guarantee future performance and are subject to the limitations of historical data.
Asset classes
- Stocks 100%
The portfolio's exclusive investment in stocks, with no allocation to bonds, real estate, or other asset classes, underscores its aggressive growth focus. This singular focus enhances potential returns but also increases risk, particularly in market downturns where diversification across asset classes could mitigate losses.
Sectors
- Technology 46%
- Telecommunications 13%
- Consumer Discretionary 12%
- Health Care 8%
- Financials 8%
- Industrials 6%
- Consumer Staples 4%
- Basic Materials 2%
- Utilities 1%
- Real Estate 1%
- Energy 1%
With 46% in technology and the next largest allocations in communication services and consumer cyclicals, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic shifts affecting technology and consumer spending patterns.
Regions
- North America 100%
The geographic allocation is entirely focused on North America, specifically the United States. This concentration in a single region amplifies the portfolio's exposure to country-specific economic and political risks. Diversifying geographically could reduce this risk and potentially tap into growth opportunities in other markets.
Market capitalization
- Mega-cap 58%
- Large-cap 24%
- Mid-cap 16%
- Small-cap 2%
The portfolio's emphasis on mega (58%) and big (24%) cap stocks aligns with its growth and risk profile, favoring established companies with potential for steady growth. However, the minimal allocation to small and micro-cap stocks limits exposure to higher-growth, albeit riskier, segments of the market.
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 configuration, optimizing for the Efficient Frontier might involve diversifying across more asset classes and sectors to achieve a better risk-return ratio. While the portfolio demonstrates strong growth potential, its heavy concentration in technology and large-cap stocks suggests room for improvement in diversification to enhance risk-adjusted returns.
Dividends
- ProShares S&P 500 Dividend Aristocrats ETF 2.00%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 0.56%
The overall dividend yield of 0.56% reflects the portfolio's focus on growth over income, with a relatively low contribution from dividends to total returns. For investors seeking income, increasing the allocation to the ProShares S&P 500 Dividend Aristocrats ETF or similar dividend-focused investments could provide a higher yield.
Ongoing product costs
- ProShares S&P 500 Dividend Aristocrats ETF 0.35%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.07%
The portfolio benefits from relatively low costs, with a total expense ratio (TER) of 0.07%. This efficiency supports better long-term performance by minimizing the drag on returns caused by fees. Maintaining low costs is particularly important for growth-oriented portfolios, where compounding plays a crucial role in wealth accumulation.
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