A growth-focused portfolio with strong US market exposure and a technology tilt

Report created on Sep 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, demonstrated by its significant allocations in the Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Broad Market ETF, and Schwab U.S. Dividend Equity ETF. These choices reflect a clear preference for growth-oriented investments within the large-cap spectrum. While this concentration enhances potential for high returns, it also exposes the portfolio to sector-specific and market-wide risks without the buffer of international or asset class diversification.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 15.86% and a maximum drawdown of -33.39%, the portfolio has demonstrated strong growth tempered by significant volatility. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements, underscoring the importance of a long-term investment horizon to weather potential downturns and capitalize on growth trends.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential portfolio values. While the majority of simulations forecast positive returns, the variation between the 5th and 67th percentiles underscores the inherent uncertainty in these projections. Investors should interpret these results with caution, recognizing that past performance is not a reliable indicator of future returns.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without diversification into other asset classes like bonds or real estate, aligns with a growth-focused strategy but increases volatility and risk. Diversifying across asset classes can reduce risk without significantly compromising potential returns, especially during stock market downturns.

Sectors Info

  • Technology
    33%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    10%
  • Financials
    10%
  • Consumer Staples
    8%
  • Industrials
    7%
  • Energy
    7%
  • Basic Materials
    2%
  • Real Estate
    1%
  • Utilities
    1%

The technology sector's dominant 33% weighting reflects a bet on continued innovation and growth within this industry. However, the concentration in technology, alongside significant investments in other cyclical sectors, may increase the portfolio's sensitivity to economic cycles and market shifts. Balancing sector exposures can mitigate this risk while still capturing growth opportunities.

Regions Info

  • North America
    100%

The portfolio's 100% allocation to North America, specifically the US market, enhances exposure to the world's largest economy but neglects the potential benefits of international diversification. Investing in developed or emerging markets outside the US can offer growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    35%
  • Mid-cap
    21%
  • Small-cap
    5%
  • Micro-cap
    1%

The emphasis on mega and big cap stocks, constituting 74% of the portfolio, leans towards stability and growth potential of established companies. However, integrating a broader mix of medium, small, and micro-cap stocks could enhance diversification and expose the portfolio to higher growth potential albeit with increased risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Schwab U.S. Broad Market ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Schwab U.S. Broad Market ETF indicates overlapping holdings that may limit diversification benefits. Reducing redundancy in the portfolio by reallocating funds from highly correlated assets to less correlated ones could enhance risk-adjusted returns.

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.

Before considering further optimization, the portfolio could benefit from reducing asset overlap to improve diversification. While the Efficient Frontier suggests an optimal risk-return balance, actual optimization should also consider reducing exposure to highly correlated assets to enhance portfolio resilience.

Dividends Info

  • Schwab U.S. Broad Market ETF 1.10%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.54%

The portfolio's overall dividend yield of 1.54% contributes to its total return, balancing the growth orientation with income generation. The Schwab U.S. Dividend Equity ETF, with its higher yield, offers a counterbalance to the lower-yielding growth-focused positions, underscoring the role of dividends in a growth portfolio.

Ongoing product costs Info

  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.04%

With a total expense ratio (TER) of 0.04%, the portfolio benefits from low costs, which can significantly enhance long-term returns. Keeping investment costs low is a crucial aspect of portfolio management, especially in growth-oriented strategies where compounding plays a significant role.

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