Growth-oriented portfolio with strong tech and financial sectors exposure

Report created on Jul 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs and common stocks, with a significant portion allocated to the Vanguard S&P 500 ETF and Schwab U.S. Large-Cap Growth ETF. This structure suggests a growth-focused strategy, leveraging broad market exposure alongside targeted growth sectors. However, the concentration in a few high-weight positions could introduce specific risks, especially in volatile market conditions. Diversification across more asset classes or sectors might mitigate these risks.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.02%, which is a robust performance. The max drawdown of -33.68% indicates a period of significant value decline, which is an essential consideration for risk assessment. The days contributing to 90% of returns being limited to 11.0 suggests that the portfolio's performance is highly concentrated in a few exceptional periods, which might not be replicable moving forward.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a 50th percentile growth of 30.1%, which is optimistic. However, the 5th percentile showing a -92.3% outcome highlights the potential risk of substantial losses. This spread underscores the importance of understanding the volatility and the risk-reward balance in the portfolio. Investors should consider whether the potential for high returns justifies the risk of significant losses.

Asset classes Info

  • Stocks
    94%
  • Real Estate
    6%

The portfolio's asset allocation is heavily skewed towards stocks (94%) with a smaller allocation to real estate (6%). This allocation supports the portfolio's growth orientation but might increase volatility and risk, especially in market downturns. Expanding into more diverse asset classes could provide a buffer against market volatility and contribute to a more stable long-term performance.

Sectors Info

  • Technology
    32%
  • Financials
    20%
  • Real Estate
    12%
  • Consumer Discretionary
    8%
  • Industrials
    7%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Energy
    3%
  • Utilities
    1%
  • Basic Materials
    1%

Sector allocation shows a strong emphasis on technology and financial services, which are sectors known for their growth potential but also for their volatility. While this can lead to significant gains during bullish market periods, it may also expose the portfolio to higher risk during downturns. Diversifying into more defensive sectors could help balance this risk.

Regions Info

  • North America
    95%
  • Europe Developed
    3%
  • Asia Developed
    2%

The geographic allocation is predominantly focused on North America (95%), with minimal exposure to Europe Developed (3%) and Asia Developed (2%). This concentration in the U.S. market could limit global diversification benefits and expose the portfolio to region-specific risks. Increasing exposure to emerging markets or other developed regions could offer additional growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    40%
  • Mid-cap
    13%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for mega (41%) and big (40%) cap stocks, which tend to be more stable and less volatile than smaller companies. However, the modest allocation to medium (13%), small (5%), and micro (1%) caps suggests room for greater diversification. Including more small and medium-cap stocks could enhance growth potential and diversification.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation observed between the Vanguard S&P 500 ETF and Schwab U.S. Large-Cap Growth ETF indicates redundant exposures, reducing the portfolio's effective diversification. Identifying and eliminating such overlapping investments can help in refining the portfolio's composition for better 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.

Optimizing for the Efficient Frontier suggests a need to address the high correlation between certain assets. By reallocating from overlapping to complementary assets, the portfolio could achieve a more favorable risk-return profile. This process involves balancing diversification without compromising the growth objective, ensuring that each asset contributes uniquely to the portfolio's performance.

Dividends Info

  • AstraZeneca PLC ADR 2.20%
  • Bank of America Corp 2.20%
  • Bristol-Myers Squibb Company 3.90%
  • Delta Air Lines Inc 1.10%
  • Enterprise Products Partners LP 6.80%
  • Hormel Foods Corporation 3.00%
  • Microsoft Corporation 0.60%
  • Annaly Capital Management Inc 10.10%
  • Paycom Soft 0.70%
  • Pimco Dynamic Income Opportunities Fund 10.60%
  • Qualcomm Incorporated 2.20%
  • Rockwell Automation Inc 1.50%
  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • iShares Semiconductor ETF 0.70%
  • SPDR Portfolio Europe 2.90%
  • Truist Financial Corp 4.70%
  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Vanguard S&P 500 ETF 1.20%
  • Whirlpool Corporation 7.50%
  • Weighted yield (per year) 2.16%

The portfolio's dividend yield stands at 2.16%, contributed by a mix of high and low dividend-yielding assets. While dividends provide a steady income stream, the focus should remain on balancing yield with growth and risk considerations. Reevaluating holdings with extreme yields, both high and low, could align the portfolio more closely with its growth objectives while maintaining an income component.

Ongoing product costs Info

  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • iShares Semiconductor ETF 0.35%
  • SPDR Portfolio Europe 0.07%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.03%

The overall portfolio costs are impressively low, with Total Expense Ratios (TER) for the included ETFs contributing to efficient long-term growth. Low costs are crucial for maximizing net returns, especially in growth-oriented portfolios where compound returns play a significant role. Maintaining focus on cost efficiency while seeking diversification could further enhance portfolio performance.

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