A growth tilted portfolio with strong US focus and low costs but limited asset class diversification
Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Balanced Investors
This setup best fits an investor who is comfortable with meaningful market swings and is focused on long‑term growth rather than short‑term stability. The ideal time horizon is at least 10 years, preferably longer, allowing the portfolio to ride out bear markets and benefit from compounding. This type of person may be in mid‑career or earlier, still adding new money regularly, and not needing to draw heavily on their investments for current income. They can tolerate occasional drawdowns in the 20–30% range without panicking. Growth is the main goal, but there’s still some appreciation for diversification and a modest income stream, rather than a pure “all‑or‑nothing” speculative mindset.
Positions
-
Vanguard S&P 500 ETF
VOO - US9229083632 55.00% -
Invesco NASDAQ 100 ETF
QQQM - US46138G6492 25.00% -
Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 10.00% -
Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 10.00%
This portfolio is built almost entirely for stock market growth, with 55% tracking a broad US large cap index, 25% tilted toward a tech heavy growth index, 10% in US dividend payers, and 10% in international stocks. That mix leans clearly toward growth while still keeping some diversification across styles and regions. A balanced risk profile normally mixes stocks with stabilizers like bonds or cash, so being 100% in stocks is more aggressive than the “balanced” label suggests. For someone wanting the stated risk score to better match reality, shifting a slice into more defensive assets or a smoother-return stock mix could bring the actual behavior closer to a classic balanced approach.
Growth
Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of about 15.4%. CAGR is like the average yearly speed of a car on a road trip, smoothing out ups and downs. For context, that’s higher than long‑run broad stock market averages, reflecting the growth tilt. The worst historical peak‑to‑trough drop, a max drawdown of about ‑26%, is meaningful but not extreme for an all‑stock portfolio. Still, a drop of that size can feel rough in real life. This performance shows the portfolio has been rewarded for taking risk, but it’s crucial to remember that past returns don’t guarantee future results, especially after such a strong decade for US growth stocks.
Projection
The Monte Carlo analysis, using 1,000 simulations, suggests a wide range of possible futures. Monte Carlo simulations shuffle and resample historical return patterns to create many “what if” paths, giving a band of likely outcomes rather than a single forecast. Here, even the more conservative 5th percentile ending value at 127% shows growth, while the median and higher percentiles are very strong. The average simulated annual return of roughly 15.9% lines up with recent history, but that’s a big assumption. Because these projections are built from past data, they may overstate future potential if markets cool off or if growth‑heavy areas underperform; it’s smart to view them as rough guides, not promises.
Asset classes
- Stocks 100%
- Cash 0%
- Other 0%
- No data 0%
All investable assets here are stocks: 100% equity, 0% bonds, 0% cash, 0% alternatives. This creates a clean, easy‑to‑understand structure and is very consistent with growth‑focused portfolios, but it doesn’t match what most benchmarks call “balanced,” where bonds usually play a big role in smoothing volatility. Pure equity can compound strongly over long periods but also tends to fall harder in market stress, which matters for anyone with shorter horizons or low tolerance for big swings. To get closer to a classic balanced profile, shifting a portion into more defensive holdings or adding a partially stabilizing element could reduce drawdowns and make the ride more comfortable without abandoning the growth goal.
Sectors
- Technology 35%
- Consumer Discretionary 11%
- Telecommunications 11%
- Financials 11%
- Health Care 9%
- Industrials 8%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 2%
- Utilities 2%
- Real Estate 1%
Sector exposure is tilted heavily to technology at 35%, with meaningful weights in consumer cyclicals, communication services, financials, and healthcare, and smaller slices in industrials, staples, energy, materials, utilities, and real estate. This mirrors many modern large cap benchmarks but with an extra growth tilt, especially via the tech‑heavy index component. Tech‑heavy portfolios can shine when innovation and earnings growth are strong, but they tend to be more sensitive to interest rate shifts, regulatory changes, and sentiment swings. The breadth across nine meaningful sectors is a positive, as it supports diversification. Still, someone wanting smoother returns might consider slightly dialing back the heavy growth concentration and nudging the mix toward more defensive or income‑oriented sectors over time.
Regions
- North America 90%
- Europe Developed 4%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 1%
- Australasia 0%
- Africa/Middle East 0%
- Latin America 0%
- Europe Emerging 0%
Geographically, about 90% of the portfolio is in North America, with only around 10% spread across developed Europe, Japan, and a small slice of emerging Asia. This is very aligned with many US‑based investors and has been rewarding in the last decade, as US stocks have significantly outperformed many other regions. The 10% foreign allocation does bring some global diversification, which is good to see, but it remains modest compared to global market‑cap benchmarks where non‑US often represents 35–45%. If reducing home bias is a goal, gradually increasing the international slice could help spread political, currency, and economic risks more broadly, while still keeping the US as the core anchor.
Market capitalization
- Mega-cap 42%
- Large-cap 38%
- Mid-cap 18%
- Small-cap 1%
- Micro-cap 0%
The portfolio is clearly tilted to larger companies, with roughly 42% in mega caps, 38% in big caps, 18% in mid caps, and only about 1% in small caps. That lines up closely with major US benchmarks, which are dominated by very large firms. Large and mega caps tend to be more stable and widely researched, which can mean less volatility than tiny companies, but it also reduces exposure to the sometimes‑higher growth potential of smaller firms. This allocation is well‑balanced and aligns closely with global norms. If someone wants a bit more diversification and long‑term growth potential, modestly increasing mid or small‑cap exposure could add another return driver without completely changing the portfolio’s character.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Schwab U.S. Dividend Equity ETF 3.30%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 1.36%
The overall dividend yield of about 1.36% is modest, reflecting the strong tilt toward growth‑oriented US large caps and the low yield of the tech‑heavy index. The dedicated dividend ETF and international fund both have higher yields, which helps lift income somewhat, but growth and price appreciation are still the main engine. Dividends can be useful for investors who like a predictable cash flow or want a portion of returns in the form of regular payouts rather than just price gains. If reliable income is a priority, increasing the slice of higher‑yielding holdings or adding more income‑oriented strategies could boost the cash flow profile while still maintaining stock market exposure.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Schwab U.S. Dividend Equity ETF 0.06%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.06%
The total expense ratio (TER) around 0.06% is impressively low and a major strength. TER is the annual fee charged by funds, taken silently in the background; lower costs mean you keep more of your returns. This lineup leans on well‑known, low‑fee index products, which is exactly what supports better long‑term performance compared to many higher‑cost active strategies. Over decades, even a difference of 0.5% per year can add up to a big gap in ending wealth. The current fee level is very competitive and worth maintaining. If any changes are made in the future, keeping an eye on costs and favoring low‑fee options can preserve this structural advantage.
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.
On a risk‑return plot, this portfolio likely sits above many peers because of its strong historic returns, but it also takes full equity risk. The Efficient Frontier is a curve of the best possible trade‑offs between risk and return using the current building blocks, like finding the most bang for each unit of volatility. Here, because everything is stock‑heavy and highly correlated, there may be only limited room to improve the risk‑return ratio using these same components. Adjusting the weights to slightly reduce concentration in the most volatile growth slice and boost the more defensive or income‑oriented pieces could move the portfolio closer to that efficient curve, improving the balance without changing the core holdings.
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