A concentrated US growth portfolio with strong tech tilt and impressive historic returns but higher risk

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

Growth Investors

This setup fits an investor who is comfortable with meaningful ups and downs in pursuit of higher long-term growth. They’re likely focused on building wealth rather than drawing current income, and they can tolerate sharp drops, including temporary losses of 30% or more. A long time horizon—ideally 10 years or longer—suits this style, as it allows recovery from inevitable bear markets. This type of investor often believes in the long-term strength of innovative, growth-oriented companies and is willing to accept concentration in certain themes or regions. Emotional resilience and the ability to stick with a plan during volatility are key traits for this profile.

Positions

  • Schwab U.S. Large-Cap Growth ETF
    SCHG - US8085243009
    40.00%
  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    25.00%
  • Invesco NASDAQ 100 ETF
    QQQM - US46138G6492
    20.00%
  • iShares Expanded Tech Sector ETF
    IGM - US4642875490
    15.00%

This portfolio is heavily tilted to US growth stocks, with four ETFs that all live in a similar space. Most of the money sits in large US companies that emphasize capital appreciation over stability or income. Compared with broad, more balanced benchmarks that mix growth, value, and other regions, this setup is much more concentrated and aggressive. That concentration can boost gains in strong markets but can also magnify losses when growth or tech falls out of favor. To smooth the ride over time, shifting a slice into more diversified holdings, including different investment styles and regions, could help reduce reliance on one dominant theme.

Growth Info

Historically, the portfolio has done very well, with a compound annual growth rate (CAGR) of 17.5%. CAGR is just the average yearly growth rate, like averaging your speed on a long road trip. A $10,000 starting amount hypothetically growing at 17.5% per year for 10 years would end up around $50,000 if that rate continued. The trade-off is visible in the max drawdown of about -33%, meaning at one point it was down roughly a third from its peak. That kind of swing is normal for growth-heavy setups. It’s important to remember that past performance, even strong, does not guarantee similar future results, especially with such a focused tilt.

Projection Info

The Monte Carlo analysis uses historical returns and volatility to simulate many alternate futures for the same mix of assets. Think of it as running 1,000 different “what if” timelines where returns vary randomly within historical patterns. The median (50th percentile) outcome of about 817% suggests strong upside if markets resemble the past, but the 5th percentile at around 111% shows that low-return paths are also possible. The very high average simulated return near 19.1% looks attractive but may be optimistic because it leans on a tech-fueled era. Treat these numbers as rough ranges, not promises, and consider whether potential downside paths would still feel acceptable.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%

All of the portfolio sits in stocks, which are ownership stakes in companies and tend to be more volatile than bonds or cash. This 100% equity position fits a growth profile but means the portfolio can rise and fall sharply with market cycles. Broad benchmarks that mix in bonds or other asset classes usually show smoother performance, especially during recessions or panic periods. Keeping everything in stocks can pay off for long horizons, but it increases the emotional and financial strain during big downturns. Easing in some stabilizing assets over time, even modestly, could help limit drawdowns while still targeting long-term growth.

Sectors Info

  • Technology
    49%
  • Telecommunications
    15%
  • Consumer Discretionary
    11%
  • Health Care
    7%
  • Financials
    6%
  • Industrials
    5%
  • Consumer Staples
    3%
  • Basic Materials
    1%
  • Utilities
    1%
  • Energy
    1%
  • Real Estate
    1%

Sector-wise, this setup is dominated by technology and related growth areas. Tech alone is nearly half the portfolio, and when you add communication services and consumer cyclicals, the overall growth engine is very strong. This is more concentrated than common broad-market benchmarks, which spread more weight into financials, industrials, defensive areas, and others. A tech-heavy mix often does very well when innovation, low interest rates, and digital trends are in favor, but it can stumble harder when rates rise or sentiment turns. Keeping a deliberate eye on whether this tech tilt is intentional—and balancing it with more defensive or steady sectors—can help manage volatility.

Regions Info

  • North America
    99%
  • Europe Developed
    0%
  • Asia Emerging
    0%
  • Latin America
    0%
  • Asia Developed
    0%

Geographically, almost everything is in North America, essentially the US market. That aligns with being a US-based investor and has historically been rewarding, since US equities have outperformed many other regions in recent decades. However, global benchmarks usually include meaningful exposure to other developed and emerging markets. Sticking almost entirely with one country’s market ties outcomes closely to that single economy, policy environment, and currency. While the US is broad and diversified internally, adding some international exposure can help if non-US regions go through periods of outperformance or if US-specific risks arise. Even a modest global slice can improve resilience without changing the core growth focus.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    31%
  • Mid-cap
    14%
  • Small-cap
    2%
  • Micro-cap
    1%

By market capitalization, there is a strong tilt to mega and large companies, with smaller firms making up only a tiny portion. Large caps are generally more stable, widely followed, and less likely to experience extreme company-specific risks compared with small, unproven businesses. That’s a positive alignment with many broad benchmarks and helps reduce some volatility despite the growth focus. The limited allocation to mid, small, and micro caps means there’s less exposure to the sometimes higher long-term growth potential of smaller companies. Gradually adding a bit more balanced size exposure can open up additional return sources while still keeping most money in well-established names.

Redundant positions Info

  • iShares Expanded Tech Sector ETF
    Invesco NASDAQ 100 ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The ETFs in this portfolio are highly correlated, meaning they tend to move up and down together. Correlation is basically how similar the price movements are; when correlation is high, diversification benefits shrink. Here, several funds track overlapping sets of large US growth and tech names, so owning them together doesn’t meaningfully spread risk. This is why big downturns in growth or tech would likely drag down the whole portfolio at once. Before trying to fine-tune or “optimize” anything, simplifying overlapping positions and introducing funds that behave differently across market conditions can provide more genuine diversification and smoother performance.

Dividends Info

  • iShares Expanded Tech Sector ETF 0.20%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Weighted yield (per year) 0.56%

Dividend yield, at roughly 0.56%, is quite low, reflecting the growth-oriented nature of the holdings. Dividends are the cash payments companies make to shareholders, and they can be a helpful source of steady income or a way to reinvest automatically. High-growth companies often reinvest profits instead of paying big dividends, aiming to grow the business and stock price faster. This setup is well-aligned with investors who care more about long-term capital growth than current income. If income needs rise over time, gradually blending in more dividend-focused or income-oriented holdings could balance growth with a bit more cash flow from the portfolio.

Ongoing product costs Info

  • iShares Expanded Tech Sector ETF 0.41%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.12%

The overall cost level is impressively low, with a total expense ratio around 0.12%. Expense ratios are the annual fees charged by funds, and keeping them low is like paying less “toll” on your investment highway, leaving more of the return in your pocket. This cost profile is actually better than many active strategies and aligns with best practices for long-term investing. The one higher-cost fund still sits at a reasonable level, but since it overlaps heavily with the others, reducing duplication could lower the effective cost and simplify tracking. Maintaining this low-fee mindset will support stronger net returns over the long run.

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 basis, this portfolio sits on the aggressive side and likely below its own best “efficient” mix. The Efficient Frontier is just the curve showing the highest return you could historically get for each level of risk using only your current building blocks. Because the current holdings are very similar and highly correlated, shifting weights between them yields only limited improvement. True efficiency gains would come more from adding distinct assets than from shuffling between the existing four. Still, trimming redundant growth exposure and modestly increasing diversification could move the portfolio closer to a better risk–return balance without abandoning its growth orientation.

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