Growth-focused portfolio with high exposure to US large-cap stocks and technology sector

Report created on Aug 15, 2025

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 portfolio suits an investor with a growth-oriented profile, comfortable with higher risk levels for the chance of substantial returns. It's tailored for individuals with a long-term investment horizon who can withstand periods of significant volatility, especially given the concentrated exposure to US large-cap stocks and the technology sector. This investor likely prioritizes capital appreciation over income and is less concerned with short-term market fluctuations.

Positions

This portfolio is heavily weighted towards US large-cap stocks, with 55% in the Fidelity 500 Index Fund and 45% in the Schwab U.S. Large-Cap Growth ETF. This composition suggests a strong focus on growth, primarily through exposure to large companies listed in the US. The low diversity score indicates a concentrated risk profile, leaning heavily on the performance of the US market and large-cap stocks.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 16.30% and a maximum drawdown of -33.14%, the portfolio demonstrates robust growth potential albeit with significant volatility. The days contributing to 90% of returns being limited to 35 highlights the impact of short-term gains on overall performance. Comparing these figures with benchmarks may help gauge the portfolio's risk-adjusted returns more accurately.

Projection Info

Monte Carlo simulations, based on a thousand scenarios, project a wide range of outcomes with a median increase of 682.1%. This suggests a high potential for growth, supported by a 17.41% annualized return across all simulations. However, the reliance on historical data means these projections cannot guarantee future performance, especially considering market volatility and changing economic conditions.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, providing no asset class diversification. While stocks are known for their growth potential, the absence of bonds, commodities, or real assets like real estate exposes the portfolio to higher volatility and risk, especially during market downturns.

Sectors Info

  • Technology
    41%
  • Telecommunications
    11%
  • Financials
    11%
  • Health Care
    9%
  • Industrials
    6%
  • Consumer Discretionary
    6%
  • Consumer Discretionary
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

A 41% allocation to technology underscores the portfolio's growth orientation but also its vulnerability to sector-specific downturns. Other significant allocations include communication services and financial services, with minimal exposure to defensive sectors like utilities and consumer defensive. This sectoral composition may lead to higher volatility, given the cyclical nature of these industries.

Regions Info

  • North America
    100%

The 100% allocation to North America, specifically the US, indicates no geographical diversification. This concentration in a single region can amplify risks related to local economic and political events. Broadening geographic exposure could mitigate some of these risks and potentially harness growth opportunities in other markets.

Market capitalization Info

  • Mega-cap
    55%
  • Large-cap
    29%
  • Mid-cap
    15%
  • Small-cap
    1%

The focus on mega (55%) and big (29%) cap stocks aligns with the portfolio's growth and risk profile, offering stability and potential for appreciation. However, the minimal exposure to medium, small, and micro-cap stocks limits opportunities for higher returns that these segments may offer, albeit with increased risk.

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.

Given its current composition, the portfolio's risk-return profile could be optimized by diversifying across more asset classes and regions. While the Efficient Frontier suggests an optimal allocation for the existing assets, incorporating assets with different risk-return characteristics could further enhance the portfolio's efficiency.

Dividends Info

  • Fidelity 500 Index Fund 0.90%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 0.68%

The overall dividend yield of 0.68% reflects the portfolio's focus on growth over income. While dividends contribute to total returns, the relatively low yield is consistent with the portfolio's strategy of prioritizing capital appreciation. Investors seeking regular income might consider adjusting the portfolio to include higher-yielding assets.

Ongoing product costs Info

  • Fidelity 500 Index Fund 0.02%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.03%

The portfolio's total expense ratio (TER) of 0.03% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term growth, as even small differences in fees can significantly impact compound returns over time.

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