Growth-focused portfolio with exclusive investment in Vanguard S&P 500 ETF

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 for the potential of substantial returns. Such an investor likely has a long-term investment horizon, allowing them to weather market volatility inherent in a stock-focused strategy. The portfolio's simplicity and focus on the S&P 500 make it appealing for investors seeking exposure to major U.S. corporations without the need for frequent rebalancing or complex investment strategies.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    100.00%

This portfolio is singularly invested in the Vanguard S&P 500 ETF, representing a 100% allocation to stocks, specifically within the S&P 500 index. This ETF encompasses a broad spectrum of sectors, with technology, financial services, and consumer cyclicals being the most prominent. The portfolio's diversification is low, as it is concentrated in one asset class and primarily in North American companies. Such a composition aligns with a growth profile but carries the risk associated with market fluctuations in the United States.

Growth Info

Historically, the portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 15.73%, with a maximum drawdown of -34.01%. The days contributing to 90% of returns number at 35, indicating significant returns are concentrated in short periods, typical of equity markets. This performance reflects the inherent volatility and potential for substantial growth in equity investments, especially within the robust S&P 500 index.

Projection Info

Monte Carlo simulations, based on historical data, project a wide range of outcomes for this portfolio. The 50th percentile outcome suggests a potential 667.9% increase, with all simulations indicating positive returns. However, it's crucial to note that these projections are based on past performance, which does not guarantee future results. The simulations offer a helpful perspective on possible future scenarios but should be interpreted with caution.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%

The portfolio's asset allocation is entirely in stocks, offering no direct exposure to other asset classes like bonds or real estate. This singular focus on equities, particularly within the S&P 500, is designed for growth but comes with higher volatility. Diversifying across different asset classes could mitigate some risk without significantly compromising potential returns.

Sectors Info

  • Technology
    34%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation within the portfolio mirrors the S&P 500, with a heavy emphasis on technology, financial services, and consumer cyclicals. This sectoral distribution reflects the current composition of the American economy but also exposes the portfolio to sector-specific risks, such as regulatory changes in tech or economic cycles affecting consumer spending.

Regions Info

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

The geographic allocation is overwhelmingly in North America (99%), offering limited international exposure. This concentration benefits from the robust performance of the U.S. stock market but also increases vulnerability to domestic economic shifts. Broadening geographic exposure could enhance diversification and potentially reduce risk.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    35%
  • Mid-cap
    18%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a dominance of mega and big-cap companies, which are typically less volatile than smaller companies. This composition supports stability and growth, leveraging the performance of established industry leaders. However, incorporating a small percentage of medium or small-cap stocks could introduce growth opportunities from more dynamic sectors of the market.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.20%

The portfolio's dividend yield stands at 1.20%, contributing to total returns alongside capital appreciation. While not the primary focus for growth-oriented investors, dividends offer a steady income stream and can be reinvested to compound growth. The current yield is in line with the broader market, reflecting a balanced approach between growth and income.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.03%

With a total expense ratio (TER) of 0.03%, the portfolio is highly cost-efficient, maximizing the potential for net returns over the long term. Low costs are crucial for long-term investment success, especially in a growth-oriented portfolio where compound growth plays a significant role.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.