Strong US large cap growth engine with a simple stock and bond core mix
Report created on May 31, 2024Risk profile
4/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 90.00% -
VG Vanguard Short-Term Treasury Index Fund ETF Shares
VGSH - US92206C1027 10.00%
This portfolio is built around two ultra-simple pieces: about 90% in a broad US large‑cap stock ETF and 10% in a short‑term Treasury bond ETF. That means almost all of the growth and risk come from mainstream US companies, with a small slice of high‑quality bonds acting as a stabilizer. A structure like this is easy to understand and maintain, which is a big plus. The main tradeoff is that simplicity reduces complexity but also limits diversification across different asset types. As a general guide, anyone using a similar setup would want to be sure that the high stock share truly matches their comfort with big market swings.
Growth
Over the last decade, $1,000 grew to about $3,414, giving a compound annual growth rate (CAGR) of 13.09%. CAGR is like your average yearly “speed” over the full trip, smoothing out all the bumps. This result slightly lagged the US market by 0.73% per year but beat a global “all‑world” equity basket by 1.79% annually. The max drawdown of about -31.75% shows that during tough markets, values did fall significantly, though a bit less than broad US and global benchmarks. Past performance never guarantees future returns, but it does show this kind of mix has historically rewarded long‑term patience despite painful temporary drops.
Asset classes
- Stocks 90%
- Bonds 10%
Asset‑class-wise, about 90% sits in stocks and 10% in bonds. That’s clearly an equity‑dominated mix, with bonds playing a small supporting role rather than a major shock absorber. Equities are the main driver of long‑term growth, while high‑quality bonds, especially short‑term Treasuries, usually help soften drawdowns and provide liquidity. Compared with typical “balanced” 60/40 setups, this structure is more growth‑tilted and therefore more volatile. The allocation is well‑aligned with someone who prioritizes long‑term appreciation but still wants at least a modest cushion. Anyone wanting smoother ride quality or shorter time horizons might consider a higher bond share in a similar framework.
Sectors
- Technology 30%
- Financials 11%
- Telecommunications 10%
- Consumer Discretionary 9%
- Health Care 9%
- Industrials 8%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure is broad but leans clearly toward technology at about 30%, with financials, telecom, consumer, health care, and industrials rounding out much of the rest. This tech‑heavy tilt is very in line with major US indexes today, so it matches common benchmarks rather than being an outlier. The upside is strong participation in areas that have recently driven a lot of market gains. The flip side is that tech and communication‑related areas can be more sensitive to interest rates, regulation, and sentiment shifts. For someone using a similar mix, understanding that sector swings may translate into noticeable portfolio volatility is key, even with a diversified index.
Regions
- North America 89%
This breakdown covers the equity portion of your portfolio only.
Geographically, exposure is concentrated in North America at about 89%, with only a small slice elsewhere through the equity index. That alignment is very close to a “home‑biased” US investor who prefers familiarity and the depth of US markets. Compared with global benchmarks, which include more non‑US stocks, this means stronger dependence on US economic and policy conditions. That has been a tailwind in recent years, but it also means returns could lag if other regions outperform. For many investors, the takeaway is to be intentional: a US‑centric approach can be reasonable, but it’s helpful to recognize that global diversification might smooth regional ups and downs.
Market capitalization
- Mega-cap 41%
- Large-cap 31%
- Mid-cap 16%
- Small-cap 1%
This breakdown covers the equity portion of your portfolio only.
Market‑cap exposure skews toward mega‑ and large‑cap stocks, with about 72% in the biggest companies, 16% in mid‑caps, and only 1% in small‑caps. This mirrors classic broad US market indexes, where large players dominate index weight. Bigger companies often have more stable earnings, stronger balance sheets, and better access to capital, which can reduce business risk compared with smaller firms. The tradeoff is less exposure to the potentially higher growth (and higher risk) offered by small‑caps. This large‑cap orientation is well‑balanced for many investors and lines up nicely with mainstream benchmarks, supporting consistency between portfolio behavior and common market measures.
True holdings
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NV NVIDIA Corporation 6.59%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 5.98%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 4.46%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.12%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.77%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.31%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.21%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 2.16%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.73%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.41%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 32.75%
This breakdown covers the equity portion of your portfolio only.
Looking through the main ETF, the top exposures lean heavily into mega US names: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire Hathaway. Many of these appear via the same index fund, so the hidden concentration comes from how dominant these few companies are in that index, not from owning multiple overlapping funds. This means that portfolio outcomes are strongly tied to how a small group of large firms performs. For someone using a similar approach, it’s worth knowing that even “diversified” index funds can be top‑heavy, so large swings in a few giants can drive overall returns.
Factors
Factor exposures across value, size, momentum, quality, low volatility, and yield are all in the neutral, market‑like range. Factor exposure describes how much a portfolio leans into characteristics that research has linked to returns, like buying cheap stocks (value) or stable ones (low volatility). A neutral profile means this mix behaves similarly to the broad market rather than making big intentional tilts. That’s actually a positive sign for a simple core portfolio: returns are mainly driven by overall market performance instead of narrow factor bets. The main takeaway is that this setup is well‑balanced across factors and avoids heavy style risks.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 90.00% 100.0% -
Vanguard Short-Term Treasury Index Fund ETF Shares
Weight: 10.00% 0.0%
Almost all of the portfolio’s risk—100%—comes from the S&P 500 ETF, even though it’s 90% of the weight. Risk contribution measures how much each piece adds to the overall ups and downs; like a loud instrument dominating an orchestra, the stock ETF drowns out the bond ETF’s volatility dampening. The short‑term Treasury fund contributes essentially zero risk in this mix, acting more like a small ballast and liquidity reserve. This pattern is totally normal for an equity‑heavy portfolio. The key takeaway is that meaningful changes to risk would mostly come from adjusting the stock/bond split, not from tinkering with the small bond slice alone.
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.
On the risk‑return chart, this portfolio sits right on or very near the efficient frontier, meaning it’s using its two holdings in a highly efficient way. The Sharpe ratio—return per unit of risk—is 0.7 for the current mix, compared with 0.76 for the max‑Sharpe option and 0.63 for the ultra‑conservative minimum‑variance mix. An efficient frontier shows the best possible return for each risk level, given the existing ingredients. Being close to that curve is a big positive: it signals that for this stock/bond combo, the current weights deliver a strong tradeoff between growth and volatility without obvious wasted risk.
Dividends
- Vanguard Short-Term Treasury Index Fund ETF Shares 4.00%
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 1.48%
The total dividend yield is about 1.48%, combining roughly 1.20% from the S&P 500 ETF and a higher 4.00% yield from the short‑term Treasury ETF. Yield represents the cash income paid out each year as a percentage of the current value. In this setup, most of the long‑term return is expected to come from price growth rather than income, which fits a growth‑oriented equity tilt. For investors not relying on current cash flow, a modest yield like this is perfectly fine, especially when paired with broad diversification. Reinvesting those dividends can quietly boost compounding over time, even if the yield looks small on its own.
Ongoing product costs
- Vanguard Short-Term Treasury Index Fund ETF Shares 0.04%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
Total ongoing costs are impressively low, with expense ratios (TERs) of 0.03% and 0.04%, giving an overall cost around 0.03%. TER is the annual fee charged by the funds as a percentage of assets, like a tiny “maintenance fee” taken behind the scenes. Keeping costs this low is a major strength and very well aligned with best practices. Every 0.1% saved per year compounds meaningfully over decades. Here, fees are unlikely to be a drag on performance compared with typical alternatives. The main takeaway is that the cost side is already optimized, supporting better long‑term results without needing any changes.
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