Strongly US focused growth portfolio with a big tilt toward technology and semiconductor strength
Report created on Apr 29, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 75.00% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 25.00%
This portfolio is extremely simple, with just two ETFs: about three quarters in a broad US large‑cap index and one quarter in a focused semiconductor fund. That means every dollar is in stocks, with no bonds or alternatives to smooth out volatility. The broad US index provides a diversified core, while the semiconductor slice adds a concentrated “booster” in one powerful industry. Structurally, this kind of barbell between a wide base and a narrow satellite makes the overall experience heavily driven by equity markets and especially by that specialized sleeve. The simplicity is a real strength for transparency, but the flip side is that any swings in semiconductors will show up very clearly in the total portfolio’s ups and downs.
Growth
From 2016 to 2026, a $1,000 investment in this mix grew to about $8,318, with a compound annual growth rate (CAGR) of 23.69%. CAGR is like your average speed on a long road trip, smoothing out the bumps. This handily outpaced both the US market at 14.95% and the global market at 12.25%. However, the portfolio still experienced a sizeable max drawdown of -33.83%, meaning it once fell by a third from peak to trough before recovering. That drop took around 10 months to bottom and another 10 months to recover. Historically, the reward has been high, but it came with hefty, if temporary, setbacks along the way.
Projection
The Monte Carlo projection looks at many possible futures by reshuffling and simulating returns based on past behavior, rather than just drawing a straight line from history. In this case, 1,000 simulations over 15 years show a median outcome of about $2,725 from $1,000, with a wide likely range between roughly $1,860 and $4,191. Extreme but still plausible paths stretch from around $1,053 to $8,286. The average annualized return across all paths is 8.23%, noticeably lower than the historical CAGR. This illustrates a key point: past returns were exceptional, and simulations build in the idea that such high growth may not persist in the same way.
Asset classes
- Stocks 100%
All of this portfolio sits in a single asset class: equities. That 100% stock exposure means the portfolio fully participates in stock market gains but also takes on the full brunt of equity market downturns. Traditional multi‑asset portfolios often mix in bonds or other assets to dampen volatility, but here there is no such buffer. Compared with broader benchmarks that might include bonds or cash, this structure is more aggressive in terms of market sensitivity. The benefit is maximum participation when equities do well; the trade‑off is that there is nowhere to hide inside the portfolio when stocks are falling together.
Sectors
- Technology 50%
- Financials 9%
- Telecommunications 8%
- Consumer Discretionary 8%
- Health Care 7%
- Industrials 6%
- Consumer Staples 4%
- Energy 3%
- Utilities 2%
- Real Estate 1%
- Basic Materials 1%
Sector-wise, technology dominates at about 50%, with the rest spread more thinly across financials, telecom, consumer areas, health care, and other sectors. This heavy tech tilt largely comes from the semiconductor ETF combined with tech’s big presence in the US index. In calm or growth-oriented environments, this kind of tech emphasis has historically supported strong returns, especially when innovation cycles are strong. However, tech-heavy portfolios often react more sharply to changes in interest rates or shifts in market sentiment toward growth companies. The relatively modest allocations to more defensive sectors mean the portfolio leans clearly toward growth and innovation rather than stability.
Regions
- North America 95%
- Asia Developed 3%
- Europe Developed 2%
Geographically, the portfolio is overwhelmingly anchored in North America at about 95%, with only small slices in developed Asia and Europe. This concentration lines up with a strong home-country and US-market bias, particularly common for US-based investors. Relative to global market indexes, which spread more across regions, this portfolio is much more tied to the US economy, policy, and currency. That has been a tailwind in the last decade, as US markets outperformed many others. The flip side is that any long stretch where the US lags other regions would largely pass this portfolio by, because the exposure to the rest of the world is minimal.
Market capitalization
- Mega-cap 45%
- Large-cap 38%
- Mid-cap 16%
- Small-cap 1%
Most holdings, via the ETFs, sit in mega‑cap and large‑cap companies, together making up over 80% of the portfolio, with smaller allocations to mid‑ and tiny slivers of small‑caps. Large and mega‑caps tend to be more established businesses with deeper liquidity, which often makes trading smoother and can reduce company‑specific blow‑up risk compared with concentrating purely in smaller firms. On the other hand, that means less exposure to the sometimes faster growth (and higher risk) seen in smaller companies. Overall, the market cap profile is broadly in line with mainstream equity benchmarks, leaning toward stability and scale rather than speculative small names.
True holdings
-
NV NVIDIA Corporation 10.16%
Part of fund(s):- VanEck Semiconductor ETF
- Vanguard S&P 500 ETF
-
AA Apple Inc 5.00%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 4.07%
Part of fund(s):- VanEck Semiconductor ETF
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.69%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.73%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Taiwan Semiconductor Manufacturing 2.66%
Part of fund(s):- VanEck Semiconductor ETF
-
GO Alphabet Inc Class A 2.24%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.80%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.68%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.40%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Top 10 total 35.43%
Looking through the ETFs’ top holdings, a few big names stand out: NVIDIA at over 10% of the portfolio, Apple, Broadcom, Microsoft, Amazon, TSMC, the Alphabet share classes, Meta, and Tesla. Because some of these appear in both the broad S&P 500 ETF and the semiconductor ETF, there is hidden overlap that increases concentration in those particular companies. It’s important to note that only top‑10 ETF positions are captured, so total overlap is likely higher than shown. This means that a handful of mega tech and chip names play an outsized role in driving performance, both on the upside and during any sector‑specific downturns.
Factors
Factor exposure across value, size, momentum, quality, yield, and low volatility is generally neutral, sitting close to market‑like levels. Factor exposure is basically how much the portfolio leans toward certain characteristics that research has linked to returns, like cheapness (value) or stability (low volatility). In this case, there are no strong tilts either toward or away from any major factor, suggesting the behavior is driven more by broad market movements and sector focus than by deliberate factor bets. This kind of balanced factor profile often behaves similarly to a standard market index, though the tech and semiconductor tilt can still create distinct performance patterns.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 75.00% 63.7% -
VanEck Semiconductor ETF
Weight: 25.00% 36.3%
Risk contribution shows how much each ETF drives the portfolio’s overall volatility, which can differ from its simple weight. Here, the S&P 500 ETF is 75% of the weight but contributes about 64% of the risk, while the 25% semiconductor ETF contributes roughly 36% of the risk. That higher risk‑to‑weight ratio (1.45) for the semiconductor fund highlights its volatility: a quarter of the capital is responsible for over a third of the ups and downs. This indicates that, although the position size is smaller, that single concentrated sleeve punches well above its weight in shaping the portfolio’s day‑to‑day movement.
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 efficient frontier chart, the current mix sits on or very close to the frontier, meaning that for its level of risk, the historical risk/return balance has been efficient using these two holdings. The Sharpe ratio, which compares return to volatility after accounting for a risk‑free rate, is 0.81 for the current mix. The optimal portfolio on this frontier has a higher Sharpe of 1.08 but also much higher volatility, while the minimum variance mix has slightly lower risk with a similar Sharpe. This suggests the existing allocation is already making good use of its ingredients without evident historical inefficiency.
Dividends
- VanEck Semiconductor ETF 0.20%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 0.88%
The portfolio’s overall dividend yield is modest at around 0.88%, with the semiconductor ETF yielding only 0.20% and the S&P 500 ETF at about 1.10%. Dividend yield is the cash income paid out each year as a percentage of investment value, and it can be an important part of total return over long periods. Here, most of the historical performance has come from price growth rather than income. That fits with the growth‑oriented, tech‑heavy nature of the holdings, as many companies in these areas tend to reinvest profits instead of paying large dividends. So the portfolio is more about capital appreciation than regular cash payouts.
Ongoing product costs
- VanEck Semiconductor ETF 0.35%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.11%
Costs in this portfolio are very low, with a blended total expense ratio (TER) of roughly 0.11%. TER is the annual fee charged by funds, expressed as a percentage of your investment; lower fees mean you keep more of any returns. The broad S&P 500 ETF is especially cheap at 0.03%, while the specialized semiconductor ETF is higher at 0.35%, which is typical for more focused strategies. Overall, this fee level is impressively low and compares favorably with many actively managed funds. Over long periods, such cost efficiency can meaningfully support net performance, especially when combined with the simplicity of just two ETFs.
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