A simple low cost portfolio fully focused on broad United States stock market growth

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

Balanced Investors

This kind of portfolio fits someone comfortable with meaningful ups and downs in pursuit of strong long-term growth. They likely have a multi-decade horizon, like saving for retirement or building generational wealth, and can tolerate seeing big temporary drops without panicking. Their primary goal is compounding capital rather than generating high current income or minimizing short-term volatility. They appreciate simplicity, low costs, and matching a widely followed market index instead of trying to beat it with complex strategies. A person like this usually focuses on staying invested through full market cycles, accepting that occasional deep drawdowns are part of the journey toward higher expected returns.

Positions

  • SPDR S&P 500 ETF Trust
    SPY - US78462F1030
    100.00%

This portfolio is extremely straightforward: one ETF tracking a broad US large company index at 100%. That means the whole outcome depends on how that single index behaves, with no cushion from other types of assets like bonds or cash. Simplicity has big benefits: it’s easy to understand, monitor, and maintain, and it closely matches a widely used benchmark that many professionals compare against. At the same time, the “all in one basket” structure limits flexibility. Someone using a setup like this could consider whether adding even a small allocation to stabilizing assets might better fit a “balanced” risk label while still keeping the core simple and index-based.

Growth Info

Historically, the results have been very strong: a compound annual growth rate, or CAGR, of about 16%. CAGR is just the smooth average yearly pace of growth over time, like checking your average speed on a long drive even if you hit traffic sometimes. The max drawdown of roughly -34% shows that while returns were high, there were painful temporary losses along the way. The fact that only 38 days made up 90% of returns shows how “lumpy” the gains can be. Past numbers like this are encouraging, but they are not a guarantee; markets can easily deliver lower or more volatile results in future periods.

Projection Info

The Monte Carlo projections look very optimistic, with a median outcome above 700% of the starting value and even the 5th percentile still showing a solid gain. Monte Carlo simulations take historical patterns of returns and volatility, then shuffle and remix them thousands of times to map out a range of possible futures. This helps visualize best, worst, and middle-case scenarios rather than relying on a single forecast. However, these simulations assume the future behaves somewhat like the past, which may not hold if valuations, interest rates, or global conditions change dramatically. It’s useful as a rough guide, but not a promise of specific future wealth levels.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%

On the asset class side, this setup is 100% stocks and 0% bonds or cash, which is why the diversification score is low. Stocks are powerful growth engines over long horizons, but they can swing a lot in the short term, especially during recessions or crises. A “balanced” profile usually mixes in stabilizing assets that tend to fall less when stocks drop. The equity-only design is well-aligned with a pure growth mindset and closely mirrors common stock benchmarks, which is a plus. To smooth the ride, some investors might choose to mix in defensive assets gradually while keeping this ETF as the main growth driver.

Sectors Info

  • Technology
    34%
  • Financials
    13%
  • Telecommunications
    11%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector exposure is broad across the economy, but clearly tilted toward technology at about one-third of the portfolio, with good representation in financials, communication services, consumer areas, healthcare, and industrials. This lines up closely with major US equity benchmarks, which is a strong sign that the portfolio is in step with how the overall market is structured. Tech-heavy allocations can boost returns when innovation and earnings growth are strong, but they may also feel sharper drawdowns when interest rates rise or risk appetite falls. Keeping the broad index approach avoids single-sector bets, yet it’s still worth being aware that sector weights shift over time as market leadership changes.

Regions Info

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

Geographically, this is almost entirely North America, with roughly 99% in US-listed large companies. That gives very clear exposure to the world’s largest equity market, which many investors use as their core holding. The flip side is almost no direct stake in other developed or emerging regions. While many big US firms earn revenue globally, that doesn’t fully replace holding non-US markets, which can behave differently across economic cycles. This US-heavy tilt has been rewarding over the last decade, but leadership can rotate. Some investors prefer to layer in international exposure around a US core like this to potentially reduce “home country” risk over multiple decades.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    35%
  • Mid-cap
    18%
  • Small-cap
    1%

By market cap, the focus is on mega and large companies, with about 80% in the very biggest firms and only a small slice in mid and tiny allocations to small companies. Large companies tend to be more stable, diversified businesses with deep resources, which can reduce some company-specific risk compared with concentrating in smaller names. The trade-off is less exposure to the higher growth potential and higher risk of smaller companies. This breakdown closely mirrors major index benchmarks and is a strong indicator that the portfolio is aligned with typical broad market standards. Anyone wanting more small-company tilt would usually need an additional dedicated allocation.

Dividends Info

  • SPDR S&P 500 ETF Trust 1.10%
  • Weighted yield (per year) 1.10%

The dividend yield is around 1.1%, which is relatively modest but consistent with many large US growth-focused indices today. Dividends are cash payments from companies, and while they’re only a small portion of total return in this setup, they still add a steady income stream on top of price growth. For investors mainly targeting long-term capital appreciation, a lower yield paired with strong earnings growth can be completely fine. Those seeking more current income might feel this is on the light side and could consider complementing it with higher-yielding holdings elsewhere. Overall, the yield level here is very much in line with broad US stock benchmarks, which is reassuring.

Ongoing product costs Info

  • SPDR S&P 500 ETF Trust 0.10%
  • Weighted costs total (per year) 0.10%

Costs are impressively low at about 0.10% per year, which is a big strength of this portfolio. The expense ratio is the ongoing fee charged by the fund, and lower costs mean more of the market’s return stays in your pocket instead of going to managers. Over decades, even small fee differences can add up to significant amounts, like a slow leak vs. a tightly sealed bucket. This cost level is firmly in the low-cost index investing camp and supports better long-term performance relative to higher-fee options. Maintaining this low-fee mindset if adding new holdings can help keep the overall cost base lean and efficient.

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