Simple low cost US equity exposure closely tracking the broad large cap stock market
Report created on Jun 4, 2024Risk profile
4/7
Diversification profile
2/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 100.00%
The structure here is as simple as it gets: a single low-cost ETF holding a broad basket of large US stocks. With 100% in one equity fund, there is no explicit allocation to bonds, cash, or other asset types. This keeps things extremely transparent and easy to manage, while relying on the built‑in diversification of a major index. The tradeoff is that all risk and return come from one market segment. For someone using this as a “core” holding, one general takeaway is to think about what sits around it — such as cash reserves or separate bond funds — to shape overall household risk.
Growth
Historically, $1,000 grew to about $3,646 over ten years, a compound annual growth rate (CAGR) near 13.85%. CAGR is like your average speed on a long road trip, smoothing out bumps. This slightly beat the broad US market proxy and clearly outpaced the global market reference. The max drawdown of roughly -34% shows that during the worst slump, the value fell by about a third, which is typical for a stock‑only allocation. Most gains came in just 32 days, underlining how missing a few strong sessions can really hurt results. Past performance is no guarantee, but this track record is strong and competitive.
Asset classes
- Stocks 100%
All capital is allocated to stocks, with zero in bonds, cash, or other asset classes. Stocks historically offer higher long‑term growth but come with larger swings and deeper drawdowns, especially during recessions or market panics. Many “balanced” frameworks blend stocks with bonds to smooth the ride and provide dry powder to rebalance after declines. Here, the “balanced” label reflects the provider’s scale, not a mix of assets. The general lesson is that overall stability will likely depend on what else sits outside this ETF, such as an emergency fund or other lower‑risk holdings in retirement or savings accounts.
Sectors
- Technology 33%
- Financials 12%
- Telecommunications 11%
- Consumer Discretionary 10%
- Health Care 10%
- Industrials 9%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector exposure is reasonably broad, but tech‑related businesses are clearly in the lead at about one‑third of the portfolio. Financials, communication‑related industries, consumer‑oriented companies, and health care together make up most of the rest, with smaller allocations to utilities, real estate, and basic materials. This reflects the structure of today’s large US equity market and aligns closely with major benchmarks, which is a positive sign for diversification within stocks. A tech‑heavy tilt can boost returns in growth‑friendly environments but may be more sensitive when interest rates rise or sentiment turns against high‑growth names.
Regions
- North America 99%
Almost all exposure is to North America, essentially the US large‑cap market. This is very much in line with a pure domestic equity strategy but more concentrated than many global stock benchmarks that spread assets across multiple regions. A home‑market focus can benefit from strong institutions and innovation, but it also ties portfolio fortunes strongly to one economy, currency, and policy environment. Some investors are comfortable with that, especially when they live and spend in dollars. Others prefer adding international exposure elsewhere to reduce reliance on any single country’s future performance.
Market capitalization
- Mega-cap 46%
- Large-cap 35%
- Mid-cap 18%
- Small-cap 1%
Market cap exposure skews strongly toward mega‑ and large‑cap companies, with nearly 80% in the biggest firms and modest allocations to mid‑ and small‑caps. Larger companies typically have more stable earnings, deeper liquidity, and broader analyst coverage, which can translate into smoother behavior than very small stocks. At the same time, smaller firms sometimes offer higher long‑term growth potential but with bumpier rides. Overall, this size mix matches a typical large‑cap benchmark, which is a healthy sign. Anyone wanting more small‑cap exposure would generally need to add that deliberately via separate holdings.
True holdings
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NV NVIDIA Corporation 7.32%
Part of fund(s):- Vanguard S&P 500 ETF
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AA Apple Inc 6.64%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 4.96%
Part of fund(s):- Vanguard S&P 500 ETF
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AM Amazon.com Inc 3.47%
Part of fund(s):- Vanguard S&P 500 ETF
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GO Alphabet Inc Class A 3.08%
Part of fund(s):- Vanguard S&P 500 ETF
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AV Broadcom Inc 2.57%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.46%
Part of fund(s):- Vanguard S&P 500 ETF
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ME Meta Platforms Inc. 2.40%
Part of fund(s):- Vanguard S&P 500 ETF
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TS Tesla Inc 1.92%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
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BR Berkshire Hathaway Inc 1.57%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 36.39%
Looking through the ETF’s top holdings, exposure is heavily tilted toward a handful of mega companies, with the top ten names alone making up over a third of the portfolio. Firms like NVIDIA, Apple, Microsoft, and Amazon collectively drive a large share of performance. Because they all live inside the same ETF, there’s no “double counting” overlap with other funds here, which keeps things cleaner. Still, it means the portfolio’s ups and downs are strongly influenced by how these giants do. For many investors, that’s acceptable, but it’s worth being aware that “diversified” doesn’t mean every company has equal impact.
Factors
Factor exposure — the portfolio’s tilt toward traits like value, size, momentum, quality, yield, and low volatility — is mostly neutral here. That means it behaves a lot like the broad market characteristics rather than leaning strongly into any specific style. There’s a mild tilt away from smaller size, consistent with the dominance of mega‑ and large‑caps. For most investors, this market‑like factor profile is a plus: it avoids big bets on any one style that might help in some periods but hurt badly in others. The portfolio should track broad equity cycles without dramatic style whiplash.
Risk contribution
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Vanguard S&P 500 ETF
Weight: 100.00% 100.0%
With a single ETF, risk contribution is straightforward: this holding accounts for 100% of the portfolio’s volatility. Risk contribution measures how much each position adds to overall ups and downs, which can differ from simple weight when some assets are much more volatile. Here, there’s no offsetting cushion from bonds or diversifying strategies within the portfolio. That clarity is helpful, but it also means any attempt to adjust risk has to happen by changing the overall stock allocation, not shuffling positions around internally. Outside accounts or cash reserves can play a key role in managing total-life risk.
Dividends
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 1.20%
The indicated dividend yield of about 1.2% is modest, reflecting the current payout behavior of large US companies. Dividends are cash payments companies make from profits, and over long periods they can be an important part of total return, especially when reinvested. In a growth‑oriented equity approach like this, most of the expected return is likely to come from price appreciation rather than income. For someone looking for steady cash flow, this might be better paired with higher‑yielding assets elsewhere. For long‑term accumulators, automatically reinvesting these dividends supports compounding over time.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
Costs are impressively low, with a total expense ratio (TER) around 0.03%. TER is the annual fee charged by the fund manager, quietly deducted from returns, similar to a small “toll” on your investment highway. Keeping this toll minimal is powerful because every fraction of a percent saved compounds over decades. This cost level is in line with the best‑in‑class passive funds and strongly supports long‑term performance. From a fee perspective, there’s little to improve here; most potential gains in efficiency would come from broader allocation choices, not from squeezing fund costs further.
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