Highly concentrated US large cap equity portfolio with strong tech tilt and efficient risk return profile
Report created on May 27, 2026Risk profile
4/7
Diversification profile
2/5
Positions
-
SP SPDR S&P 500 ETF Trust
SPY - US78462F1030 43.04% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 39.60% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 17.36%
This portfolio is very simple: three US equity ETFs, all tracking broad large‑cap indices, with no bonds or alternatives. Roughly four‑fifths sits in S&P 500 trackers, split between two providers, and the remaining slice tracks the NASDAQ 100. That means the portfolio is fully invested in shares of big US companies, with no built‑in cash buffer. A concentrated structure like this is easy to follow and moves closely with prominent US stock indices. The trade‑off is that portfolio behavior is dominated by one market style and region. So while the holdings list looks short, the underlying exposure represents hundreds of companies, but almost entirely within the same broad segment of the market.
Growth
Over the period from late 2020 to May 2026, a hypothetical $1,000 in this portfolio grew to $2,331. That works out to a compound annual growth rate (CAGR) of 16.35%, meaning an average yearly gain of around 16% across the full period, not each year individually. Compared with the US market benchmark, the portfolio added about 0.38 percentage points per year, and beat the global market by roughly 2.56 points per year. The portfolio’s worst peak‑to‑trough drop was about -26%, similar to broad markets, taking roughly 14 months to recover. This pattern shows a growth‑oriented but still benchmark‑like ride, with returns and drawdowns in the same ballpark as major equity indices.
Projection
The Monte Carlo projection uses historical returns and volatility to generate 1,000 possible 15‑year paths for a $1,000 investment. Think of it as replaying market history with slight variations to see a range of plausible futures, not a single forecast. The median outcome lands around $2,728, with a middle “likely” band roughly between $1,736 and $4,302. Extreme cases stretch from about the starting $1,000 up to around $7,679. The average simulated annual return is 8.08%, with about 72% of simulations ending positive. These numbers highlight both the growth potential and the wide uncertainty range: future results can differ a lot from the past, especially over long horizons.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, so there is no allocation to bonds, cash, or other asset classes. Equities historically have offered higher long‑term returns than safer assets, but with more pronounced ups and downs. Many broad “balanced” references blend stocks with bonds to smooth volatility; in comparison, this all‑equity mix will likely move more sharply with market cycles. The benefit of this purity is that portfolio behavior is easy to understand: it rises and falls with corporate earnings and sentiment, without interest‑paying assets offsetting stock moves. The flip side is limited cushioning during equity market stress, since there is no other asset class acting as a shock absorber.
Sectors
- Technology 40%
- Telecommunications 12%
- Consumer Discretionary 10%
- Financials 10%
- Health Care 8%
- Industrials 7%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Basic Materials 2%
- Real Estate 2%
Sector exposure is heavily skewed toward technology‑related companies, at around 40%, with additional sizeable slices in telecommunications and consumer discretionary. More defensive areas like utilities, consumer staples, and real estate are present but smaller. This gives the portfolio a growth‑tilted flavor, because tech and communication businesses often benefit strongly from innovation and digital trends but can be sensitive to changes in interest rates or market optimism. Compared with broad global or domestic benchmarks, this level of tech concentration is on the higher side, largely driven by the NASDAQ 100 component. That concentration can amplify both upside in strong tech cycles and drawdowns when sentiment turns against higher‑growth companies.
Regions
- North America 99%
Geographically, the exposure is extremely concentrated: about 99% in North America. That means portfolio results are closely tied to the health of the US economy, corporate profits, and the US dollar. Many global equity indices spread weight more broadly across multiple regions, so this is a strong home‑country focus. The benefit is alignment with one of the world’s largest and most transparent markets, which has been a strong performer in recent years. The cost is that developments in other major economies contribute very little to this portfolio’s behavior. If non‑US markets go through different cycles than the US, this structure leaves less room to benefit from those offsetting patterns.
Market capitalization
- Mega-cap 48%
- Large-cap 35%
- Mid-cap 17%
- Small-cap 1%
The portfolio leans decisively toward the very largest companies: almost half in mega‑caps and another third in large‑caps, with modest mid‑cap and negligible small‑cap exposure. Market capitalization simply measures a company’s value on the stock market, and large firms often have more stable earnings and easier access to financing. This size profile makes the portfolio behave similarly to headline indices that are dominated by household‑name corporations. It also means less exposure to smaller, potentially faster‑growing but more volatile businesses. In practice, portfolio risk and return will be most influenced by how the biggest global firms perform, rather than by the fortunes of smaller, more niche companies.
True holdings
-
NV NVIDIA Corporation 8.22%
Part of fund(s):- Invesco NASDAQ 100 ETF
- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
AA Apple Inc 6.85%
Part of fund(s):- Invesco NASDAQ 100 ETF
- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 4.92%
Part of fund(s):- Invesco NASDAQ 100 ETF
- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 4.25%
Part of fund(s):- Invesco NASDAQ 100 ETF
- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 3.60%
Part of fund(s):- Invesco NASDAQ 100 ETF
- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 3.15%
Part of fund(s):- Invesco NASDAQ 100 ETF
- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.95%
Part of fund(s):- Invesco NASDAQ 100 ETF
- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
TS Tesla Inc 2.07%
Part of fund(s):- Invesco NASDAQ 100 ETF
- LS 1x Tesla Tracker ETP Securities GBP
- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.75%
Part of fund(s):- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.15%
Part of fund(s):- SPDR S&P 500 ETF Trust
- Vanguard S&P 500 ETF
- Top 10 total 38.92%
Looking through the ETFs, the top underlying positions reveal significant overlap in a handful of giant companies. Names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet each account for several percent of total exposure, coming from multiple funds at once. For example, NVIDIA alone represents over 8% when combining its appearances. This kind of overlap creates hidden concentration: even though the portfolio holds three ETFs, many of the biggest positions repeat across them. Because the analysis only uses each ETF’s top 10 holdings, actual overlap is likely somewhat higher. As a result, the portfolio’s fortunes are strongly tied to the performance of a small group of mega‑cap growth and tech‑oriented firms.
Factors
Factor exposure across value, size, momentum, quality, yield, and low volatility is generally neutral, sitting close to market‑like levels. Factors are like underlying characteristics that help explain why investments behave the way they do over time, such as being cheaper (value), smaller (size), or more stable (low volatility). Here, there is a mild tilt away from smaller companies, consistent with the strong large‑ and mega‑cap emphasis, but otherwise the portfolio doesn’t lean strongly into any single factor style. That means its return pattern should roughly track broad market behavior rather than behaving like a dedicated value, quality, or low‑volatility strategy. Performance will be driven more by market direction than by specialized factor bets.
Risk contribution
-
SPDR S&P 500 ETF Trust
Weight: 43.04% 41.3% -
Vanguard S&P 500 ETF
Weight: 39.60% 37.5% -
Invesco NASDAQ 100 ETF
Weight: 17.36% 21.2%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. In this case, the two S&P 500 ETFs together make up about 82% of the weight and contribute a similar share of risk, while the NASDAQ 100 ETF, at 17% weight, contributes over 21% of risk. That higher risk‑per‑weight ratio reflects its more volatile, growth‑heavy composition. Overall, all three funds account for 100% of portfolio risk, with no hidden diversifiers. The structure means day‑to‑day volatility is mostly dictated by broad US equity moves, with an extra kick from the tech‑focused NASDAQ slice amplifying swings.
Redundant positions
-
High correlationSPDR S&P 500 ETF TrustVanguard S&P 500 ETF
The correlation data shows that the two S&P 500 ETFs move almost identically. Correlation measures how similarly assets move: a value close to 1 means they usually rise and fall together, while 0 would indicate independent movement. Here, holding two nearly identical index trackers from different providers doesn’t meaningfully change diversification; they respond to the same market forces. This is not a flaw in itself, but it does mean that, from a risk perspective, the pair behaves almost like a single combined S&P 500 position. Any diversification benefits within the portfolio mainly come from the slight differences between the S&P 500 segment and the NASDAQ 100 segment.
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, the current portfolio sits on or very close to the efficient frontier. The efficient frontier represents the best possible trade‑offs between risk (volatility) and expected return using just the existing holdings with different weights. The Sharpe ratio, which compares excess return to risk, is 0.73 for the current mix and 0.92 for the optimal/minimum‑variance portfolios, but those optimal points share identical return and risk figures, indicating the current weightings already line up well with an efficient combination. Put simply, given these three ETFs, the portfolio is using them in a way that delivers near‑maximal risk‑adjusted returns without obvious inefficiencies.
Dividends
- Invesco NASDAQ 100 ETF 0.40%
- SPDR S&P 500 ETF Trust 1.00%
- Vanguard S&P 500 ETF 1.00%
- Weighted yield (per year) 0.90%
The portfolio’s dividend yield is relatively modest at about 0.90% overall, with the NASDAQ 100 component yielding just 0.40% and the S&P 500 ETFs around 1.00%. Dividend yield measures the annual cash payouts from holdings as a percentage of current value. This profile fits with a growth‑oriented, large‑cap US equity mix, where many companies reinvest profits instead of paying high dividends. Historically, dividends have been a meaningful part of long‑term equity returns, but here capital gains are likely to be the primary driver. Investors relying on income would see a lighter cash flow stream, while those focused on growth may view the lower yield as consistent with a reinvestment‑heavy approach.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- SPDR S&P 500 ETF Trust 0.10%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.08%
The portfolio’s costs are impressively low, with a total expense ratio (TER) around 0.08%. TER is the annual fee charged by funds, expressed as a percentage of assets, and it quietly reduces returns over time. Here, the bulk of assets sit in very low‑cost S&P 500 ETFs at 0.10% and 0.03%, while the NASDAQ 100 ETF charges 0.15%. Relative to many actively managed or higher‑fee products, these levels are extremely competitive. Keeping costs low is one area where this portfolio aligns strongly with best practices, because even small fee differences can compound into large amounts over long periods, especially when the underlying investments are expected to be held for many years.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
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.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey