Growth-focused portfolio with exclusive investment in Vanguard S&P 500 ETF
Report created on Oct 24, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 100.00%
The portfolio is entirely allocated to the Vanguard S&P 500 ETF, reflecting a concentrated approach towards equities, specifically within the S&P 500 index. This ETF encompasses a broad range of sectors, with a significant tilt towards technology. Its diversification is limited to the constituents of the S&P 500, which means it's exclusively invested in large-cap companies primarily based in North America. This composition suggests a growth-oriented strategy but comes with the inherent risks associated with market fluctuations and sector-specific downturns.
Growth
Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.24%, with a maximum drawdown of -34.00%. These figures indicate strong past performance but also highlight periods of significant value decline. It's essential to understand that while the S&P 500 has historically rebounded from downturns, such performance is not guaranteed in the future. The days contributing most to returns are relatively few, underscoring the market's unpredictable nature and the importance of staying invested through market cycles.
Projection
Monte Carlo simulations, which run numerous scenarios to predict future performance, show a wide range of outcomes for this portfolio. The median projection suggests a potential 631.8% increase, with a high degree of variability indicated by the 5th and 67th percentiles. These simulations provide a glimpse into possible future states but must be taken with caution as they rely on historical data and cannot account for unforeseen market shifts.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset class distribution is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This allocation aligns with a growth profile but lacks diversification across different asset classes, such as bonds or real estate, which could mitigate risk during stock market downturns. Diversifying across asset classes can provide a smoother investment journey, especially in volatile markets.
Sectors
- Technology 36%
- Financials 13%
- Consumer Discretionary 11%
- Telecommunications 10%
- Health Care 9%
- Industrials 8%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector allocation within the ETF mirrors the S&P 500, with a significant emphasis on technology and financial services. While this sector concentration has contributed to strong past performance, it also exposes the portfolio to sector-specific risks. Diversifying across a broader range of sectors or including ETFs that focus on underrepresented sectors could reduce volatility and improve long-term stability.
Regions
- North America 100%
Geographically, the investment is entirely in North America, missing out on potential growth opportunities in developed and emerging markets outside the U.S. International diversification could enhance returns and reduce the impact of U.S.-specific economic downturns on the portfolio.
Market capitalization
- Mega-cap 47%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
The market capitalization breakdown shows a preference for mega and big-cap companies, which are typically more stable but might offer lower growth potential compared to mid or small-cap stocks. Incorporating a mix of market caps can potentially enhance returns and provide balance between stability and growth.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.10%
The dividend yield of 1.10% contributes to the portfolio's total return, providing a steady income stream in addition to potential capital gains. While not the primary focus of a growth-oriented investor, dividends can offer a partial hedge against inflation and market volatility.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
The total expense ratio (TER) of 0.03% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as fees can significantly erode gains over time.
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