Concentrated US technology driven equity mix with strong historic growth and efficient risk return profile
Report created on May 7, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 50.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00%
This portfolio is built from just two broad ETFs split evenly: a US technology index fund and a total S&P 500 fund. That means every dollar is in stocks, with no bonds or cash buffers. Structurally, half the portfolio tracks the overall large US market, while the other half layers on extra exposure to the tech segment. This simplicity makes the portfolio easy to follow and understand. At the same time, using only two holdings keeps diversification limited, because both funds lean heavily on the same group of large US companies. The result is a focused growth-oriented structure where a relatively small set of mega-cap names has a big influence on outcomes.
Growth
From 2016 to early 2026, $1,000 in this mix grew to about $6,475, a compound annual growth rate (CAGR) of 20.63%. CAGR is the “average speed” of growth per year, smoothing out all the ups and downs. Over this period, the portfolio clearly outpaced both the US market (15.24%) and the global market (12.69%). The worst peak‑to‑trough fall, or max drawdown, was about -32.7%, similar to broad markets in 2020. That shows the portfolio has experienced sharp drops but has been rewarded with higher long‑term returns. As always, past performance only describes what happened; it does not guarantee anything about future results.
Projection
The Monte Carlo simulation projects many possible 15‑year paths based on historical behavior. Monte Carlo is like running 1,000 alternate histories, each mixing returns and volatility in slightly different ways using past data as a guide. Here, the median outcome turns $1,000 into about $2,647, with a central “likely” range between roughly $1,788 and $4,130. There’s about a 73% chance of ending above the starting amount, and an overall average simulated return of around 8% per year. These numbers show a wide spread of potential futures: outcomes can be much higher or lower than the middle. Because markets evolve, these simulations are informative but not predictive.
Asset classes
- Stocks 100%
Asset‑class exposure is very straightforward: 100% in equities and 0% in bonds, alternatives, or cash. Equities are typically the growth engine of a portfolio, but they also tend to swing more from year to year. Compared with a more mixed asset blend, this all‑stock allocation is structurally set up for higher volatility and deeper drawdowns in exchange for higher long‑term return potential. That aligns with its growth‑oriented classification and risk score. With no stabilizing assets like bonds, short‑term market moves will pass straight through to the portfolio value. The key implication is that risk management here comes from diversification within equities, not from balancing different asset classes.
Sectors
- Technology 66%
- Financials 6%
- Telecommunications 6%
- Consumer Discretionary 5%
- Health Care 5%
- Industrials 4%
- Consumer Staples 3%
- Energy 2%
- Utilities 1%
- Real Estate 1%
- Basic Materials 1%
Sector-wise, the portfolio is strongly tilted toward technology at about 66% of equity exposure, far above broad market levels. Other sectors like financials, telecoms, consumer discretionary, healthcare, and industrials are present but in relatively modest slices. This heavy tech focus has been a tailwind in recent years, especially during periods when innovative and growth‑oriented companies led the market. However, tech‑heavy portfolios can be more sensitive to changes in interest rates, investor risk appetite, and regulatory shifts. If technology experiences a period of underperformance or heightened volatility, the portfolio will likely feel those moves more intensely than a sector‑balanced benchmark.
Regions
- North America 99%
Geographically, the portfolio is almost entirely concentrated in North America, at around 99%. That concentration has aligned with a decade where US markets and tech leaders delivered strong returns. Compared with global benchmarks that include a large share of other regions, this creates a clear home‑country and currency focus. The benefit is exposure to companies that dominate many global industries. The trade‑off is that performance is heavily tied to one economy’s growth, interest rates, regulation, and currency trends. If other regions outperform or if the US faces a prolonged slowdown, this portfolio’s geographic tilt means it may not capture gains from elsewhere to the same extent.
Market capitalization
- Mega-cap 48%
- Large-cap 31%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 2%
By market capitalization, almost half of the portfolio sits in mega‑cap names, with most of the rest in large and mid caps, and only small slivers in small and micro caps. Mega‑caps are the very largest companies, often global leaders with deep resources and diversified businesses. This structure tends to reduce company‑specific risk compared with a portfolio full of tiny firms, but it can also concentrate exposure in a handful of dominant players. Because mega‑caps and large‑caps often move similarly, the overall size profile is fairly growth‑oriented and benchmark‑like, with less emphasis on the higher volatility and idiosyncratic behavior typical of smaller companies.
True holdings
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NV NVIDIA Corporation 13.06%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AA Apple Inc 11.26%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 7.57%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 3.50%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.82%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.50%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.20%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.12%
Part of fund(s):- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 1.01%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
TS Tesla Inc 0.94%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Top 10 total 42.95%
Looking through the ETFs, a few familiar giants dominate the underlying exposures. NVIDIA, Apple, and Microsoft together account for more than 30% of the portfolio’s look‑through coverage, with other big names like Broadcom, Amazon, Alphabet, Meta, Micron, and Tesla adding further weight. Many of these companies appear in both ETFs, so their influence is amplified through overlap. Because only top‑10 holdings are included, real overlap is likely a bit higher than shown. This kind of hidden concentration means that news or earnings surprises in a handful of mega‑cap tech and tech‑adjacent names can significantly move the total portfolio, even though you technically only hold two broad index funds.
Factors
Factor exposure shows mild tilts rather than extreme bets. Value, yield, and low volatility are all in the “low” range, meaning the portfolio leans a bit away from cheaper, higher‑dividend, and more stable stocks. Size, momentum, and quality sit around neutral, so they behave broadly like the market on those dimensions. In plain terms, the portfolio is slightly tilted toward growthier, lower‑yield, higher‑beta companies instead of steady, income‑focused names. Factor investing treats these characteristics as ingredients that shape long‑term behavior. Here, the mix suggests stronger performance when growth and tech are in favor, with less ballast from classic defensive or high‑dividend stocks in rougher markets.
Risk contribution
-
Vanguard Information Technology Index Fund ETF Shares
Weight: 50.00% 58.0% -
Vanguard S&P 500 ETF
Weight: 50.00% 42.1%
Risk contribution highlights how much each ETF drives the portfolio’s overall ups and downs, which can differ from simple weights. Although both funds are 50% by allocation, the tech ETF contributes nearly 58% of total risk, while the S&P 500 ETF contributes about 42%. That means the tech slice “punches above its weight” in terms of volatility. This is common when one holding is more concentrated or exposed to a more volatile segment. It also explains why the portfolio’s experience can feel more like a tech‑tilted strategy than a plain US market index. Position sizing and segment volatility together determine how risk is actually distributed.
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 achievable return for each risk level using only these two holdings in different weights. The portfolio’s Sharpe ratio of 0.78, which measures return per unit of risk above a risk‑free rate, is solid but lower than the maximum Sharpe of 0.97 available at a higher‑risk, higher‑return mix. The minimum‑variance point offers lower risk with a still‑reasonable Sharpe of 0.83. The key takeaway is that, given these ingredients, the existing allocation is already broadly efficient for its chosen risk level, without obvious dead weight.
Dividends
- Vanguard Information Technology Index Fund ETF Shares 0.40%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 0.75%
The overall dividend yield is modest at about 0.75%, with the tech ETF yielding around 0.40% and the S&P 500 ETF roughly 1.10%. Dividend yield is the annual cash payment from holdings as a percentage of price, like interest on a savings account but not guaranteed. This low‑to‑moderate income profile is typical for a growth‑oriented, tech‑heavy equity mix, where companies often reinvest profits instead of paying them out. In practice, it means most of the portfolio’s return has historically come from price appreciation rather than cash distributions. For investors tracking total return, dividends are a smaller piece of the puzzle here compared with capital growth.
Ongoing product costs
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.06%
Costs are impressively low, with a total expense ratio (TER) around 0.06% across the two ETFs. TER is the annual fee charged by funds, taken out of assets automatically, similar to a small service charge. Keeping fees this low is a real structural strength: even a few tenths of a percent saved each year can compound into a meaningful difference over decades. Relative to many active funds and even some index competitors, this cost level is very competitive. Combined with the portfolio’s efficient frontier position, the fee structure supports strong net‑of‑cost performance potential, giving more of any market return back to the investor rather than to fund expenses.
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