Concentrated US growth and technology focused portfolio with strong historic returns and efficient risk profile
Report created on May 3, 2024Risk profile
5/7
Diversification profile
2/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 42.00% -
MG Vanguard Mega Cap Growth Index Fund ETF Shares
MGK - US9219108167 27.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 8.00% -
XL Technology Select Sector SPDR® Fund
XLK - US81369Y8030 8.00%
The current mix is a tight five-ETF lineup, fully invested in stocks and clearly tilted toward US growth and technology. A broad total US market ETF forms the core, with a sizable satellite in mega-cap growth and a meaningful slice in small-cap value for balance. Two targeted sector funds zoom in on technology and semiconductors, further sharpening the growth profile. Structurally, this is a focused “core plus tilts” design rather than a sprawling, hyper-diversified basket. That focus can be powerful if the chosen themes continue to do well. The key takeaway is that the structure matches a growth mindset but leaves little exposure to areas outside US equities and tech-oriented companies.
Growth
Over roughly six and a half years, $1,000 grew to about $2,865, implying a compound annual growth rate (CAGR) of 17.62%. CAGR is the “average speed” of growth per year, smoothing out the bumps. That comfortably beat both the US market (14.07%) and global market (11.68%). The max drawdown, or worst peak-to-trough fall, was about -34.8%, similar to the benchmarks’ drops. This combination of higher return without meaningfully deeper drawdowns is a strong result. However, past performance is not a promise; markets change and leadership rotates. The main takeaway is that the growth tilt has been rewarded historically, but future periods may not look as favorable for the same style.
Asset classes
- Stocks 100%
The entire allocation is in equities, with 0% in bonds, cash, or alternative assets. That makes the portfolio simple to understand but also fully exposed to stock market swings. Equities historically provide higher long-term returns than safer assets, yet they also experience deeper and more frequent drawdowns. Many broader “balanced” portfolios mix in bonds or cash-like holdings, which can soften the ride during severe downturns but typically reduce long-term return expectations. Here, the all-stock approach is aligned with a growth-oriented, longer-horizon mindset that can tolerate volatility. The key takeaway is that this structure is best matched to investors who can ride through large equity drawdowns without needing to sell at bad times.
Sectors
- Technology 44%
- Consumer Discretionary 11%
- Financials 10%
- Telecommunications 9%
- Industrials 7%
- Health Care 6%
- Energy 4%
- Consumer Staples 3%
- Basic Materials 2%
- Real Estate 2%
- Utilities 1%
Sector-wise, technology stands out at about 44%, far above what’s typical in broad global or total-market indices. Consumer discretionary and financials are the next largest, with modest slices in areas like health care, industrials, and energy. This strong tech tilt explains much of the past outperformance, especially given how well large tech and semiconductor names have done. However, tech-heavy portfolios can be more sensitive to interest rate changes, growth expectations, and regulatory shifts. If technology underperforms other sectors for a stretch, the overall portfolio may lag diversified benchmarks. The main takeaway is that this sector mix is intentionally aggressive and growthy; it can shine in tech-led markets but will likely feel more painful during tech-specific downturns.
Regions
- North America 98%
- Asia Developed 1%
- Europe Developed 1%
Geographically, exposure is overwhelmingly in North America at 98%, with only tiny allocations to developed Asia and Europe. This is more concentrated than typical global benchmarks, which spread more evenly across major economic regions. A home-country tilt can feel comfortable because familiar companies and headlines dominate, and it has been rewarded recently by strong US equity performance. However, it also ties outcomes closely to the US economy, policy environment, and currency. If other regions lead in the future, such a US-centric stance may underperform more globally diversified approaches. The takeaway is that the geographic profile is highly focused, favoring familiarity and past winners over broader international diversification.
Market capitalization
- Mega-cap 44%
- Large-cap 26%
- Mid-cap 11%
- Small-cap 11%
- Micro-cap 8%
Market cap exposure is skewed toward the largest companies, with mega-cap and large-cap making up about 70%, while mid, small, and micro caps share the remainder. This is typical for portfolios built around total-market and mega-cap funds, and it mirrors how market indices naturally weight bigger companies more heavily. The added slice of small-cap value brings some diversification by size and style, introducing exposure to more economically sensitive and sometimes overlooked companies. Smaller caps tend to be more volatile but can offer higher long-term return potential. The key takeaway is that the cap spectrum is reasonably covered, yet real influence still sits with the giant companies that dominate the mega- and large-cap bands.
True holdings
-
NV NVIDIA Corporation 8.89%
Part of fund(s):- Technology Select Sector SPDR® Fund
- VanEck Semiconductor ETF
- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 6.90%
Part of fund(s):- Technology Select Sector SPDR® Fund
- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 5.12%
Part of fund(s):- Technology Select Sector SPDR® Fund
- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 3.08%
Part of fund(s):- Technology Select Sector SPDR® Fund
- VanEck Semiconductor ETF
- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.68%
Part of fund(s):- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.48%
Part of fund(s):- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 2.16%
Part of fund(s):- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 2.11%
Part of fund(s):- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.87%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Mega Cap Growth Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Taiwan Semiconductor Manufacturing 0.93%
Part of fund(s):- VanEck Semiconductor ETF
- Top 10 total 36.23%
Looking through ETF top holdings, there is a heavy reliance on a handful of mega-cap tech and internet names: NVIDIA, Apple, Microsoft, Alphabet, Amazon, Meta, Tesla, and Broadcom together form a large chunk of effective exposure. Several of these appear across multiple funds, especially the broad market and mega-cap growth ETFs, and also align indirectly with the tech and semiconductor funds. This creates hidden concentration because one company may be owned several times over via different products. While overlap estimates are conservative since only top-10 holdings are used, the pattern is clear. The takeaway is that portfolio results are strongly tied to the fate of a small number of dominant US technology and platform companies.
Factors
Factor exposure is broadly neutral across value, size, momentum, quality, low volatility, and yield, all hovering near the 40–60% band. In factor terms, this looks a lot like a broad market portfolio rather than a strongly tilted “smart beta” strategy. Factor exposure describes how much the portfolio leans into traits that research links to returns, like cheapness (value) or stability (low volatility). A neutral profile means performance is driven more by broad market moves and sector choices than by systematic factor bets. This alignment is actually a strength: it keeps the structure simple and avoids overcomplicating things with hidden factor risks, leaving the main story to be growth and tech concentration rather than niche factor tilts.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 42.00% 37.1% -
Vanguard Mega Cap Growth Index Fund ETF Shares
Weight: 27.00% 27.8% -
Avantis® U.S. Small Cap Value ETF
Weight: 15.00% 15.1% -
VanEck Semiconductor ETF
Weight: 8.00% 11.0% -
Technology Select Sector SPDR® Fund
Weight: 8.00% 9.0%
Risk contribution shows how much each position adds to total portfolio ups and downs, which can differ from its weight. Here, the three largest positions by weight account for about 80% of total risk, so most of the volatility comes from the broad US market, mega-cap growth, and small-cap value funds. The semiconductor ETF, while only 8% of the portfolio, contributes over 11% of risk due to its higher volatility, indicated by a risk/weight ratio of 1.38. That means it punches above its size in driving fluctuations. The takeaway is that small changes in these core and satellite growth positions can meaningfully alter overall risk, while tweaking smaller slices elsewhere would have less impact.
Redundant positions
-
High correlationTechnology Select Sector SPDR® FundVanguard Mega Cap Growth Index Fund ETF Shares
The correlation data shows an extremely high link (0.97) between the mega-cap growth ETF and the technology sector fund. Correlation measures how closely two assets move together, where 1.0 means they move almost identically. When two holdings are this tightly linked, owning both adds limited diversification because they often rise and fall together. Instead, the combined exposure mostly amplifies the same underlying theme—in this case, large US growth and tech. While that has boosted returns in recent years, it also intensifies drawdowns when that theme struggles. A key takeaway is that diversification benefits are coming more from broad vs. niche allocations and from size/style variation, not from these two nearly overlapping growth-tech vehicles.
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 portfolio sits on or very near the efficient frontier, meaning that for its level of risk, the mix of holdings is using the available ingredients effectively. The efficient frontier represents the best possible expected return for each risk level, assuming only the current holdings but different weights. The current Sharpe ratio of 0.72 trails the max-Sharpe portfolio at 0.96 but is higher than the minimum-variance option at 0.67. The Sharpe ratio compares return to volatility, like pay vs. stress. Since you’re already close to the frontier, any improvements would likely come from fine-tuning the balance between aggressive satellites and the core rather than needing new products.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.40%
- Vanguard Mega Cap Growth Index Fund ETF Shares 0.40%
- VanEck Semiconductor ETF 0.30%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Technology Select Sector SPDR® Fund 0.60%
- Weighted yield (per year) 0.89%
The overall dividend yield sits around 0.89%, which is modest compared with many income-focused strategies. Dividend yield measures cash payouts as a percentage of price, so this level suggests the portfolio is tilted toward companies that prioritize reinvesting earnings for growth rather than returning cash to shareholders. For growth-oriented investors, this can be perfectly sensible: total return (price gains plus dividends) matters more than the income component alone. However, this structure is less suited to those relying on regular cash flow from their investments. The takeaway is that return expectations should be framed mostly in terms of capital appreciation, with dividends playing a smaller supportive role rather than being a central feature.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard Mega Cap Growth Index Fund ETF Shares 0.07%
- VanEck Semiconductor ETF 0.35%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Technology Select Sector SPDR® Fund 0.09%
- Weighted costs total (per year) 0.10%
Average costs are impressively low, with a total expense ratio (TER) around 0.10%. TER is the annual fee charged by funds, expressed as a percentage of assets—like a small haircut taken each year. Keeping this number low is one of the most reliable ways to support better long-term outcomes, because every dollar not spent on fees stays invested and compounding. The blend of broad, ultra-low-cost index funds with a few slightly pricier but still reasonable specialist ETFs hits a nice balance between efficiency and targeted exposure. This alignment with cost best practices is a real strength of the portfolio design and helps offset some of the risks taken on the growth and concentration fronts.
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