A highly concentrated US equity portfolio dominated by a single technology stock with strong historic returns
Report created on Apr 27, 2026Risk profile
6/7
Diversification profile
1/5
Positions
-
AV Broadcom Inc
AVGO - US11135F1012 70.88% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 29.12%
This portfolio is extremely simple and highly concentrated: about 71% in a single stock, Broadcom, and roughly 29% in a broad US equity ETF tracking the S&P 500. So, even though there are hundreds of companies inside the ETF, the overall behavior is mostly driven by Broadcom. This matters because portfolio structure shapes how bumpy the ride feels: one dominant position means outcomes lean heavily on that company’s fortunes. The ETF slice does add a layer of diversification and stability around the edges, but it cannot fully offset the single-stock concentration. In practice, this setup behaves much more like a focused bet than a broadly diversified equity portfolio.
Growth
Historically, performance has been exceptional. A hypothetical $1,000 grew to about $27,681 over the period, implying a compound annual growth rate (CAGR) of 39.55%. CAGR is basically the “average speed” of growth per year, smoothing out the ups and downs. This massively outpaced both the US market (15.05% CAGR) and the global market (12.32% CAGR). The trade-off is sharper drawdowns: the portfolio fell about 43.8% at worst, compared with roughly 33–34% for the benchmarks. Only 46 days made up 90% of returns, showing results were heavily driven by a small number of very strong days — a common pattern in concentrated, fast-growing holdings.
Projection
The Monte Carlo projection uses past returns and volatility to simulate many possible future paths for a $1,000 investment over 15 years. Think of it as running 1,000 alternate timelines based on historical behavior, then summarizing the outcomes. The median result lands around $2,765, with a fairly wide “likely” band from about $1,852 to $3,987 and a very wide extreme range up to roughly $7,757. The average simulated annual return is 8.08%, noticeably lower than the historical CAGR, which reflects that such high past growth is unlikely to persist indefinitely. As always, these simulations are just models: they illustrate possibilities, not guarantees, and can’t predict future market shifts or company-specific surprises.
Asset classes
- Stocks 100%
All of this portfolio is in one asset class: stocks. There are no bonds, cash-like holdings, or alternative assets. From an educational angle, asset classes are the broad buckets — like stocks, bonds, and real estate — that tend to behave differently across economic cycles. Being 100% in equities means riding the full ups and downs of the stock market, with no built-in cushion from typically steadier assets. Compared with broad multi-asset allocations, this is an aggressive stance, amplifying both growth potential and drawdown risk. Within the stock bucket, though, there is at least some mix between a single company and a diversified index fund, which slightly tempers the pure single-stock risk.
Sectors
- Technology 81%
- Financials 4%
- Telecommunications 3%
- Consumer Discretionary 3%
- Health Care 3%
- Industrials 2%
- Consumer Staples 2%
- Energy 1%
- Utilities 1%
- Real Estate 1%
- Basic Materials 1%
Sector-wise, the portfolio is clearly tilted toward technology at about 81%, with the rest spread thinly across areas like financials, telecom, consumer, health care, and others via the S&P 500 ETF. Sectors are just groupings of companies that do similar kinds of business, and they often react differently to interest rates, regulation, and economic growth. A tech-heavy setup tends to be more sensitive to shifts in growth expectations and interest rates, which can drive bigger price swings. The positive side is that tech has been a strong driver of market returns in recent years. The downside is that such concentration can magnify volatility if sentiment toward high-growth or chip-related companies cools.
Regions
- North America 100%
Geographically, the portfolio is 100% in North America, specifically the US. Geography matters because different regions face distinct economic cycles, policies, and currency movements. A fully US-focused portfolio benefits directly when US markets and the dollar are strong, which has been the case for much of the last decade. However, it also means returns are tied to one economy and currency, without exposure to potential growth in other parts of the world. Compared with global benchmarks that spread across many regions, this is a concentrated geographic stance. For someone tracking global market behavior, this portfolio will likely move more like a super-charged US equity line than a world index.
Market capitalization
- Mega-cap 84%
- Large-cap 10%
- Mid-cap 5%
By market capitalization, most of the exposure is in mega-cap companies (about 84%), with smaller slices in large- and mid-caps. Market cap is basically company size in the stock market — price multiplied by shares. Mega-caps are typically well-established, widely followed businesses, which can bring some stability relative to smaller, more speculative names. This tilt is generally in line with common large-cap benchmarks, but the key difference here is that one mega-cap dominates rather than holding many large companies more evenly. So while the size profile looks conventional on paper, the actual risk pattern is more concentrated than a typical mega-cap index, because diversification across many big companies is limited.
True holdings
-
Part of fund(s):
- Vanguard S&P 500 ETF
-
NV NVIDIA Corporation 2.21%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 1.94%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 1.43%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.06%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 0.87%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 0.70%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 0.65%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 0.54%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 0.46%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 81.51%
Looking through the holdings, Broadcom shows up twice: once as a direct stock position and again indirectly inside the S&P 500 ETF, giving a total exposure of about 71.64%. This overlap is a classic example of hidden concentration, where the same company appears in multiple lines and pushes true exposure higher than it first appears. The rest of the look-through holdings are familiar large US names like NVIDIA, Apple, Microsoft, and Amazon, each at small weights. Since ETF analysis only covers top-10 positions, overall overlap is probably understated. The main takeaway is that, despite the ETF’s breadth, the portfolio behaves as if it’s overwhelmingly anchored to Broadcom’s share price movements.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows a very strong tilt toward quality (87%) and a high tilt toward momentum (71%), with very low size exposure (11%). Factors are like underlying “personalities” of stocks — characteristics such as quality, momentum, or value that academic research links to long-term returns. A strong quality tilt suggests holdings with robust profitability and balance sheets, which can support resilience during stress. High momentum means the portfolio leans into stocks that have been recent winners, which can do well in trending markets but may be hit hard when trends reverse sharply. Very low size exposure indicates an emphasis on larger companies. Altogether, the portfolio behaves like a high-quality, big-company momentum play rather than a broad factor blend.
Risk contribution
-
Broadcom Inc
Weight: 70.88% 87.5% -
Vanguard S&P 500 ETF
Weight: 29.12% 12.5%
Risk contribution highlights how much each holding drives total portfolio ups and downs. Broadcom is about 70.88% of the weight but contributes roughly 87.47% of the risk, with a risk/weight ratio of 1.23. The S&P 500 ETF is 29.12% of the weight yet only 12.53% of the risk, with a lower ratio. This shows that the single stock is more volatile and more influential than its weight alone would suggest — like one very loud instrument dominating the sound of the orchestra. Even though there are technically two holdings, in risk terms this functions almost like a single-stock portfolio with an index buffer wrapped around it, which is consistent with the aggressive risk score noted.
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.
The efficient frontier analysis shows the current mix is on or very close to the frontier, meaning that, given these two holdings, the risk/return balance is already efficient. The Sharpe ratio — a measure of risk-adjusted return comparing excess return to volatility — is 1.01 for the current portfolio, versus 1.10 for the mathematically “optimal” mix and 0.82 for the minimum-variance option. This suggests there isn’t a big gap between the current setup and the best achievable combination using just these positions. In other words, while overall risk is high in absolute terms, the way that risk is taken, given the chosen holdings, is configured in a well-structured, efficient manner.
Dividends
- Broadcom Inc 0.60%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 0.75%
Dividend yield for the portfolio is modest at around 0.75%, with Broadcom at 0.60% and the S&P 500 ETF at 1.10%. Dividend yield is the annual cash payout as a percentage of current price, and it can be an important component of total return over long periods. Here, the profile is clearly growth-oriented rather than income-focused: most of the historical gains have come from price appreciation rather than cash distributions. That aligns with the strong momentum and quality characteristics, where companies tend to reinvest a larger share of earnings back into their businesses. Investors relying on regular cash flow would see this more as a potential bonus than a central feature of the portfolio.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.01%
On costs, the portfolio is extremely efficient. The S&P 500 ETF charges a total expense ratio (TER) of just 0.03%, and the blended portfolio TER rounds to roughly 0.01%. TER is the annual percentage fee taken by a fund, and small differences can compound significantly over decades. Here, the drag from ongoing fund fees is almost negligible, which is a clear positive. This means more of the portfolio’s gross return, whatever it turns out to be, flows through to the end investor. In terms of cost structure, this is close to best-in-class and provides a strong foundation for long-term compounding, independent of how the underlying holdings perform.
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