Two index funds one country and an unhealthy tech crush dressed up as diversification
Report created on Jul 13, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 80.00% -
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 20.00%
Structurally this portfolio is the definition of “I discovered Vanguard and stopped there.” It’s 80% broad US market via the S&P 500 and then 20% thrown straight into a pure tech index, like you ordered a burger and then added a side of bacon grease. On paper it looks simple and clean; under the hood it’s basically “the S&P 500 but techier.” The diversification score of 2/5 is generous — this is one idea repeated twice with extra seasoning. It’s coherent, but not exactly imaginative: the entire experience lives and dies with large US companies, especially the big shiny tech names.
Growth
Historically this Franken-S&P-with-extra-tech has absolutely flown, turning $1,000 into $5,149 with a 17.88% CAGR. That’s a big gap over both the US market (15.19%) and global market (12.65%). In hindsight, concentrating in US megacap tech from 2016–2026 is like “accidentally” betting on the winning horse after the race is over. The max drawdown of -33.42% matched the broad crashes, so you didn’t get worse falls, just sharper rebounds. But remember: CAGR is like your average road-trip speed — it hides all the potholes. Past returns from a golden tech decade don’t guarantee the sequel isn’t straight-to-DVD quality.
Projection
The Monte Carlo projection is where the time machine stops being flattering. Simulations spit out a median of $2,701 after 15 years, which is way less heroic than the backward-looking 5x you just saw. Monte Carlo is basically a thousand alternate timelines where returns bounce around randomly based on past volatility, not a prophecy from the future. The wide spread — from roughly your money back to more than 7x — screams “outcome lottery.” This portfolio’s heavy growth flavor means lots of upside in good timelines and plenty of disappointment in bad ones. Yesterday’s party shows up as tomorrow’s maybe.
Asset classes
- Stocks 100%
Asset-class “diversification” here is incredibly easy to summarize: 100% stocks, 0% everything else. That’s not a mix, that’s a personality trait. For a growth-tilted portfolio, sure, this lines up with the label, but it also means absolutely no built-in shock absorbers if markets go full roller coaster again. Asset classes are like different instruments in a band; this one is just two very loud electric guitars, no drums, no bass, definitely no chill piano. When the music is good, it’s amazing. When it’s bad, there’s nowhere to hide and nothing to soften the feedback.
Sectors
- Technology 48%
- Financials 9%
- Telecommunications 9%
- Consumer Discretionary 8%
- Health Care 7%
- Industrials 7%
- Consumer Staples 4%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 1%
Sector allocation says the quiet part out loud: 48% in technology. Nearly half the portfolio is basically one theme — not because of a carefully built strategy, but because you stacked a tech ETF on top of a tech-heavy index. Finance, telecom, consumer stuff, health care and the rest are just background extras. This is what happens when someone loves “innovation” and then accidentally double-counts it. A nearly 50% tech slice turns every market wobble in that sector into the main plotline. If tech sneezes, this portfolio gets pneumonia. Other sectors are invited but clearly not on the VIP list.
Regions
- North America 100%
Geographically this thing has a severe case of “America or nothing” — 100% North America, with the US doing basically all the heavy lifting. The rest of the world’s markets might as well not exist here. It’s less a global portfolio and more a patriotic statement with tickers. That’s cute when US megacaps lead, but global markets don’t check your passport before outperforming. A one-country portfolio is like eating only one cuisine forever: it can be great, but you’re fully exposed if the local kitchen has a bad decade. Any global story — demographics, policy shifts, new growth hubs — gets zero airtime.
Market capitalization
- Mega-cap 47%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 2%
- Micro-cap 1%
Market cap exposure is exactly what you’d expect from hugging the S&P and its tech royalty: 47% mega-cap, 33% large-cap, with mid/small caps hanging around as decoration. This is a “blue-chip or bust” portfolio. You’re not funding scrappy upstarts; you’re underwriting corporate empires. That can be comforting, but it also means returns lean heavily on a relatively small club of giants that already dominate indexes and headlines. If the biggest names start treading water instead of moonwalking, there isn’t much small-cap engine here to pick up the slack. It’s stable-ish on paper, but creativity and diversification are not the selling points.
True holdings
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NV NVIDIA Corporation 9.67%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AA Apple Inc. 8.69%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 6.09%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 3.51%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.26%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.73%
Part of fund(s):- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 2.18%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.17%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.70%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.51%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Top 10 total 41.50%
The look-through holdings reveal the real story: this portfolio worships the same handful of megacap tech gods twice. NVIDIA at nearly 10%, Apple around 9%, Microsoft 6%, then Broadcom, Amazon, Alphabet, Micron, Meta, Tesla — the usual suspects. You own them through both ETFs, so overlap is doing a lot of hidden concentration damage. And keep in mind, this is only using top-10 ETF holdings; the true overlap is almost certainly higher. This isn’t two funds; it’s one big bet wearing two tickers. When the top ten companies move, they don’t just nudge the portfolio — they drag it around like a dog on a leash.
Factors
Factor-wise this thing is oddly… normal. Value, size, momentum, quality, yield, low volatility all sit around neutral — basically market-like. For a portfolio that screams “tech obsession,” the factor profile is surprisingly boring. Factor exposure is like reading the ingredients list: you’d expect spicy growth, momentum overload, or at least a quality skew, but nope, it’s more “store-brand index soup.” The funny part is that the big flavor is sector and geography, not factors. So the portfolio behaves like a standard large-cap blend, while the real risk is hiding in what it owns (US tech) rather than how the factors line up.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 80.00% 75.1% -
Vanguard Information Technology Index Fund ETF Shares
Weight: 20.00% 24.9%
Risk contribution tells you who’s actually driving the drama, and it’s mostly the S&P 500 ETF, contributing 75% of total risk at 80% weight. The tech ETF punches above its weight with ~25% of risk from only 20% allocation — not crazy, but clearly the spicy side dish. Risk contribution is basically asking, “Who’s shaking the portfolio when markets get weird?” Here, nothing tiny is secretly wrecking things; it’s exactly the two big visible positions doing all the damage. It’s simple and transparent, but also means every meaningful risk in the portfolio is concentrated in one index and one narrow sector tilt.
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, this portfolio sits right on or very near the efficient frontier, which is almost annoying because it means the proportions are actually doing their job. The Sharpe ratio of 0.72 trails the theoretical max-Sharpe mix at 0.99 and even the minimum-variance portfolio at 0.83, but that’s just math saying “different trade-offs exist.” Efficient frontier is the curve of best possible return for each risk level using the same ingredients; you’re already pretty close to that curve. So yes, the portfolio is concentrated and narrow, but within its chosen sandbox, it’s surprisingly well-optimized. Accidentally smart, perhaps.
Dividends
- Vanguard Information Technology Index Fund ETF Shares 0.40%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 0.96%
Dividend yield at 0.96% is basically pocket lint. This is clearly a capital-growth story, not an income one. With tech at the center, that’s expected: these companies would rather reinvest than send you steady checks. Yield is just the cash drip you get paid while waiting; here, the drip is more like a slow leak. Anyone pretending this portfolio is about “income” is kidding themselves. The upside is there’s no chasing high-yield junk for the sake of payouts. The downside is that almost all return expectations are pinned on price appreciation, not cash hitting your account.
Ongoing product costs
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.04%
Costs are almost suspiciously low: a blended TER of 0.04% is about as close to free as public markets get. You’re basically paying couch-cushion change to rent the entire S&P plus a concentrated tech cherry on top. Fees here are not the villain — if anything, they’re the one area where this portfolio looks like it reads the fine print. It’s like accidentally walking into first-class pricing for a budget-airline ticket and discovering there’s no catch. Of course, low cost doesn’t fix concentration risk or lack of diversification, but at least you’re not overpaying for the privilege of being lopsided.
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