A focused growth portfolio with 100% allocation to the Vanguard S&P 500 UCITS ETF
Report created on May 23, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VU Vanguard S&P 500 UCITS Acc
VUAA - IE00BFMXXD54 100.00%
The portfolio is fully invested in the Vanguard S&P 500 UCITS ETF, indicating a singular focus on U.S. equities. This ETF tracks the S&P 500 index, which is composed of 500 of the largest companies listed on stock exchanges in the United States. The portfolio's lack of diversification across different asset classes and geographies places it in a high-risk, high-reward position. While this concentration in a single ETF simplifies the investment strategy, it also exposes the portfolio to significant market volatility and sector-specific risks.
Growth
Historically, the Vanguard S&P 500 UCITS ETF has delivered a Compound Annual Growth Rate (CAGR) of 13.43%, with a maximum drawdown of -33.68%. These figures suggest robust growth potential, albeit with substantial volatility. The performance data, particularly the days contributing to 90% of returns, underscore the ETF's sensitivity to market movements and the importance of staying invested during volatile periods to capture gains.
Projection
Monte Carlo simulations, utilizing 1,000 iterations, project a wide range of outcomes for this portfolio. The 50th percentile outcome suggests a potential 447.5% return, indicating strong growth prospects. However, the broad spread between the 5th (66.4%) and 67th (631.1%) percentiles highlights the uncertainty and risk inherent in relying solely on historical data for future performance predictions. While these simulations offer valuable insights, they also emphasize the unpredictable nature of stock market investments.
Asset classes
- Stocks 100%
The portfolio's allocation is entirely in stocks, specifically within the U.S. equity market. This asset class is known for its potential for high returns but comes with a correspondingly high level of risk. The absence of other asset classes, such as bonds or real estate, means the portfolio lacks the diversification that could mitigate some of this risk. Incorporating a mix of asset classes could help smooth out returns over time, especially during periods when the stock market is underperforming.
Sectors
- Technology 31%
- Financials 14%
- Health Care 11%
- Consumer Discretionary 10%
- Telecommunications 9%
- Industrials 7%
- Consumer Staples 6%
- Energy 4%
- Utilities 3%
- Real Estate 2%
- Basic Materials 2%
The sector allocation within the ETF mirrors the broader market composition of the S&P 500, with significant weightings in technology, financial services, and healthcare. This sector distribution reflects the current economic landscape, where technology and innovation drive a substantial portion of market growth. However, the heavy concentration in technology (31%) could increase volatility, as this sector is particularly sensitive to market fluctuations and regulatory changes.
Regions
- North America 99%
Geographically, the portfolio is almost exclusively invested in North America (99%), with no exposure to developed markets in Europe or Asia. This geographic concentration enhances exposure to the U.S. economy's growth potential but also increases susceptibility to region-specific risks. Diversifying geographically could provide a buffer against U.S.-centric economic downturns and take advantage of growth opportunities in other regions.
Market capitalization
- Mega-cap 47%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
The market capitalization breakdown shows a preference for mega (47%) and big (34%) cap stocks, with a smaller allocation to medium (18%) and minimal exposure to small (1%) caps. This composition is typical for S&P 500 trackers and generally aligns with a growth-oriented investment strategy, favoring established companies with proven track records. However, integrating smaller cap stocks could enhance growth potential and diversification.
Ongoing product costs
- Vanguard S&P 500 UCITS Acc 0.07%
- Weighted costs total (per year) 0.07%
With a total expense ratio (TER) of 0.07%, the portfolio benefits from low costs, maximizing the potential return on investment. Low costs are crucial for long-term growth, as they ensure that a larger portion of investment returns is retained rather than being eroded by fees. This efficiency is a strong aspect of the portfolio, supporting better performance over time.
What next?
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