A near-monogamous relationship with the S&P 500 that forgot about the world
Report created on Jul 19, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 92.08% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 7.92%
Calling this portfolio "moderately diversified" is like saying a diet of pizza and the occasional salad is "balanced nutrition." With a whopping 92.08% in the Vanguard S&P 500 ETF, it's clear where the loyalty lies. The token gesture towards international markets with a mere 7.92% in the Vanguard Total International Stock Index Fund ETF Shares screams of an afterthought. It's like someone said, "Oh, the rest of the world exists," after filling up on American equity.
Growth
With a CAGR of 13.87%, this portfolio might seem like it's on fire, until you realize it's more like a microwave dinner—hot on the outside but frozen in the middle. That -33.95% max drawdown is a stark reminder that what goes up must come down, and sometimes it crashes hard. Banking almost entirely on the S&P 500's performance is like riding a roller coaster with only one steep drop: thrilling until you hit the bottom.
Projection
Monte Carlo simulations are a fancy way of saying, "Let's make educated guesses based on past madness." With projections ranging from a 26.6% increase in the worst scenarios to a 302.1% median increase, it's like forecasting weather in the tropics—expect sunshine but prepare for the occasional hurricane. A portfolio this concentrated on the S&P 500 is betting heavily on the continued prosperity of U.S. large caps, ignoring potential monsoons from other markets.
Asset classes
- Stocks 100%
Having 100% in stocks is like saying, "I love volatility." It's a thrilling ride until it isn't. The absence of bonds, real estate, or any alternative investments means this portfolio is as diversified as a monoculture farm. When the stock market sneezes, this portfolio catches the flu, with nowhere to hide.
Sectors
- Technology 31%
- Financials 15%
- Consumer Discretionary 11%
- Health Care 10%
- Telecommunications 9%
- Industrials 9%
- Consumer Staples 6%
- Energy 3%
- Utilities 3%
- Real Estate 2%
- Basic Materials 2%
The sector allocation is a classic case of following the S&P 500's lead—tech-heavy with a side of financial services and consumer cyclicals. It's like having a diet consisting mostly of steak; it's great until your doctor talks about cholesterol levels. This concentration in high-growth sectors might explain the high CAGR but doesn't justify the heart-stopping drawdowns.
Regions
- North America 92%
- Europe Developed 4%
- Asia Emerging 1%
- Japan 1%
- Asia Developed 1%
With 92% in North America, calling this portfolio "worldly" is a stretch. It's like saying you're a globetrotter because you once flew over Canada. The minimal exposure to developed Europe, emerging Asia, and Japan is a nod to international diversification, but let's be honest, it's more of a polite nod than a heartfelt embrace.
Market capitalization
- Mega-cap 46%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
Favoring mega and big caps to the tune of 80% is like only watching blockbuster movies. Sure, you'll catch some epic tales, but you'll miss out on indie gems. This portfolio is playing it safe with the big guys, which might limit volatility but also caps potential for outsized gains from smaller, more dynamic companies.
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.
Efficient Frontier is about finding the sweet spot between risk and return, and this portfolio seems to have missed the memo. It's like trying to balance a seesaw with all the weight on one end. By overloading on the S&P 500, the portfolio's risk-return profile is skewed towards whatever wind is blowing through the U.S. equity market.
Dividends
- Vanguard S&P 500 ETF 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.33%
A total yield of 1.33% isn't going to make anyone rich, but it's a neat little cherry on top. Relying on dividends from a portfolio this concentrated in the S&P 500 and its international cousin is like expecting a single rain cloud to fill your swimming pool. It's a nice thought, but you'll be waiting a long time for a swim.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.03%
The one area this portfolio shines is its low costs, with a total TER of 0.03%. It's like finding a dollar on the ground every day; it's not life-changing, but it sure feels good. In a world of high fees eating into returns, this portfolio gets a gold star for keeping costs down.
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