Riding the tech rocket with three backup tech rockets and calling it diversification
Report created on Apr 23, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
VU Vanguard Growth Index Fund ETF Shares
VUG - US9229087369 36.20% -
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 20.87% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 16.67% -
VB Vanguard Small-Cap Growth Index Fund ETF Shares
VBK - US9229085959 13.31% -
VC Vanguard Consumer Discretionary Index Fund ETF Shares
VCR - US92204A1088 9.79% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 3.16%
This “portfolio” is basically one growth fund wearing several slightly different growth costumes. Over a third in broad growth, another fifth in pure tech, then more growth via small caps and consumer discretionary, plus two core market funds tagging along like forgotten sidekicks. Structurally it’s a nesting doll of the same theme: US growth and tech, repeated until the word diversification loses meaning. When multiple holdings are just differently sliced versions of the same underlying crowd of stocks, complexity goes up but genuine variety doesn’t. The end result is more spreadsheet cells, not more independent drivers of returns. It behaves like one aggressive US growth fund that someone exploded into six tickers.
Growth
Historically, this rocket actually launched: turning $1,000 into about $4,825 with a 17.1% CAGR while the US market sat at 14.8% and the global market at 12.2%. So yes, it beat the crowd, but it did it by leaning hard into exactly what has dominated the last decade. Max drawdown was about -33.6%, roughly in line with the benchmarks, so crashes still hurt plenty. Also, 90% of returns came from just 36 days, which means performance depends heavily on a tiny slice of time. That’s like an entire year’s mood being set by a few very dramatic weekends — fun when they go your way, brutal when they don’t. Past success, same as always, is not a guarantee of future miracles.
Projection
The Monte Carlo simulation — basically a thousand alternate-universe futures rolled with digital dice — paints a much more boring picture than the backtest. Median outcome: $1,000 grows to around $2,714 over 15 years, which is fine but nowhere near the backward-looking fireworks. The likely range spreads from “meh” at $1,793 to “nice” at $4,247, with a tail where you either barely beat cash or feel very clever. The average simulated annual return of 8.1% is miles lower than the historical 17% joyride. Translation: the computer doesn’t think the recent party repeats forever, especially for such a concentrated growth-and-tech-heavy mix. Past data is yesterday’s weather; Monte Carlo just reminds it can storm again.
Asset classes
- Stocks 100%
Asset class “diversification” here is simple: 100% stocks, 0% anything else. It’s like walking into a buffet and loading only from the fried section. There’s no ballast from bonds, no diversifying real assets, nothing that tends to behave differently when stocks collectively lose their mind. That’s fine as long as the equity market cooperates, but when it doesn’t, there’s nowhere to hide inside this structure — everything is tied to the same general engine of global growth and sentiment. In practical terms, all the risk dial is turned to one direction: equity up, equity down. There’s no second shock absorber; just one big wheel hitting every pothole.
Sectors
- Technology 49%
- Consumer Discretionary 17%
- Telecommunications 8%
- Industrials 7%
- Health Care 6%
- Financials 5%
- Consumer Staples 2%
- Energy 2%
- Real Estate 1%
- Basic Materials 1%
- Utilities 1%
Sector breakdown screams one thing: tech worship with consumer spending as the hype man. About half in technology, another big chunk in consumer discretionary, then everything else sprinkled on like decorative parsley. This is not a balanced economic cross-section; it’s a bet that “innovation plus people buying stuff” stays undefeated. Defensive areas barely exist, utilities and staples are rounding errors, and even areas that usually behave differently in different cycles are tiny. When tech sneezes, this portfolio catches the flu, and when high-growth stories fall out of fashion, there isn’t much of an old-school, steady-earnings backbone to lean on. It’s a sector tilt turned up so loud it drowns out the rest of the economic orchestra.
Regions
- North America 99%
Geography check: 99% in North America. This is the financial equivalent of never leaving your home state and insisting you’ve seen the world. There’s essentially zero exposure to other major economies, currencies, or regional cycles. The entire portfolio is handcuffed to one market’s policy choices, tech ecosystem, and corporate landscape. That worked brilliantly during a decade where North American growth and tech led the parade, but it’s also a single point of failure. If local regulation, taxation, or sector leadership shifts, there’s no meaningful offset from anything happening elsewhere. Global investing becomes, in practice, “US tech and friends or bust.”
Market capitalization
- Mega-cap 48%
- Large-cap 21%
- Mid-cap 17%
- Small-cap 10%
- Micro-cap 3%
Market cap mix is heavily stacked at the top: nearly half in mega-caps, then some large and mid, with smaller names as seasoning. On paper this looks “balanced,” but in reality it’s like a class project where the five smartest kids do all the work. Those giant companies dominate index behavior and narrative risk. The presence of small-cap growth does add some extra spice (and volatility), but the overall vibe is: a few huge names driving performance, a long tail mostly along for the ride. This kind of structure can feel diversified by count of holdings while still being outcome-dependent on whatever the mega-caps decide to do this cycle.
True holdings
-
NV NVIDIA Corporation 9.99%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 8.97%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 6.31%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 4.74%
Part of fund(s):- Vanguard Consumer Discretionary Index Fund ETF Shares
- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 3.19%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Consumer Discretionary Index Fund ETF Shares
- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 2.98%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.54%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 2.01%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.90%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
LL Eli Lilly and Company 0.94%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Top 10 total 43.57%
Look-through holdings are basically a roll call of the Magnificent Everything: NVIDIA, Apple, Microsoft, Amazon, Tesla, Broadcom, Alphabet, Meta, Eli Lilly. Together, the top names alone eat close to 50% of the look-through exposure — and that’s only using ETF top 10s, so real overlap is even higher. The portfolio is pretending to be a bundle of funds, but under the hood it’s the same celebrity stock list copied and pasted across products. That creates hidden concentration: if one of these giants face-plants, they don’t just hurt one line item, they hit multiple ETFs at once. It’s like insuring your house with three different companies who all invest their float in the same burning building.
Factors
On factors, this thing is a proud member of the “we don’t do cheap or high-yield” club. Value exposure is low and yield is low too, so it’s leaning away from boring, underpriced, or income-heavy names and toward companies priced for growth and optimism. Other factors — size, momentum, quality, low volatility — sit roughly neutral, meaning they behave close to the broad market. Factor exposure is basically saying: “we chose the expensive, low-dividend end of the market buffet and called it a day.” In stress periods, that usually means more sensitivity to sentiment shifts, because these kinds of stocks are held up by expectations rather than fat cash payouts or bargain prices.
Risk contribution
-
Vanguard Growth Index Fund ETF Shares
Weight: 36.20% 36.5% -
Vanguard Information Technology Index Fund ETF Shares
Weight: 20.87% 23.7% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 16.67% 14.2% -
Vanguard Small-Cap Growth Index Fund ETF Shares
Weight: 13.31% 13.4% -
Vanguard Consumer Discretionary Index Fund ETF Shares
Weight: 9.79% 9.7% - Top 5 risk contribution 97.4%
Risk contribution reveals the real story: three holdings carry about 74% of the total portfolio risk. The growth ETF and tech ETF especially are pulling more than their weight in volatility. When a position has a risk contribution higher than its weight, it’s the loud kid in class — smaller on paper, dominating the room in practice. Despite having six ETFs, day-to-day swings are mostly determined by what happens in those top growth and tech sleeves. So while it might look balanced by percentage, the actual emotional rollercoaster is dictated by just a couple of the more aggressive funds smuggled in as “core” pieces.
Redundant positions
-
High correlationVanguard Total Stock Market Index Fund ETF SharesVanguard S&P 500 ETFVanguard Growth Index Fund ETF SharesVanguard Information Technology Index Fund ETF Shares
The correlation section basically says: several of these funds move almost identically, which is a nice way of saying you bought the same movie on different streaming platforms. Growth and tech are joined at the hip, and the “broad market” funds shadow them pretty closely too. Correlation measures how often things move together; high correlation means when one falls out of bed, the others usually hit the floor as well. Instead of diversifying behavior, these overlapping holdings just stack exposure. In a strong bull run that’s thrilling, but in a proper downturn there’s no real offset — just synchronized swimming straight down.
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 politely points out that this portfolio leaves performance on the table even given its own ingredients. With a Sharpe ratio of 0.65 versus 0.90 for the optimal mix, it’s like taking the same set of Lego bricks and building the wobbliest tower possible. For the current level of risk (about 21% volatility), the portfolio sits roughly 1.8 percentage points below where it could be. In plain English: using only these existing funds, a smarter weighting could have historically delivered either higher return for the same risk or similar return with less drama. It’s not a disaster, just inefficient — like driving a sports car in first gear on the freeway.
Dividends
- Vanguard Consumer Discretionary Index Fund ETF Shares 0.70%
- Vanguard Information Technology Index Fund ETF Shares 0.40%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 0.19%
Dividends here are almost an afterthought: a wafer-thin 0.19% total yield. That’s basically the couch-cushion change of income investing. The holdings themselves often pay more, but the heavy tilt toward growth and tech drags the overall yield down to “don’t quit your day job” levels. This setup is clearly not trying to generate regular cash flow; it’s fully committed to price appreciation doing the heavy lifting. In environments where steady dividends help cushion volatility, this portfolio just shrugs and says, “We’ll ride the capital gains rollercoaster instead.” It’s a pure growth story, with income so low it barely registers on the radar.
Ongoing product costs
- Vanguard Small-Cap Growth Index Fund ETF Shares 0.07%
- Vanguard Consumer Discretionary Index Fund ETF Shares 0.10%
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Growth Index Fund ETF Shares 0.04%
- Weighted costs total (per year) 0.06%
Costs are the one unambiguous win: a total expense ratio of 0.06% is comically cheap for such a spicy ride. That’s “you accidentally did the right thing” territory. The funds are low-cost, broad-ish, and efficient, so at least the portfolio isn’t leaking money quietly through fees while it chases growth. The funny part is paying almost nothing for a structure that still manages to be messy and overlapping — like getting a bargain deal on a cluttered storage unit. But credit where it’s due: the drag from fees is minimal. If returns disappoint someday, it won’t be because Vanguard took too big a cut.
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