Focused broad market exposure with ultra low costs and strong long term growth profile
Report created on Jun 6, 2024Risk profile
4/7
Diversification profile
2/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 100.00%
The portfolio is as simple as it gets: a single low-cost ETF tracking a broad large‑cap US index, with 100% in stocks and no bonds or alternatives. This kind of “one‑fund” structure is very clean and easy to manage, but it also means all risk is tied to one market and one asset class. For many investors, this is a solid core building block because it automatically spreads money across hundreds of companies. The main takeaway is that while simplicity is a big strength here, anyone wanting smoother ride or different income or growth profiles would usually add other asset types around this core rather than inside it.
Growth
Historically, a $1,000 investment grew to about $3,646 over roughly 10 years, giving a Compound Annual Growth Rate (CAGR) of 13.85%. CAGR is like your average yearly “speed” over a long trip, smoothing out bumps. This growth slightly beat the broad US market and clearly outpaced the global market, which is a strong result. The worst drop, or max drawdown, was about -34%, similar to the benchmarks, showing that downside risk has been in line with big equity markets. The key point is that the return premium has come with full equity volatility, so investors need to be emotionally ready for deep but historically temporary declines.
Asset classes
- Stocks 100%
All assets in this portfolio are equities, with 0% in bonds, cash, or alternatives. Asset classes behave differently across market cycles: stocks usually drive growth but can swing sharply, while bonds and cash tend to dampen volatility and help during equity sell‑offs. Compared with many “balanced” mixes that blend stocks and bonds, this allocation sits firmly on the growth side. The upside is strong long‑term return potential; the trade‑off is more pronounced drawdowns and less stability in crisis periods. Anyone wanting to narrow the gap between highs and lows would generally consider layering in other asset classes outside this one‑fund core.
Sectors
- Technology 33%
- Financials 12%
- Telecommunications 11%
- Consumer Discretionary 10%
- Health Care 10%
- Industrials 9%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector exposure is tilted toward technology at roughly one‑third of the equity allocation, with the rest spread across financials, telecom, consumer, health care, and other areas. This pattern closely mirrors broad US index compositions, which is a strong sign of mainstream diversification rather than a niche bet. A tech‑heavy mix can be powerful in growth periods but tends to be more sensitive to changes in interest rates and investor sentiment. The good news is that the portfolio doesn’t pile everything into a single niche; the trade‑off is that it still leans meaningfully toward sectors that can be more volatile in certain macro environments.
Regions
- North America 99%
Geographically, this allocation is almost entirely tied to North America, with about 99% exposure. That means results will strongly follow US market cycles, monetary policy, and domestic corporate trends. Many global benchmarks include a chunk of non‑US stocks, so this setup is more home‑biased than a “world” allocation. The strength of this focus is that US companies have historically delivered competitive returns and include many global leaders. However, it also means missing direct exposure to other regions that may outperform in certain decades. For investors wanting more global balance, it can be useful to complement this core with separate international holdings.
Market capitalization
- Mega-cap 46%
- Large-cap 35%
- Mid-cap 18%
- Small-cap 1%
Market‑cap breakdown is dominated by mega‑cap and large‑cap companies, which together account for over 80% of exposure, with only a sliver in mid and small caps. Large and mega caps tend to be more stable, mature businesses, often with strong balance sheets, while small caps can be more volatile but offer different growth dynamics. This tilt closely reflects standard large‑cap index construction and supports a more predictable risk profile than a small‑cap‑heavy mix. The flip side is that potential small‑cap upside and diversification benefits are limited here. Anyone seeking extra growth or different risk drivers might consider separate small‑ or mid‑cap exposure alongside this core.
True holdings
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NV NVIDIA Corporation 7.32%
Part of fund(s):- Vanguard S&P 500 ETF
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AA Apple Inc 6.64%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 4.96%
Part of fund(s):- Vanguard S&P 500 ETF
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AM Amazon.com Inc 3.47%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 3.08%
Part of fund(s):- Vanguard S&P 500 ETF
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AV Broadcom Inc 2.57%
Part of fund(s):- Vanguard S&P 500 ETF
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GO Alphabet Inc Class C 2.46%
Part of fund(s):- Vanguard S&P 500 ETF
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ME Meta Platforms Inc. 2.40%
Part of fund(s):- Vanguard S&P 500 ETF
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TS Tesla Inc 1.92%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
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BR Berkshire Hathaway Inc 1.57%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 36.39%
Looking through to the ETF’s top holdings, a big chunk of exposure sits in a handful of mega‑cap names like NVIDIA, Apple, Microsoft, and Amazon. Because the whole portfolio is one ETF, there is no “hidden overlap” across multiple funds — the concentration is simply the index itself being top‑heavy. This structure means the portfolio’s short‑term results can be heavily influenced by how a small group of dominant companies performs. The positive side is that these leaders often drive market innovation and returns; the risk is that if a few of them stumble at the same time, the portfolio may feel more volatile than the headline diversification suggests.
Factors
Factor exposure is impressively balanced across value, momentum, quality, yield, and low volatility, with all readings sitting near “neutral.” Factor investing is about leaning into specific characteristics — like cheaper valuations or stable earnings — that research has linked to returns. In this case, there are no strong tilts: the portfolio behaves much like the overall large‑cap market without a big bias toward any one style. This is beneficial for investors who don’t want to bet on a particular factor cycle and prefer broad, market‑like behavior. It also means that any factor‑driven outperformance or underperformance will be modest rather than extreme.
Risk contribution
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Vanguard S&P 500 ETF
Weight: 100.00% 100.0%
Risk contribution shows how much each holding adds to overall ups and downs. Here, one ETF naturally contributes 100% of the risk because it’s 100% of the portfolio. That makes position sizing very simple but also highlights that there’s no internal diversification across different vehicles or asset types. If this ETF is volatile, the entire portfolio is volatile; if it drops sharply, there’s nothing inside the portfolio to offset it. Aligning risk with comfort level would usually be done by adjusting how much of total wealth sits in this fund versus safer assets, rather than tweaking anything inside this already diversified index tracker.
Dividends
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 1.20%
The ETF’s dividend yield of about 1.2% is modest and roughly in line with a growth‑oriented large‑cap equity index. Dividends are the cash payments companies distribute from profits, and over decades they can be a meaningful part of total return, especially when reinvested. With a lower yield like this, most of the return story is capital appreciation rather than income. That setup tends to fit investors who prioritize long‑term growth over immediate cash flow. Those who eventually want higher income might pair this core with income‑focused assets elsewhere, using this fund mainly as the growth engine rather than the primary paycheck generator.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
The total ongoing cost (TER) of 0.03% is extremely low and a major strength. TER, or Total Expense Ratio, is the annual fee taken by the fund provider; it quietly chips away at returns year after year, like a small leak in a bucket. Here, the leak is tiny, which is excellent. Over long horizons, saving even half a percent per year can add up to thousands of dollars on larger balances. This cost level is firmly in “best in class” territory and strongly supports long‑term compounding, leaving more of the market’s return in the investor’s pocket instead of going to fees.
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