Strong US growth portfolio with heavy mega cap tech exposure and modest diversification across styles
Report created on Apr 29, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 40.00% -
VU Vanguard Growth Index Fund ETF Shares
VUG - US9229087369 40.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 10.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 10.00%
This portfolio is made up of four US stock ETFs, with 40% in a broad S&P 500 fund, 40% in a growth index fund, and two 10% satellites in dividend and momentum strategies. So everything is in equities, with a clear tilt toward US large-cap growth companies. The core-plus-satellites structure is straightforward and easy to understand: a broad market core, a growth booster, and two style funds that lean toward income and trend-following. This setup keeps the number of holdings simple while still adding some stylistic variety. At the same time, the overlap between a general S&P 500 ETF and a growth-heavy S&P 500 fund means the underlying mix is more concentrated than it appears from the ticker list alone.
Growth
From 2016 to early 2026, a hypothetical $1,000 in this portfolio grew to about $4,516, implying a compound annual growth rate (CAGR) of 18.55%. CAGR is like calculating your average speed on a long trip, smoothing out bumps along the way. Over this period the portfolio beat both the US market (16.97% CAGR) and the global market (13.88% CAGR). The maximum drawdown was -32.63%, very similar to the benchmarks around the 2020 crash, and it recovered in about four months. That pattern shows strong upside participation with drawdowns broadly in line with broad markets, which is consistent with a growth-focused, fully equity portfolio.
Projection
The Monte Carlo projection uses past returns and volatility to simulate many possible 15‑year paths for a $1,000 investment, a bit like running thousands of “what if” future market scenarios. The median outcome lands at $2,754, with a 25–75% “likely” range between $1,856 and $4,127, and a wide 5–95% band from $1,043 to $7,821. Across all simulations, the average annualized return is 8.01%, and around three-quarters of paths end with a positive result. These numbers illustrate both the power of compounding and the uncertainty involved. Because simulations are based on history, they are informative but not predictive guarantees of what will actually happen.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with 0% in bonds, cash, or alternative asset classes. Equities historically offer higher long-term return potential but also larger and more frequent swings in value. Having everything in one asset class means the portfolio fully rides the ups and downs of the stock market without the stabilizing effect assets like bonds or cash can provide. Compared with broad multi‑asset benchmarks, this is a more aggressive stance. The risk score of 5/7 reflects that equity-only profile, and the low diversification score mainly comes from the lack of exposure outside US stocks.
Sectors
- Technology 41%
- Telecommunications 12%
- Consumer Discretionary 10%
- Health Care 9%
- Financials 8%
- Industrials 7%
- Consumer Staples 5%
- Energy 4%
- Real Estate 1%
- Basic Materials 1%
- Utilities 1%
Sector-wise, about 41% of the equity exposure is in technology, far above broad-market weights, with the rest spread across communications, consumer, health care, financials, and smaller allocations to other sectors. This tech-heavy profile lines up with the combination of S&P 500, growth, and momentum exposure, all of which naturally lean toward large, innovative companies. A strong tech concentration can drive impressive returns when that area is leading markets, as it often has in recent years. The flip side is that if technology or related industries go through a rough patch, the portfolio’s returns may feel that more intensely than a more sector-balanced index.
Regions
- North America 100%
Geographically, 100% of the holdings are in North America, effectively giving the portfolio a pure US equity profile. That aligns with the chosen ETFs and keeps currency exposure simple for a US-based investor, since everything is in dollars. Compared to global benchmarks like MSCI ACWI, which spreads exposure across many regions, this is a notable home-country concentration. US stocks have performed very strongly over the last decade, which helped this portfolio outpace global markets. At the same time, this means the portfolio’s fortunes are tightly linked to the US economy, policy environment, and corporate earnings cycle, with no offset from other regions.
Market capitalization
- Mega-cap 49%
- Large-cap 35%
- Mid-cap 14%
- Small-cap 1%
The portfolio leans heavily into the largest companies, with 49% in mega caps, 35% in large caps, and only small allocations to mid and small caps. That’s consistent with using S&P 500-based and growth funds, which are inherently weighted toward the biggest names. Large and mega caps tend to be more established businesses, often more liquid and widely followed by analysts. This can help with stability relative to pure small-cap portfolios, but it also means less exposure to the potential higher growth (and higher risk) that smaller companies can offer. The market-cap breakdown reinforces that the real engine here is a relatively small group of very large firms.
True holdings
-
NV NVIDIA Corporation 9.29%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AA Apple Inc 7.59%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 5.60%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 3.91%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 3.64%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.29%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 3.11%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 2.56%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
TS Tesla Inc 2.14%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
LL Eli Lilly and Company 1.04%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Top 10 total 42.16%
Looking at the top underlying holdings across all ETFs, a handful of mega-cap names dominate: NVIDIA, Apple, Microsoft, Alphabet (both share classes), Broadcom, Amazon, Meta, Tesla, and Eli Lilly together make up a sizable chunk of overall exposure. For example, NVIDIA alone is about 9.29% of the total portfolio and Apple 7.59%, even though you don’t hold them directly. These overlaps happen because the same company appears in multiple ETFs, boosting effective concentration. Note that this overlap analysis only uses each ETF’s top ten holdings, so actual concentration might be a bit higher. The key takeaway is that portfolio risk is strongly tied to a small group of US tech-linked giants.
Factors
Factor exposures are broadly neutral across the board: value, momentum, quality, yield, and low volatility all sit around market-like levels, with a mild tilt away from smaller companies. In factor language, size is slightly low, which reflects the dominance of mega and large caps. Factor exposure is like checking which “ingredients” — such as cheapness, trend, or stability — are driving returns. Here, there isn’t a strong bet on any one factor beyond the market’s natural growth and quality mix. That means performance is likely to track general equity market cycles rather than being heavily driven by more specialized factor strategies.
Risk contribution
-
Vanguard Growth Index Fund ETF Shares
Weight: 40.00% 44.7% -
Vanguard S&P 500 ETF
Weight: 40.00% 38.0% -
Invesco S&P 500® Momentum ETF
Weight: 10.00% 9.9% -
Schwab U.S. Dividend Equity ETF
Weight: 10.00% 7.4%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from simple weights. The Vanguard Growth ETF is 40% of assets but contributes about 44.7% of total risk, while the S&P 500 ETF is 40% of assets and 38% of risk. The momentum ETF, at 10% weight, adds roughly 9.9% of risk, and the dividend ETF contributes less risk than its 10% weight (about 7.4%). Altogether, the top three holdings account for over 92% of portfolio risk, underlining that most volatility comes from the two core broad-market funds plus the momentum sleeve, not the dividend ETF.
Redundant positions
-
High correlationVanguard S&P 500 ETFVanguard Growth Index Fund ETF Shares
The correlation data shows that the Vanguard S&P 500 ETF and the Vanguard Growth ETF move almost identically. Correlation measures how often assets move in the same direction; a high correlation means they tend to rise and fall together. In practice, that means the growth ETF does not provide much diversification relative to the S&P 500 ETF, even though it targets a different style. Instead, it amplifies exposure to the same underlying large companies, especially in technology and communication services. This explains why the portfolio behaves very similarly to a concentrated US large-cap growth basket, despite holding multiple funds.
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 vs. return chart, the current portfolio sits below the efficient frontier by about 1.53 percentage points at its risk level. The efficient frontier is the curve showing the best expected return for each risk level using different weightings of the existing holdings, and the Sharpe ratio measures return per unit of risk after subtracting a risk-free rate. The current Sharpe ratio is 0.76, while the optimal mix of these same four ETFs reaches 0.98, and the minimum-variance version reaches 0.86. That suggests there are alternative weightings of these very same funds that could potentially deliver either smoother or more efficient risk-adjusted outcomes.
Dividends
- Schwab U.S. Dividend Equity ETF 3.40%
- Invesco S&P 500® Momentum ETF 0.80%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Growth Index Fund ETF Shares 0.40%
- Weighted yield (per year) 1.02%
The overall dividend yield of the portfolio is about 1.02%, which is fairly modest and consistent with its strong growth orientation. The Schwab dividend ETF is the main income contributor at a 3.4% yield, while the growth and momentum funds have much lower payouts. Dividends are the cash distributions companies make from profits, and over time they can form a meaningful part of total return. In this setup, dividends play more of a supporting than central role. Most of the return historically has come from price appreciation, especially in fast-growing mega-cap names rather than from high ongoing cash income.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Growth Index Fund ETF Shares 0.04%
- Weighted costs total (per year) 0.05%
The total ongoing cost, or TER, of the portfolio is about 0.05% per year, which is impressively low for a multi-fund equity setup. Individual ETF fees range from 0.03% to 0.13%, all within the typical low-cost index and factor ETF range. Fees might look tiny, but over long periods they compound and directly reduce net returns. Keeping costs this low helps more of the portfolio’s gross performance reach the investor. In this case, expenses are a clear positive: the fee structure aligns well with best practices for long-term, index-based investing and does not appear to be a drag on performance.
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