A growth-focused portfolio with exclusive investment in Vanguard S&P 500 ETF
Report created on Sep 25, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 100.00%
This portfolio is solely invested in the Vanguard S&P 500 ETF, making it a pure play on the performance of the top 500 companies in the U.S. stock market. Such a composition provides a straightforward approach to capturing the growth of the American economy, albeit with low diversification. The ETF's broad exposure across sectors mirrors the economic sectors' distribution within the S&P 500, yet the concentration in a single asset class and geographic region limits the portfolio's diversification benefits.
Growth
Historically, the Vanguard S&P 500 ETF has delivered a Compound Annual Growth Rate (CAGR) of 16.03%, with a maximum drawdown of -34.03%. This performance reflects the volatility and growth potential of the U.S. stock market. However, the days contributing most to the returns highlight the market's unpredictability, emphasizing the importance of a long-term investment horizon to mitigate short-term market fluctuations.
Projection
Monte Carlo simulations, which use historical data to project future portfolio values under different scenarios, suggest a wide range of outcomes for this portfolio. The projections, from the 5th to the 67th percentile, indicate potential significant growth, underscoring the high-reward nature of the investment. However, it's crucial to understand that such simulations are based on past performance, which is not a reliable indicator of future results.
Asset classes
- Stocks 100%
The portfolio's allocation is 100% in stocks, specifically through the Vanguard S&P 500 ETF. This singular focus on equities within the U.S. market offers high growth potential but comes with increased volatility and risk. Diversification across different asset classes could provide a buffer against market downturns, potentially smoothing out returns over time.
Sectors
- Technology 35%
- Financials 13%
- Consumer Discretionary 11%
- Telecommunications 10%
- Health Care 9%
- Industrials 8%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector allocation closely follows the S&P 500 index, with significant weightings in technology, financial services, and consumer cyclicals. This sector spread captures a broad swath of the U.S. economy, although the heavy emphasis on technology could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts.
Regions
- North America 100%
Geographic exposure is entirely focused on North America, specifically the United States. This concentration benefits from the robust performance of the U.S. market but lacks international diversification. Expanding geographic exposure could mitigate the impact of U.S.-specific economic downturns and capitalize on growth in other regions.
Market capitalization
- Mega-cap 47%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
The market capitalization breakdown shows a strong tilt towards mega and large-cap companies, which are typically less volatile than their smaller counterparts. This composition supports the portfolio's growth profile while offering some degree of stability. However, the minimal exposure to small-cap stocks limits potential high-growth opportunities in this segment.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.10%
The Vanguard S&P 500 ETF's dividend yield of 1.10% contributes to the portfolio's total returns, providing a steady income stream in addition to potential capital appreciation. While not the focus for growth-oriented investors, dividends offer a form of passive income and a cushion during market dips.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
With a total expense ratio (TER) of 0.03%, the portfolio benefits from extremely low costs, maximizing the potential for net returns. Low costs are crucial for long-term investment success, as they compound over time and can significantly impact overall portfolio growth.
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