High growth focused US equity portfolio with strong large cap tilt and efficient risk profile
Report created on Jul 1, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
VU Vanguard Growth Index Fund ETF Shares
VUG - US9229087369 30.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 20.00%
This portfolio is simple and tightly focused, made up of three US stock ETFs with fixed weights: a broad S&P 500 core at 50%, a large‑cap growth fund at 30%, and a small‑cap value fund at 20%. That means 100% is in equities and entirely in one country’s stock market. A structure like this is easy to understand and monitor, because every position has a clear role: core market exposure, growth tilt, and small‑cap value tilt. The low diversification score reflects that everything depends on the US equity market. This concentration magnifies both the upside and downside of US stocks, and leaves the portfolio more sensitive to that single economy and currency.
Growth
Historically, the portfolio turned $1,000 into about $2,907 from late 2019 to mid‑2026, a compound annual growth rate (CAGR) of 17.16%. CAGR is like average speed on a road trip: it smooths out all the bumps. This return beat both the US market benchmark (16.02%) and the global market benchmark (13.65%), showing that the US‑heavy, growth‑oriented tilt was rewarded in this period. The worst peak‑to‑trough drop was about ‑35.6% during early 2020, similar in depth to the benchmarks and recovered within months. That drawdown highlights how an all‑stock portfolio can fall sharply, even when long‑term performance ends up strong.
Projection
The Monte Carlo projection looks forward 15 years by remixing patterns from historical returns into 1,000 possible futures. It’s like running the same movie with slightly different weather each time. The median outcome grows $1,000 to about $2,803, with a wide “likely” band from roughly $1,751 to $4,263. The full range is even broader, from small losses to very strong gains. The average simulated annual return is 8.05%, but 27.9% of simulations still end below the starting value. This illustrates that even growth‑oriented portfolios can have long flat or losing stretches, and that projections are scenarios, not promises.
Asset classes
- Stocks 100%
All of the portfolio sits in one asset class: stocks. There is no allocation to bonds, cash, or alternatives, which is why the risk score is toward the higher end. Equities are typically the main driver of long‑term growth, but they also create most of the ups and downs. Without stabilizing assets like bonds, the portfolio’s value is more closely tied to stock market cycles. This pure‑equity structure keeps things straightforward and transparent, and the combination of broad, growth, and small‑cap value ETFs provides some internal diversification within stocks, even though overall asset‑class diversification is low.
Sectors
- Technology 35%
- Consumer Discretionary 13%
- Financials 12%
- Telecommunications 12%
- Industrials 8%
- Health Care 7%
- Energy 5%
- Consumer Staples 4%
- Basic Materials 2%
- Real Estate 1%
- Utilities 1%
Sector exposure is clearly tilted, with roughly 35% in technology and double‑digit slices in consumer discretionary, financials, and telecommunications. This tech‑heavy stance is common in modern US indexes, reflecting the size of large technology and communication companies. It can boost returns when innovation‑driven businesses lead the market, as they have in recent years, but can mean sharper swings when interest rates rise or sentiment turns against high‑growth companies. The presence of smaller allocations to industrials, health care, energy, and staples adds some balance, yet the sector mix still leans toward economically sensitive, growth‑oriented areas rather than more defensive ones.
Regions
- North America 99%
Geographically, the portfolio is almost entirely concentrated in North America, with about 99% exposure. This lines up with a US‑centric approach and explains why its performance is so closely tied to US benchmarks. Such concentration can be beneficial when the US market outperforms the rest of the world, as it has for much of the last decade. However, it also means very little direct participation in other major economies. Global stock markets are broad, and being so heavily aligned with one region increases exposure to local economic cycles, policy changes, and currency movements, for better or worse.
Market capitalization
- Mega-cap 43%
- Large-cap 24%
- Mid-cap 12%
- Small-cap 10%
- Micro-cap 10%
By market capitalization, there’s a strong tilt toward bigger companies: about 43% in mega‑caps and 24% in large‑caps. Mid‑caps, small‑caps, and micro‑caps together make up around one‑third of the portfolio, largely driven by the dedicated small‑cap value ETF. Larger companies often bring more stability and liquidity, while smaller firms can be more volatile but sometimes offer different growth or recovery dynamics. This blend gives a core anchored in dominant market leaders, with a meaningful but not overwhelming allocation to smaller businesses. The result is a risk profile that’s growth‑oriented yet not exclusively dependent on the very largest names.
True holdings
-
NV NVIDIA Corporation 7.94%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AA Apple Inc. 6.98%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 5.20%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 3.65%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.57%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 3.19%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.89%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 2.23%
Part of fund(s):- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.88%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Growth Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 0.84%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 38.37%
Looking through the ETFs, the top underlying positions include NVIDIA, Apple, Microsoft, Alphabet, Amazon, Broadcom, Meta, Tesla, and Micron. Several of these appear in multiple funds, creating overlap: for example, NVIDIA and Apple together already account for nearly 15% of the portfolio’s look‑through exposure from only the reported top‑10 lists. Because only top‑10 holdings are captured, true overlap is likely a bit higher. This concentration in a handful of mega‑cap technology and internet‑related names helps explain the strong performance, but it also means the portfolio’s fortunes are closely tied to how these specific companies behave.
Factors
Factor exposures are broadly neutral across the board: value, size, momentum, quality, yield, and low volatility all sit near the 50% “market‑like” mark. Factors are like underlying traits—cheap vs expensive (value), big vs small (size), trending (momentum), stable and profitable (quality), higher income (yield), and smoother ride (low volatility). A neutral profile suggests the combination of a growth ETF, a broad index, and a small‑cap value fund balances out, with no major systematic tilt dominating. This kind of factor balance tends to behave somewhat like the overall market, rather than strongly favoring any single investing style.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 50.00% 46.1% -
Vanguard Growth Index Fund ETF Shares
Weight: 30.00% 31.9% -
Avantis® U.S. Small Cap Value ETF
Weight: 20.00% 22.1%
Risk contribution looks at how much each holding drives overall volatility, which isn’t always the same as its weight. Here, the S&P 500 ETF is 50% of the portfolio and contributes about 46% of the risk, slightly less than proportional. The growth ETF is 30% of assets but about 32% of risk, and the small‑cap value fund is 20% of assets and 22% of risk. The risk/weight ratios being close to 1 show that no single fund is dramatically more “explosive” than its size suggests. All three ETFs share the load, reflecting a fairly balanced risk structure among the chosen positions.
Redundant positions
-
High correlationVanguard Growth Index Fund ETF SharesVanguard S&P 500 ETF
The S&P 500 ETF and the growth ETF move almost identically, indicating very high correlation between these two positions. Correlation measures how often assets move together; when it’s close to 1, they tend to rise and fall in tandem. That means, in practice, these two funds act like variations of the same underlying theme: large US stocks, with one leaning more toward growth. High correlation limits diversification benefits during market downturns, because losses in one holding are likely mirrored in the other. The small‑cap value fund may provide some difference in behavior, but overall the core remains tightly linked.
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‑return chart, the current mix sits on or very close to the efficient frontier. The efficient frontier is the set of “best possible” portfolios using the same ingredients, where for each risk level you get the highest expected return. The current Sharpe ratio of 0.67 (return per unit of risk, after adjusting for a 4% risk‑free rate) is a bit lower than the optimal and minimum‑variance portfolios at 0.81, but still solid. Being near the frontier means the existing allocation already uses these three ETFs in a risk‑efficient way, without obvious inefficiencies in weighting.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.30%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Growth Index Fund ETF Shares 0.40%
- Weighted yield (per year) 0.93%
The overall dividend yield is modest at about 0.93%, with the S&P 500 ETF around 1.10%, the small‑cap value fund at 1.30%, and the growth ETF much lower at 0.40%. Yield is the annual cash payout relative to price, and here it plays a minor role in total return. This is typical for growth‑oriented US equity portfolios, where companies often reinvest profits instead of paying high dividends. Income from dividends can still provide a small cushion and some return even in flat markets, but in this portfolio, long‑term results are expected to be driven mainly by price changes, not cash distributions.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Growth Index Fund ETF Shares 0.04%
- Weighted costs total (per year) 0.08%
Total annual costs are low, with a blended Total Expense Ratio (TER) of about 0.08%. The S&P 500 ETF at 0.03% and the growth ETF at 0.04% are especially inexpensive, while the small‑cap value ETF at 0.25% is still moderate for its category. TER is like a management fee baked into each fund’s price; lower costs mean more of any gross return stays in the portfolio over time. This cost profile is impressively low and aligns well with best practices in index and ETF investing, supporting better compounding and helping fees fade into the background rather than eroding long‑term gains.
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