Concentrated US stock portfolio with strong growth tilt and efficient risk return balance
Report created on Jul 20, 2024Risk profile
5/7
Diversification profile
2/5
Positions
-
IV iShares Core S&P 500 ETF
IVV - US4642872000 50.00% -
QQ Invesco QQQ Trust
QQQ - US46090E1038 25.00% -
VB Vanguard Small-Cap Value Index Fund ETF Shares
VBR - US9229086114 25.00%
This portfolio is built from just three US stock ETFs, all equity and all growth-leaning. Half the money sits in a broad large‑cap index, a quarter in a tech-heavy growth ETF, and a quarter in small-cap value stocks. That creates a simple but punchy structure: one core “market” building block, one aggressive growth satellite, and one contrarian value satellite. The absence of bonds or cash keeps the overall risk firmly in growth territory. For someone comfortable with ups and downs, this kind of all‑stock, three‑fund mix can be an efficient way to capture long‑term equity growth without juggling lots of positions.
Growth
Historically, turning $1,000 into about $3,847 over ten years means a 14.46% CAGR (compound annual growth rate), which is like your average speed over a long road trip. That has beaten both the US market and global market, adding 0.69 and 3.22 percentage points a year respectively. The max drawdown of about -34% was similar to broad markets, showing you didn’t pay extra in downside for that added return. Only 33 days created 90% of gains, which highlights how missing a few strong days can hurt results. Past performance can’t guarantee the future, but it does show this mix has been rewarded for taking risk.
Asset classes
- Stocks 100%
Every dollar here is in stocks, with zero allocation to bonds, cash, or alternatives. That 100% equity stance maximizes long‑term growth potential but also leaves you fully exposed to stock market swings. Compared to more traditional blends that might hold 20–40% in bonds for stability, this approach accepts larger drawdowns in exchange for higher expected returns. For someone with a long horizon, steady income, and strong stomach for volatility, that can be a reasonable tradeoff. For shorter‑term goals or lower risk tolerance, mixing in assets that typically move differently than stocks can smooth the ride and reduce the chance of selling during downturns.
Sectors
- Technology 32%
- Consumer Discretionary 11%
- Financials 10%
- Telecommunications 10%
- Industrials 10%
- Health Care 8%
- Consumer Staples 6%
- Real Estate 4%
- Energy 3%
- Utilities 3%
- Basic Materials 3%
Sector exposure is clearly tilted toward technology at 32%, with the rest spread reasonably across consumer, financials, industrials, health care, and smaller slices elsewhere. That tech tilt has been a tailwind in a world increasingly driven by software, chips, and digital platforms. It also means sensitivity to interest rates, innovation cycles, and regulation is higher than in a perfectly neutral sector mix. When growth and tech are in favor, this structure can shine; when they’re out of favor, underperformance versus a more balanced sector exposure is likely. Being aware of that tradeoff helps set realistic expectations for how the portfolio might behave in different market environments.
Regions
- North America 99%
- Europe Developed 1%
Geographically, this is almost a pure US play, with about 99% in North America and only a tiny slice elsewhere. That lines up with a home‑country focus many US investors prefer, and it has been rewarded over the last decade as US markets outperformed much of the world. The flip side is limited diversification across currencies, economic cycles, and policy regimes. If US stocks lag globally for a stretch, this kind of concentration will feel it. Some investors are fine with that bet; others like blending in more international exposure so that different regions can offset each other when leadership rotates.
Market capitalization
- Mega-cap 37%
- Large-cap 26%
- Mid-cap 19%
- Small-cap 14%
- Micro-cap 3%
Market cap exposure is nicely stair‑stepped: a solid base in mega‑ and large‑caps, plus meaningful slices in mid‑, small‑, and even micro‑caps. That structure combines the stability and liquidity of big established firms with the higher growth potential and added volatility of smaller companies. The dedicated small‑cap value ETF is what drives the 14% small‑cap and 3% micro‑cap exposure, giving the portfolio a bit more “punch” than a plain large‑cap index alone. In good economic periods, smaller companies can outpace giants; in recessions or risk‑off markets, they typically fall harder. Knowing this mix helps frame expectations during different phases of the cycle.
True holdings
-
NV NVIDIA Corporation 5.92%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
AA Apple Inc 5.14%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
MS Microsoft Corporation 3.89%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
AM Amazon.com Inc 2.93%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
GO Alphabet Inc Class A 2.39%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
AV Broadcom Inc 2.11%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
ME Meta Platforms Inc. 2.05%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
GO Alphabet Inc Class C 2.02%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
TS Tesla Inc 1.91%
Part of fund(s):- Invesco QQQ Trust
- LS 1x Tesla Tracker ETP Securities GBP
- iShares Core S&P 500 ETF
-
WM Walmart Inc. Common Stock 0.82%
Part of fund(s):- Invesco QQQ Trust
- Top 10 total 29.16%
Looking through the ETFs, there’s clear concentration in a handful of mega-cap growth names: Nvidia, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, and Tesla together form a meaningful slice. These appear via multiple funds, so even without owning single stocks, you effectively double-dip into the same giants. That overlap boosts exposure to companies that have driven recent market returns, which has helped historically. The flip side is “hidden” concentration: if these names stumble together, the portfolio feels it across several holdings. It’s worth being intentional about whether this much reliance on a few big companies matches the kind of ride you’re comfortable with.
Factors
Factor exposure is very balanced, with all six factors — value, size, momentum, quality, yield, and low volatility — sitting close to neutral. In factor terms, that means the portfolio behaves a lot like the broad market rather than heavily tilting toward any specific style. The small‑cap value slice and growth‑heavy ETF partially offset each other, leading to this overall neutrality. This balance is helpful: performance shouldn’t depend on any one factor being in favor, and you’re less exposed to long droughts in a single style. It’s a solid, diversified “factor footprint” that avoids making hidden bets on one particular investing theme.
Risk contribution
-
iShares Core S&P 500 ETF
Weight: 50.00% 47.1% -
Invesco QQQ Trust
Weight: 25.00% 27.3% -
Vanguard Small-Cap Value Index Fund ETF Shares
Weight: 25.00% 25.6%
Risk contribution shows how much each holding drives overall volatility, which can differ from simple weights. Here, the S&P 500 ETF contributes about 47% of portfolio risk vs. a 50% weight, while QQQ contributes slightly more risk than its 25% allocation, and the small‑cap value ETF lines up almost exactly with its weight. That pattern says risk is well spread across the three funds with only a modest extra “kick” from the growth ETF. There’s no single position wildly dominating the risk budget. If at some point one ETF grows much larger or becomes more volatile, rebalancing back to target weights can keep risk contributions aligned with your intended structure.
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 risk vs. return picture looks very solid. The current portfolio’s Sharpe ratio of 0.69, with roughly 15.2% expected return at 19.0% risk, sits on or very near the efficient frontier. The optimal mix of the same three ETFs could push the Sharpe to 0.84 but with higher risk and return, while the minimum‑variance blend slightly lowers risk with a modestly better Sharpe than today. The key takeaway: within this set of holdings, your weights are already highly efficient for your current risk level. Any fine‑tuning would mostly be about choosing slightly more or less risk, not fixing a structurally inefficient allocation.
Dividends
- iShares Core S&P 500 ETF 1.30%
- Invesco QQQ Trust 0.50%
- Vanguard Small-Cap Value Index Fund ETF Shares 1.30%
- Weighted yield (per year) 1.10%
The overall dividend yield of about 1.1% is modest, reflecting a growth‑oriented equity mix. The broad market and small‑cap value funds yield around 1.3%, while the growth ETF offers only 0.5%, since many growth companies reinvest profits rather than paying them out. For an investor focused on long‑term growth over current income, a lower yield is not a problem — returns come more from price appreciation. For someone who eventually wants cash flow, this kind of portfolio can still work, but they may rely more on planned withdrawals or later shifts into higher‑yielding holdings instead of expecting large automatic income from dividends.
Ongoing product costs
- iShares Core S&P 500 ETF 0.03%
- Invesco QQQ Trust 0.20%
- Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.08%
Costs are a real strength here. A total expense ratio around 0.08% is extremely low, especially given the growth orientation and factor diversity you’re getting. Low fees matter because they’re guaranteed; every dollar not paid in fees stays invested and compounds for you over time. Being this close to rock‑bottom index‑fund pricing is a big positive and lines up strongly with best practices for long‑term investing. There’s no obvious drag from expensive active funds. Maintaining this cost discipline — and resisting the temptation to chase high‑fee “hot” products — can quietly add a surprising amount to long‑run outcomes.
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