A portfolio that thinks global diversification means adding more of the USA
Report created on Jul 22, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 40.00% -
QQ Invesco QQQ Trust
QQQ - US46090E1038 10.00%
So, you've essentially built a portfolio that's as diversified as a buffet where 90% of the options are different types of potatoes. With 50% in an S&P 500 ETF, 40% in a Total World Stock ETF (which, spoiler alert, is heavily US-weighted), and a dash of QQQ for flavor, you’ve managed to create a global investment strategy that’s about as American as apple pie. The thought was there, but the execution is like ordering a world map and only getting the United States.
Growth
Historically, this portfolio has been riding the tech and S&P 500 wave with a CAGR of 13.86%. That's like being on a rollercoaster that mostly goes up but occasionally drops you 33.22% just to check if you're paying attention. Those 31 days carrying 90% of your returns? That's not strategy; that's playing financial lottery. Sure, it's been a sweet ride so far, but remember, past performance is like relying on yesterday's weather forecast to plan a picnic. Sometimes, you just get rained on.
Projection
Monte Carlo simulations give this portfolio a thumbs up for future optimism, with a 50th percentile ending value at 601.3%. It's like saying there's a good chance you'll be the life of the party, but only if all your investments keep dancing to the same tune. However, with 995 out of 1,000 simulations showing positive returns, you might just be wearing rose-colored glasses. Remember, Monte Carlo is like playing a video game on easy mode; real life tends to throw in a few more bosses.
Asset classes
- Stocks 99%
- Cash 1%
Diving into asset classes, it's like you've built a castle out of stocks with a tiny moat of cash around it. With 99% stocks and 1% cash, you're basically all in, betting the kingdom on the stock market's benevolence. While bravery in asset allocation is commendable, a little more balance might keep your castle standing during a siege.
Sectors
- Technology 32%
- Financials 14%
- Consumer Discretionary 11%
- Telecommunications 10%
- Health Care 9%
- Industrials 9%
- Consumer Staples 6%
- Energy 3%
- Basic Materials 2%
- Utilities 2%
- Real Estate 2%
Your sector allocation is giving off strong "I only listen to top 40 hits" vibes. With a 32% allocation to technology, it seems like you're trying to ride the tech wave all the way to retirement beach. However, remember that even the best parties have to end, and with financial services and consumer cyclicals following closely behind, you're betting heavily on a few sectors to carry the portfolio. Variety isn't just the spice of life; it's also a prudent investment strategy.
Regions
- North America 85%
- Europe Developed 6%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
With 85% in North America, your portfolio's idea of global diversification is like thinking you've seen the world because you've been to Epcot. It's heavily skewed towards the US, which might feel comforting but ignores the vast investment opportunities abroad. Spreading your wings a bit more might not only reduce risk but also introduce your portfolio to the wonders beyond American shores.
Market capitalization
- Mega-cap 46%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 3%
Your market cap allocation is like believing only in giants and ignoring the potential of the little guys. With 46% in mega-caps and 33% in big caps, you're essentially putting all your faith in the corporate equivalent of mythical creatures. While they may seem invincible, history has shown that even giants can stumble. Sprinkling in more mid to small caps could add agility to your portfolio's stride.
Redundant positions
-
High correlationVanguard Total World Stock Index Fund ETF SharesVanguard S&P 500 ETF
The high correlation between your S&P 500 and Total World Stock ETFs is like buying two different brands of vanilla ice cream and expecting a flavor explosion. It's redundant and doesn't add the diversification you think it does. Mixing in some different asset flavors could turn your vanilla portfolio into a more resilient Neapolitan mix.
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.
Your portfolio is like a sports car that only turns right; it's fun until you need to navigate the real world. The heavy overlap between your S&P 500 and Total World ETFs is like wearing two raincoats. It doesn't make you twice as dry; it just makes you look silly. A bit of optimization could help you shed unnecessary layers and perhaps add some much-needed variety to your investment wardrobe.
Dividends
- Invesco QQQ Trust 0.40%
- Vanguard S&P 500 ETF 1.20%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 1.32%
With a total yield of 1.32%, your portfolio is like a low-yield savings account with extra steps. While dividends aren't the be-all and end-all, they can provide a nice cushion during market downturns. Relying on growth alone is like expecting sunshine every day; sometimes, a little rain (or income) can be refreshing.
Ongoing product costs
- Invesco QQQ Trust 0.20%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.06%
At least you're keeping costs low, with a total TER of 0.06%. It's like finding a luxury car with economy fuel efficiency — a rare blend of performance and prudence. This is one area where you've nailed it; low costs mean more of your money is working for you rather than lining the pockets of fund managers.
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