Concentrated growth portfolio combining broad US exposure with bold single stock satellite positions
Report created on May 30, 2024Risk profile
5/7
Diversification profile
3/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 45.00% -
NT Nutanix Inc
NTNX - US67059N1081 35.00% -
BY BYD Co Ltd ADR
BYDDY - US05606L1008 10.00% -
FL Fluence Energy Inc
FLNC - US34379V1035 10.00%
The structure here is simple and punchy: one broad US market ETF at 45% paired with three individual growth stocks making up the remaining 55%. That means more than half the money is riding on just three companies, with Nutanix alone at 35%. This kind of “core and satellite” setup uses a diversified ETF as the foundation, then adds high‑conviction picks on top. It’s a common approach for growth‑oriented investors who want a shot at outsized gains. The key implication is that portfolio outcomes will be heavily driven by how those three stocks perform, for better or worse, rather than by the broader market.
Growth
Historically, $1,000 grew to about $1,196, a 4.16% compound annual growth rate (CAGR). CAGR is like your average speed on a long road trip, smoothing out the bumps. Over the same period, both the US and global markets grew faster, so the portfolio lagged by 3–5 percentage points per year. Max drawdown, the worst peak‑to‑trough drop, was nearly −40%, noticeably steeper than the benchmarks. Only four days accounted for 90% of returns, showing performance was dominated by a handful of big moves. This history shows that concentrated growth bets added volatility without yet delivering superior long‑term returns over this window.
Asset classes
- Stocks 100%
Everything is in stocks, with 0% allocated to bonds, cash, or alternative assets. That all‑equity stance is fully aligned with a growth‑focused risk profile and helps maximize long‑term return potential. At the same time, it removes the natural cushion that safer assets provide during market stress. Compared with more balanced mixes that blend equities with income‑producing or defensive holdings, this approach will typically swing more with market cycles. For someone comfortable with sizeable drawdowns and a long horizon, this can be appropriate. Anyone needing stability, near‑term withdrawals, or smoother returns would usually benefit from some non‑equity ballast.
Sectors
- Technology 50%
- Consumer Discretionary 15%
- Utilities 11%
- Financials 5%
- Telecommunications 5%
- Health Care 4%
- Industrials 4%
- Consumer Staples 2%
- Energy 2%
- Real Estate 1%
- Basic Materials 1%
Sector exposure leans heavily into technology at about half the portfolio, with the rest spread across a wide mix of areas in smaller slices. This tech focus lines up with many modern growth portfolios and mirrors where a lot of innovation and market leadership has been. It also means extra sensitivity to interest rates, market sentiment toward growth stories, and regulatory headlines affecting tech and related industries. The broad ETF helps fill in other sectors and avoids extreme single‑sector concentration, which is a positive. Still, long‑term outcomes will be very influenced by how the tech and growth ecosystem performs over time.
Regions
- North America 90%
- Asia Emerging 10%
Geographically, around 90% of exposure is in North America, with the remaining 10% in emerging Asia via BYD. That home‑bias toward the US is very common and actually quite close to global market capitalization weights, so it’s not an outlier. The strong US focus can be beneficial when US markets lead, and it keeps currency complexity lower for a US‑based investor. The trade‑off is less diversification across different economic cycles and policy regimes. The emerging Asia slice adds a bit of that diversification and growth potential, but in a relatively small dose compared with the dominant US tilt.
Market capitalization
- Large-cap 61%
- Mega-cap 21%
- Mid-cap 18%
The portfolio leans strongly toward large and mega‑cap companies, which together make up over 80% of the exposure. These firms tend to be more established, with deeper liquidity and more analyst coverage, which often translates into relatively more stability than tiny speculative names. The remaining allocation to mid‑caps adds some extra growth torque, since mids can grow faster but also move more sharply in both directions. This blend is broadly consistent with major market indexes, which is a positive sign for structural diversification by size. The big difference versus the market is not size balance, but stock‑specific concentration.
True holdings
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NV NVIDIA Corporation 3.29%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 2.99%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.23%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.56%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.39%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.16%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.11%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 68.72%
Looking through the ETF, most of the recognizable names (NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom) are modest, single‑digit exposures via the S&P 500 fund. There’s no hidden duplication with Nutanix, BYD, or Fluence inside the ETF’s top holdings, so concentration risk mainly comes from the explicit stock positions, not overlap. Still, those mega‑cap tech names create an additional growth tilt beneath the surface. Because only ETF top‑10 holdings are visible, actual overlap in smaller positions is understated. The big picture is that hidden concentration is manageable, while intentional single‑stock weights are the true drivers of risk and return.
Factors
Factor exposure looks mostly neutral, with mild tilts away from value and quality. Factors are like the core “personality traits” of investments (value, size, momentum, quality, yield, low volatility) that research links to long‑term returns. A lower value score suggests a preference for more richly valued growth names over cheaper stocks. The low quality reading points toward companies with less consistent profitability or more business risk in the mix. Together, this fits a high‑growth, story‑driven style that can shine in strong bull markets but often struggles when investors suddenly favor stability, cash flows, or defensive characteristics.
Risk contribution
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Nutanix Inc
Weight: 35.00% 51.8% -
Vanguard S&P 500 ETF
Weight: 45.00% 21.0% -
Fluence Energy Inc
Weight: 10.00% 20.3% -
BYD Co Ltd ADR
Weight: 10.00% 7.0%
Risk contribution shows how much each position drives overall portfolio ups and downs, which can differ from simple weights. Here, Nutanix is 35% of the money but over half of total volatility, while Fluence at 10% contributes about 20% of risk. The S&P 500 ETF, despite being the largest holding by weight, adds relatively little risk because it’s broadly diversified. This pattern is textbook concentrated growth: a few volatile names dominate the ride. If smoother behavior is desired while keeping the same holdings, trimming the highest risk‑per‑weight positions and shifting that into the ETF would be one way to rebalance the risk profile.
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 a risk‑return chart, this portfolio sits right on or very close to the efficient frontier, which is the curve showing the best possible expected return for each risk level using the existing holdings. The Sharpe ratio of 0.4 is lower than the optimal mix’s 0.54, but that’s because the current setup chooses higher risk and higher raw return rather than the most efficient risk‑adjusted point. Still, being on the frontier means the weights are internally efficient: you’re not “wasting” risk given these ingredients. If desired, shifting toward the optimal or minimum‑variance mix could lower volatility meaningfully without a big hit to expected return.
Dividends
- BYD Co Ltd ADR 1.40%
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 0.68%
Dividend yield is modest at around 0.68% overall, with the ETF and BYD providing low but positive income and the other stocks more growth‑focused. Dividends are the cash payments companies make to shareholders, and over long periods they can be a meaningful part of total return. In a growth‑tilted equity portfolio, it’s normal to see lower yields as companies reinvest earnings into expansion rather than paying them out. This structure suits investors who care more about capital appreciation than ongoing income. Anyone needing regular cash flow would usually pair this style with higher‑yielding or income‑oriented holdings elsewhere.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.01%
Costs are impressively low. The only explicit ongoing fee here is the S&P 500 ETF’s expense ratio at 0.03%, pulling the total portfolio’s average expense to roughly 0.01%. That’s well below typical active funds and even many index products. Lower fees mean more of the portfolio’s gross return stays in your pocket, which compounds significantly over long horizons. In a concentrated, stock‑heavy setup like this, trading costs and taxes can matter more than fund fees, so the buy‑and‑hold assumption is a big plus. Overall, the cost profile is a real strength and supportive of long‑term performance.
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