Strong growth tilted stock portfolio with heavy US exposure and low costs supporting efficient risk taking
Report created on Apr 25, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 Growth Index Fund ETF Shares
VOOG - US9219325050 85.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 15.00%
This portfolio is very simple: two stock ETFs, both from Vanguard. About 85% sits in a US growth index fund, and 15% in a broad international stock fund. So it is essentially a single-theme equity portfolio with a small global diversifier on the side. A structure like this is easy to understand and monitor, because there are no bonds, alternatives, or niche strategies mixed in. The flip side is that all ups and downs come from stocks alone. This setup means the portfolio’s behaviour is driven mainly by large US growth companies, with international stocks having a noticeable but clearly secondary role in shaping returns and volatility.
Growth
Over the ten-year period shown, $1,000 grew to about $4,571, which is a strong outcome. The portfolio’s CAGR, or Compound Annual Growth Rate, was 16.48% per year on average, meaning the investment compounded quickly compared with both the US market (14.92%) and global market (12.24%). The biggest drop from peak to trough, the max drawdown, was about -32%, slightly smaller than the benchmarks’ worst falls. It then took 17 months to recover. This history shows that growth-tilted equities can deliver high returns but still experience deep, sometimes lengthy downturns, even when long‑term performance looks impressive on paper.
Projection
The forward projection uses a Monte Carlo simulation, which is essentially thousands of “what if” runs based on past data and volatility patterns. Each run scrambles returns in different sequences to see a wide range of possible futures. Here, a $1,000 starting point has a median outcome of $2,678 after 15 years, with a wide possible range from about $962 to $7,809. The average simulated annual return is 8.13%. This highlights that even for a historically strong portfolio, future paths can vary a lot. Importantly, simulations are not predictions; they just show how uncertain long‑term results can be, even when the overall odds lean positive.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% in bonds, cash, or other asset classes. That makes it a pure equity allocation, which naturally pushes both potential returns and potential volatility higher than a multi‑asset mix. In periods of market stress, there is no built‑in cushion from safer assets, so account values can move around quite a bit. On the positive side, the equity-only focus means the portfolio fully participates when stock markets recover and trend upward. Compared with broad “balanced” benchmarks that mix bonds and stocks, this structure leans more heavily into growth and market risk as the main driver of outcomes.
Sectors
- Technology 43%
- Telecommunications 15%
- Financials 12%
- Consumer Discretionary 9%
- Industrials 8%
- Health Care 7%
- Consumer Staples 2%
- Basic Materials 2%
- Real Estate 1%
- Utilities 1%
- Energy 1%
Sector-wise, the portfolio leans heavily toward technology at 43%, with telecom and financials making up the next biggest slices. Other areas like consumer discretionary, industrials, and health care are present but smaller, and defensive sectors such as utilities and consumer staples are only tiny positions. Compared with broad global benchmarks, this is clearly tech-heavy and more focused on economically sensitive sectors. That type of mix tends to shine when innovation and growth are rewarded, but can be more volatile during periods of rising interest rates or market rotations away from high‑growth business models toward more cyclical or defensive companies.
Regions
- North America 86%
- Europe Developed 5%
- Japan 2%
- Asia Developed 2%
- Asia Emerging 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, about 86% of the portfolio is in North America, with relatively small allocations spread across Europe, Japan, developed Asia, emerging Asia, and other regions. This means the portfolio is strongly tied to one main economy and currency, with a modest global diversification overlay. Compared with global market indices, which spread more evenly across regions, this is a clear US tilt. That has worked well over the past decade as US markets outperformed, but it also means portfolio outcomes will be strongly influenced by US economic and policy conditions, while movements in other regions will play a much smaller role.
Market capitalization
- Mega-cap 64%
- Large-cap 27%
- Mid-cap 8%
- Small-cap 1%
By market capitalization, the portfolio is dominated by mega-cap and large-cap stocks, which together account for over 90% of exposure. Mid-caps and small-caps are present but make up less than 10% combined. Larger companies often have more stable businesses, more analyst coverage, and greater access to capital, which can reduce company-specific risk compared to smaller firms. However, it also means less exposure to the sometimes higher growth (and higher risk) potential of smaller companies. In practice, this market-cap profile suggests the portfolio will tend to move in line with big global names rather than more niche or local players.
True holdings
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NV NVIDIA Corporation 12.44%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
MS Microsoft Corporation 8.07%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
AA Apple Inc 5.47%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
GO Alphabet Inc Class A 4.91%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
AV Broadcom Inc 4.30%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
GO Alphabet Inc Class C 3.94%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
ME Meta Platforms Inc. 3.67%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
AM Amazon.com Inc 3.16%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 2.58%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
-
LL Eli Lilly and Company 2.14%
Part of fund(s):- Vanguard S&P 500 Growth Index Fund ETF Shares
- Top 10 total 50.67%
Looking through the ETFs’ top holdings, a lot of weight sits in a small group of giant US names. NVIDIA alone adds up to around 12% of the portfolio, with Microsoft over 8% and Apple about 5.5%. Alphabet’s two share classes together, Broadcom, Meta, Amazon, Berkshire Hathaway, and Eli Lilly also feature prominently. Because several of these appear across multiple funds, there is some hidden concentration in the same companies. The coverage only includes ETF top‑10s, so overlap is likely understated. This means that when these big names move, they can have an outsized effect on the portfolio, both positive and negative.
Factors
Factor exposure shows mild tilts away from value, size, and yield. “Factors” are characteristics, like value or momentum, that research has linked to how stocks behave over time. Here, low value and low yield scores confirm the growth style: the portfolio leans toward higher-priced, lower‑dividend companies. Low size exposure reflects the dominance of large and mega caps, rather than smaller firms. Momentum, quality, and low volatility all sit near neutral, meaning behaviour along those dimensions is similar to the wider market. Together, these factor tilts suggest the portfolio should be more sensitive to growth cycles than to traditional value or income‑driven phases.
Risk contribution
-
Vanguard S&P 500 Growth Index Fund ETF Shares
Weight: 85.00% 89.0% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 15.00% 11.0%
Risk contribution looks at how much each position drives the portfolio’s overall ups and downs, not just how big it is. The US growth ETF, at 85% weight, contributes about 89% of total risk, so it carries slightly more risk than its size alone would suggest. The international ETF, with 15% weight and about 11% of risk, slightly dampens volatility. This pattern is typical when one holding dominates and another is more diversified across regions and styles. It shows that even though there are two funds, the portfolio’s risk profile is effectively governed by the US growth fund, with international stocks playing a secondary stabilising role.
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 efficient frontier analysis shows the current mix is already on or very near the efficient frontier, which is the curve of the best possible risk‑return combinations using these same holdings in different weights. The portfolio’s Sharpe ratio of 0.66, a measure of return per unit of risk over the risk‑free rate, is solid, though a slightly higher 0.83 is mathematically possible with a different weighting of the same two funds. The minimum-variance mix would lower risk but also reduce return. Overall, the data indicates the existing allocation uses its two holdings efficiently for the level of volatility it takes on.
Dividends
- Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 0.84%
The combined dividend yield is modest at about 0.84%, with the US growth ETF yielding only 0.50% and the international fund providing a higher 2.80%. Dividend yield is simply the cash paid out each year as a percentage of the investment’s price. Here, income is clearly a minor part of total return; most of the portfolio’s historical growth has come from price appreciation in growth-oriented stocks rather than regular cash payouts. This income profile is consistent with the low yield factor exposure and growth style focus, and it means that any cash flow expectations would rely more on occasional sales than on ongoing dividends.
Ongoing product costs
- Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.09%
Costs are impressively low. The weighted Total Expense Ratio (TER) for the portfolio is about 0.09% per year, with the US growth ETF at 0.10% and the international ETF at 0.05%. TER is the annual fee charged by the funds, expressed as a percentage of assets, and it quietly reduces returns in the background. Keeping this number low is helpful because small differences compound over long periods. In this case, fees take only a tiny slice of potential returns each year. That cost profile is a strong positive and aligns well with best practices for long‑term, index‑based investing approaches.
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