A high-flying growth portfolio that forgot diversification is not just a buzzword
Report created on Aug 10, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 Growth Index Fund ETF Shares
VOOG - US9219325050 91.17% -
VU Vanguard Growth Index Fund ETF Shares
VUG - US9229087369 8.83%
This portfolio is like ordering two almost identical dishes at a restaurant and calling it a feast. With over 91% parked in the Vanguard S&P 500 Growth Index Fund ETF Shares and the rest in Vanguard Growth Index Fund ETF Shares, it's like betting on the same horse twice. One might argue it's a strategy, but it's more like putting all your eggs in a basket, then putting that basket in a slightly smaller basket.
Growth
With a CAGR of 17.11%, the portfolio's past performance might seem like a bragging right at a dinner party until you realize it's riding the tech-heavy growth wave with little regard for diversification. Remember, past performance is like last season's sports scores; interesting, but not a guarantee of future victories, especially when the game is the stock market.
Projection
Monte Carlo simulations might sound like a fancy casino game, but they're actually a way to predict future portfolio performance. With projections ranging wildly from 134.7% to 1,193.7%, this portfolio shows potential but also volatility that could make a roller coaster operator dizzy. Betting big on growth stocks is exciting until it's not.
Asset classes
- Stocks 100%
Diversification across asset classes? Apparently, a foreign concept here, with 100% in stocks. It's like wearing shorts in a snowstorm because it worked well in the summer. A mix of asset classes can help buffer against market downturns, but this portfolio is dressed for one season only.
Sectors
- Technology 42%
- Telecommunications 15%
- Consumer Discretionary 13%
- Financials 11%
- Industrials 7%
- Health Care 6%
- Consumer Staples 4%
- Real Estate 1%
- Utilities 1%
- Energy 1%
This portfolio has a tech addiction, with 42% in Technology. It's like having a diet consisting mostly of cake; delightful until the health consequences kick in. While tech stocks have driven growth, they can also lead to significant downturns, making this sector-heavy bet a risky business.
Regions
- North America 100%
"America or bust" apparently sums up the geographical diversification here. With 100% in North America, it's like refusing to eat any cuisine other than American. The world offers a buffet of investment opportunities, and ignoring them can limit growth potential and increase risk.
Market capitalization
- Mega-cap 65%
- Large-cap 25%
- Mid-cap 10%
With a heavy tilt towards mega and big caps (90% combined), this portfolio dreams big but might miss out on the scrappy underdog stories. Sure, investing in well-established companies is comforting, like a warm blanket, but sometimes the blanket can be too heavy, stifling growth opportunities in smaller, nimble companies.
Redundant positions
-
High correlationVanguard Growth Index Fund ETF SharesVanguard S&P 500 Growth Index Fund ETF Shares
The correlation between the two holdings is like having twins in the same class and expecting different outcomes on a test. They move together, which means if one falls, the other likely will too, offering little in the way of diversification benefits. It's a portfolio strategy that needs a rethink.
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.
This portfolio's approach to risk vs. return is like trying to win a marathon without training; ambitious but ill-advised. The heavy reliance on highly correlated, growth-focused assets without proper diversification could lead to volatility that's not for the faint-hearted. Balancing risk and return requires mixing asset classes and sectors, not doubling down on what's worked in the past.
Dividends
- Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
- Vanguard Growth Index Fund ETF Shares 0.40%
- Weighted yield (per year) 0.49%
With a dividend yield hovering around 0.49%, this portfolio isn't exactly a cash flow king. It's like having a job that pays in compliments; nice to have but won't pay the bills. For those seeking income, this growth-focused strategy might leave you wanting.
Ongoing product costs
- Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
- Vanguard Growth Index Fund ETF Shares 0.04%
- Weighted costs total (per year) 0.09%
At least the fees are under control, with a Total Expense Ratio (TER) of 0.09%. It's one of the few commendable aspects, like finding a dollar on the sidewalk; a small win in the grand scheme but a win nonetheless. Low fees are essential for long-term growth, so kudos for not burning money on costs.
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