A single bet on the S&P 500: Diversification as an afterthought
Report created on Sep 25, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 100.00%
Putting all your eggs in one basket, and then watching the basket is an investment strategy as old as time. But when that basket is the Vanguard S&P 500 ETF, it's like choosing the sturdiest basket at the market. Sure, it's solid, but if the market sneezes, your portfolio catches a cold. With 100% in just one ETF, it's like betting your entire retirement on the continued prosperity of the top 500 U.S. companies. Diversification? More like putting a tiny umbrella over your basket and hoping for the best.
Growth
Historically, your portfolio's been on a joyride, with a Compound Annual Growth Rate (CAGR) of 16.03%. That's like hitting green lights all the way through downtown. The catch? A max drawdown of -34.03% is like occasionally driving off a cliff. Those 37 days contributing to 90% of returns highlight the rollercoaster you're on. Sure, it's fun when it's up, but when it's down, it's a gut-wrencher. Betting big has paid off, but remember, past performance is like rearview mirror driving—it's not always indicative of what's ahead.
Projection
Monte Carlo simulations are essentially sophisticated financial weather forecasts, showing a range of outcomes from sunny days to hurricanes. Your portfolio's forecast ranges from a pleasant 168.1% to a dreamy 726.1% at the median, with a near-perfect score of simulations predicting positive returns. This paints a rosy picture, but remember, Monte Carlo is like predicting weather in London; it's educated guessing. The wide range suggests that while you might be on track for sunny days, there's always a chance of a downpour.
Asset classes
- Stocks 100%
With 100% of your portfolio in stocks, you're riding the high waves with no life jacket. It's thrilling when the market's up, but when it's not, you'll wish you had some bonds or cash as a floatation device. This all-in approach on equities is like playing poker with a single strategy; it works until it doesn't. Spreading your bets across different asset classes could mean less scrambling when the market takes a dive.
Sectors
- Technology 35%
- Financials 13%
- Consumer Discretionary 11%
- Telecommunications 10%
- Health Care 9%
- Industrials 8%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Your sector allocation is a mirror of the S&P 500, with a heavy tech tilt. While riding the tech wave might feel like surfing in Hawaii, remember, even paradise sees its share of storms. Financials, consumer cyclicals, and communication services follow, painting a picture of a portfolio betting heavily on a few horses. It's a strategy with its head in the cloud (computing), but when tech catches a cold, your portfolio might need more than just chicken soup.
Regions
- North America 100%
"America or bust" seems to be the motto here, with a 100% allocation to North America. While the U.S. market is like the LeBron James of investment arenas, even LeBron needs a good team around him. Ignoring international diversification is like refusing to acknowledge that there's good basketball being played outside the NBA. There's a whole world of growth potential out there, and it might be time to scout some international players.
Market capitalization
- Mega-cap 47%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
Your portfolio's favoritism towards mega and big caps is like only eating at Michelin-star restaurants. Sure, the food (returns) is great, but it's expensive, and you're missing out on some hidden gems. With 47% in mega-caps, you're dining with the titans of industry, but the 1% in small caps is like occasionally grabbing a hot dog from a street vendor. Small and mid-caps can offer growth spurts that big companies can only dream of, adding some spice to your gourmet portfolio.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.10%
With a dividend yield of 1.10%, your portfolio's income stream is more of a trickle than a flood. It's like having a rental property that barely covers the mortgage. In a market downturn, those dividends could be the difference between keeping the lights on and sitting in the dark. While not the sexiest part of investing, dividends can provide a cushion when the market decides to take a nosedive.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
One thing you've got going for you is the low cost of the Vanguard S&P 500 ETF at 0.03%. It's like finding a luxury car with the fuel efficiency of a compact. In the world of investing, where fees can eat into your returns like termites in a wooden house, you've managed to keep the pests at bay. Still, when your entire strategy is built around a single ETF, it's less about being cost-efficient and more about putting all your faith in one financial vehicle.
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