Single fund S&P 500 focus with strong historical returns and simple low cost structure
Report created on May 31, 2024Risk profile
4/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 100.00%
The structure here is as simple as it gets: one low-cost ETF tracking the S&P 500 at 100%. That means all risk and return come from a single broad US stock index, with no bonds, cash, or alternative assets to smooth the ride. This kind of “all-in equities” approach can grow wealth quickly over long periods but will also swing sharply during market stress. A key takeaway is that the simplicity is a strength for ease of management and clarity, but it also shifts the responsibility to the investor to be emotionally and financially prepared for bigger ups and downs.
Growth
Historically, a $1,000 investment grew to about $3,661 over ten years, a compound annual growth rate (CAGR) of 13.89%. CAGR is the “average yearly speed” of growth over time, smoothing out the bumps. This slightly edged out the broad US market and clearly beat the global market over the same period. The max drawdown, around -34%, shows how far it fell from a peak during tough markets. That’s a meaningful drop, but similar to major benchmarks, which is reassuring. The lesson: strong long-term growth has come with big but not extreme drawdowns compared with mainstream stock indices.
Asset classes
- Stocks 100%
All assets are in stocks, with 0% in bonds, cash, or other asset classes. That’s a classic growth-oriented layout, not a capital-preservation one. Asset classes behave differently: bonds usually cushion stock falls, while cash offers stability but little growth. With 100% equities, downturns will fully hit the portfolio, but long-term expected returns are higher than in mixed portfolios. For someone comfortable with volatility and focusing on decades, this can be appropriate. For someone needing steady income or short-term withdrawals, adding some defensive assets could help smooth the ride at the cost of some growth potential.
Sectors
- Technology 33%
- Financials 12%
- Telecommunications 11%
- Consumer Discretionary 10%
- Health Care 10%
- Industrials 9%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector exposure is fairly diversified but clearly tilts toward technology at about a third of the portfolio, with financials, telecom, consumer, health care, and industrials making up most of the rest. This tech tilt is typical of a modern large-cap US index, not an outlier, and it has benefited from strong growth in that area. However, tech-heavy allocations can be more sensitive when interest rates rise or when growth expectations cool. The positive angle is that the sector split broadly reflects mainstream benchmarks, which is a strong indicator of diversification. The main thing is being aware that leadership from tech and related areas strongly shapes outcomes.
Regions
- North America 99%
Geographically, exposure is almost entirely in North America, about 99%, which is standard for an S&P 500 tracker. That means the portfolio is tightly linked to the US economic and market cycle. When the US leads the world, this can be a big advantage, as shown by the past decade. But it also means limited direct participation in other regions’ recoveries or growth spurts. A more globally spread portfolio might behave differently in certain crises or policy environments. The key takeaway: this is a focused bet on US large companies, which has worked well historically but is not the only way to diversify.
Market capitalization
- Mega-cap 46%
- Large-cap 35%
- Mid-cap 18%
- Small-cap 1%
Market capitalization is concentrated in mega-cap and large-cap stocks, together over 80%, with modest exposure to mid-caps and very little in small caps. Larger companies tend to be more stable, more widely followed, and less volatile than small caps, which can make the portfolio’s behavior closer to that of a mature, blue-chip market. However, it also means less exposure to the potentially higher, but bumpier, growth of smaller firms. This large-cap focus aligns well with mainstream benchmarks and is considered a solid, core building block. Anyone wanting more small-cap flavor would typically need an additional, more targeted allocation.
True holdings
-
NV NVIDIA Corporation 7.32%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 6.64%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 4.96%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.47%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 3.08%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.57%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.46%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 2.40%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.92%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.57%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 36.39%
Looking through the ETF’s top holdings, a lot of exposure sits in a handful of mega-cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet. Because they appear in the same index fund, there’s hidden concentration in these giants even though there’s only one ETF. This is normal for modern cap-weighted indices, where the largest companies dominate performance. The trade-off is clear: returns are heavily influenced by how a small group of leaders perform. That can be powerful when they do well, but it also means any trouble in these names can move the whole portfolio noticeably.
Factors
Factor exposures across value, size, momentum, quality, yield, and low volatility all sit near neutral, meaning the portfolio behaves much like the broad market on these dimensions. Factor exposure is like checking which “traits” your holdings lean toward: cheap vs. expensive (value), big vs. small (size), stable vs. jumpy (low volatility), and so on. Here, there’s no strong tilt toward any particular style. That’s actually a positive alignment for someone who wants the plain-vanilla market return without heavy style bets. It also means performance will mainly track general equity markets rather than being driven by specialized factor strategies.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 100.00% 100.0%
Risk contribution is straightforward: the single ETF is 100% of both weight and risk. Risk contribution measures how much each holding adds to total portfolio volatility, and in a one‑fund setup, there’s nowhere else for risk to go. This keeps things easy to understand, but it also means there’s no offset from other asset types or funds. If the S&P 500 is volatile, the whole portfolio is volatile. A practical takeaway: any decision to dial risk up or down would have to come from changing the overall equity percentage or adding complementary holdings, not from tweaking within this ETF.
Dividends
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 1.20%
The dividend yield is around 1.20%, which is modest but typical for a broad US large-cap index today. Dividends are the cash payouts companies make, and while they’re not the main driver of returns here, they do contribute a steady income stream that can be reinvested for compounding or used for spending. For a growth-focused investor, a lower yield often comes with higher reinvestment by companies back into their businesses. The key point: this setup is more about price appreciation than high income, so it fits better with long time horizons than with income‑focused needs.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
Costs are impressively low: the total expense ratio is just 0.03%. TER is the annual fee charged by the fund as a percentage of your investment. At this level, fees barely nibble at returns, which is a big plus over the long run. Keeping costs low is one of the few things investors can fully control, and over decades the difference between 0.03% and something like 0.5% or 1% can amount to thousands of dollars on a modest portfolio. This cost structure is firmly in line with best practices and strongly supports better long-term performance.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey