A portfolio that loves the S&P 500 a bit too much and thinks diversity is just a buzzword
Report created on Aug 3, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 30.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 25.00% -
QQ Invesco QQQ Trust
QQQ - US46090E1038 15.00% -
O Realty Income Corporation
O - US7561091049 10.00% -
SP SHP ETF Trust - NEOS S&P 500 High Income ETF
SPYI - US78433H3030 10.00% -
VU Vanguard Growth Index Fund ETF Shares
VUG - US9229087369 10.00%
Kicking off with a portfolio that’s as diversified as a buffet that serves five types of chicken dishes but calls it international cuisine. With 30% in the Vanguard S&P 500 ETF, 15% in Invesco QQQ Trust, and another 10% in the Vanguard Growth Index Fund ETF, it’s like betting on the same horse in three different races. Sure, you love the S&P 500, we get it, but maybe, just maybe, it’s time to look beyond.
Growth
Historical performance shows a CAGR of 16.53%, which, on paper, looks like your portfolio is sprinting like Usain Bolt. But remember, even Bolt had to slow down at some point. With a max drawdown of -17.24%, it's clear that this portfolio rides the market waves with the stability of a toddler on a tricycle. Those 15 days that make up 90% of the returns? That's not investing; that's playing financial Russian roulette.
Projection
Monte Carlo simulations are like those fortune cookies that are overly optimistic but vaguely accurate. With projections ranging from a 5th percentile of 136.6% to a 67th percentile of 958.8%, it suggests your portfolio might either buy you a yacht or just a nice dinner out. But remember, simulations assume the market behaves like it always has, ignoring the fact that the market is more bipolar than your ex.
Asset classes
- Stocks 99%
- Cash 1%
99% stocks and 1% cash? It seems like you’re treating this portfolio like a high-stakes poker game, pushing all your chips to the center on stocks. While having a near-total allocation in stocks screams confidence (or recklessness), a little splash of bonds or real estate wouldn’t hurt for some balance. Maybe consider that cash isn’t just there to pad out the numbers.
Sectors
- Technology 30%
- Financials 12%
- Real Estate 12%
- Consumer Discretionary 10%
- Telecommunications 9%
- Industrials 8%
- Health Care 7%
- Consumer Staples 5%
- Basic Materials 3%
- Energy 2%
- Utilities 2%
With 30% in technology, it's clear you have a tech addiction stronger than the world’s reliance on caffeine. While tech has been the golden child of growth, remember, even golden children go through rebellious phases. Diversifying beyond tech and its rollercoaster ride might save you some antacids.
Regions
- North America 76%
- Europe Developed 10%
- Asia Emerging 4%
- Japan 4%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
North America holds 76% of your portfolio, making it look like you think the world map ends at California. While having home bias is common, ignoring emerging markets and developed international markets is like refusing to eat anything but hamburgers. Expanding your geographic palate could add some much-needed spice to your investment returns.
Market capitalization
- Mega-cap 45%
- Large-cap 39%
- Mid-cap 14%
- Small-cap 1%
Your love affair with mega and big cap stocks (84% combined) is like only watching blockbuster movies and ignoring indie films. Sure, they’re less risky and often pay off big, but you’re missing out on the growth potential of medium and small caps. It’s time to diversify your cast.
Redundant positions
-
High correlationVanguard S&P 500 ETFVanguard Growth Index Fund ETF SharesInvesco QQQ Trust
The trio of Vanguard S&P 500 ETF, Vanguard Growth Index Fund ETF Shares, and Invesco QQQ Trust are as correlated as the Kardashians—different names, same storyline. This over-concentration doesn’t add diversification; it just amplifies your bet on the same sector and style. Mixing in some low-correlation assets might actually help spread risk instead of doubling down on it.
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 idea of optimization is akin to rearranging deck chairs on the Titanic. Before even thinking about the Efficient Frontier, let’s address the elephant in the room: you’ve essentially created a tech fund with a real estate and international garnish. Diversification doesn’t just mean owning different things; it means owning things that behave differently.
Dividends
- Realty Income Corporation 5.20%
- Invesco QQQ Trust 0.50%
- SHP ETF Trust - NEOS S&P 500 High Income ETF 12.20%
- Vanguard S&P 500 ETF 1.20%
- Vanguard Growth Index Fund ETF Shares 0.40%
- Vanguard Total International Stock Index Fund ETF Shares 2.90%
- Weighted yield (per year) 2.94%
With an overall yield of 2.94%, it's clear you're not living off dividends anytime soon unless you're planning a diet of instant noodles. The SHP ETF's 12.20% yield is eye-catching, but remember, high yield often comes with high risk. Maybe diversify into assets that offer growth *and* income, not just one or the other.
Ongoing product costs
- Invesco QQQ Trust 0.20%
- SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Growth Index Fund ETF Shares 0.04%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.12%
At least you’re not throwing money away on fees, with a total TER of 0.12%. It’s like you’re frugal everywhere but where it counts: diversification. Low costs are great, but when your portfolio is this concentrated, you’re saving pennies while dollars fly out the window on the next market downturn.
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