Roast mode 🔥

A love letter to the S&P 500 with a side of emerging market seasoning

Report created on May 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

Diving into this portfolio is like finding a playlist where 70% of the tracks are from the same artist. Sure, Vanguard's S&P 500 ETF is a hit, but when it dominates the mix, we’re left craving variety. The supporting acts, while diverse in name, are just variations on the same theme, with heavy overlaps in U.S. equities. It’s like planning a global tour but only booking venues in the States. A sprinkle of emerging markets doesn’t quite cut it for worldliness, making this portfolio’s diversification more of a gesture than a strategy.

Growth Info

With a historical CAGR of 12.42%, this portfolio has been humming along nicely, but let’s not get too comfortable. The -34.70% max drawdown is a stark reminder of what happens when the music stops, and everyone rushes for the exits. Those 25 days carrying 90% of your returns? That’s like betting your entire concert's success on the first and last song. High volatility with concentrated gains makes for a nerve-wracking show, suggesting that this portfolio’s past performances, while impressive, come with their fair share of risk.

Projection Info

The Monte Carlo simulation, with its 1,000 different ways to play out the future, shows more promise than a sold-out tour, but let’s not forget it’s essentially sophisticated guesswork. The 50th percentile projection at 243.1% growth is like dreaming of a triple platinum record, yet the 5th percentile at -7.9% reminds us that not every album is a hit. Such simulations are useful but remember, they’re as predictive of future market movements as a weather forecast is to next year's rainfall.

Asset classes Info

  • Stocks
    100%

An all-stock lineup might feel like going full throttle on the highway, but without any cash or bonds to act as shock absorbers, every market pothole is felt. The absence of non-equity assets is like refusing to add ballads to an album of bangers – it lacks balance and can wear out even the most enthusiastic fan. Diversifying across asset classes isn’t just sensible; it’s essential for not getting knocked out when the market throws a punch.

Sectors Info

  • Technology
    27%
  • Financials
    14%
  • Health Care
    12%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Real Estate
    3%
  • Utilities
    3%
  • Basic Materials
    2%

The sector spread is like a band that only plays one genre. Sure, technology at 27% could be your lead singer, but what about the backup vocalists? Financial services, healthcare, and consumer cyclicals offer some harmony, but there’s an overreliance on a few themes. This setup might miss out on the full spectrum of market opportunities, like a musician sticking to the hits and never experimenting with new sounds.

Regions Info

  • North America
    98%
  • Asia Emerging
    1%

With 98% in North America, this portfolio’s geographic diversity is like a tour that only stops in hometown venues. The token gesture towards emerging markets (1%) is hardly enough to call it a world tour. Ignoring international diversification not only limits exposure to global growth but also puts all your eggs in one regional basket. It’s a risky move, akin to playing the same setlist every night and hoping it never gets old.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    8%
  • Micro-cap
    6%

The market cap allocation is like having a band with too many lead singers and not enough drummers. With 37% in mega-caps, it's clear where the spotlight shines, but the smaller allocations to small (8%) and micro (6%) caps suggest a missed beat on growth opportunities. It’s like ignoring up-and-coming artists because you’re too focused on the headliners.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the S&P 500 and Total Stock Market ETFs is like having two guitarists playing the same chords. It’s redundant and doesn’t add to the portfolio’s harmony. This lack of diversification is a missed opportunity to blend different market movements into a more resilient performance. It’s time to consider solo acts that can stand on their own, reducing risk and potentially improving returns.

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 current setup is like a band stuck playing cover hits when they could be producing original chart-toppers. The overlap in U.S. equities is a clear sign of a portfolio screaming for a remix. Diversifying beyond highly correlated assets could turn this one-hit wonder into a classic album with tracks that stand the test of time. Embracing a wider range of instruments (asset classes) and genres (sectors, geographies) could elevate this portfolio from opening act to headliner status.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 4.00%
  • Vanguard S&P 500 ETF 1.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Russell 2000 Index Fund ETF Shares 1.40%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 1.63%

The dividends are like the steady beat of a drum, providing a consistent backdrop to the portfolio's performance. With a total yield of 1.63%, it's a modest rhythm, but the Schwab ETF’s 4.00% beat is a standout. Dividends can offer a reliable income stream, but an overreliance on them might miss out on the full crescendo of market growth. Like a good album, balance between growth and income tracks is key.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Russell 2000 Index Fund ETF Shares 0.10%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.04%

On a brighter note, the total TER of 0.04% is like finding a great studio that doesn’t charge an arm and a leg. It’s rare to see such cost-effective management in the investment world. Keeping costs low is like ensuring your tour expenses don’t eat into your profits – it’s smart, sustainable, and maximizes returns. Kudos for not letting fees take a big bite out of your investment pie.

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