A portfolio so in love with the S&P 500 it forgot other markets exist
Report created on Jul 13, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 50.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00%
This portfolio screams "I believe in the American dream" so loudly, it practically drowns out any semblance of global awareness or diversification. Splitting your investments 50/50 between two S&P 500 ETFs is like ordering two slightly different vanilla ice creams and calling it a flavor exploration. The Invesco S&P 500® Momentum ETF and Vanguard S&P 500 ETF are like fraternal twins—similar but with just enough differences to argue they're not the same. This is not diversification; it's duplication with extra steps.
Growth
With a CAGR of 19.93%, this portfolio did a victory lap around many of its peers. However, let's not get too carried away celebrating. This performance is like being the fastest at a local marathon without realizing the Olympics exist. It's impressive until you zoom out. The max drawdown of -32.44% is a stark reminder that what goes up can come crashing down, especially when you're riding high on a single market's success.
Projection
Monte Carlo simulations suggest this portfolio could turn into a golden goose with a median projected increase of 1,285.5%. But remember, Monte Carlo is like playing financial fantasy football; it's fun to speculate, but the actual game can go very differently. These simulations assume past performance can predict future glory, which is about as reliable as a weather forecast in a climate crisis. Diversify or risk watching your golden goose get cooked in the next market downturn.
Asset classes
- Stocks 100%
All in on stocks, huh? This portfolio's 100% allocation to equities is like driving with the gas pedal glued to the floor. Sure, you'll get where you're going fast—assuming you don't hit a speed bump. Without any bonds, cash, or alternative investments, your portfolio's shock absorbers are nonexistent. A little market turbulence, and it's going to be a rough ride.
Sectors
- Technology 28%
- Financials 17%
- Consumer Discretionary 13%
- Telecommunications 12%
- Industrials 9%
- Consumer Staples 8%
- Health Care 6%
- Energy 3%
- Utilities 3%
- Real Estate 2%
- Basic Materials 1%
The sector spread here shows a heavy lean towards technology, financial services, and consumer cyclicals, making it clear that this portfolio is chasing high returns in high-growth areas. While that's not inherently bad, it's like betting on the same horse in every race. Sometimes, the underdog—or in this case, underrepresented sectors like utilities or real estate—can surprise you. Don't put all your eggs in one sector basket.
Regions
- North America 100%
100% North America? This portfolio's geographic allocation could use a passport. Investing exclusively in the U.S. market is like refusing to eat any food that's not from your hometown. Sure, it can be comforting, but it's also limiting. The world is full of investment delicacies. Diversifying globally can reduce risk and expose you to growth opportunities beyond the American horizon.
Market capitalization
- Mega-cap 50%
- Large-cap 35%
- Mid-cap 15%
A mega and big cap love story with no room for the little guys. This portfolio's aversion to small and mid-cap stocks is like only watching blockbuster movies and missing out on indie films. Sure, the big names often promise a good show, but smaller companies can offer growth, innovation, and the thrill of discovery. A sprinkle of small-cap spice could add flavor to this mega-sized feast.
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 risk-return trade-off is like a high-speed train running on tracks made of hopes and dreams. It's thrilling until you realize it might not be the most efficient or safest route to your destination. Embracing true diversification could improve your portfolio's efficiency, ensuring a smoother ride across the unpredictable terrain of the financial markets.
Dividends
- Invesco S&P 500® Momentum ETF 0.60%
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 0.90%
A combined dividend yield of 0.90% is not shabby, but it's hardly the portfolio's saving grace. Relying on dividends from a highly concentrated stock portfolio is like expecting a single rain cloud to water your entire garden. It's a start, but you'll need more variety if you want everything to thrive, especially in different market conditions.
Ongoing product costs
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.08%
On a brighter note, the total TER of 0.08% is commendably low, proving that at least you're not overpaying for the privilege of this one-trick pony show. It's like finding a cheap ticket to a concert where only one band plays—great deal, but you might crave more variety halfway through.
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