Single fund core equity portfolio with strong US focus and broad large company diversification
Report created on May 4, 2024Risk profile
4/7
Diversification profile
2/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 100.00%
The portfolio is as simple as it gets: 100% in a single broad US equity ETF tracking a major large‑cap index. This means every dollar is fully exposed to the stock market with no bonds, cash substitutes, or alternative assets. Simplicity like this is powerful because it’s easy to understand, easy to maintain, and avoids accidental tilts from mixing many different funds. The tradeoff is that all risk is tied to one market and one asset class. For someone using this as a core holding, any extra stability would need to come from accounts or holdings outside this portfolio rather than from internal diversification.
Growth
Over the last decade, $1,000 grew to about $3,661, which is a 13.89% compound annual growth rate (CAGR). CAGR is like the average speed of a car over a long trip, smoothing out all the bumps. This slightly beat the US market proxy and clearly outpaced the global market, showing that sticking with this index has been rewarded. The worst peak‑to‑trough drop was about ‑34%, which is sharp but typical for pure equities. That level of drawdown shows that, while long‑term results were strong, short‑term swings can be uncomfortable and need emotional preparedness.
Asset classes
- Stocks 100%
All exposure is in stocks, with no bonds, cash, or other asset classes. Equities historically offer higher long‑term returns but also larger and more frequent drawdowns. Many “balanced” portfolios mix in bonds or cash to dampen volatility and smooth the ride, especially for shorter time horizons or lower risk tolerance. The current structure is more like an all‑equity growth engine. That works best when the investor has a long horizon, steady income from elsewhere, and the ability to ignore or tolerate downturns without needing to sell during stressful periods when prices are temporarily depressed.
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 broadly diversified but clearly tilted toward technology, which is roughly a third of the equity slice. Financials, telecom, consumer areas, health care, and industrials are all meaningfully represented, giving a good cross‑section of the economy. This sector mix looks quite similar to common large‑cap US benchmarks, which is a strong indicator of healthy diversification within the equity bucket. The tech tilt can boost growth in innovation‑driven markets but also adds sensitivity to things like interest‑rate changes or regulatory headlines. Investors using this as a core may want to be aware that big swings in leading tech names will noticeably move portfolio value.
Regions
- North America 99%
Geographic exposure is overwhelmingly in North America, close to 99%, with very little direct participation in other regions. This aligns closely with US‑only benchmarks and keeps things simple and familiar, which many investors appreciate. Historically, US markets have performed well, so this focus has been beneficial, as reflected in the outperformance versus global benchmarks. The tradeoff is less diversification against country‑specific risks, like policy shifts or prolonged periods when one market lags others. Some investors prefer adding a separate global or international slice elsewhere in their overall finances to balance that home‑country concentration while keeping this core intact.
Market capitalization
- Mega-cap 46%
- Large-cap 35%
- Mid-cap 18%
- Small-cap 1%
Market capitalization exposure skews strongly toward mega‑ and large‑cap companies, with almost none in small caps. That means the portfolio leans into more established businesses with deep resources, stable market positions, and high liquidity. This tends to reduce some of the extreme volatility seen in tiny companies, while still allowing for meaningful growth. On the flip side, it may miss some of the explosive upside (and downside) that smaller firms can offer. Compared with a total‑market approach, this is a bit more “blue‑chip” oriented, which can fit well for investors who want equity growth but prefer avoiding the more speculative end of the spectrum.
True holdings
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NV NVIDIA Corporation 7.32%
Part of fund(s):- Vanguard S&P 500 ETF
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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
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AM Amazon.com Inc 3.47%
Part of fund(s):- Vanguard S&P 500 ETF
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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
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GO Alphabet Inc Class C 2.46%
Part of fund(s):- Vanguard S&P 500 ETF
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ME Meta Platforms Inc. 2.40%
Part of fund(s):- Vanguard S&P 500 ETF
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TS Tesla Inc 1.92%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
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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, exposure is heavily tilted toward a handful of mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet. These companies appear only through the ETF, but together they already account for a meaningful slice of the portfolio. Because only the top 10 are shown, actual concentration is somewhat broader than this list suggests, but the pattern is clear: a small group of giants drives a lot of performance. This is common in broad indices and not inherently a problem, but it means portfolio behavior will be strongly influenced by how these few leaders perform, especially in tech‑driven cycles.
Factors
Factor exposures are essentially neutral across value, momentum, quality, yield, and low volatility, with a mild tilt away from small size consistent with the large‑cap focus. Factor exposure is like looking at the portfolio’s underlying “personality traits” — whether it favors cheap, fast‑rising, stable, or high‑dividend stocks. Here, the traits are very close to market average, meaning behavior should broadly track the overall large‑cap index without big style bets. That’s helpful for someone who wants straightforward, benchmark‑like performance rather than trying to outsmart the market with complex factor tilts that can go through long periods of underperformance or outperformance.
Risk contribution
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Vanguard S&P 500 ETF
Weight: 100.00% 100.0%
Because there is only one holding, that ETF contributes 100% of the portfolio’s risk and return. Risk contribution measures how much each position drives the overall ups and downs, which can differ from its simple weight when there are many holdings. In this setup, there’s no internal risk balancing between different funds or asset types. That makes portfolio behavior very transparent: if the broad US market rises or falls, the entire portfolio moves with it. Any effort to fine‑tune risk — for example, adding stability or income — would necessarily involve introducing new holdings outside this single‑fund structure.
Dividends
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 1.20%
The dividend yield sits around 1.20%, which is modest but solid for a large‑cap growth‑oriented equity index. Dividends are cash payments companies send to shareholders and form an important part of total return, especially over long periods as they’re reinvested. In this case, most of the portfolio’s growth is expected to come from price appreciation rather than income. That’s often fine for accumulators who are still working and reinvesting, but it’s less ideal for someone needing high current cash flow. Over decades, even a 1–2% yield can compound nicely when reinvested automatically back into the same ETF.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
The total expense ratio (TER) of 0.03% is impressively low and one of the big strengths here. TER is the annual fee charged by the ETF provider, taken quietly out of fund assets. Keeping costs this low is like removing friction from an engine — more of the market’s raw return reaches the investor. Versus typical active funds charging 0.5–1% or more, the difference can compound significantly over decades. This cost profile strongly supports better long‑term performance and is very well aligned with best practices for building a simple, efficient core holding focused on broad market exposure.
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