A one-trick pony betting it all on the S&P 500 express train
Report created on Apr 29, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 100.00%
Let's start by addressing the elephant in the room: your portfolio has the diversity of a monochrome rainbow. It's as if you walked into the vast candy store of investment options and walked out with a single flavor of gum. While the Vanguard S&P 500 ETF is a solid choice for exposure to the U.S. stock market's top performers, putting all your eggs in one basket is like riding a unicycle on a tightrope. It's thrilling until it's not.
Growth
Historically, your portfolio's been riding the high wave with a Compound Annual Growth Rate (CAGR) of 13.11%. Not too shabby, considering it's managed to surf through the economic tsunamis with a maximum drawdown of -33.98%. But remember, past performance is like an ex's promise to change—it's not a guarantee of future results. Those 26 days contributing to 90% of your returns? That's like winning the lottery on your first ticket; don't count on lightning striking twice.
Projection
The Monte Carlo simulation, essentially a financial fortune-teller, suggests a wide range of outcomes from your current strategy. The possibility of ending up with only 70.3% of your initial investment in the worst-case scenario should be a wake-up call. Yes, the median outcome looks rosier, but betting everything on the 50th percentile is like expecting to hit every green light on your way home—it's optimistic, at best.
Asset classes
- Stocks 100%
As for asset classes, you've chosen to ride solo with stocks, ignoring the potential harmony of having bonds or real estate in your band. This lack of diversification amplifies your portfolio's volatility. When the stock market sneezes, your portfolio catches a cold. It's time to consider adding some tissues and vitamins to your investment medicine cabinet.
Sectors
- Technology 31%
- Financials 14%
- Health Care 11%
- Consumer Discretionary 10%
- Telecommunications 9%
- Industrials 7%
- Consumer Staples 6%
- Energy 4%
- Utilities 3%
- Real Estate 2%
- Basic Materials 2%
Your sector allocation mirrors the S&P 500, with a heavy tilt towards technology and financial services. While tech has been the belle of the ball, remember that even Cinderella had to leave the party at midnight. A more balanced sector approach might not make your portfolio the life of the party, but it won't leave it stranded when the music stops, either.
Regions
- North America 99%
Geographically, your portfolio is like a homebody who refuses to travel beyond their backyard. With 99% in North America, you're missing out on the global party. Emerging markets and developed countries outside the U.S. could spice up your investment life without needing a passport.
Market capitalization
- Mega-cap 47%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
Your market cap allocation shows a preference for the big boys on the block, with a heavy emphasis on mega and big caps. While they're the steady Eddies of the market, completely ignoring the small caps is like never trying that hole-in-the-wall restaurant that could become your new favorite.
Dividends
- Vanguard S&P 500 ETF 1.40%
- Weighted yield (per year) 1.40%
The dividend yield from your Vanguard S&P 500 ETF sits at a modest 1.40%. It's like a slow drip coffee machine in a world of espresso lovers—steady but unlikely to give you a quick boost. Diversifying into higher-yielding assets could provide a more robust income stream without needing to constantly refill the pot.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
Congratulations on keeping your costs low with a Total Expense Ratio (TER) of 0.03%. It's one of the few areas where being cheap pays off. This frugality in management expenses is commendable, akin to finding a designer outfit at thrift store prices.
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