Highly concentrated low cost us equity portfolio tilted to growth with limited global diversification

Report created on Mar 16, 2026

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is extremely simple: two broad equity ETFs hold 100% of the assets, with a roughly two‑thirds to one‑third split between a total market fund and a large‑cap fund. Because both funds track very similar parts of the same market, the combined mix closely resembles a broad US stock index, with only minor differences from holding a single fund. Structure like this is easy to manage and understand, which is a real strength. Since the holdings are highly overlapping, the main lever available is the overall stock percentage, not security selection. Anyone wanting more balance could adjust the stock‑to‑non‑stock mix rather than adding more duplicate equity funds.

Growth Info

Historically, this setup has delivered a strong compound annual growth rate (CAGR) of about 14.9%. CAGR is like your “average speed” over a long road trip, smoothing out the bumps along the way. A $10,000 starting amount would have grown very meaningfully over time, easily outpacing inflation and cash returns. The flip side is a maximum drawdown around ‑35%, meaning the portfolio once fell about a third from a previous peak. That level of drop is typical for growth‑oriented stock portfolios and can feel painful in real time. It’s important to remember that past performance only shows how this mix handled previous markets and cannot guarantee similar future outcomes.

Projection Info

The Monte Carlo analysis uses historical returns and volatility to randomly simulate many possible future paths, like rolling dice 1,000 times for your portfolio. The median scenario ends at about 567% of the starting value, while even the pessimistic 5th percentile still shows a gain of roughly 116%. An overall simulated annual return near 16% looks attractive but is likely boosted by a strong recent period for US stocks. These projections are helpful for framing ranges of outcomes, not promises. Future markets can be very different, especially if starting valuations or interest rates change. Treat the optimistic paths as “what could happen” rather than “what will happen” and plan for a wide range of possibilities.

Asset classes Info

  • Stocks
    99%

Asset‑class exposure is almost entirely equity, with roughly 99% in stocks and essentially nothing in bonds or cash. This is textbook “growth” behavior: high potential returns but fully exposed to market swings. Compared with a typical benchmark for a general investor, which often includes some bonds or defensive assets, this mix is far more aggressive. That aligns well with long time horizons and strong ability to ride out volatility, but it can be uncomfortable during big downturns or job uncertainty. Anyone wanting more stability over the short to medium term could gradually add a modest non‑equity sleeve, using it as a shock absorber without completely sacrificing growth potential.

Sectors Info

  • Technology
    33%
  • Financials
    13%
  • Telecommunications
    11%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector exposure shows a clear tilt: technology is about a third of the portfolio, with financials, communication services, consumer cyclicals, healthcare, and industrials making up most of the rest. This pattern matches major US market benchmarks reasonably well, which is a strong indicator of broad diversification within that market. The high technology and growth exposure helps when innovation and low interest rates drive markets, but it can hurt more when rates rise or sentiment shifts against high‑growth names. Since there are at least small weights in every major sector, this is not a one‑way bet on tech, yet the portfolio’s mood will still track how big tech and growth stories evolve.

Regions Info

  • North America
    100%

Geographic exposure is almost pure North America, effectively 100% US. That lines up with many domestic investors’ natural home‑country bias and has been rewarding over the past decade as US companies outperformed many peers elsewhere. The trade‑off is that returns are tightly tied to one economy, one currency, and one policy environment. In periods when other regions lead, this kind of portfolio can lag more globally diversified mixes. Currency risk is low for a US‑based investor spending in dollars, which is a benefit. Anyone wanting more resilience across different economic cycles could explore adding a modest share of international developed and emerging market stocks over time.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    32%
  • Mid-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    2%

By market capitalization, the portfolio is heavily skewed toward mega and large companies, with smaller weights in mid, small, and micro caps. This profile tracks US cap‑weighted benchmarks closely, which is reassuring from a diversification and liquidity standpoint. Large companies often offer more stability, established businesses, and better information flow, while smaller ones can provide higher long‑term growth but bumpier rides. The current spread still includes some smaller firms, which is healthy, but they do not dominate overall behavior. Anyone seeking a stronger small‑company tilt could slightly increase exposure to dedicated smaller‑cap segments, accepting that this usually means more volatility and longer patience requirements.

True holdings Info

  • NVIDIA Corporation
    7.00%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Apple Inc
    5.97%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Microsoft Corporation
    4.99%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Amazon.com Inc
    3.60%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class A
    3.07%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Broadcom Inc
    2.44%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class C
    2.44%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Meta Platforms Inc.
    2.43%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Tesla Inc
    1.89%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Berkshire Hathaway Inc
    1.35%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Top 10 total 35.18%

Looking through the ETFs, the top underlying exposures are heavily skewed to a small group of mega‑cap growth names, especially large technology and communication companies. With around 7% in one stock and 4–6% in several others, portfolio behavior is meaningfully influenced by how these big names perform. Because only the top 10 holdings per ETF are used, the actual overlap and diversification are better than they look on the surface, but concentration in market leaders is still clear. For someone comfortable with modern index design, this is normal and not inherently a problem. Those wanting less reliance on a handful of companies might consider slightly reducing exposure to cap‑weighted funds.

Risk contribution Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Weight: 68.00%
    68.4%
  • Vanguard S&P 500 ETF
    Weight: 32.00%
    31.6%

Risk contribution — how much each holding adds to the portfolio’s overall ups and downs — lines up almost exactly with weights: about 68% from the total market fund and 32% from the large‑cap fund. This one‑to‑one relationship, with a risk‑to‑weight ratio near 1.0 for both, is very typical of two broad, similar ETFs. It also confirms that no single position is secretly dominating risk beyond its size. The main “concentration” is actually at the asset‑class and geography level, not at the fund level. Anyone wanting to reshape risk would need to change the mix between stocks and other asset types, or between US and non‑US exposure, rather than just tweaking these two tickers.

Redundant positions Info

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

The two ETFs are highly correlated, meaning they tend to move almost in lockstep. Correlation measures how often assets go up and down together; when it’s close to 1, they offer very little diversification from each other. Here, that’s expected, because both funds track similar US equity universes. This alignment is not dangerous by itself, but it does mean that owning both is more about fine‑tuning exposure than truly diversifying risk. To gain meaningful diversification benefits, the mix would need assets whose returns behave differently in stressful periods, such as non‑stock investments or equities from other regions with distinct economic drivers.

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.

Efficient Frontier analysis looks at the best possible trade‑off between risk and return using just the current building blocks. “Efficient” here means getting the highest expected return for a given level of volatility, not necessarily maximizing diversification or changing asset types. The results suggest a slightly more efficient mix could deliver an expected return around 15.1% at a similar risk level, which is marginally higher than the current setup. Because the two funds are so similar, the improvement is small. Much bigger efficiency gains would come from diversifying across different asset classes or regions, not simply re‑weighting these two highly correlated US equity funds.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Weighted yield (per year) 1.13%

The portfolio’s dividend yield is about 1.1%, in line with a growth‑oriented US equity market. Dividends are the cash payouts companies make to shareholders, and they form an important part of long‑term stock returns, even when they look small year to year. For investors focused on total return rather than immediate income, this modest yield is perfectly acceptable and typical of broad US indexes today. Those wanting higher regular cash flow might look toward more income‑focused strategies, but that usually means sacrificing some growth exposure. Reinvesting these dividends automatically can quietly boost compounding, especially over multi‑decade horizons.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.03%

Costs are impressively low at around 0.03% total expense ratio (TER). TER is the annual fee charged by funds, a bit like a management toll taken from your assets each year. Keeping this number tiny is one of the easiest ways to support better long‑term results, since every dollar not spent on fees stays invested and compounds. This cost level compares very favorably with active funds or more complex products and aligns strongly with best practices in long‑term investing. There is little to improve here; the fee structure already supports efficient, low‑drag compounding over time.

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