Strong US growth portfolio with broad market funds low costs and a modest mega cap tilt
Report created on May 10, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 10.00% -
MS Microsoft Corporation
MSFT - US5949181045 5.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 5.00%
This portfolio is very straightforward: it holds four positions, all in equities. Around 80% sits in a broad US large‑cap index fund, 10% in a total international stock ETF, 5% in Microsoft as a single stock, and 5% in a US momentum ETF. So most of the portfolio behaves like the US stock market, with a smaller slice adding global exposure and a small tilt toward a specific company and a momentum style. This kind of simple, core‑plus structure makes it easier to understand what drives returns day to day. At the same time, the heavy reliance on one main fund means overall behavior is dominated by that core holding.
Growth
From 2016 to early 2026, $1,000 in this portfolio grew to about $4,415, which is a strong result. The compound annual growth rate (CAGR) was 18.16%, meaning, on average, it grew like an investment earning just over 18% per year. That slightly beat the US market benchmark and clearly outpaced the global market benchmark. The maximum drawdown, or worst peak‑to‑trough drop, was about –33%, very similar to the US market’s fall during early 2020. Only 37 trading days made up 90% of returns, showing that a relatively small number of very strong days had a big impact, which is common in equity‑heavy portfolios.
Projection
The Monte Carlo projection uses the portfolio’s historical behavior to simulate many possible 15‑year futures. It ran 1,000 scenarios and looked at where a $1,000 starting amount ended up under different return paths. The median outcome is around $2,746, with a broad “likely” range from about $1,808 to $4,255, and a very wide possible range from roughly $1,028 to $8,419. Monte Carlo is like rolling the dice thousands of times using past volatility as a guide. It shows that outcomes vary a lot even when the average annualized simulated return is 8.23%. As always, this is just a model: real markets can behave differently from history.
Asset classes
- Stocks 100%
All of the portfolio is in stocks, with no bonds, cash, or alternative assets. That makes the asset‑class mix very growth‑oriented and tightly tied to equity market ups and downs. Stocks have historically delivered higher long‑term returns than bonds or cash, but with bigger and more frequent swings in value along the way. Because there’s no stabilizing asset class here, the portfolio is likely to feel both rallies and selloffs more intensely. The presence of broad index funds helps spread that equity risk across many companies, but it doesn’t change the basic fact that this is a 100% equity structure with limited cushioning in market downturns.
Sectors
- Technology 36%
- Financials 12%
- Telecommunications 9%
- Industrials 9%
- Consumer Discretionary 9%
- Health Care 9%
- Consumer Staples 5%
- Energy 4%
- Utilities 2%
- Basic Materials 2%
- Real Estate 2%
Sector exposure is clearly tilted toward technology at about 36%, with financials the next largest at 12%, and the remainder spread across industries like telecommunications, industrials, consumer groups, health care, energy, utilities, materials, and real estate. This kind of tech‑heavy profile is broadly aligned with major US indices today, where technology and related areas make up a large share. That alignment is helpful for diversification because it mirrors the modern economy’s composition. However, it also means the portfolio will be sensitive to sentiment around growth and innovation, and tech‑specific shocks or regulation could influence returns more than in a more evenly spread sector mix.
Regions
- North America 90%
- Europe Developed 4%
- Japan 2%
- Asia Emerging 1%
- Asia Developed 1%
Geographically, the portfolio is overwhelmingly focused on North America, with about 90% allocated there. The remaining 10% is distributed thinly across developed Europe, Japan, and small slices of developed and emerging Asia. Compared with common global benchmarks, which usually have a much larger non‑US share, this is a clear home‑country tilt. That’s very common for US‑based investors and has worked well over the last decade, as US markets outperformed many other regions. The trade‑off is that economic, political, or currency issues specific to North America will have an outsized impact, while positive developments elsewhere in the world are represented only modestly in the portfolio’s behavior.
Market capitalization
- Mega-cap 48%
- Large-cap 34%
- Mid-cap 17%
- Small-cap 1%
By market capitalization, nearly half the portfolio sits in mega‑cap companies, with another third in large caps, leaving under one‑fifth in mid‑caps and only 1% in small caps. That means most exposure is to very large, established businesses that tend to be more liquid and often more closely followed by analysts. This structure closely resembles major broad‑market indices, which are also dominated by the largest firms. It can provide some stability relative to a small‑cap‑heavy mix, as mega caps often move less extremely than tiny companies, but it also reduces the influence of smaller, potentially faster‑growing businesses on overall portfolio performance.
True holdings
-
Part of fund(s):
- Vanguard S&P 500 ETF
-
NV NVIDIA Corporation 6.52%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
AA Apple Inc 5.33%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.91%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.66%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.47%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.14%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.79%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.50%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.26%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 35.52%
Looking through the ETFs’ top holdings, Microsoft stands out with a total exposure of about 8.94%, combining the direct 5% position and roughly 3.94% via funds. Other big underlying names include NVIDIA, Apple, Amazon, the two Alphabet share classes, Broadcom, Meta, Tesla, and Berkshire Hathaway. Several of these appear in multiple ETFs, which creates some hidden concentration even though the portfolio holds only four securities. Because only ETF top‑10 holdings are captured, actual overlap is likely understated. This clustering in a handful of large growth‑oriented names is a major driver of results, both on the upside during tech‑led rallies and on the downside if sentiment turns.
Factors
Factor exposure here is broadly balanced. All six measured factors — value, size, momentum, quality, yield, and low volatility — sit in the “neutral” range, close to the market average of 50%. Factor investing looks at characteristics that research has linked to returns, like cheaper valuations (value) or recent strong performance (momentum). A neutral profile means this portfolio doesn’t lean strongly toward or away from any of these traits; it behaves much like a broad market basket. Even with a dedicated momentum ETF, the huge weight in the plain S&P 500 fund keeps the overall factor mix anchored, which tends to produce more benchmark‑like behavior across different environments.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 80.00% 80.4% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 10.00% 8.3% -
Microsoft Corporation
Weight: 5.00% 6.2% -
Invesco S&P 500® Momentum ETF
Weight: 5.00% 5.2%
Risk contribution shows how much each holding drives overall volatility, which can differ from simple weights. Here, the S&P 500 ETF is 80% of the portfolio and contributes about 80% of the risk, very closely aligned. The international fund at 10% weight adds only about 8.3% of risk, slightly dampening volatility relative to its size. Microsoft’s 5% weight contributes roughly 6.2% of risk, reflecting its individual stock volatility and concentration effect. The momentum ETF tracks its weight closely. Altogether, the top three holdings drive almost 95% of total risk, underscoring that the portfolio’s behavior is largely shaped by the US core plus the Microsoft position.
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 risk‑return chart shows this portfolio sitting on or very close to the efficient frontier. The efficient frontier represents the best possible trade‑offs between risk (volatility) and expected return using just the current holdings in different weightings. The current Sharpe ratio — a measure of return per unit of risk — is 0.75, while the maximum Sharpe among all combinations of these assets is 1.07, and the minimum‑risk mix has a Sharpe of 0.73. Being on the frontier means that, for this level of volatility, the portfolio’s expected return is already efficient, and any big improvement in risk‑adjusted performance would require changing the underlying building blocks, not just reshuffling them.
Dividends
- Microsoft Corporation 0.80%
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.22%
The overall dividend yield is about 1.22%, with the highest individual yield coming from the international ETF at 2.70%. The core S&P 500 ETF yields around 1.10%, while Microsoft and the momentum ETF both yield under 1%. That means most of the portfolio’s return historically has come from price changes rather than cash income. For an equity‑heavy, growth‑focused mix, this is very typical. Dividends still matter, because even a 1–2% yield can contribute meaningfully over time when reinvested, but in this setup they are more of a supporting player than the main driver. The yield level also reflects the portfolio’s tilt toward large growth‑oriented companies.
Ongoing product costs
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
Costs are impressively low. The weighted total expense ratio (TER) is about 0.04% per year, thanks to the heavy use of low‑fee index funds and a small allocation to a modest‑cost momentum ETF. TER is the ongoing fee charged by funds, taken out before returns are reported, so lower fees leave more of the gross return in the investor’s pocket. Over long periods, even small fee differences compound significantly, so being near rock‑bottom on costs is a real structural advantage. This cost profile is well‑aligned with best practices for diversified, index‑driven portfolios and supports better long‑term performance potential compared with more expensive fund lineups.
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