Concentrated quality and value focused US equity portfolio with strong historic returns and modest income
Report created on May 31, 2024Risk profile
4/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 34.97% -
XO Exxon Mobil Corp
XOM - US30231G1022 22.14% -
BR Berkshire Hathaway Inc
BRK-B - US0846707026 21.20% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 9.80% -
AA Apple Inc
AAPL - US0378331005 8.73% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 3.17%
The portfolio is very focused: six positions, all in equities, with three names dominating the picture. A broad US ETF holds about a third, while Exxon and Berkshire together are over 40%, and a tech tilt comes from a Nasdaq ETF, Apple, and a semiconductor ETF. This structure mixes broad market exposure with large single‑stock bets and a growth‑oriented sleeve. That combination can drive strong returns but also makes outcomes heavily dependent on a few companies and one country. A key takeaway is that this is not a “set and forget” ultra‑diversified mix; it behaves more like a concentrated stock picker’s portfolio wrapped partly in ETFs.
Growth
Historically, performance has been exceptional: a $1,000 stake grew to about $3,058, with a compound annual growth rate (CAGR) of 22.83%. CAGR is like your average yearly “speed” over the whole trip. This far exceeds both the US and global markets, which sat near 13% and 11%. Notably, the maximum drawdown—your worst peak‑to‑bottom drop—was only about -14.5%, milder than the benchmarks. That’s a very strong risk‑return profile. Still, this period includes a powerful run in US large caps, energy, and mega‑cap tech, so it may not repeat. Past returns are helpful context, but they’re not a guarantee.
Asset classes
- Stocks 100%
All assets are in one bucket: equities. That makes the portfolio simple and growth‑oriented, but it also means no structural ballast from bonds, cash, or alternatives. Asset classes tend to react differently to economic shocks; for example, high‑quality bonds often soften the blow when stocks sell off. Being 100% in stocks is common for investors with long horizons and high tolerance for ups and downs, but it does mean that large equity drawdowns will fully flow through. A general takeaway is that anyone wanting smoother rides might eventually consider mixing in other asset types, even if only modestly.
Sectors
- Technology 28%
- Financials 25%
- Energy 23%
- Telecommunications 5%
- Consumer Discretionary 5%
- Health Care 4%
- Industrials 3%
- Consumer Staples 3%
- Utilities 1%
- Basic Materials 1%
- Real Estate 1%
Sector exposure is tilted toward technology, financials, and energy, with tech around 28%, financials 25%, and energy 23%. That’s far more concentrated than broad market norms, where any single sector rarely approaches a quarter of the portfolio. Energy exposure in particular is much higher than in typical global indices and can be sensitive to commodity cycles and policy shifts. Tech and semiconductor exposure can benefit from innovation trends but often swings more when interest rates or growth expectations change. The mix is not sector‑balanced; it’s a deliberate lean into a few themes. That can pay off strongly but will likely produce more pronounced booms and lulls.
Regions
- North America 99%
- Europe Developed 1%
Geographically, the mix is overwhelmingly tied to North America at 99%, with only a token slice elsewhere. This aligns closely with a “home country” bias many US investors have and matches the recent dominance of US equities in performance tables. The upside is familiarity and exposure to deep, liquid markets with many global champions. The trade‑off is vulnerability if US markets underperform other regions or if domestic policy or currency conditions shift unfavourably. A more globally spread approach usually dampens country‑specific risk, but it can lag when one region, like the US recently, is carrying the show.
Market capitalization
- Mega-cap 75%
- Large-cap 17%
- Mid-cap 8%
Market‑cap exposure is dominated by mega‑caps at 75%, with the remainder mainly large caps and a small mid‑cap slice. This is in line with major indices but takes it a step further due to the direct holdings in very large global names. Mega‑caps often bring stability, strong balance sheets, and high liquidity, which can soften some volatility compared to smaller companies. On the flip side, they may offer less explosive growth than smaller firms and can be more sensitive to broad macro narratives. The portfolio behaves more like a “blue‑chip plus a bit of tech turbo” mix than a barbell across all company sizes.
True holdings
-
-
Part of fund(s):
- Vanguard S&P 500 ETF
-
Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
NV NVIDIA Corporation 4.01%
Part of fund(s):- Invesco NASDAQ 100 ETF
- VanEck Semiconductor ETF
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.29%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.66%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.45%
Part of fund(s):- Invesco NASDAQ 100 ETF
- VanEck Semiconductor ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.42%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.19%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.18%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
- Top 10 total 68.85%
Looking through the ETFs, a few giants appear multiple times. Apple shows up both directly and via funds, lifting its real exposure close to 12%, while Berkshire also appears in small size inside the ETFs. Nvidia, Microsoft, Amazon, Alphabet, and Meta all add to a familiar mega‑cap growth core via index holdings. Overlap like this creates “hidden” concentration, because a market ETF plus single stocks can amplify exposure to the same companies. Since only top‑10 ETF holdings are used, the true overlap is likely a bit higher. The main point: what looks like six positions is effectively a tight group of big US brands and a small number of key return drivers.
Factors
Factor exposure shows a clear tilt toward value at 63%, meaning the holdings lean more toward companies priced relatively cheaply versus fundamentals compared with the wider market. Factor exposure is like measuring how much the portfolio leans into specific characteristics that research has linked to returns. A value tilt can help when markets rotate away from expensive growth stocks or when interest rates are higher. The other factors—size, momentum, quality, yield, and low volatility—are clustered near neutral, suggesting market‑like behavior there. Overall, this creates a blend where much of the differentiation versus broad indexes comes from the value angle plus stock‑specific choices.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 34.97% 32.4% -
Exxon Mobil Corp
Weight: 22.14% 24.9% -
Berkshire Hathaway Inc
Weight: 21.20% 16.9% -
Invesco NASDAQ 100 ETF
Weight: 9.80% 10.6% -
Apple Inc
Weight: 8.73% 10.5% - Top 5 risk contribution 95.3%
Risk contribution shows how much each position drives the overall volatility, which can differ from simple weights. Here, the top three positions—broad US equities, Exxon, and Berkshire—make up about 78% of the portfolio but over 74% of total risk. Exxon and Apple both punch slightly above their weight in risk terms, while Berkshire contributes less risk than its size might suggest, reflecting its diversified, relatively resilient profile. When a few holdings dominate risk, portfolio outcomes hinge heavily on their fortunes. Adjusting position sizes or pairing them with diversifying exposures is one way to bring each holding’s risk closer to what its weight implies.
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.
On the risk‑return chart, the current portfolio sits below the efficient frontier, with a Sharpe ratio of 1.14 versus 1.49 for the optimal mix using only existing holdings. The efficient frontier represents the best possible trade‑off between risk and return for different weightings. Being about 1.77 percentage points below the frontier at the same risk level means there’s room to improve results simply by rebalancing the current positions, not by adding new ones. The minimum‑variance mix offers slightly lower risk but also lower expected return. Overall, the allocation is good but not maximally efficient; modest tweaks in weights could enhance risk‑adjusted outcomes.
Dividends
- Apple Inc 0.40%
- Invesco NASDAQ 100 ETF 0.50%
- VanEck Semiconductor ETF 0.30%
- Vanguard S&P 500 ETF 1.20%
- Exxon Mobil Corp 2.40%
- Weighted yield (per year) 1.04%
The portfolio’s overall dividend yield of about 1.04% is modest. Yield is the cash income from dividends relative to the portfolio’s value, and here it’s driven mainly by Exxon and the broad US ETF, while the growth‑heavy tech sleeve contributes little income. This setup leans more toward capital appreciation than steady cash flow. For investors still in the accumulation phase, that can be perfectly fine, as total return matters more than income alone. For someone eventually seeking regular payouts, this level of yield might feel light and could later be supplemented with higher‑income holdings or a structured withdrawal plan.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- VanEck Semiconductor ETF 0.35%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.04%
Costs are impressively low, with a total expense ratio (TER) around 0.04% from the ETF portion. TER is the annual fee charged by funds; keeping it low means more of each year’s return stays in your pocket instead of going to managers. The bulk of the portfolio is in individual stocks, which carry no ongoing management fee, further containing costs. This is a real strength: over long periods, even tiny fee differences can translate into meaningful dollar amounts. From a cost perspective, this setup is already highly efficient and aligns very well with best practices for long‑term investing.
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