Strong technology focus with high historic returns and concentrated exposure to a handful of mega cap names
Report created on Jun 2, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 70.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 15.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 15.00%
This portfolio is very simple and very focused: three stock ETFs with a heavy tilt toward technology. About 70% sits in a dedicated tech index fund, while 15% tracks a broad US large‑cap index and 15% tracks global stocks outside the US. That structure keeps things easy to follow and gives clear exposure to a single main growth theme. A concentrated setup like this can amplify both gains and losses compared with more balanced mixes. The strong tech core makes the portfolio’s behaviour especially sensitive to what happens in that part of the market, while the two broader funds provide a supporting layer of diversification without changing the overall growth‑oriented profile.
Growth
One or more local-currency benchmark funds are unavailable for this report.
Historically, performance has been exceptionally strong. A $1,000 investment in 2016 grew to about $7,945, a compound annual growth rate (CAGR) of 23.12%. CAGR is like your average yearly “speed” over the whole journey, smoothing out the bumps. Over the same period, the global market grew around 12.81% a year, so this portfolio outpaced it by roughly 10 percentage points annually. Max drawdown, the largest peak‑to‑trough drop, was about -33.5%, similar to the global market’s worst fall. That means the ride down during tough periods was comparably deep, but the upside in good times was much stronger. As always, past performance shows what happened, not what must happen next.
Projection
The Monte Carlo projection looks at many possible futures based on how the portfolio behaved in the past. Monte Carlo is a simulation technique: it takes historical returns and volatility, shakes them up thousands of different ways, and estimates a range of outcomes. Over 15 years, the median outcome turns $1,000 into about $2,616, with a wide “likely” band from roughly $1,729 to $3,908. There’s also a sizeable tail where results are much higher or lower. Overall, simulations show a 72% chance of ending positive and an average simulated return around 7.73% a year. This highlights that even strong historical performers can face very different future paths, both good and bad.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% in bonds or cash. That’s a pure equity allocation, which typically offers higher long‑term growth potential alongside bigger ups and downs. There’s no built‑in cushion from traditionally steadier assets like bonds, so portfolio value will largely move with the global stock market, especially its growth‑oriented segments. Compared with many “balanced” mixes that blend stocks and bonds, this setup leans clearly toward growth and volatility. For investors who prefer a single risk profile, such simplicity can be easy to understand: when stocks do well, the portfolio benefits strongly; when stocks struggle, there’s nothing here to soften the blow within the asset‑class mix itself.
Sectors
- Technology 77%
- Financials 5%
- Industrials 4%
- Consumer Discretionary 3%
- Telecommunications 3%
- Health Care 2%
- Consumer Staples 1%
- Basic Materials 1%
- Energy 1%
- Utilities 1%
- Real Estate 1%
Sector exposure is heavily tilted toward technology, which makes up about 77% of the equity allocation. The rest is spread thinly across areas like financials, industrials, consumer‑related sectors, telecom, health care, and others, generally in low single‑digit percentages. This is very different from broad global benchmarks, where tech is a large but not overwhelming slice. Tech‑heavy portfolios can benefit strongly from innovation, digital infrastructure, and related themes, but they also tend to be more sensitive to interest rates, regulation, and changes in market sentiment toward growth stocks. The limited weight in more defensive sectors means the portfolio’s day‑to‑day swings will be closely tied to how tech as a whole is doing.
Regions
- North America 86%
- Europe Developed 5%
- Asia Developed 2%
- Asia Emerging 2%
- Japan 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the portfolio is anchored in North America at around 86%, with smaller exposures to developed Europe, Japan, other developed Asia, emerging Asia, Australasia, and Africa/Middle East. Global equity benchmarks usually have a large US share, but not to this extent, so this is a clear US‑centric tilt. That means company performance, regulation, and economic conditions in the US play an outsized role in driving returns. The smaller allocations outside North America do add some geographic diversification and currency variety, but they don’t dominate the picture. If non‑US markets go through a very different cycle than the US, the portfolio will still mostly reflect what’s happening in North American equities.
Market capitalization
- Mega-cap 52%
- Large-cap 27%
- Mid-cap 13%
- Small-cap 6%
- Micro-cap 2%
By market capitalization, over half the portfolio sits in mega‑cap companies, with another chunk in large caps. Mid caps, small caps, and micro caps together form a modest minority. This mirrors the structure of major indices, where the biggest global companies carry the most weight. Large and mega caps are often more diversified businesses with established cash flows, which can sometimes make them more stable than smaller firms, though they still move with the market. The smaller slice in mid and small caps adds some extra growth potential and risk, but not enough to dominate overall behaviour. Overall, market‑cap exposure is quite aligned with mainstream index construction, which supports broad, scalable diversification across company sizes.
True holdings
-
NV NVIDIA Corporation 14.19%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AA Apple Inc 11.33%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 7.75%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 3.70%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 1.83%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
AM Advanced Micro Devices Inc 1.81%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
IN Intel Corporation 1.37%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
CS Cisco Systems Inc 1.16%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
LR Lam Research Corp 1.04%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
AM Applied Materials Inc 1.00%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Top 10 total 45.18%
Looking through the ETFs’ top holdings, a few names drive a lot of the underlying exposure. NVIDIA, Apple, and Microsoft together make up more than 33% of the visible look‑through allocation. Several other big semiconductor and hardware names appear as well. Because the same companies show up in multiple ETFs, there’s hidden concentration: owning three funds doesn’t automatically mean three times the diversification if their top holdings overlap. Note that this overlap is based only on ETF top‑10 positions, so total concentration could be a bit higher. The result is that portfolio behaviour is closely linked to the fortunes of a relatively small group of large technology firms, even though it’s held via broad index products.
Factors
Factor exposure shows mild tilts away from value, yield, and low volatility, with neutral readings for size, momentum, and quality. Factors are like investing “ingredients” that explain why groups of stocks behave a certain way over time. A lower value score suggests more exposure to higher‑priced growth companies rather than cheaper, “on‑sale” stocks. Lower yield and low‑volatility scores reflect a bias toward companies that reinvest more and may swing more in price. Neutral scores in momentum and quality mean the portfolio behaves fairly similar to the market on those fronts, without a strong tilt toward recent winners or especially robust balance sheets. Overall, this points to a growth‑oriented style that prioritizes capital appreciation over defensive characteristics.
Risk contribution
-
Vanguard Information Technology Index Fund ETF Shares
Weight: 70.00% 78.4% -
Vanguard S&P 500 ETF
Weight: 15.00% 11.8% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 15.00% 9.8%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from its simple weight. Here, the tech ETF is 70% of the portfolio but contributes about 78% of total risk, meaning its movements dominate the experience. The US broad market ETF and the international ETF each have 15% weight but contribute only around 12% and 10% of risk respectively. This pattern indicates that, despite owning three funds, the portfolio’s volatility is largely dictated by one holding. When that tech ETF has a strong or weak period, it will heavily shape total performance, while the other two ETFs act as smaller stabilizing influences rather than true risk equalizers.
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 efficient frontier analysis suggests the current mix is already on or very close to the frontier, which is the curve showing the best expected return possible for each risk level using these three holdings. The portfolio’s Sharpe ratio, a measure of risk‑adjusted return that compares excess returns to volatility, is 0.84. The optimal Sharpe portfolio using the same ingredients scores higher at 1.02, with more risk and higher expected return, while the minimum‑variance mix lowers risk but also return. Being on or near the frontier implies the current allocation uses these ETFs in an efficient way: there isn’t an obvious improvement in risk/return available just from reweighting them, given the historical data and risk‑free rate used.
Dividends
- Vanguard Information Technology Index Fund ETF Shares 0.30%
- Vanguard S&P 500 ETF 1.00%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 0.76%
The overall dividend yield is relatively low at about 0.76%, driven by the tech ETF’s 0.30% yield and higher yields from the S&P 500 and international ETFs. Dividend yield measures cash payments as a percentage of price, and lower yields often go hand in hand with growth‑oriented companies that reinvest earnings. That fits the portfolio’s tilt toward technology and away from high‑dividend, defensive stocks. In terms of total return, dividends are only one piece of the puzzle: price growth has been the main historical driver here. Investors relying on regular portfolio income would see limited cash flow from this mix, while those focused on reinvestment see more of the return showing up as price changes rather than payouts.
Ongoing product costs
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.08%
Costs are impressively low. The total expense ratio (TER) across the three ETFs averages around 0.08% per year, thanks to very low fees on each fund. TER is the annual percentage fee charged by the fund manager, quietly deducted from returns. Over long periods, even small differences in costs can compound into meaningful amounts, so starting with sub‑0.10% fees is a strong structural advantage. The portfolio is using widely recognized, low‑cost index vehicles, which helps more of the gross market return reach the investor. This cost profile lines up well with best practices for long‑term investing, where keeping fees minimal is one of the few things firmly within an investor’s control.
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