A focused growth portfolio with 100% allocation to the Vanguard S&P 500 ETF

Report created on Aug 18, 2025

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 entirely invested in the Vanguard S&P 500 ETF, representing a singular focus on the U.S. equity market through large-cap stocks. Such a composition provides exposure to the top 500 companies in the U.S., mirroring the S&P 500 index. While this offers a broad market exposure within the United States, the portfolio lacks diversification across different asset classes and international markets, concentrating risk in one geographic region and market segment.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.33%, with a maximum drawdown of -34.02%. This performance is indicative of the volatility and potential returns associated with investing solely in large-cap U.S. equities. The days contributing to 90% of returns being limited to 34 highlights the market's short-term volatility and the importance of long-term holding to capture gains.

Projection Info

Using Monte Carlo simulations, the forward projection suggests a wide range of outcomes with a 5th percentile at a 133.8% return and a 50th percentile at a 660.5% return. This illustrates the potential for significant growth but also underscores the uncertainty inherent in stock market investments. The simulations, while useful, rely on historical data and cannot predict future market conditions with certainty.

Asset classes Info

  • Stocks
    100%

The portfolio's sole asset class is stocks, specifically within the U.S. equity market. This concentration enhances potential returns but increases vulnerability to market downturns. Diversification across different asset classes, like bonds or real estate, could reduce volatility and provide a more stable return profile over time.

Sectors Info

  • Technology
    33%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    10%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation closely follows the S&P 500 with significant weightings in Technology, Financial Services, and Consumer Cyclicals. This sector distribution reflects the current composition of the U.S. economy but also exposes the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting technology and finance industries.

Regions Info

  • North America
    99%

The geographic allocation is nearly exclusively North American, with 99% of assets. This concentration in a single region can limit exposure to global growth opportunities and increase susceptibility to U.S.-specific economic downturns. Incorporating international equities could enhance diversification and potentially reduce risk.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    35%
  • Mid-cap
    18%
  • Small-cap
    1%

The market capitalization breakdown shows a heavy emphasis on Mega and Big cap stocks, which are typically considered less volatile than smaller companies. However, this focus can limit exposure to the higher growth potential of mid and small-cap stocks.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.20%

The dividend yield of 1.20% contributes to the portfolio's total return, providing a steady income stream. However, the focus on growth means dividends are a smaller portion of returns compared to capital appreciation. Investors prioritizing income might seek higher dividend-yielding investments.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.03%

The total expense ratio (TER) of 0.03% is impressively low, minimizing the impact of fees on returns. This cost efficiency is a significant advantage for long-term growth, as lower costs directly translate to higher net returns for investors.

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