A focused growth portfolio exclusively invested in the Vanguard S&P 500 ETF with high sector concentration

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor seeking growth with a moderate to high risk tolerance and a long-term investment horizon. It is designed for individuals comfortable with market fluctuations and who believe in the continued growth of large U.S. companies. The investor should be willing to accept periods of high volatility and significant drawdowns, relying on the historical resilience and growth potential of the U.S. stock market for eventual recovery and gains.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    100.00%

This portfolio is entirely allocated to the Vanguard S&P 500 ETF, reflecting a singular focus on U.S. large-cap equities. Such concentration in one asset class and geographic region, while simplifying the investment strategy, significantly limits diversification. This approach aligns with a growth profile but carries the inherent risks of market fluctuations impacting the entire portfolio. The absence of international and alternative asset classes exposes the portfolio to systemic risks associated with the U.S. market.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.36%, with a maximum drawdown of -33.99%. These figures suggest robust growth but also highlight periods of significant value decline. The days contributing to 90% of returns being limited to 31 indicates that a few high-performing days largely drive the portfolio's performance. This volatility underscores the importance of a long-term investment horizon to weather market downturns and capitalize on the growth potential of U.S. equities.

Projection Info

Monte Carlo simulations, projecting future performance based on historical data, indicate a wide range of outcomes with a median increase of 505.2% in portfolio value. While 994 out of 1,000 simulations resulted in positive returns, this method relies on past trends, which may not predict future movements accurately. Such projections are useful for understanding potential volatility and assessing risk tolerance but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%

The portfolio's exclusive investment in stocks, specifically within the S&P 500, provides exposure to the top U.S. companies across various sectors. However, the absence of other asset classes such as bonds, real estate, or international equities limits the portfolio's ability to mitigate risk through diversification. Incorporating different asset classes could reduce volatility and provide more stable returns over time, especially in fluctuating markets.

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%

The sector allocation heavily favors technology, financial services, and consumer cyclicals, which have historically driven the S&P 500's growth. While this sector concentration may capitalize on growth trends, it also increases susceptibility to sector-specific downturns. Diversifying across a broader range of sectors or including sectors with defensive characteristics could provide a buffer during market corrections.

Regions Info

  • North America
    99%
  • Europe Developed
    0%
  • Asia Developed
    0%

With 99% of assets in North America, the portfolio's geographic exposure is highly concentrated. This focus on the U.S. market has likely contributed to its historical performance but also ties the portfolio's fortunes closely to the economic and political climate of a single region. Expanding geographic diversification could reduce risk and tap into growth opportunities in developed and emerging markets outside the U.S.

Market capitalization Info

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

The portfolio's emphasis on mega and big-cap stocks is consistent with its investment in the S&P 500 ETF, providing stability and reducing volatility compared to portfolios with higher allocations to medium and small-cap stocks. This composition leverages the growth potential and resilience of large companies but may miss out on the higher growth rates sometimes offered by smaller companies.

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 in addition to potential capital gains. While not the primary focus of a growth-oriented portfolio, dividends offer a form of return that can be particularly valuable during periods of market stagnation or decline.

Ongoing product costs Info

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

The low total expense ratio (TER) of 0.03% is a significant advantage, ensuring that investment costs do not erode returns significantly. This efficiency is crucial for long-term growth, as even small differences in costs can have a substantial impact on net returns over time.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.