S&P 500 Index Portfolio

Pure exposure to the 500 largest US companies.

Allocation Breakdown

1 Assets
S&P 500 Index

Target Allocation

Asset Class Weight Example Ticker
S&P 500 Index
100% VOO

Risk Level

High

Rebalance Frequency

None needed

Advantages

  • Ultra-low cost
  • One fund to manage
  • Historically strong returns
  • Warren Buffett's recommendation

Disadvantages

  • 100% US concentration
  • No international diversification
  • No bond cushion in downturns
  • Cap-weighted means tech-heavy

About This Portfolio

The simplest possible portfolio — 100% allocation to the S&P 500 index. Warren Buffett famously instructed that 90% of his estate be invested in a low-cost S&P 500 index fund. This approach provides exposure to 500 of the largest US companies across all sectors.

Historical Context

The S&P 500 has returned approximately 10% annually since its inception. Warren Buffett's famous bet against hedge fund managers — that an S&P 500 index fund would outperform — was won decisively over the 2008-2017 period.

Who It's For

Investors with a long time horizon who believe in US market leadership and want the absolute simplest portfolio possible.

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