My Portfolio vs S&P 500: A Real Performance Comparison
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I’ve been tracking my personal stock portfolio performance against the S&P 500 benchmark for the past few weeks. With my portfolio heavily allocated to technology stocks, recent market conditions have been challenging. Here’s a detailed comparison and analysis of how my investment strategy is performing relative to the broader market.
Performance Tracking Data
| Date | My Portfolio Daily | S&P 500 Daily | Performance vs S&P 500 |
|---|---|---|---|
| 8/15/2025 | -0.48% | -0.19% | -0.29% (Underperformed) |
| 8/18/2025 | +0.19% | +0.00% | +0.19% (Outperformed) |
| 8/19/2025 | -2.11% | -0.60% | -1.51% (Underperformed) |
| 8/20/2025 | -0.26% | -0.28% | +0.02% (Outperformed) |
| 8/21/2025 | -0.42% | -0.37% | -0.05% (Underperformed) |
| 8/22/2025 | +1.36% | +1.54% | -0.18% (Underperformed) |
| 8/24/2025 | +0.02% | -0.42% | +0.44% (Outperformed) |
| 8/25/2025 | +0.52% | +0.40% | +0.12% (Outperformed) |
| 8/27/2025 | +0.20% | +0.23% | -0.03% (Underperformed) |
| 8/28/2025 | +0.15% | +0.36% | -0.21% (Underperformed) |
| 8/29/2025 | -1.84% | -0.58% | -1.26% (Underperformed) |
Interactive Performance Chart
📈 Portfolio vs S&P 500 Performance
📊 Performance Summary
Key Performance Metrics
Overall Performance (August 15-29, 2025)
- My Portfolio: -3.09% total return
- S&P 500: -0.09% total return
- Excess Return: -3.00% underperformance
Risk-Adjusted Performance
- My Portfolio Volatility: 1.12% daily average
- S&P 500 Volatility: 0.67% daily average
- Sharpe Ratio (My Portfolio): -2.76
- Sharpe Ratio (S&P 500): -0.13
Portfolio Composition Analysis
Current Allocation
Based on my actual portfolio holdings, here’s the detailed breakdown:
| Holding | Allocation | Category | Performance Driver |
|---|---|---|---|
| NVDA | 27.72% | Technology (AI/GPU) | AI chip demand, gaming |
| NFLX | 16.28% | Technology (Streaming) | Subscriber growth, content |
| MSFT | 12.31% | Technology (Software) | Cloud services, AI integration |
| FTEC | 11.02% | Technology ETF | Broad tech sector exposure |
| QQQM | 10.26% | Technology ETF (Nasdaq) | Growth tech companies |
| FDVV | 8.91% | Dividend ETF | Value/dividend stocks |
| VOO | 7.19% | S&P 500 ETF | Broad market exposure |
| META | 1.66% | Technology (Social Media) | Digital advertising, AI |
| IBIT | 4.59% | Bitcoin ETF | Cryptocurrency exposure |
Key Portfolio Characteristics
- Technology Concentration: ~83% in tech-related holdings
- Single Stock Risk: NVDA at 27.72% represents significant concentration risk
- ETF Diversification: 37% in ETFs provides some sector diversification
- Growth vs Value: Heavy tilt toward growth stocks with only FDVV providing dividend exposure
Why This Allocation Struggled Recently
This allocation has performed well for most of the year, but the recent tech sector volatility has caused underperformance during these specific two volatile weeks due to:
- NVDA’s AI bubble concerns (27.72% position amplified losses)
- Tech sector rotation from growth to value stocks
- Rising interest rates affecting high-multiple tech valuations
- Regulatory concerns around big tech companies
- Market correlation - when tech sells off, most holdings move together
The S&P 500’s broad diversification across sectors provided stability during this period of tech sector weakness.
Why I’m Underperforming the S&P 500
1. Tech Sector Concentration Risk
My portfolio is heavily concentrated in technology stocks (83% tech exposure), which have been under pressure due to:
- NVDA’s AI bubble concerns (27.72% position amplified losses)
- Rising interest rates affecting growth stock valuations
- Regulatory concerns around big tech
- Rotation from growth to value stocks
- Market concerns about AI bubble
2. High Volatility Exposure
The technology sector has experienced higher volatility than the broader market, leading to:
- Larger daily swings in portfolio value
- Increased drawdowns during market corrections
- Higher correlation between holdings during tech selloffs
3. Market Timing Challenges
Recent market conditions have been unfavorable for growth stocks:
- Value stocks outperforming growth stocks
- Defensive sectors (utilities, consumer staples) showing strength
- Technology sector facing headwinds from multiple factors
4. Concentration vs Diversification
While the S&P 500 benefits from broad diversification across sectors, my concentrated approach has:
- Amplified losses during tech sector weakness
- Reduced exposure to outperforming sectors (energy, utilities)
- Increased correlation risk among holdings
🎓 Lessons Learned
❌ What’s Not Working
- Over-concentration in tech: 83% tech allocation has amplified losses during sector weakness
- NVDA concentration risk: 27.72% position in NVDA magnified AI bubble concerns
- Timing the market: Attempting to catch tech rebounds has led to further losses
- Ignoring diversification: Lack of exposure to outperforming sectors (energy, utilities, consumer staples)
✅ What I’m Learning
- Sector concentration risk: Even quality companies can underperform when their sector faces headwinds
- Importance of diversification: The S&P 500’s broad diversification provides stability during sector rotations
- Patience during drawdowns: Tech stocks may take time to recover from valuation compression
🛡️ Risk Management Insights
- Position sizing: Individual positions of 15-20% can create significant portfolio volatility
- Correlation risk: High correlation between tech holdings amplifies losses during sector weakness
- Stop-loss discipline: Need to maintain strict stop-losses to limit downside
🚀 Forward-Looking Strategy
⏰ Short Term (Next 30 Days)
- Reduce tech concentration: Gradually reduce technology allocation to improve diversification
- Add defensive positions: Consider adding utilities (XLU) or consumer staples (XLP) ETFs
- Monitor earnings: Be prepared to adjust positions based on Q3 earnings reports
- Set stop-losses: Implement 7-10% stop-losses on all tech positions
📅 Medium Term (3-6 Months)
- Rebalancing plan: Target more balanced allocation across sectors
- Sector diversification: Add exposure to energy (XLE) and utilities (XLU) sectors
- Value exposure: Consider adding value ETFs (VTV) to balance growth exposure
- International diversification: Add developed market ETFs (EFA) for geographic diversification
🛡️ Risk Management
- Position sizing limits: Reduce individual stock positions to maximum 10% of portfolio (currently NVDA at 27.72%)
- Sector limits: Cap any single sector at 40% of portfolio (currently tech at 83%)
- Regular rebalancing: Weekly monitoring, monthly rebalancing
- Stop-loss strategy: 7% stop-loss on individual stocks, 15% on sector ETFs
📈 Benchmark Comparison Insights
📉 When I Underperform
- Tech sector weakness: Heavy tech allocation amplifies losses during sector selloffs
- Growth to value rotation: Lack of value exposure hurts performance during style rotations
- Rising interest rates: Growth stocks typically underperform when rates increase
- Market volatility: Higher volatility in tech stocks leads to larger drawdowns
📈 When I Outperform
- Tech sector strength: Concentrated tech positions capture upside during sector rallies
- Earnings beats: Individual stock selection can outperform during strong earnings seasons
- Growth momentum: Tech stocks typically lead during growth-oriented market environments
📊 Interactive Sector Performance Chart
This chart shows how the S&P 500’s sector allocation compares to recent sector performance, highlighting why my tech-heavy portfolio struggled during this period.
📊 S&P 500 Sector Analysis
| Sector | S&P 500 Allocation | Recent Performance | Visual |
|---|---|---|---|
| Technology | 30% | -4.5% | |
| Healthcare | 13% | -1.2% | |
| Financials | 12% | -0.8% | |
| Consumer Discretionary | 11% | -2.1% | |
| Energy | 4% | +3.2% | |
| Utilities | 3% | +2.8% | |
| Consumer Staples | 6% | +1.5% |
🔍 Key Insights
- Technology (30% allocation) had the worst performance (-4.5%), explaining your portfolio's underperformance
- Energy (+3.2%) and Utilities (+2.8%) were the best performers but have small allocations
- Your 83% tech concentration amplified the sector's weakness compared to S&P 500's diversification
🎯 Conclusion
My portfolio has significantly underperformed the S&P 500 over this tracking period, primarily due to:
- Over-concentration in technology compared to the S&P 500’s broad diversification
- Sector rotation headwinds affecting growth stocks
- Higher volatility from concentrated positions
- Lack of diversification into outperforming sectors
This underperformance highlights the importance of:
- 🔄 Sector diversification to reduce concentration risk
- ⚖️ Balanced allocation between growth and value
- 🛡️ Risk management through position sizing and stop-losses
- ⏳ Patience during sector-specific drawdowns
The key lesson is that even quality companies can underperform when their sector faces headwinds. A more balanced approach with proper diversification would likely provide better risk-adjusted returns over the long term.
⚠️ Important Disclaimer: Past performance does not guarantee future results. This analysis is for educational purposes only and should not be considered investment advice. Always do your own research and consider consulting with a financial advisor.
💬 Interested in discussing portfolio strategies or market analysis? Feel free to email me your thoughts and experiences! 📈
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