Published: July 28, 2026 • By Rick Allison, CFP®
How do you build a Stock Portfolio? There are a myriad of ways, but here is a simple way. There are eleven (11) sectors in the S&P 500®. Let's assume for now that you wanted design a primarily Large Cap Portfolio so what we want to do is find three stocks to favorite in each of the eleven sectors. This all there is to it!
Now, let's shift gears and assume we want to design a Stock Portfolio with 1/3 Mid-Cap stocks. It's simple really. All we have to do is instead of picking three (3) Large Cap stocks in each of the S&P 500®, what we want to do is pick two Large Cap and one Mid Cap stock from the S&P Mid Cap 400®. Secondarily, if we wanted an all Mid-Cap Portfolio, then we could pick three (3) Mid Cap stocks in each sector of the S&P Mid Cap 400®.
If we wanted to also use Small Cap stocks, then we could build a portfolio with one Large Cap, one Mid Cap and one Small Cap stock from each of the three S&P 500®, S&P Mid Cap 400® and S&P Small Cap 600® indicies.
Finally, if we wanted to have an all Small Cap stock portfolio, then pick three Small Cap stocks from the S&P Small Cap 600® in each of the eleven sectors.
These portfolios will have a risk balancing to them. Even though they are 100% stocks, because they are in these eleven sectors, some will go up and some will go down. This acts as a balance and reduces the risk level of each portfolio compared to a typical 100% stocks portfolio.
You can use the eleven sectors below and find stocks that are either Large Cap, Mid Cap or Small Cap.
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Would you like to discuss whether a Stock Portfolio may be right for you? Call Rick at (904) 460-2700.
This article is for informational purposes only and does not constitute legal advice, personalized investment or tax advice. Please consult with your legal or tax professional before making any decisions.