Two fund stock portfolio with strong global tilt and impressively low costs for long term growth
Report created on Apr 12, 2026Risk 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.
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 65.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 35.00%
This portfolio is very simple and very focused: two broad stock ETFs, roughly two‑thirds in a US large‑cap fund and one‑third in an international stock fund. That means 100% in equities and zero in bonds or cash-like assets. A structure like this is easy to manage and understand, which helps many investors actually stick with it. The flip side is that there’s no built‑in cushion from safer assets, so account values will swing with global stock markets. As a general takeaway, this setup makes sense for someone prioritizing long‑term growth and willing to handle notable ups and downs along the way.
Growth
Historically, a $1,000 investment grew to about $3,356 over ten years, implying a 12.92% compound annual growth rate (CAGR — the “average yearly speed” of growth). That beat the global market benchmark but trailed the US market, which has been unusually strong. Max drawdown, the biggest peak‑to‑trough fall, was about -34% during early 2020, similar to the benchmarks. This shows the portfolio has delivered strong returns with very typical equity‑like crashes. Past performance can’t guarantee future results, but this history supports the idea that a diversified stock mix can reward patience while still exposing you to sharp but recoverable downturns.
Projection
The Monte Carlo simulation uses historical returns and volatility to generate 1,000 possible 15‑year paths for $1,000, like running alternate futures. The median outcome lands around $2,755, with a “likely” middle range roughly $1,737–$4,252. There’s also a wide possible band from about $942 to $7,671, and about 73% of paths end positive. The average simulated annual return is about 8.08%. These numbers show both the power of compounding and the uncertainty involved. Simulations are models, not predictions, and they rely on past data that might not repeat. Still, they’re a useful way to visualize realistic best‑ and worst‑case ranges.
Asset classes
- Stocks 100%
All of the portfolio is in stocks, with no bonds, cash, or alternative assets. That’s a very growth‑oriented structure compared with many “balanced” mixes that might hold 40–60% bonds. Being 100% in equities usually means higher expected long‑term returns but deeper declines during bear markets and slower recoveries when compared with portfolios that include stabilizing assets. For someone with decades ahead and stable income, this can be reasonable. For anyone needing near‑term withdrawals or who loses sleep during big drops, adding a separate safety bucket elsewhere in their finances can help smooth the ride psychologically.
Sectors
- Technology 27%
- Financials 16%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 9%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is spread across technology, financials, industrials, consumer areas, health care, telecom, and smaller slices of materials, energy, utilities, and real estate. Technology is the single largest slice around the high‑20s, which is broadly in line with major equity benchmarks today. That means the portfolio isn’t unusually concentrated in any one industry, and the mix is similar to the global market. This alignment is actually a strength: it keeps you from making big sector bets you might not intend, while still acknowledging that modern markets are naturally tilted toward tech and communication businesses.
Regions
- North America 68%
- Europe Developed 13%
- Japan 5%
- Asia Developed 5%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 68% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, Australasia, Latin America, and Africa/Middle East. This is close to global market weights, where the US is dominant but not everything. That’s a positive sign: it avoids the common home‑country bias where investors hold almost all domestic stocks. This diversified spread ties your outcomes to overall global growth rather than the fate of a single economy or currency. You still lean heavily on the US, but in a way that mirrors the real global stock market.
Market capitalization
- Mega-cap 46%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 2%
Most of the portfolio sits in mega‑cap and large‑cap companies, with modest allocations to mid‑caps and a small slice of small‑caps. Large firms often have more stable earnings, better access to capital, and more diversified businesses, which can moderate risk compared with a heavy small‑cap tilt. At the same time, smaller allocations to mid and small companies add some growth potential without dominating the risk profile. This size mix is very similar to mainstream global indices, which is beneficial — you’re not making an aggressive bet on tiny, volatile stocks, but you’re not ignoring them either.
True holdings
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NV NVIDIA Corporation 4.76%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 4.32%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.22%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.26%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.00%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.67%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.60%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.56%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.25%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.20%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
- Top 10 total 23.83%
Looking through the ETFs, the largest underlying exposures are classic mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, the two Alphabet share classes, Meta, and Tesla, plus Taiwan Semiconductor. Several of these appear in both funds, which quietly increases concentration in a handful of global giants even though you only see two tickers. Because we’re only seeing ETF top‑10 holdings, this overlap is probably understated. The main takeaway is that your returns will be meaningfully influenced by how a small group of dominant tech and platform companies perform, even within broadly diversified index funds.
Factors
Factor exposures — value, size, momentum, quality, yield, and low volatility — all sit in the “neutral” range, essentially market‑like. Factor investing targets specific characteristics, like cheapness (value) or stability (low volatility), that research links to returns. Here, no factor stands out as a big tilt. That’s actually a clean, deliberate result: broad market index funds generally deliver diversified exposure to many types of stocks without leaning hard into any single style. Practically, this means the portfolio is likely to behave similarly to the broad equity market over time, rather than zigzagging differently due to strong style bets.
Risk contribution
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Vanguard S&P 500 ETF
Weight: 65.00% 67.3% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 35.00% 32.7%
Risk contribution measures how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weight. Here it’s very straightforward: the S&P 500 ETF at 65% weight contributes about 67% of risk, while the international fund at 35% contributes about 33%. Those numbers line up closely with the allocations, meaning no hidden risk hotspots. This is a positive alignment: the way you’ve sized positions is basically how they’re influencing volatility. If you ever wanted to dial risk up or down, adjusting the split between these two ETFs would be a clear and effective lever.
Risk vs. return
This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.
Click on the colored dots to explore allocations.
On the risk‑return chart, the current mix sits right on or very near the efficient frontier — the curve showing the best possible return for each level of risk using only these holdings. The Sharpe ratio, a measure of risk‑adjusted return that compares excess return to volatility, is 0.55 for the current portfolio versus 0.79 for the optimal mix and 0.65 for the minimum‑variance version. Since you’re already effectively on the frontier, there’s no obvious inefficiency to fix just by reweighting. That’s encouraging: the two‑fund structure is not only simple and cheap, it’s also mathematically efficient.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.70%
The combined dividend yield is about 1.7%, blending a lower‑yielding US fund around 1.1% with a higher‑yielding international fund near 2.8%. Dividends are the cash payments companies distribute to shareholders, and they can be an important part of total return, especially over long periods when reinvested. This yield is modest but very typical for a broad, growth‑tilted equity portfolio today. It suggests that most of the return historically has come from price appreciation rather than income. For long‑horizon investors, that’s perfectly fine — the key is consistently reinvesting those dividends to harness compounding.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
Total ongoing costs are extremely low at around 0.04% per year — basically 4 cents annually for every $100 invested. That’s a major strength. Fees work like friction on performance: even small differences compound over decades. Here, costs are far below the average actively managed fund and competitive even among ETFs tracking similar indexes. This supports better long‑term outcomes because more of the portfolio’s gross return stays in your pocket. Staying with simple, low‑cost funds like these is one of the most reliable ways to improve net returns without taking on extra risk or complexity.
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