Two fund globally diversified stock portfolio with low costs and balanced growth oriented risk profile
Report created on Apr 14, 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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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
The portfolio is extremely simple: two broad stock ETFs, with about 80% in a total US market fund and 20% in a total international fund. That means every dollar here is in equities, but spread across thousands of companies worldwide. A structure like this is easy to understand and maintain, which really helps long-term discipline. The heavy tilt to one core holding also means most of the ride comes from that single ETF’s behavior. For someone wanting broad exposure without tinkering, this setup is a clear, rules-based way to stay invested while avoiding the complexity of multiple niche funds.
Growth
Historically, turning $1,000 into about $3,435 over ten years works out to a 13.2% compound annual growth rate, or CAGR. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. This return slightly lagged the US market but beat the global market, which makes sense given the big US allocation. The portfolio’s worst drop, a max drawdown of about -35% in early 2020, is typical for an all‑stock mix. This shows strong growth potential but also fairly sharp temporary losses. It’s a reminder that past returns are encouraging but never guaranteed going forward.
Projection
The Monte Carlo simulation projects many possible 15‑year paths by mixing and shuffling historical returns to see a range of outcomes. It’s like running 1,000 alternate futures using past market behavior as the raw material. The median result grows $1,000 to around $2,691, with a wide but reasonable “likely” band around that. This implies an annualized return of about 8.2% across all simulations, after factoring in bad and great scenarios. Still, these are models, not promises: markets evolve and future shocks can differ from history. The useful takeaway is the wide spread of outcomes, underscoring the need for patience and flexibility.
Asset classes
- Stocks 100%
Every dollar is in stocks, with no allocation to bonds, cash, or alternative assets. That makes this portfolio very straightforward but also fully exposed to equity market ups and downs. Compared with a classic “balanced” mix that blends stocks and bonds, this is more growth‑oriented and will typically swing more in both directions. The positive side is higher long‑run return potential; the trade‑off is deeper drawdowns and more frequent volatility. This all‑equity structure suits situations where there is a long time horizon and separate cash or bond savings for short‑term needs, rather than trying to smooth the ride inside this portfolio.
Sectors
- Technology 28%
- Financials 14%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 3%
Sector exposure is broad, with technology the largest slice at 28%, followed by financials, industrials, consumer areas, and health care. This pattern is very close to global equity benchmarks, which is a strong sign of healthy diversification. A tech‑heavy tilt can boost growth when innovation and digital trends lead markets, but it may feel more painful when interest rates rise or investor sentiment turns against high‑growth companies. The balanced presence of financials, industrials, health care, and other sectors helps cushion any one theme. Overall, the sector mix is well‑aligned with global standards and doesn’t show any extreme, single‑theme bets.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
Geographically, about 81% sits in North America, with the rest spread across developed Europe, Japan, other Asia, and emerging markets. That US‑heavy stance roughly mirrors the global stock market’s current makeup, so it isn’t an outlier — it’s actually quite benchmark‑like. The benefit is strong exposure to one of the world’s most innovative and liquid markets, which has been a long‑term winner. The trade‑off is that returns are still very tied to one main economy and currency. The modest but real allocation to other regions does add meaningful diversification, especially if non‑US markets experience different growth or valuation cycles in the future.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
Market‑cap exposure is tilted toward mega‑ and large‑cap companies, which together make up over 70% of the portfolio, with the remainder in mid, small, and micro caps. This mirrors how cap‑weighted indices are built: the biggest companies naturally dominate. Large caps tend to be more stable and liquid, while smaller names can be more volatile but sometimes offer higher growth over long periods. The inclusion of mid and small caps is a positive: it broadens the opportunity set beyond household names without making the portfolio overly risky. Overall, the size mix is broadly diversified and closely aligned with the global equity market.
True holdings
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NV NVIDIA Corporation 4.94%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.71%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.53%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.44%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.19%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.82%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.73%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.70%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.38%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 1.10%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 25.54%
Looking through the ETFs, the largest underlying exposures cluster in mega-cap growth names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. These appear via index funds, not as separate stock picks, but they still create real concentration at the company level. The fact that both funds track broad market-cap indices means the biggest global companies show up in size. Overlap is likely higher than the top‑10 data alone suggests. The takeaway: although the funds feel diversified, a meaningful slice of your outcome is tied to how a small group of giant tech-related companies perform over time.
Factors
Factor exposure here is remarkably balanced. Value, size, momentum, quality, yield, and low volatility all sit near “neutral,” meaning the portfolio behaves much like the overall market on these dimensions. Factors are like underlying traits — cheap vs expensive, stable vs volatile, fast‑rising vs lagging — that research links to long‑term returns. Some strategies lean heavily into one or two factors, which can outperform for stretches but also create big periods of underperformance. By staying near neutral across the board, this portfolio avoids strong style bets. It’s likely to track overall market behavior instead of zigging or zagging dramatically versus common benchmarks.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 80.00% 82.5% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 17.5%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from its weight. The US total market ETF is 80% of the allocation but contributes about 82.5% of the overall risk, slightly more than its size. The international fund is 20% of the weight and roughly 17.5% of the risk, a bit less than proportional. This pattern is normal because US equities have been somewhat more dominant and often more volatile. The key insight: real risk is mostly coming from the main US holding, so any decision about overall portfolio risk really comes down to that position.
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.
The efficient frontier chart shows this portfolio sitting right on or very near the frontier, with a Sharpe ratio of 0.56. The Sharpe ratio compares return to risk, like measuring how much “reward” you get for each unit of volatility. The optimal mix using the same two funds could reach a slightly higher Sharpe at a bit higher risk, while the minimum variance mix offers lower risk but also lower return. Since the current blend is already essentially efficient, there’s no obvious benefit from tinkering with weights. That’s encouraging: the simple 80/20 split is pulling its weight in risk‑adjusted terms.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.44%
The blended dividend yield is about 1.44%, with the US fund yielding around 1.1% and the international fund about 2.8%. Dividend yield is the cash income paid out each year as a percentage of the current value. In an equity‑only portfolio, most of the expected return usually comes from price growth, not income, and that’s the case here. For someone still in the accumulation phase, this modest yield can be seen as a small bonus on top of capital gains. For an income‑focused investor, though, this level would generally need to be supplemented by other sources outside this portfolio.
Ongoing product costs
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.03%
Costs are impressively low: around 0.03% total expense ratio across the two ETFs. The total expense ratio, or TER, is like an annual membership fee charged as a percentage of assets. At this level, fees are close to the floor of what’s available in public markets. Over decades, the difference between paying 0.03% and something like 0.5% compounds into real money. Keeping costs this low directly supports better long‑term performance, because more of the market’s return stays in the portfolio. From a cost perspective, this setup is best‑in‑class and a definite strength worth keeping intact over the long run.
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