A low cost global stock portfolio focused on growth with broad diversification across major economies
Report created on Dec 17, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 70.00% -
ID iShares Core MSCI International Developed Market
IDEV - US46435G3267 30.00%
This portfolio is a straightforward two‑fund global stock mix, with roughly seventy percent in a broad US market fund and thirty percent in a developed international fund. That setup mirrors many common growth benchmarks that lean toward the US while still including other major markets. Having everything in stocks means strong upside when markets are doing well but also bigger swings when they fall. For someone using this as a core holding, keeping some separate cash or bonds outside this portfolio could balance the ride. The simple structure is a real strength: it’s easy to manage, easy to rebalance, and very much in line with widely accepted investing frameworks.
Growth
Historically, this mix has shown a compound annual growth rate (CAGR) of about 13.6%. CAGR is like the “average speed” of a road trip, showing how fast money grew per year from start to finish. A $10,000 starting investment growing at that pace would have risen sharply over a decade, comfortably in line with or slightly above many broad equity benchmarks. The flip side is a maximum drawdown of around –35%, meaning at one point the value was down by about a third, which is normal for an all‑stock growth profile. Past returns look great here, but they reflect a strong era for stocks and can’t be assumed going forward.
Projection
The Monte Carlo analysis ran 1,000 simulations using past return and volatility patterns to model future possibilities. Monte Carlo is basically a “what if” machine that shuffles history many ways to estimate a range of outcomes, not a single prediction. The 5th percentile ending value near 56% suggests that in tougher scenarios, growth still occurred but was modest, while the median and higher percentiles showed several‑fold increases. With 989 out of 1,000 trials being positive and an average simulated return around 13.4%, projections look optimistic. Still, these simulations rely on historical behavior; real markets can change, so they’re best viewed as rough guardrails, not guarantees.
Asset classes
- Stocks 100%
All of the invested money here is in stocks, with no bonds, cash, or alternatives counted above the 2% threshold. That single asset class focus is common in growth‑oriented portfolios and can be effective for long horizons because stocks historically deliver higher returns than safer assets. The trade‑off is bigger emotional and financial swings, especially during major downturns when everything can drop at once. Many broad benchmarks pair stocks with bonds to smooth the ride, so this setup runs “hotter” than those. If someone wanted a calmer experience without changing funds, one option would be holding a separate conservative bucket elsewhere to cover near‑term needs.
Sectors
- Technology 27%
- Financials 16%
- Industrials 12%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 3%
- Energy 3%
- Utilities 3%
- Real Estate 3%
Sector exposure is well spread across technology, financials, industrials, consumer cyclical, healthcare, and the rest, closely echoing popular global equity benchmarks. Tech at about 27% is somewhat high but not unusual given the size and profitability of big tech companies in broad indexes. Tech‑heavy mixes tend to shine during growth and innovation booms but can be more sensitive when interest rates rise or sentiment turns against high‑growth names. The presence of meaningful weights in defensive areas like consumer staples, healthcare, and utilities helps soften the edges a bit. Overall, this sector split is well‑balanced and aligns closely with global standards, supporting solid diversification across different economic drivers.
Regions
- North America 74%
- Europe Developed 16%
- Japan 6%
- Australasia 2%
- Asia Developed 1%
Geographically, roughly three‑quarters of the portfolio is in North America, with solid representation from Europe and Japan and smaller slices in other developed regions. That US‑heavy tilt is very similar to many global benchmarks, where the US dominates due to its large market size and deep capital markets. The main gap is the lack of emerging markets, which can offer higher growth potential but with more volatility and political risk. Sticking to developed markets keeps things more stable and transparent, which fits many growth investors just fine. Anyone wanting broader global exposure could consider adding a separate emerging markets sleeve elsewhere, but the existing setup is already very much in line with standard global equity mixes.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 5%
- Micro-cap 2%
The portfolio is clearly tilted toward larger companies, with about 73% in mega and big caps, 19% in mid caps, and a small tail in small and micro caps. That pattern is typical of cap‑weighted indexes: bigger companies get more weight simply because they’re worth more in the market. Large caps often bring stability, stronger balance sheets, and established businesses, which can reduce risk compared with a heavy small‑cap tilt. The modest allocation to smaller firms still adds some growth and diversification without dominating the ride. This size mix closely mirrors mainstream benchmarks and offers a good balance of stability and upside while avoiding the extreme swings of a tiny‑company‑focused strategy.
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 a classic risk‑return chart, called the Efficient Frontier, this portfolio would sit as a relatively high‑return, higher‑risk point built entirely from stocks. The Efficient Frontier is just a curve showing the best possible trade‑offs between risk and return for a given set of investments. Since only two equity funds are included, optimization would mostly involve shifting the split between US and international, rather than changing the overall risk level dramatically. Adding lower‑volatility assets like bonds would usually move the portfolio closer to a more “efficient” mix for many investors, but within this all‑stock framework the current blend is already quite sensible. Efficiency here means best possible risk‑return ratio, not necessarily the calmest ride.
Dividends
- iShares Core MSCI International Developed Market 2.80%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Weighted yield (per year) 1.61%
The blended dividend yield of about 1.6% reflects a mix of the lower‑yielding US market and the typically higher‑yielding international developed market, which is around 2.8%. Dividends are the cash payments companies share with shareholders, and they can provide a steady income stream and cushion returns when prices move sideways. For a growth‑leaning stock portfolio, this yield is perfectly normal and indicates a healthy mix of companies that reinvest profits and those that pay them out. Investors focused on total return can happily let those dividends reinvest and compound over time. Those needing income could pair this with a separate income‑oriented bucket, but as a growth engine, this dividend profile looks solid and balanced.
Ongoing product costs
- iShares Core MSCI International Developed Market 0.04%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.03%
Costs are impressively low, with expense ratios around 0.03–0.04% and a blended total of roughly 0.03%. The expense ratio is the ongoing annual fee charged by a fund; at these levels, it’s like paying a few dollars per year on every $10,000 invested. Over decades, even small fee differences compound, so keeping costs near zero is a powerful, often underappreciated advantage. This structure aligns extremely well with best practices and many benchmark portfolios that emphasize low‑fee index investing. With costs already this low, there’s little room or need for further fee cutting. The main focus can instead stay on allocation, discipline, and staying invested through market ups and downs.
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