Broadly diversified stock portfolio with strong value tilt and efficient risk balance
Report created on Mar 28, 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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SC Schwab International Equity ETF
SCHF - US8085248057 80.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 20.00%
The portfolio is built from just two broad-market equity ETFs: one focused on international stocks at 80% and one covering the entire U.S. stock market at 20%. That means 100% of the money is in stocks, but spread widely across thousands of companies. Structurally, this keeps things extremely simple while still achieving meaningful diversification across different countries and industries. A concentrated fund lineup like this is easy to monitor and maintain over time. The main takeaway is that this setup behaves like a single global equity portfolio with a slightly heavier emphasis on markets outside the U.S., which influences both risk and long-term return patterns.
Growth
From 2016 to early 2026, $1,000 grew to about $2,574, for a compound annual growth rate (CAGR) of 9.94%. CAGR is like your average “speed” over the full journey, smoothing out the bumps. The worst peak‑to‑trough drop, or max drawdown, was about -34.4%, similar in depth to the U.S. and global benchmarks. However, the portfolio lagged the U.S. market by 3.83% per year and the global market by 1.3% per year, mainly because U.S. stocks outpaced international markets. The performance pattern still lines up well with global norms, but shows the clear trade-off of overweighting non‑U.S. equities during a decade of U.S. outperformance.
Asset classes
- Stocks 100%
All assets are in stocks, with no bonds, cash, or alternatives. That makes this a pure‑equity portfolio, which typically offers higher long‑term growth potential but larger and more frequent swings along the way. Many balanced benchmarks mix in 30–40% bonds to smooth volatility, so this structure is more growth‑oriented than a classic “balanced” mix, even if the underlying stocks are widely diversified. For someone with decades to invest and the ability to ride through deep drawdowns without selling, this can be appropriate. For shorter horizons or lower risk tolerance, adding some lower‑volatility assets could help reduce those sharp equity downturns.
Sectors
- Financials 21%
- Industrials 17%
- Technology 17%
- Consumer Discretionary 8%
- Health Care 8%
- Consumer Staples 6%
- Basic Materials 6%
- Energy 5%
- Telecommunications 5%
- Utilities 3%
- Real Estate 2%
Sector exposure is well spread: financials, industrials, and technology are the largest groups, with meaningful stakes in consumer, health care, materials, energy, telecom, utilities, and real estate. This looks similar to broad global equity benchmarks, which is a strong indicator of healthy diversification. No single sector dominates to an extreme degree, so the portfolio is not overly dependent on one part of the economy. That said, sectors like financials and industrials can be more cyclical, rising and falling with economic conditions. The balanced spread means no big sector bet is being taken, which supports a “let the whole market work for you” approach.
Regions
- Europe Developed 39%
- North America 29%
- Japan 17%
- Asia Developed 8%
- Australasia 5%
- Africa/Middle East 1%
Geographically, there’s a notable tilt toward developed markets outside the U.S.: roughly 39% in Europe developed, 17% in Japan, and 8% in other developed Asia, with North America at about 29%. Global benchmarks typically have a larger U.S. share, so this structure intentionally leans more on international economies and currencies. This is positive for diversification because returns won’t be tied solely to U.S. conditions. However, it also explains why historical returns trailed the U.S. market during a decade when American stocks led. The key question for any investor is whether that international tilt matches their comfort with currency swings and different regional growth patterns.
Market capitalization
- Mega-cap 49%
- Large-cap 32%
- Mid-cap 15%
- Small-cap 1%
Market cap exposure is strongly tilted to mega‑caps and large‑caps, which together make up over 80% of the portfolio, with modest exposure to mid‑caps and very little in small‑caps. This is typical of capitalization‑weighted index strategies, where the biggest companies naturally take the largest slice. Larger firms tend to be more stable and established, which can reduce volatility compared to a heavy small‑cap tilt, but they may offer less explosive growth. The structure here means performance will track the fortunes of the world’s largest enterprises, with smaller companies playing a supporting role rather than being a major driver of returns.
True holdings
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SS Samsung Electronics Co Ltd 1.81%
Part of fund(s):- Schwab International Equity ETF
-
AS ASML Holding N.V. 1.63%
Part of fund(s):- Schwab International Equity ETF
-
NV NVIDIA Corporation 1.24%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 1.18%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
00 SK Hynix Inc 1.08%
Part of fund(s):- Schwab International Equity ETF
-
MS Microsoft Corporation 0.88%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
NO Novartis AG 0.86%
Part of fund(s):- Schwab International Equity ETF
-
AZ AstraZeneca PLC 0.84%
Part of fund(s):- Schwab International Equity ETF
-
HS HSBC Holdings PLC 0.82%
Part of fund(s):- Schwab International Equity ETF
-
SH Shell plc 0.80%
Part of fund(s):- Schwab International Equity ETF
- Top 10 total 11.14%
Looking through the top holdings, major positions include Samsung, ASML, NVIDIA, Apple, SK Hynix, Microsoft, and large global banks and energy firms. Many of these appear via both the international and U.S. funds, which creates some hidden overlap in mega‑cap technology and financial names. Because this view only captures top‑10 ETF holdings, actual overlap is likely a bit higher beneath the surface. This is normal for broad index funds and not necessarily a problem; it just means a chunk of the portfolio’s behavior is driven by a relatively small group of very large global companies that dominate today’s equity markets.
Factors
Factor exposure shows high tilts toward value, yield, and low volatility, with size, momentum, and quality sitting near neutral. Factors are like underlying “personality traits” of stocks—value favors cheaper companies, yield emphasizes dividends, and low volatility targets steadier price movements. A strong value and yield orientation often does better when growth stocks cool off, and the low‑vol tilt can cushion some market swings, which is helpful for emotional comfort. However, value and low‑vol can lag during roaring growth‑stock rallies like parts of the last decade. Overall, this factor mix leans toward steadier, income‑friendly equity behavior rather than aggressive growth chasing.
Risk contribution
-
Schwab International Equity ETF
Weight: 80.00% 80.3% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 20.00% 19.7%
Risk contribution looks very aligned with weights: the international ETF is 80% of the portfolio and contributes about 80.3% of the risk, while the U.S. ETF at 20% contributes roughly 19.7%. Risk contribution measures how much each position adds to the portfolio’s overall ups and downs, which can differ from weight if something is especially volatile. Here, both funds pull their “fair share” of risk, with no hidden time bomb where a small holding drives outsized volatility. This is a positive sign that position sizing is sensible. Any future shifts in weights would mostly be about changing geographic exposure rather than correcting imbalance in risk load.
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 portfolio sits right on or very near the efficient frontier. The Sharpe ratio—a measure of return per unit of risk—is 0.52 for the current mix, while the optimal combination of the same two ETFs reaches 0.73 with slightly higher risk. The minimum‑variance mix actually has a slightly better Sharpe than the current one but nearly identical risk. Because the portfolio is already close to the frontier, it’s using these two funds efficiently for the chosen risk level. Any changes would be about shifting between more or less international vs. U.S. exposure, not fixing inefficiency in the existing structure.
Dividends
- Schwab International Equity ETF 3.40%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Weighted yield (per year) 2.96%
The blended dividend yield is about 2.96%, boosted by the higher 3.4% yield from the international ETF relative to the 1.2% from the U.S. total market ETF. Dividends are the cash payouts companies distribute from profits, and they can be a meaningful part of total return, especially in value‑ and income‑tilted portfolios. A near‑3% yield, reinvested over time, adds a steady compounding effect even in flat markets. For someone focused on long‑term growth, reinvesting dividends is powerful; for future income needs, this level of yield provides a solid starting point that could grow as companies raise their payouts over the years.
Ongoing product costs
- Schwab International Equity ETF 0.06%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.05%
Total ongoing costs are extremely low at roughly 0.05% per year. The expense ratios—0.06% for the international ETF and 0.03% for the U.S. total market ETF—are among the cheapest available. Costs quietly eat into returns every single year, so keeping them this low is a big structural win. Over decades, even a 0.5% difference in fees can translate into a large gap in ending wealth. Here, the cost drag is almost negligible, which supports better long‑term compounding. This setup is very aligned with best practices for passive, diversified investing and doesn’t leave much room for improvement on the fee side.
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