Broad equity index core with a subtle large cap tech tilt and efficient risk balance
Report created on May 5, 2024Risk profile
4/7
Diversification profile
3/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 70.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 10.00%
The structure here is extremely simple: three equity index ETFs, all growth‑oriented, with no bonds or cash. About 70% sits in a broad domestic stock fund, 20% in broad international stocks, and 10% in a NASDAQ 100 tracker that adds extra large‑cap growth exposure. This kind of “core plus tilt” setup is easy to manage and very transparent. Because everything is in stocks, the ride will be bumpier than a mixed stock‑bond portfolio, but long‑term growth potential is higher. For someone comfortable with equity swings, this clean layout is a solid foundation that avoids unnecessary complexity while still capturing global markets.
Growth
From late 2020 to early 2026, $1,000 grew to about $1,851, implying a compound annual growth rate (CAGR) of 11.99%. CAGR is like your average speed on a road trip, smoothing out ups and downs. The portfolio slightly lagged the U.S. market but beat the global market, which is a strong outcome given the added international diversification. Max drawdown was about -26.7%, versus roughly -24.5% for the U.S. benchmark, showing similar downside. This balance between return and risk fits a “balanced” equity profile. As always, past results don’t guarantee future outcomes, but the history suggests the mix has behaved competitively without taking on extreme volatility.
Asset classes
- Stocks 100%
All assets are stocks, with 0% in bonds, cash, or alternatives. That makes this a pure growth portfolio rather than a traditional “balanced” mix that includes fixed income. Asset class diversification is about holding things that behave differently; bonds, for example, often cushion equity drawdowns. Here, resilience comes from spreading equity exposure widely rather than mixing asset types. This structure can work well for someone with stable income, long horizons, and the emotional ability to sit through large equity drawdowns. If future capital needs or risk tolerance change, introducing even a modest bond or cash sleeve could smooth volatility without completely changing the growth profile.
Sectors
- Technology 30%
- Financials 13%
- Industrials 11%
- Consumer Discretionary 10%
- Telecommunications 9%
- Health Care 9%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector exposure is broad but tilted: technology is the largest slice around 30%, followed by financials, industrials, and consumer areas, with smaller allocations to energy, utilities, and real estate. Compared with a more neutral global equity mix, this leans a bit more toward tech and growth‑oriented industries. That’s aligned with how many modern equity indices look and helps explain strong recent returns. However, tech‑heavy portfolios can be more sensitive to interest rates, regulation, and shifts in innovation cycles. On the positive side, the presence of multiple non‑tech sectors adds ballast, so the overall sector mix remains reasonably diversified rather than being a single‑theme bet.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 81% of exposure is in North America, with the rest scattered across developed Europe, Japan, other developed Asia, and emerging regions. This is more U.S.‑centric than a typical global market portfolio, which usually has a smaller U.S. share, but it’s very common among U.S.‑based investors. The upside is alignment with domestic earnings, currency, and familiar companies. The trade‑off is heavier dependence on one economy and currency. The international slice still provides exposure to different growth cycles, interest‑rate paths, and policy environments, which is valuable diversification. This regional balance is well within normal practice and has historically been supportive of returns.
Market capitalization
- Mega-cap 43%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 5%
- Micro-cap 2%
Market cap exposure is dominated by mega‑ and large‑cap companies, which together make up roughly three‑quarters of the portfolio, with the rest in mid, small, and a small micro‑cap slice. This mirrors broad index behavior and is reinforced by the NASDAQ 100 position. Large companies tend to be more stable, more liquid, and easier to analyze, which can moderate some risks, but they may grow slower than smaller firms in certain periods. The presence of mid and small caps still allows participation in more dynamic parts of the market without making them the main driver. Overall, this size mix is well‑balanced and aligns closely with global standards.
True holdings
-
NV NVIDIA Corporation 5.18%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.86%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.66%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.59%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.27%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.90%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.85%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.84%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.58%
Part of fund(s):- Invesco NASDAQ 100 ETF
- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 0.96%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 26.69%
Looking through the top ETF holdings, there’s a noticeable cluster in a handful of mega‑cap names: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire Hathaway. These appear in multiple funds, especially the broad U.S. index and the NASDAQ 100, which creates hidden concentration even though only ETF top‑10s are shown. When the same giants drive multiple positions, portfolio performance leans heavily on their fortunes, especially during market stress or tech‑led rallies. That overlap is common in modern index portfolios and not inherently bad, but it’s useful to know that “three funds” doesn’t automatically mean three separate bets; the biggest companies are doing a lot of the heavy lifting.
Factors
Factor exposure is very close to neutral across value, size, momentum, quality, yield, and low volatility, hovering around the 50% “market average” mark. Factor exposure is basically how much the portfolio leans toward traits like cheapness (value) or stability (low volatility) that research links to returns. In this case, there are no strong tilts, so performance should largely track broad market behavior rather than heavily depending on any one style or theme. That’s a positive sign for investors who prefer simple, market‑like behavior instead of making big bets on, say, value versus growth or high dividend versus low dividend strategies.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 70.00% 71.3% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 16.3% -
Invesco NASDAQ 100 ETF
Weight: 10.00% 12.4%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the U.S. total market fund is 70% of capital and contributes about 71% of risk, almost perfectly aligned. The international fund’s 20% weight contributes only about 16% of risk, reflecting slightly lower volatility and some diversification benefit. The 10% NASDAQ 100 slice contributes around 12% of risk, more than its size because the holdings are more volatile. These patterns are very typical and indicate no single position is wildly dominating risk. If desired, trimming the NASDAQ slice slightly would be the most direct way to dampen equity volatility.
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’s Sharpe ratio of 0.64 sits very close to the optimal Sharpe of 0.71 and the minimum variance Sharpe of 0.65. The Sharpe ratio measures return per unit of volatility, so higher is better. The efficient frontier analysis shows this allocation is on or very near the frontier, meaning the existing mix achieves a strong tradeoff between risk and expected return using these three funds. Tweaking weights could eke out a bit more efficiency, but the improvements are marginal. From an optimization standpoint, this is already an efficient, well‑aligned configuration that doesn’t need dramatic changes to be prudent.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 1.49%
The overall dividend yield is about 1.49%, blending a lower‑yield NASDAQ fund with moderate U.S. and higher‑yield international exposure. Dividends are the cash payments companies share with investors and can be an important piece of total return, especially over long periods when reinvested. Here, the yield level suggests the focus remains on total growth rather than income, which matches the all‑equity, index‑driven design. For an investor still saving and reinvesting, this is perfectly aligned; dividends quietly add to compounding. For someone seeking higher regular cash flow, a 1–2% yield would usually need to be supplemented by withdrawals or a dedicated income strategy.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- 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) 0.05%
Costs are impressively low, with a blended total expense ratio (TER) around 0.05%. TER is the annual fee charged by funds, and even tiny differences compound a lot over decades. This cost level is far below many actively managed or niche products and strongly supports long‑term performance by leaving more of the market’s return in your pocket. The slight cost bump from the NASDAQ ETF is modest and doesn’t materially drag the overall figure. From a fee perspective, this setup is excellent and firmly in “best practice” territory, which is a big plus for compounding and makes the portfolio easier to stick with through market cycles.
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