Globally diversified stock portfolio with strong balance and a tilt toward lower volatility behavior
Report created on May 30, 2024Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 60.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00% -
EM iShares Emerging Markets Infrastructure ETF
EMIF - US4642882165 10.00% -
IW iShares Russell 1000 Value ETF
IWD - US4642875987 10.00%
The structure is simple and focused: four broad equity ETFs, all stocks, with no bonds or alternatives. Around three-fifths sits in a global total-market fund, one-fifth in international stocks, and the remaining fifth split between large US value and emerging markets infrastructure. This keeps complexity low while still reaching a wide range of companies. A fully stock-based setup typically suits growth-oriented investors who can live with swings in value. The main takeaway is that this is a straightforward, “one core plus a few tilts” design, giving broad global exposure with a couple of deliberate tilts rather than a messy collection of overlapping funds.
Growth
Since 2016, the hypothetical $1,000 grew to about $2,595, a compound annual growth rate (CAGR) of 10.18%. CAGR is like your average speed on a road trip, smoothing out the bumps. That’s slightly behind the global market and further behind the US market, which has led in recent years. The maximum drawdown of about -36% shows this portfolio can fall sharply, though not dramatically more than broad benchmarks. The key takeaway is that performance has been solid and in line with expectations for a diversified all-stock mix, just with less participation in the US-led outperformance streak.
Asset classes
- Stocks 100%
Every dollar here is in stocks, with 0% in bonds, cash, or alternatives. That makes the portfolio straightforward and return-focused, but it also means there’s no built-in shock absorber during equity downturns. In contrast, many balanced benchmarks include a mix of stocks and bonds to smooth the ride and reduce drawdowns. For someone comfortable with volatility, a 100% equity stance can be acceptable and historically rewarding over long horizons. The key point is that risk is driven almost entirely by the global stock market, so expectations should include sizable short-term swings in exchange for higher long-term growth potential.
Sectors
- Technology 20%
- Financials 16%
- Industrials 16%
- Consumer Discretionary 8%
- Health Care 8%
- Utilities 7%
- Telecommunications 6%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 5%
- Real Estate 2%
Sector exposure is fairly balanced, with technology the largest slice but not overwhelmingly dominant, followed closely by financials and industrials. Other sectors like health care, utilities, telecom, energy, staples, materials, and real estate all have meaningful but smaller roles. Compared with many broad-market portfolios that are very tech-heavy, this spread is more even and can help reduce the impact of any single sector’s cycle. Tech and growth-related names will still influence returns, but defensive areas like utilities and staples, plus cyclical groups like industrials and financials, create a smoother blend across different economic environments.
Regions
- North America 49%
- Europe Developed 16%
- Asia Emerging 10%
- Asia Developed 7%
- Japan 7%
- Latin America 5%
- Africa/Middle East 3%
- Australasia 2%
Geographically, about half the exposure is in North America, with the rest spread across developed Europe, developed Asia, Japan, and multiple emerging regions. This is closer to global-capitalization norms than many home-biased portfolios and helps reduce reliance on any single economy or currency. The dedicated allocations to Latin America, Africa/Middle East, and Asia emerging add growth potential but also some political and economic uncertainty. Overall, this geographic mix is well-balanced and aligns closely with global standards, which supports resilience if leadership rotates away from US markets toward other regions in future cycles.
Market capitalization
- Mega-cap 37%
- Large-cap 36%
- Mid-cap 20%
- Small-cap 4%
- Micro-cap 1%
Market-cap exposure leans toward mega and large companies, which together make up more than two-thirds of the portfolio, with the rest mainly in mid caps and a small slice in small and micro caps. Big companies tend to be more stable and liquid, while smaller ones can be more volatile but offer higher growth potential. This mix closely resembles broad global benchmarks, providing a steady core with a modest growth boost from the smaller tiers. The result is a diversified size profile that should behave similarly to “the market,” without overly aggressive bets on tiny or illiquid names.
True holdings
-
NV NVIDIA Corporation 2.25%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 2.09%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 1.58%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.51%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.27%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
GO Alphabet Inc Class A 1.18%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
GO Alphabet Inc Class C 0.96%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
AV Broadcom Inc 0.80%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.77%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.62%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 13.02%
Looking through the ETFs, the largest underlying exposures are familiar mega-cap names like NVIDIA, Apple, Microsoft, TSMC, Amazon, Alphabet, Broadcom, Meta, and Tesla. Several of these appear across multiple funds, which creates some hidden concentration in a handful of global giants despite holding “total market” products. Because this analysis only sees top-10 ETF holdings, actual overlap is likely a bit higher than reported. The implication is that while the portfolio is diversified by number of companies, a meaningful slice of risk and return still hinges on a small group of dominant global leaders.
Factors
Factor exposure is very balanced overall, with value, size, momentum, quality, and yield all sitting near neutral, meaning the portfolio behaves much like a broad market index on those dimensions. The one notable tilt is toward low volatility, where exposure is mildly above average. Low-volatility investing favors stocks that historically moved less than the market, which can soften drawdowns and smooth returns but sometimes lags in roaring bull markets. This subtle lean supports the “balanced investor” profile by slightly dampening ups and downs while still participating broadly in global equity growth trends.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 60.00% 61.3% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 19.8% -
iShares Russell 1000 Value ETF
Weight: 10.00% 9.6% -
iShares Emerging Markets Infrastructure ETF
Weight: 10.00% 9.3%
Risk contribution shows how much each holding adds to overall volatility, which can differ from its weight, like how one loud instrument can overshadow an orchestra. Here, risk is almost perfectly aligned with weights: the global total-market ETF contributes about 61% of risk on a 60% weight, and the other three funds each contribute almost exactly in line with their sizes. That’s a sign of a very even, well-thought-out setup with no single satellite position secretly dominating risk. Rebalancing, if done, would mostly be about keeping those broad proportions intact rather than fixing any big imbalances.
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 allocation sits right on or very close to the efficient frontier, meaning it delivers a strong tradeoff between volatility and expected return using just these holdings. The Sharpe ratio of 0.54 matches the minimum-variance mix and isn’t far from the 0.66 of the theoretical optimal combination. Since the portfolio is already near the frontier, there’s limited benefit from reshuffling weights, beyond fine-tuning for personal preferences. This is a positive signal: the existing mix makes good use of the chosen building blocks and doesn’t leave obvious “free” improvements on the table.
Dividends
- iShares Emerging Markets Infrastructure ETF 4.70%
- iShares Russell 1000 Value ETF 1.70%
- Vanguard Total World Stock Index Fund ETF Shares 1.80%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 2.32%
The overall dividend yield of about 2.3% is moderate and consistent with a global equity portfolio that mixes growth and income. The emerging markets infrastructure ETF stands out with a higher yield, while the value and international funds also provide solid income streams. Dividends can be an important part of total return, especially over long periods where reinvested payouts compound. For someone not relying on current income, automatically reinvesting these dividends helps steadily increase the share count. For someone wanting some cash flow, this level of yield can supplement other income sources without turning the portfolio into an income-only strategy.
Ongoing product costs
- iShares Emerging Markets Infrastructure ETF 0.60%
- iShares Russell 1000 Value ETF 0.19%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.13%
The blended expense ratio of roughly 0.13% per year is impressively low, especially for a globally diversified, multi-ETF portfolio. Costs matter because they come off returns every single year, and even small differences compound meaningfully over decades. Most of the allocation is in very low-cost core funds, with a slightly higher fee on the specialized emerging markets infrastructure ETF, which is typical for niche exposures. Overall, the cost profile is a real strength here and supports better long-term performance. Keeping fees at this level is very much in line with best practices for efficient, long-horizon investing.
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