Two fund global stock portfolio with strong US tilt and efficient risk adjusted performance
Report created on Jun 8, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 75.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 25.00%
This portfolio is a simple two‑fund mix holding only stock ETFs, with 75% in a broad US index and 25% in a total international fund. That means all exposure comes from equities, with no bonds, cash substitutes, or alternatives in the mix. Structurally, it behaves like a global stock portfolio with a clear home‑country tilt toward the US. Two‑fund structures are easy to understand and monitor because each holding plays a very obvious role. Simplicity like this reduces the risk of overlap surprises between many different funds. The trade‑off is that risk and return will be almost entirely driven by global stock markets rather than being smoothed by other asset types.
Growth
One or more local-currency benchmark funds are unavailable for this report.
From mid‑2016 to mid‑2026, a hypothetical $1,000 in this portfolio grew to about $3,745, implying a compound annual growth rate (CAGR) of 14.17%. CAGR is like average speed on a road trip, showing the smooth annual rate that would get you from start to finish. The referenced global market benchmark returned 13.07% annually over the same period, so this portfolio slightly outpaced it. The maximum drawdown, or largest peak‑to‑trough fall, was about ‑33.8%, very similar to the market’s worst drop. This pattern shows strong upside participation with drawdowns in line with global stocks, highlighting that equity risk is fully present.
Projection
The Monte Carlo projection uses many simulated paths to estimate how $1,000 might grow over 15 years based on past volatility and returns. Think of it as rolling the dice 1,000 times using historical behavior as the rulebook. The median outcome is around $2,690, with a central “likely” range from about $1,848 to $4,173 and a 75.3% chance of ending with a positive nominal return. The average annualized return across simulations is 8.04%. These numbers don’t forecast any specific path; they just show the spread of plausible outcomes if markets behave somewhat like the past, which is never guaranteed.
Asset classes
- Stocks 100%
All of the portfolio is in stocks, with 100% equity exposure and no allocation to bonds, cash, or alternative assets. That creates a clean, growth‑focused profile where long‑term returns are tied directly to corporate earnings and global economic conditions. In comparison, many diversified portfolios include some fixed income to dampen drawdowns and smooth year‑to‑year swings. With no such buffer here, market volatility flows straight through to the portfolio value. This clarity makes it easier to understand what’s driving performance but also means that short‑term ups and downs can be pronounced, especially during global equity sell‑offs.
Sectors
- Technology 31%
- Financials 14%
- Industrials 10%
- Consumer Discretionary 10%
- Telecommunications 10%
- Health Care 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
Sector exposure is well spread, with technology at 31% and meaningful allocations across financials, industrials, consumer discretionary, telecoms, health care, and smaller slices in staples, energy, materials, utilities, and real estate. This pattern broadly resembles large global equity benchmarks, where tech has become a sizeable but not overwhelming share. Tech‑heavy segments can be more sensitive to interest rates and changing growth expectations, while areas like utilities or staples often move more defensively. The balanced mix here means no single non‑tech sector dominates the portfolio, helping reduce the risk that one industry shock entirely drives overall returns.
Regions
- North America 77%
- Europe Developed 9%
- Asia Developed 4%
- Japan 4%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 77% of the portfolio sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, and smaller portions in emerging regions and other areas. This represents a clear US and North American tilt relative to a more evenly weighted global index, which typically has lower US representation. A strong home‑region focus can benefit from robust US corporate performance but also ties the portfolio heavily to one economy and currency. The remaining international slice adds diversification by capturing different growth cycles, policy environments, and currency moves outside North America.
Market capitalization
- Mega-cap 46%
- Large-cap 33%
- Mid-cap 18%
- Small-cap 2%
Market capitalization is skewed toward larger companies, with 46% in mega‑caps, 33% in large‑caps, 18% in mid‑caps, and a small 2% in small‑caps. This pattern is typical for broad market index funds, since large companies make up most of total market value. Bigger firms often provide more stable earnings, established business models, and better access to financing, which can reduce company‑specific risk compared with tiny firms. On the other hand, the relatively modest small‑cap exposure means less participation in the sometimes higher, but more volatile, growth that smaller companies can experience during strong economic expansions.
True holdings
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NV NVIDIA Corporation 5.89%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 4.84%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.68%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.14%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.72%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.40%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.17%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.63%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.31%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.06%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 28.82%
Looking through the ETFs’ top holdings, a handful of very large companies account for a noticeable share of the portfolio: names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire Hathaway together represent a meaningful slice of the covered portion. Because these giants appear through broad indices, they create a natural concentration in the very top of the market. This overlap is typical for cap‑weighted index investing and partly explains the strong tech presence. Overlap may be understated because only ETF top‑10s are visible, so total exposure to these firms is likely somewhat higher than the reported look‑through suggests.
Factors
Factor exposures are broadly neutral across value, size, momentum, quality, yield, and low volatility, all sitting close to the 50% “market‑like” mark. Factor exposure is basically how much the portfolio leans into certain characteristics that research links to long‑term returns, like cheapness (value) or price trends (momentum). Here, the absence of strong tilts indicates the funds are behaving like broad market baskets rather than specialized factor strategies. That means performance is likely to track overall equity markets instead of being driven by specific style bets, which keeps behavior relatively predictable and aligned with standard benchmarks.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 75.00% 77.4% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 25.00% 22.6%
The US index ETF, at 75% weight, contributes about 77.4% of the portfolio’s total risk, almost exactly in line with its size. The international ETF, at 25% weight, contributes roughly 22.6% of overall volatility. Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from weight when assets have different volatility. Here, the ratio of risk to weight is very close for both funds (around 1.0), indicating no single holding behaves like an outsized risk amplifier. The result is a straightforward structure where risk roughly mirrors allocation proportions.
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 risk‑return chart shows the current portfolio with a Sharpe ratio of 0.61, compared to 0.83 for the optimal mix and 0.68 for the minimum variance combination using the same two funds. The Sharpe ratio measures risk‑adjusted returns, comparing excess return over cash to volatility. The analysis notes that this portfolio already sits on or very near the efficient frontier, meaning that, for its chosen risk level, the weights are broadly efficient. Reweighting could theoretically nudge the balance slightly, but the current mix already achieves a strong tradeoff without adding more complexity or additional holdings.
Dividends
- Vanguard S&P 500 ETF 1.00%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.42%
The overall dividend yield is about 1.42%, combining roughly 1.0% from the US ETF and 2.7% from the international fund. Dividends are the cash payments companies distribute from profits, and over long periods they can be a meaningful part of total return, alongside price gains. Here, the emphasis is clearly on growth rather than income, with yield sitting on the lower side compared with more dividend‑oriented strategies. International stocks modestly boost income compared to the US portion. In practice, most of this portfolio’s value change will likely come from price movement rather than from dividend cash flows.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
The total expense ratio (TER) for the portfolio is impressively low at about 0.04%, with the US ETF at 0.03% and the international ETF at 0.05%. TER is the annual fee charged by the funds, expressed as a percentage of invested assets. Over long horizons, small differences in costs can compound into substantial dollar amounts, so keeping fees down leaves more of the return in the investor’s pocket. These costs are well below many active funds and even below some other index products, which is a strong structural advantage supporting better long‑term net performance relative to higher‑fee alternatives.
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