Broad global stock allocation with efficient risk balance and strong long term growth profile
Report created on Mar 23, 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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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 50.00%
This portfolio is a super-simple two-fund setup split 50% into a broad US stock ETF and 50% into a broad international stock ETF. That means essentially all the money is in global equities, with a tiny cash position that barely moves the needle. Structurally, this is about as “total market” as it gets, tracking thousands of companies worldwide through just two low-cost vehicles. That simplicity is powerful: fewer moving parts, less trading, and very clear exposure. The main implication is that outcomes will be driven almost entirely by global stock markets, so investors should be comfortable riding through stock market ups and downs without the cushion of bonds or alternatives.
Growth
Historically, a hypothetical $1,000 invested here in 2016 grew to about $2,958, a 12.37% compound annual growth rate (CAGR). CAGR is the “average yearly speed” of growth over time, smoothing out the bumps. This trailed the US-only market (14.20% CAGR) but slightly beat the global market benchmark (11.60%), which is a solid result. The maximum drawdown, a peak-to-trough drop of about -34.4%, was very similar to both benchmarks, showing typical equity-level volatility. Only 29 days produced 90% of total returns, underscoring how a few big days drive long-term outcomes. Staying invested during turbulence has historically mattered far more than trying to time entries and exits.
Projection
The forward projection uses a Monte Carlo simulation, which basically “replays” many possible futures from past volatility and return patterns to create a range of outcomes. After 10 years, the median scenario turns $1,000 into roughly $4,618 (a 361.8% cumulative gain), while the pessimistic 5th percentile still shows about 53.1% growth. Impressively, 987 out of 1,000 simulated paths end positive, and the average annualized return across all simulations is 12.84%. That said, this relies on historical behavior, which may not repeat, especially if future growth or valuations differ. The main takeaway: expectations should include both strong upside potential and the possibility of long rough patches, not a smooth ride.
Asset classes
- Stocks 98%
- Cash 1%
Asset class exposure is almost entirely equities: 98% in stocks with about 1% in cash and negligible amounts elsewhere. Compared with many “balanced” portfolios that blend in bonds, this is an equity-heavy setup designed for growth rather than capital stability. Stocks historically offer higher long-run returns but much larger short-term swings. The positive side is strong participation in global economic growth; the trade-off is sharp drawdowns when markets fall. For someone wanting more steadiness, adding bonds or other diversifiers could smooth volatility, but for a growth-oriented investor with time on their side, this high-equity stance is internally consistent and clearly aligned with return-seeking objectives.
Sectors
- Technology 24%
- Financials 17%
- Industrials 13%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 7%
- Consumer Staples 5%
- Basic Materials 5%
- Energy 4%
- Utilities 3%
- Real Estate 3%
Sector exposure is well spread, with technology at 24% and financials, industrials, consumer cyclicals, healthcare, communication services, and others all meaningfully represented. Tech is the single largest slice, which is common in broad market indices today, but it’s not an extreme tech bet. This balanced sector mix helps the portfolio avoid overreliance on any one part of the economy. For instance, if cyclical consumer areas slow, defensives like consumer staples or utilities can partly offset. However, because this is a pure equity portfolio, all sectors will still generally move with the broader market in big risk-off periods, just with some differences in degree and timing.
Regions
- North America 54%
- Europe Developed 18%
- Japan 8%
- Asia Developed 7%
- Asia Emerging 7%
- Australasia 2%
- Africa/Middle East 2%
- Latin America 1%
Geographically, about 54% is in North America, roughly in line with global market capitalization, with the rest spread across developed Europe, Japan, developed and emerging Asia, Australasia, Africa/Middle East, and Latin America. This allocation is well-balanced and aligns closely with global standards. It avoids the common home-country bias where investors over-concentrate in their domestic market. The upside is broad exposure to different growth drivers and policy regimes; when one region lags, another may lead. The trade-off is that returns won’t perfectly match any single country’s stock market, including the US, which can feel frustrating in periods when one region substantially outperforms the rest.
Market capitalization
- Mega-cap 44%
- Large-cap 30%
- Mid-cap 18%
- Small-cap 5%
- Micro-cap 1%
Market-cap exposure leans heavily toward large companies: 44% in mega caps, 30% in big caps, with 18% medium, 5% small, and 1% micro caps. This pattern is typical of cap-weighted index funds, where bigger companies naturally take larger weights. Large caps tend to be more stable and liquid, while smaller companies can be more volatile but sometimes offer higher growth potential. Here, the tilt favors stability and alignment with major benchmarks over seeking extra small-cap risk. For most long-term investors, that’s a sensible core structure, but it also means performance will be driven largely by how the world’s largest corporations perform over time.
True holdings
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NV NVIDIA Corporation 3.09%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 2.95%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.21%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.72%
Part of fund(s):- Vanguard International Equity Index Funds - Vanguard FTSE Emerging Markets ETF
- Vanguard Total International Stock Index Fund ETF Shares
- iShares Asia 50 ETF
-
AM Amazon.com Inc 1.53%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.37%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.14%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.08%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.07%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.86%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 17.00%
Looking through the ETFs, the largest underlying exposures are familiar mega-cap names like NVIDIA, Apple, Microsoft, Taiwan Semiconductor, Amazon, Alphabet, Meta, and Tesla. None are directly held; they all appear via the index funds. The biggest single-company exposure, NVIDIA, is still only about 3.1% of the portfolio, with others below that. This shows good diversification even among the giants. There is some overlap between the two ETFs, especially in large multinationals, but the weights are modest. Because only top-10 ETF holdings are shown, actual overlap is a bit higher, but not alarmingly so here. Overall, hidden concentration risk in individual companies looks very limited.
Factors
Factor exposure shows strong signals in size, low volatility, and momentum. Factor exposure describes how much a portfolio leans into characteristics like value, momentum, or quality that research links to returns. The high size exposure reflects the emphasis on larger companies. The 60% low volatility tilt suggests a slight preference for steadier names relative to the broad market, while the 47.5% momentum tilt means holdings that have recently done well are somewhat favored through index composition. Coverage is incomplete for some factors, so signals aren’t perfect. Still, this mix typically behaves well in trending markets, with a modest tendency to cushion drawdowns compared with more speculative, high-beta equity lineups.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 50.00% 51.9% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 50.00% 48.1%
Risk contribution measures how much each holding adds to the portfolio’s overall ups and downs, which can differ from its weight. Here, the two ETFs contribute almost exactly in line with their 50/50 split: the US fund contributes about 51.9% of total risk, and the international fund about 48.1%. A risk-to-weight ratio near 1.0 for each shows no position is disproportionately dominating volatility. This alignment is a strong sign that position sizing is well-balanced and behaves as intended. For a simple, two-holding portfolio, that’s ideal: both sides pull similar weight in terms of risk, making it easy to adjust the overall profile by nudging the split if desired.
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, this portfolio sits on the efficient frontier, meaning it already achieves the best possible return for its specific risk level using the existing holdings. The Sharpe ratio, which measures return per unit of risk, is 0.6 here. There is an “optimal” portfolio on the same frontier with a higher Sharpe ratio of 0.75 and slightly higher risk and return, but reaching it would require shifting the stock split rather than adding new assets. Since the current allocation is efficient, any future changes are more about personal comfort with volatility and goals than about fixing a structural inefficiency in the current setup.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.90%
- Weighted yield (per year) 2.05%
The blended dividend yield of about 2.05% comes from roughly 1.20% on the US ETF and 2.90% on the international ETF. Dividends are cash payments from companies and form a steady part of total return, especially over long horizons when reinvested. This yield level is moderate, appropriate for a broad equity mix that includes both growth-oriented and more mature firms. For investors emphasizing long-term growth, reinvesting these dividends can meaningfully boost compounding over decades. For income-focused investors, the yield is helpful but not high enough to be a sole income source, so any withdrawal strategy would still rely heavily on price appreciation, not just payouts.
Ongoing product costs
- 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) 0.04%
Total estimated cost (TER) is an impressively low 0.04%, with the US ETF at 0.03% and the international ETF at 0.05%. TER, or total expense ratio, is the ongoing annual fee charged by funds, quietly deducted from returns. Keeping this cost under five basis points is excellent and strongly supports better long-term performance. Over decades, even a 0.50% difference in fees can translate into a large gap in ending wealth. This cost profile is very much in line with best practices in low-cost index investing. There’s little meaningful room to reduce expenses further without giving up the broad diversification these funds already provide.
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