A highly cost efficient stock only portfolio tilted to large US companies with modest global exposure

Report created on Nov 14, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is built almost entirely from two broad stock ETFs, with about 95% in a US fund tracking major companies and 5% in a global fund outside the US. That means it’s very simple and easy to understand, which is a plus. Compared with a typical “balanced” benchmark that mixes stocks and bonds, this is much more growth-oriented and will swing more with markets. For someone targeting a balanced risk profile, gradually adding a stabilizer asset, like high‑quality bonds or cash-equivalents, could smooth out ups and downs without completely sacrificing long‑term growth potential.

Growth Info

Historically, this mix has delivered strong results: a compound annual growth rate (CAGR) of about 15.3%. CAGR is just the average yearly “speed” of growth, as if returns were smooth, even though real markets bounce around. A $10,000 starting amount growing at that rate for 10 years would end up around $41,000, though real outcomes vary. The max drawdown of about –34% shows that in rough markets, values can drop sharply, which fits an all‑stock portfolio. While this past performance is excellent versus many balanced benchmarks, it can’t be assumed going forward, so expectations should stay reasonable.

Projection Info

The Monte Carlo analysis, which runs 1,000 random “what if” market paths using historical patterns, suggests a wide range of possible futures. The median outcome of about +404% means a $10,000 starting amount might land near $50,000 in the middle scenario, while the weaker 5th percentile at +59% shows that tougher long stretches are very possible. The simulated annualized return around 13.5% is impressive, yet still just an estimate based on the past. Monte Carlo is useful to understand uncertainty, not to predict a single number, so treating these as rough guideposts rather than promises is the healthiest mindset.

Asset classes Info

  • Stocks
    100%

All of the invested money is in stocks, with no allocation to bonds, cash, or alternative assets. This creates strong participation in long‑term growth but also leaves the portfolio fully exposed when stock markets drop. A “balanced” reference portfolio would usually include a meaningful bond slice to cushion volatility and sometimes a small cash reserve. To bring risk more in line with a balanced risk score, gradually carving out a slice from stocks into steadier assets could help reduce drawdowns while still letting stocks do the heavy lifting for long‑term growth.

Sectors Info

  • Technology
    36%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector exposure leans heavily into technology at 36%, followed by meaningful stakes in financials, consumer cyclicals, and communication services. This pattern is very close to broad US market benchmarks, which is a good sign for diversification within the stock world. A tech tilt often boosts growth in strong years but can amplify swings when interest rates rise or investors rotate into more defensive areas. Because exposure is achieved through broad index funds rather than single bets, the risk is more about overall market cycles than one company. Still, being aware of this tech sensitivity helps set expectations for volatility.

Regions Info

  • North America
    95%
  • Europe Developed
    2%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

Geographically, the portfolio is dominated by North America at 95%, with only a small 5% slice spread across Europe and various other regions. That aligns closely with a US‑based investor’s home bias and has been rewarding over the past decade as US markets outperformed many others. However, it does mean that outcomes are heavily tied to the US economy, interest rates, and policy. Many global benchmarks hold a larger share in non‑US stocks. Nudging the international stake higher over time could reduce dependence on any single country and offer a bit more diversification from different economic cycles.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    1%

By market capitalization, there’s a strong tilt toward mega and big companies, together making up about 80% of the portfolio. Medium‑sized firms cover most of the rest, with only a tiny slice in small caps. Large and mega caps usually bring more stability and liquidity, which can make the ride smoother than a small‑cap‑heavy mix. The flip side is slightly less exposure to the higher long‑term growth potential that smaller companies sometimes provide. Keeping this large‑cap focus is very much in line with major benchmarks, but modestly increasing smaller company exposure could add another, differentiated growth engine.

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 a risk‑return chart called the Efficient Frontier, which shows the best possible trade‑offs between volatility and return for a given set of assets, this portfolio sits firmly on the high‑risk, high‑return side because it’s 100% in stocks. “Efficiency” here means the best return for each unit of risk using only the current building blocks, not necessarily the most diversified mix or the safest one. Introducing a modest stake in lower‑volatility assets and slightly increasing non‑US exposure could move the portfolio closer to an efficient point that still aims for strong returns but with smoother ups and downs.

Dividends Info

  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.18%

The overall dividend yield of about 1.2% is modest, with the US fund yielding around 1.1% and the international fund slightly higher. Dividends are the cash payouts companies make to shareholders, and while they’re not huge here, they still contribute a steady component to total return. For a growth‑oriented stock portfolio, a lower yield is normal and often signals a tilt toward companies that reinvest profits instead of paying them out. If regular income were a major priority, this yield level might feel low, but for long‑term growth, automatically reinvesting these dividends can quietly boost compounding.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.03%

The costs here are impressively low, with expense ratios of 0.03% and 0.05% and a combined cost around 0.03%. Expense ratio is the annual fee charged by a fund, and at these levels, it’s like paying a few dollars per year on every $10,000 invested. This allocation is well-balanced from a cost perspective and aligns closely with best practices for long‑term investing. Keeping fees this low means more of the portfolio’s growth stays in your pocket instead of going to managers, which can make a surprisingly big difference over decades of compounding.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey