Broad global stock market blend with simple structure and efficient risk adjusted profile
Report created on May 3, 2024Risk profile
4/7
Diversification profile
3/5
Positions
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 70.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00%
This portfolio is ultra-simple: two broad stock index ETFs, about 70% in a total domestic market fund and 30% in a total international fund. That means every dollar is in equities, spread across thousands of companies worldwide, using market-cap weights instead of active bets. A structure like this is easy to understand and maintain, which is a real advantage over more complex setups that require constant monitoring. The main tradeoff is that being 100% in stocks brings bigger ups and downs. As a general takeaway, this kind of two-fund, all-equity design suits people who want growth, understand volatility, and value straightforward implementation.
Growth
Over the last decade, $1,000 grew to about $3,145, a compound annual growth rate (CAGR) of 12.17%. CAGR is like your average speed on a long trip, smoothing out bumps along the way. The portfolio slightly lagged the U.S.-only market but beat the global market, a strong outcome for a simple global mix. The max drawdown of about -35% shows the kind of temporary hit you must stomach in stock-heavy portfolios. That’s very similar to both benchmarks, which is reassuring. With only 29 days driving 90% of returns, staying invested through volatility has clearly mattered more than trying to time in and out.
Asset classes
- Stocks 100%
Asset class exposure is extremely clear: 100% stocks, 0% bonds, cash, or alternatives. That creates strong growth potential but also leaves the portfolio fully exposed to equity market cycles, with no built‑in ballast from safer assets during downturns. Many broad benchmarks for balanced investors mix in bonds, which usually reduces volatility and drawdowns, though at the cost of lower long‑term return. Here, the growth orientation is unambiguous and aligns with a longer time horizon and higher risk tolerance. For someone closer to withdrawals or more sensitive to big swings, adding some lower‑risk asset classes outside this account could smooth the ride while preserving the core equity engine.
Sectors
- Technology 27%
- Financials 15%
- Industrials 12%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 3%
- Real Estate 3%
Sector exposure is fairly broad but leans toward technology at 27%, with solid slices in financials, industrials, consumer-related areas, and health care. This resembles global equity benchmarks, which is a strong indicator of diversification and helps avoid making big sector bets. A tech tilt can boost returns during innovation booms but also amplifies sensitivity to changes in interest rates, regulation, and investor sentiment toward growth. On the positive side, meaningful exposure to defensive sectors like consumer staples, utilities, and health care provides some cushioning in slower economic periods. Overall, the sector mix is well-balanced and largely reflects the global opportunity set rather than active tilts.
Regions
- North America 72%
- Europe Developed 11%
- Japan 5%
- Asia Developed 4%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 72% sits in North America, with the rest spread across developed Europe, Japan, other Asia, and smaller slices in emerging regions. This is broadly in line with global market-cap weights, which naturally lean toward the largest, most liquid markets. That alignment with global standards is beneficial, because it avoids over-concentrating in one region based on short-term sentiment. The exposure outside North America still represents a meaningful chunk of the world’s economic and population growth, though it is secondary to the home market. A practical takeaway is that the portfolio already balances home bias with global diversification in a way many investors aim for but rarely achieve.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 6%
- Micro-cap 2%
Market-cap exposure is anchored in mega- and large-cap stocks (around 73% combined), with modest allocations to mid, small, and even micro-caps. That means most of the portfolio follows the behavior of big, established companies, which tend to be more stable and liquid, while still getting some extra diversification and growth potential from smaller firms. This structure mirrors standard total-market indices and helps keep trading costs and volatility manageable. Smaller caps can shine in certain economic phases but also swing more wildly. The current mix strikes a middle ground: you participate in the full market spectrum without taking an aggressive tilt into riskier small-cap territory.
True holdings
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NV NVIDIA Corporation 4.33%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.12%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.09%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.14%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.92%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.60%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.51%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.49%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.20%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.03%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
- Top 10 total 22.42%
Looking through the ETFs’ top holdings, there is meaningful exposure to large global leaders like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, all via the funds rather than as single-stock bets. These names show up in both the domestic and international allocations in different ways, so there is some hidden concentration in mega-cap growth firms even though there are only two tickers in the account. Since we only see top-10 ETF holdings, true overlap is understated, but the pattern is clear: performance will be influenced heavily by a small group of giant companies. Anyone holding extra single-stock positions in similar names elsewhere should watch for unintended doubling-up.
Factors
Factor exposures—value, size, momentum, quality, yield, and low volatility—are all sitting in the neutral band, clustered close to 50%. Factor exposure is basically how much your portfolio leans into certain characteristics that research has shown to drive returns, like “cheap vs. expensive” or “steady vs. volatile.” Here, the absence of strong tilts means the portfolio behaves a lot like the broad market across these dimensions, rather than betting heavily on any one style. That’s a positive sign for a core holding: it reduces the risk that a single factor cycle dominates outcomes. In practice, this should deliver a smoother experience relative to investors who chase hot styles.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 70.00% 72.8% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 27.3%
Risk contribution shows how much each holding adds to total portfolio ups and downs, which can differ from its simple weight. The domestic total market ETF is 70% of the allocation but contributes around 73% of overall risk, a near one-to-one relationship. The international fund’s risk share is slightly below its weight, suggesting it provides some diversification benefit despite being all equities. Nothing here looks wildly out of line, and the risk/weight ratios are close to 1. For someone wanting to dial risk up or down, changing the split between domestic and international stocks will tweak risk modestly, but the bigger lever is introducing different asset classes altogether.
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 portfolio sits right on or very near the efficient frontier. The frontier represents the best expected return for each level of risk using your current ingredients, and the Sharpe ratio (return per unit of volatility) summarizes that tradeoff. With a Sharpe of 0.63 versus 0.73 for the theoretical optimal mix, you’re already operating in a very efficient zone. The minimum-variance version would only slightly lower risk while cutting expected return meaningfully. Since the current allocation is close to optimal and uses only two low-cost funds, any improvements would be gradual tweaks rather than major overhauls, reinforcing that the core design is already strong.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 1.74%
The blended dividend yield is about 1.74%, combining a lower-yield domestic market and a higher-yield international side. Dividends are the cash payments companies distribute from profits, and over decades they can be a big contributor to total return, especially when reinvested. For a growth-oriented, all‑equity portfolio, a modest yield like this is normal and suggests companies are reinvesting plenty of earnings back into their businesses. That often supports future growth rather than maximizing current income. For someone seeking steady cash flow, this setup would usually be paired with other income sources, but for long-term compounding, reinvesting these dividends quietly boosts the growth engine over time.
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%
Costs are impressively low at a blended total expense ratio (TER) of about 0.04%. TER is the annual fee charged by the funds, taken out of returns automatically, like a tiny “management toll.” Keeping costs this low is a major advantage, because every dollar not spent on fees keeps compounding for you year after year. Over long horizons, the difference between 0.04% and, say, 0.75% can add up to thousands of dollars on even modest portfolios. This is a clear strength and fully in line with best practices for a core holding. From a cost-efficiency standpoint, there’s very little to improve here.
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