Two fund global stock portfolio with strong US tilt and very low investment costs
Report created on Apr 19, 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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VO Vanguard S&P 500 ETF
VOO - US9229083632 70.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00%
This portfolio is made up of just two broad stock ETFs, with about 70% in a US large‑cap index and 30% in an international stock index. That means it’s fully invested in equities, with no bonds or cash in the strategic mix. A two‑fund structure is simple to understand and easy to maintain, which many investors value. Because both funds are broad “market” trackers, the overall portfolio behaves a lot like a global equity index with an intentional lean toward the US market. This kind of structure focuses almost entirely on long‑term growth rather than short‑term stability, so returns are closely tied to how global stock markets perform.
Growth
From 2016 to 2026, a $1,000 investment in this mix grew to about $3,507, a compound annual growth rate (CAGR) of 13.42%. CAGR shows the “average per‑year speed” of growth, smoothing out the bumps. The worst peak‑to‑trough drop (max drawdown) was about -33.9% during early 2020, similar to major stock indices. Compared to benchmarks, the portfolio slightly lagged the US market but beat the global market index, reflecting its US tilt. Only 33 days drove 90% of returns, underlining how a few strong days matter a lot. As always, past performance only shows how it behaved in one period, not what it will do next.
Projection
The Monte Carlo projection takes the portfolio’s historical risk and return characteristics and runs 1,000 random “what if” paths for the next 15 years. It’s like simulating many alternate futures based on how similar assets have behaved before. The median outcome grows $1,000 to about $2,699, with a 73.5% chance of ending above $1,000. The wide range from roughly $1,010 to $7,475 (5th–95th percentile) shows that outcomes can vary a lot, especially for an all‑stock portfolio. These simulations are educational, not predictive: they rely on historical patterns continuing, which is never guaranteed, but they illustrate the potential spread between good and bad scenarios.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% in bonds, cash, or other asset classes. That makes the asset allocation straightforward: it is entirely geared toward equity growth rather than income stability or capital preservation. Stocks have historically offered higher long‑term returns than bonds but with larger and more frequent swings along the way. Because there’s no built‑in cushion from fixed income, the portfolio’s value will closely track stock market ups and downs. This aligns with its “balanced” risk classification mainly because the underlying holdings are diversified stock indexes rather than concentrated positions, not because there’s a mix of asset classes.
Sectors
- Technology 28%
- Financials 15%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is broad, with technology the largest slice at around 28%, followed by financials, industrials, consumer discretionary, and health care. This is fairly similar to many global equity benchmarks today, where tech and tech‑adjacent companies occupy significant index weight due to their size. A higher tech share often means stronger participation when growth and innovation themes are in favor, but it can also increase sensitivity to interest rates and sentiment about future earnings. The rest of the sectors are well‑represented, and this balanced spread helps reduce the impact of any single industry cycle. Overall, the sector mix aligns well with broad market standards, which is a positive sign for diversification.
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% of the portfolio sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, and emerging regions. This creates a clear US and North American tilt compared with many global benchmarks that allocate more evenly between the US and the rest of the world. That tilt has helped over periods when US markets outperformed, which has been the case for much of the last decade. At the same time, performance and risk are heavily linked to one region’s economy, currency, and policy environment. The remaining global exposure still adds meaningful diversification across different economic cycles and political systems.
Market capitalization
- Mega-cap 46%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 2%
By market capitalization, the portfolio leans strongly toward larger companies: roughly 46% in mega‑caps, 33% in large‑caps, and smaller portions in mid‑ and small‑caps. Market cap measures a company’s size by share price times number of shares, so this mix tracks where global stock market value actually sits today. Large and mega‑cap companies tend to be more established, with diversified businesses and deeper trading markets, which can reduce idiosyncratic risk versus owning only small firms. On the other hand, small‑caps often move more sharply, both up and down. Here, the modest mid‑ and small‑cap exposure adds some dynamism without dominating the portfolio’s behavior.
True holdings
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NV NVIDIA Corporation 5.31%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 4.66%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.44%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.55%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.09%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.83%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.68%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.57%
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 1.10%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 25.54%
Looking through the ETFs’ top holdings, the portfolio’s largest underlying exposures are big global names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, each appearing via one or both ETFs. These holdings together make up several percentage points of the overall portfolio, even though they’re not held directly. Because broad US and international indices both include some of the same multinationals, there is some overlap at the company level, which can quietly increase concentration in these giants. The overlap is likely understated because only top‑10 ETF holdings are available, but it still shows that a handful of very large companies play an outsized role in driving returns.
Factors
Factor exposures across value, size, momentum, quality, yield, and low volatility all sit in the “neutral” band, very close to market averages. Factors are characteristics like “cheap vs. expensive” (value) or “stable vs. volatile” (low volatility) that research suggests help explain why certain stocks perform differently. A neutral reading means this portfolio doesn’t lean strongly into or away from any of these traits; it behaves like a broad market basket instead of a specialized factor strategy. That’s consistent with using mainstream index funds as building blocks. This well‑balanced factor profile supports the idea that performance is driven mainly by overall equity markets rather than specific style bets.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 70.00% 72.5% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 27.5%
Risk contribution shows how much each position adds to the portfolio’s overall ups and downs, which can differ from simple weight. Here, the US equity ETF is 70% of the portfolio but contributes about 72.5% of total risk, while the international ETF is 30% of weight and 27.5% of risk. That’s a fairly proportional relationship, meaning neither fund is dramatically more volatile relative to its size. In some portfolios, a smaller but highly volatile holding can dominate risk, but that’s not the case here. Instead, overall risk is shared in line with the allocation, so changes in the US fund’s behavior will naturally have the largest impact.
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 vs. return chart shows this portfolio sitting right on or very near the efficient frontier. The efficient frontier represents the best possible trade‑offs between risk (volatility) and expected return using different weightings of the existing holdings. The current mix has a Sharpe ratio of 0.58, compared with 0.80 for the maximum‑Sharpe (optimal) combination and 0.65 for the minimum‑variance mix. The Sharpe ratio measures return earned per unit of risk above the risk‑free rate, like “miles per gallon” for risk. Being on the frontier suggests the 70/30 split is already using these two funds in a risk‑efficient way for its chosen risk level.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.61%
The blended dividend yield is about 1.61%, with the US ETF yielding around 1.10% and the international ETF closer to 2.80%. Dividend yield is the annual cash payout as a percentage of the current price, and it can be an important part of total return alongside price changes. Here, most of the expected long‑term return historically comes from capital growth rather than income, which is common for broad equity indices. The higher yield from international stocks slightly lifts the overall income stream. Because dividends can vary over time and are not guaranteed, they should be seen as an additional component of total return rather than a fixed cash flow.
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%
Total ongoing costs are extremely low at about 0.04% per year in total expense ratio (TER). TER is the annual fee charged by the funds, expressed as a percentage of assets, and it quietly comes out in the background. Over long periods, even small differences in costs can compound into meaningful amounts, so this level is impressively low compared with many actively managed options. Low costs mean that more of the portfolio’s gross return is kept rather than paid away in fees, which supports better long‑term outcomes. This cost profile is a real strength of the portfolio and aligns closely with index‑tracking best practices.
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