Broad low cost equity portfolio with strong US focus and modest tilt to growth leaders

Report created on Mar 18, 2026

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The overall structure is very straightforward: roughly 99% in stocks and 1% in cash, with four broad index funds doing all the work. A 60% core in a large domestic index, 20% in international stocks, plus two satellites in total US and a growth‑heavy index creates a simple but powerful framework. This kind of equity‑only mix is common for long‑term growth and sits comfortably in a “balanced but equity‑tilted” risk profile. The big takeaway is that the building blocks are plain vanilla, transparent, and easy to manage, which supports discipline and reduces the temptation to tinker with niche products.

Growth Info

Historically, the portfolio’s compound annual growth rate (CAGR) of 14.18% is very strong and in line with what you’d expect from a US‑heavy equity mix over a robust decade. Max drawdown of about ‑26% shows that it can fall sharply, but less than some pure growth or concentrated strategies during severe selloffs. Versus broad benchmarks like the S&P 500 or global markets, this profile suggests slightly higher growth than “the market” with drawdowns that are meaningful but not extreme. It’s important to remember that these results reflect a particular period; past performance, even when impressive, doesn’t guarantee similar future returns.

Projection Info

The Monte Carlo simulation uses past returns and volatility to generate 1,000 possible future paths, a bit like running the next few decades of market history in fast‑forward with slight variations each time. The median outcome of about 531% growth and a pessimistic 5th percentile near 93% highlight a very wide range of possibilities. A simulated annualized return of 15.62% looks attractive, but it’s still based on historical relationships that may not repeat. The key takeaway is that equities can deliver large upside over time, yet the path is uncertain, with real chances of long flat or negative stretches even in an overall positive outlook.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With 99% in stocks and just 1% in cash, this is essentially an all‑equity portfolio. Asset class diversification into bonds, real assets, or alternatives is deliberately minimal, which keeps expected long‑term returns higher but leaves short‑term swings largely unbuffered. Compared with many “balanced” benchmarks that might hold 30–40% in bonds, this mix is noticeably more growth‑oriented. For long horizons and stable savings plans, that can be appropriate, but it does mean you’d typically rely on external cash buffers or income sources, rather than the portfolio itself, to weather big market downturns without needing to sell at bad times.

Sectors Info

  • Technology
    32%
  • Financials
    13%
  • Telecommunications
    10%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Health Care
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    1%

Sector exposure is led by technology at 32%, followed by financial services, communication services, consumer cyclicals, industrials, and healthcare in the high single to low double digits. This spread across 10 sectors is a strong sign of diversification, and the mix broadly resembles major global benchmarks, which is beneficial. The tech and communication tilt does mean more sensitivity to interest rates, innovation cycles, and regulatory shifts. In strong growth periods, that can be a tailwind; during tech rotations or tighter monetary policy, drawdowns may feel sharper. Still, the overall sector balance is healthy and aligns well with modern equity markets.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, around 81% is in North America, with modest allocations across developed Europe, Japan, developed Asia, emerging Asia, and small positions in Australasia and Africa/Middle East. This is clearly US‑centric, more so than a typical global benchmark where the US might be closer to 60%. That US bias has helped in recent years because American mega‑caps have led performance. The trade‑off is higher dependence on one country’s economy, currency, and policy environment. Adding more non‑US exposure over time could smooth country‑specific bumps, though many US multinationals already earn a substantial share of revenue overseas, providing some indirect global diversification.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    34%
  • Mid-cap
    17%
  • Small-cap
    2%

By market cap, the portfolio leans heavily into mega and big companies, with about 80% in mega/big, 17% in medium, and only 2% in small caps. This is very close to how major indices weight the market and is generally a stable, lower‑friction way to capture global equity returns. Larger companies tend to be more established and sometimes less volatile, but they can be slower to grow than smaller firms over very long periods. The small‑cap slice is modest, so any “size premium” from smaller stocks will have limited impact here. Overall, the market‑cap exposure is mainstream and easy to live with.

True holdings Info

  • NVIDIA Corporation
    5.26%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Apple Inc
    4.72%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Schwab U.S. Broad Market ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Microsoft Corporation
    3.56%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Schwab U.S. Broad Market ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Amazon.com Inc
    2.52%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Alphabet Inc Class A
    2.20%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Broadcom Inc
    1.85%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Schwab U.S. Broad Market ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Alphabet Inc Class C
    1.80%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Meta Platforms Inc.
    1.80%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Tesla Inc
    1.54%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • LS 1x Tesla Tracker ETP Securities GBP
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Berkshire Hathaway Inc
    0.94%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
  • Top 10 total 26.20%

Looking through the ETFs, the top exposures cluster in the mega‑cap leaders: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire. Many of these names appear in multiple funds, which quietly amplifies position size beyond what the surface fund weights suggest. For example, NVIDIA above 5% and Apple near 5% of total exposure show a sizeable tilt to a handful of large growth companies. This hidden concentration is not necessarily a problem; it simply means that portfolio behavior will be heavily influenced by how these few giants perform, especially in volatile tech‑driven markets.

Factors Info

Value
Preference for undervalued stocks
Low
Data availability: 10%
Size
Exposure to smaller companies
No data
Data availability: 0%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
No data
Data availability: 0%
Yield
Preference for dividend-paying stocks
No data
Data availability: 0%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 90%

Factor exposure shows strong tilts to low volatility (about 68%) and momentum (about 54%), with a moderate value signal around 25%. Factor exposure just means how much the portfolio leans into traits like trend following (momentum) or smoother price moves (low volatility) that academic research has linked to returns. A momentum tilt often does well in strong, trending markets but can be hit hard in sharp reversals. The low volatility tilt can soften some downturns, though it doesn’t eliminate risk. Coverage gaps on some factors remind us this isn’t a perfect map, but the overall message is a quality‑leaning, trend‑friendly profile rather than a deep value or high‑yield style.

Risk contribution Info

  • Vanguard S&P 500 ETF
    Weight: 60.00%
    60.4%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 20.00%
    16.5%
  • Invesco NASDAQ 100 ETF
    Weight: 10.00%
    12.8%
  • Vanguard Total Stock Market Index Fund Admiral Shares
    Weight: 10.00%
    10.4%

Risk contribution measures how much each holding adds to total ups and downs, which can differ from its simple weight. Here, the 60% core index contributes about 60% of risk, closely aligned with its size. The international fund contributes less risk than its weight, thanks to diversification, while the NASDAQ 100 slice contributes more risk (about 13% of total risk from a 10% weight), reflecting its growth and tech tilt. The fact that the top three positions drive nearly 90% of portfolio risk is normal for a concentrated set of broad funds, but it reinforces that any changes there would meaningfully change overall behavior.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund Admiral Shares
    High correlation

Correlation describes how investments move together: a correlation of 1 means they move in lockstep, 0 means they move independently, and negative means they often move in opposite directions. The core US index fund and the total US market fund are highly correlated, essentially tracking similar baskets. That means they add almost no diversification benefit relative to each other; in a selloff, they’ll behave very similarly. While that’s not harmful, it does reduce the distinct roles each holding plays. Simplifying overlapping positions can sometimes make the portfolio easier to understand and manage without materially changing risk or long‑term performance.

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, the goal is to sit on or near the “efficient frontier,” which is the best possible trade‑off between volatility and return using your current set of holdings. The data suggests there is room to improve efficiency, mainly by cutting overlapping, highly correlated positions that don’t add diversification. Since the core US index and total US market fund move almost identically, adjusting or consolidating them could simplify things without reducing expected return. Similarly, slightly tweaking the NASDAQ 100 weight might fine‑tune risk. Importantly, such improvements can come just from reweighting existing holdings rather than adding new or more complex products.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total Stock Market Index Fund Admiral Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 1.44%

The overall dividend yield around 1.44% is modest, consistent with a growth‑oriented, US‑tilted equity portfolio. The international fund provides the highest yield near 3.1%, while the NASDAQ 100 sits at just 0.5%, reflecting its focus on growth companies that reinvest rather than pay out profits. For investors more focused on total return than regular income, this split works well, letting dividends be a bonus rather than the main goal. Over long horizons, reinvested dividends can meaningfully boost growth, even when the headline yield looks small, so turning on automatic dividend reinvestment often pairs nicely with this kind of allocation.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

Total ongoing costs (TER) at about 0.05% are impressively low. That’s one of the strongest aspects of this setup. Low‑fee index funds keep more of the market’s return in your pocket, and over decades, even tiny cost differences can compound into large dollar amounts. Being below the cost levels of many active funds and even some popular ETFs is a real advantage, especially since the underlying exposures are broad and diversified. From a cost perspective, this portfolio is already highly optimized, so there’s little pressure to chase marginally cheaper options unless they also clearly improve simplicity or diversification.

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