Globally diversified stock and bond mix with conservative risk and strong cost and income profile
Report created on Apr 24, 2026Risk profile
3/7
Diversification profile
5/5
Positions
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VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 60.00% -
BN Vanguard Total World Bond ETF
BNDW - US92206C5655 40.00%
This portfolio is a simple two‑fund mix: about 60% in a global stock ETF and 40% in a global bond ETF. That structure creates a classic “60/40” balance, often used when aiming to dial down stock swings without giving up growth completely. Having just two broad funds keeps things straightforward and reduces the chance of accidental concentration in niche themes. The cautious risk score of 3/7 and top diversification score reflect that both funds hold thousands of securities worldwide. In practice, this means the portfolio’s ups and downs are dominated by global stocks, while bonds act as a stabilizer and income source in the background.
Growth
Over the period from late 2018 to April 2026, $1,000 grew to about $1,859, which translates to a compound annual growth rate (CAGR) of 8.5%. CAGR is like the steady yearly “cruise speed” your money would need to reach the final value. This return lagged both the US market and the global equity market, which is expected because bonds usually dampen both gains and losses. The max drawdown, or worst peak‑to‑trough drop, was about -22.7%, much smaller than the roughly -33% seen in the benchmarks. It took 11 months to bottom and 17 months to recover, illustrating how a balanced mix can soften big hits but still requires patience during recoveries.
Projection
The Monte Carlo projection uses past return and volatility patterns to simulate many possible 15‑year futures, like rolling loaded dice thousands of times. Across 1,000 simulations, the median outcome for $1,000 lands around $2,475, with a wide but reasonable middle range between roughly $1,848 and $3,283. The average annual return across simulations is 6.57%, and about three‑quarters of scenarios end with a positive result. This gives a sense of potential outcomes rather than a single forecast. It’s important to remember that these simulations are based on historical behavior, which can change; they show a distribution of what could happen, not what will happen. Still, they illustrate how time and diversification can help smooth the ride.
Asset classes
- Stocks 60%
- Bonds 40%
Asset‑class wise, the portfolio is 60% stocks and 40% bonds. Stocks are the main engine for long‑term growth, while bonds typically provide income and help limit swings when markets are rough. Compared with a pure equity index, this stock/bond mix naturally trades some upside for lower volatility and smaller drawdowns. That trade‑off shows up clearly in the historical performance: less dramatic falls but also lower returns than all‑equity benchmarks. This balance aligns well with the “cautious” label, as the bond slice absorbs some shocks. Over time, a stable bond component can also provide dry powder for rebalancing after stock declines, though the data here assumes a simple buy‑and‑hold, not active rebalancing.
Sectors
- Technology 15%
- Financials 10%
- Industrials 7%
- Consumer Discretionary 6%
- Health Care 5%
- Telecommunications 5%
- Consumer Staples 3%
- Energy 3%
- Basic Materials 3%
- Utilities 2%
- Real Estate 1%
This breakdown covers the equity portion of your portfolio only.
On the equity side, the portfolio spreads risk across many sectors, with technology the largest at about 15%, followed by financials, industrials, and consumer‑related areas. This looks more diversified and less tech‑heavy than many US‑only market portfolios, which tend to be dominated by technology and related industries. Having multiple sectors represented can reduce the impact of a downturn in any one area; for example, if economically sensitive industries stumble, more defensive sectors like utilities or consumer staples may hold up better. This sector mix broadly mirrors global stock market weights, which is a strong indicator that the portfolio isn’t making big active bets on any single industry theme.
Regions
- North America 38%
- Europe Developed 9%
- Japan 4%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, around 38% of the portfolio’s equity exposure is in North America, with meaningful slices in developed Europe, Japan, and both developed and emerging parts of Asia, plus smaller allocations to Australasia, Latin America, and Africa/Middle East. That’s far more globally spread than a US‑only portfolio and closer to worldwide market weights. This global footprint helps reduce dependence on any one economy, currency, or policy environment. For example, if North American markets underperform for a stretch, gains in other regions can partially offset that. The broad spread also captures growth in both mature and developing markets, which can lead to different drivers of return over time rather than relying on a single country or region.
Market capitalization
- Mega-cap 26%
- Large-cap 19%
- Mid-cap 11%
- Small-cap 3%
This breakdown covers the equity portion of your portfolio only.
The equity component leans heavily into larger companies: about 26% in mega‑caps and 19% in large‑caps, with smaller slices in mid‑ and small‑caps. This is typical of market‑cap‑weighted global funds, where the biggest companies naturally dominate. Large and mega‑caps tend to be more established and often less volatile than very small firms, which fits with the portfolio’s cautious risk profile. The modest allocation to mid‑ and small‑caps still adds some potential for higher growth and diversification, since these companies don’t always move in lockstep with giants. Overall, this size mix means the portfolio’s equity behavior will largely reflect how the world’s biggest listed companies are doing, with only a mild tilt toward smaller, more volatile names.
True holdings
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BN Vanguard Bond Index Funds - Vanguard Total Bond Market ETF 20.71%
Part of fund(s):- Vanguard Total World Bond ETF
-
BN Vanguard Charlotte Funds - Vanguard Total International Bond ETF 19.29%
Part of fund(s):- Vanguard Total World Bond ETF
-
NV NVIDIA Corporation 2.37%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 2.12%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 1.59%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.16%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.97%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 0.83%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 0.82%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 0.79%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 50.64%
This breakdown covers the equity portion of your portfolio only.
Looking through the ETFs, about half of the portfolio is captured by the top‑10 holdings data. On the bond side, there is meaningful exposure to broad US and international bond indices, together making up around 40% of total look‑through holdings. For equities, the largest underlying positions include well‑known global giants like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, and TSMC. Several of these appear in multiple funds, which can create hidden overlap, though the overlap may be understated since only top‑10 holdings are shown. This means that while the portfolio is diversified across thousands of securities, a fair share of its equity performance will still be influenced by a small group of the world’s largest, most widely held companies.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
The portfolio’s factor profile shows neutral exposure to value, momentum, and quality, which means it behaves broadly like the overall market on those characteristics. Where it stands out is yield and low volatility: both are rated “high,” indicating a mild tilt toward income‑paying and more stable securities. Factors are like underlying “traits” that explain why some investments behave differently — for instance, low‑volatility stocks often fall less in rough markets but may lag during strong rallies. A higher yield tilt suggests more of the return may come from interest and dividends. Combined with a lower size exposure (less in smaller companies), this factor mix supports the cautious risk label, favoring smoother rides over aggressive growth tilts.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 60.00% 94.2% -
Vanguard Total World Bond ETF
Weight: 40.00% 5.8%
Risk contribution looks at how much each holding drives the portfolio’s overall ups and downs, which can differ from its weight. Here, the global stock ETF, at 60% weight, contributes over 94% of the portfolio’s risk, while the 40% bond ETF contributes only about 6%. This highlights how much more volatile stocks are compared with bonds: even a smaller allocation to bonds can noticeably calm the total ride. The risk‑to‑weight ratios underline this: the stock ETF’s ratio above 1 means it pulls more than its weight in risk, while the bond ETF’s ratio well below 1 shows it’s a stabilizer. In practice, nearly all day‑to‑day fluctuations come from the equity side.
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 the current mix sitting on or very close to the efficient frontier. The efficient frontier is the curve of best possible returns for each risk level using only the existing holdings in different weightings. The current portfolio Sharpe ratio of 0.39 — a measure of return per unit of risk above the risk‑free rate — is lower than the max‑Sharpe version but higher than the minimum‑variance option. That means this allocation is already an efficient compromise between safety and growth given these two funds. The “optimal” portfolio on the chart simply leans more heavily into equities, raising both expected return and volatility, while the minimum‑variance option tilts further into bonds, trading return for even lower swings.
Dividends
- Vanguard Total World Bond ETF 4.20%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 2.70%
The overall yield of about 2.7% combines roughly 1.7% from global stocks with about 4.2% from the world bond fund. Yield is the income paid out each year as a percentage of the portfolio value, mainly via dividends and bond interest. In this setup, bonds are doing most of the income heavy lifting, while equities contribute a smaller but steady stream. Over time, reinvested income can significantly boost total returns, especially when combined with long‑term growth from the stock component. This balance between growth and income fits the cautious profile: there’s a meaningful current yield without fully relying on high‑yield or concentrated income plays, which can sometimes bring extra risk.
Ongoing product costs
- Vanguard Total World Bond ETF 0.05%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.06%
The portfolio’s costs are impressively low. The equity ETF charges 0.07% annually, and the bond ETF 0.05%, for a blended total expense ratio (TER) around 0.06%. TER is the yearly fee taken by the funds, similar to a small service charge that slightly reduces returns. At this level, costs are well below many actively managed options and competitive even among index funds. Over long periods, keeping fees this low can meaningfully preserve growth, since every dollar not spent on costs keeps compounding for you. This cost profile is a real strength of the portfolio structure, supporting better long‑term outcomes compared with higher‑fee approaches holding similar underlying markets.
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