Globally diversified all stock portfolio with simple two fund structure and steady long term growth
Report created on May 4, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 80.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 20.00%
This portfolio is very simple: two broad equity ETFs with fixed weights of 80% international stocks and 20% US large caps. That means every dollar is in shares of companies around the world, with no bonds, cash, or alternatives in the mix. A buy‑and‑hold assumption without rebalancing lets the weights drift over time as markets move, so the original 80/20 split will naturally change. A structure like this is easy to understand and track, and it aligns well with broad global market coverage. The heavy use of total‑market style funds helps avoid stock‑picking risk and gives exposure to thousands of companies with just two building blocks.
Growth
From 2016 to 2026, a $1,000 investment in this mix grew to about $2,837, a compound annual growth rate (CAGR) of 11.03%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. The portfolio’s maximum drawdown was about -34%, a sharp but relatively quick drop and recovery around early 2020. Compared with the US market and a global market benchmark, it delivered slightly lower returns but with similar downside in big selloffs. That underperformance largely reflects the lower US weighting than the benchmarks, which have benefited from a very strong run in US stocks over this particular decade.
Projection
The Monte Carlo simulation projects many possible 15‑year futures using the past as a rough guide. Monte Carlo is basically a thousand “what if” trials, each randomly reordering and varying returns based on historical patterns. Here, the median outcome grows $1,000 to around $2,766, with a wide middle range from about $1,818 to $4,210. Extreme scenarios stretch from roughly breaking even to more than seven‑fold growth. An average simulated annual return of 8.01% is lower than the historical CAGR, reflecting uncertainty and conservative assumptions. These projections are not forecasts or guarantees; they just show the spread of plausible paths if markets behave somewhat like they have in the past.
Asset classes
- Stocks 100%
The portfolio is 100% in stocks, with no allocation to bonds, cash, or other asset classes. That makes it straightforward to understand: returns are driven entirely by global equity markets. Equities historically offer higher growth potential but also larger swings than bonds or cash, so this structure naturally sits on the higher‑risk side compared with mixed stock‑bond portfolios. Many broad benchmarks blend in fixed income, but this portfolio purposely stays fully in equities. That focus keeps the expected return and volatility both elevated relative to “balanced” mixes, which typically hold a meaningful portion of bonds to moderate ups and downs over time.
Sectors
- Financials 20%
- Technology 19%
- Industrials 14%
- Consumer Discretionary 9%
- Health Care 8%
- Basic Materials 7%
- Telecommunications 6%
- Consumer Staples 5%
- Energy 5%
- Utilities 3%
- Real Estate 2%
Sector exposure is broadly spread, with financials (20%) and technology (19%) the largest, followed by industrials, consumer areas, health care, and others. No single sector dominates, and smaller allocations to utilities, real estate, and energy help round out the picture. This mix looks reasonably close to global equity benchmarks, which is what you’d expect from broad index funds. Tech and financials together are meaningful, so sector news in those areas may noticeably influence portfolio swings, but not overwhelmingly so. This balanced sector profile is a good sign that risk isn’t tied to just one kind of business model, which can help when specific industries go through tough cycles.
Regions
- Europe Developed 29%
- North America 27%
- Japan 12%
- Asia Developed 12%
- Asia Emerging 11%
- Australasia 4%
- Africa/Middle East 3%
- Latin America 2%
- Europe Emerging 1%
Geographically, the portfolio is impressively global: about 29% in developed Europe, 27% in North America, and significant slices in Japan and other developed and emerging Asian markets. Smaller positions in Australasia, Latin America, and Africa/Middle East fill out the map. This looks more geographically diversified than a typical US‑heavy benchmark, with less reliance on one country or currency. For a US‑based investor, that means returns will reflect many different economies, policies, and currency moves. This broad spread aligns closely with global market weights and helps reduce the impact of any single region’s setbacks, though it can also lag in periods when one region, like the US, strongly outperforms.
Market capitalization
- Mega-cap 46%
- Large-cap 31%
- Mid-cap 17%
- Small-cap 3%
By market capitalization, the portfolio leans toward larger companies, with about 46% in mega‑caps, 31% in large‑caps, 17% in mid‑caps, and a smaller 3% in small‑caps. That’s very similar to the global equity market, where the biggest firms dominate index weights. Larger companies tend to have more stable business models and easier access to capital markets, which can translate to somewhat lower volatility than a small‑cap‑heavy portfolio. At the same time, having mid‑ and small‑cap exposure adds some breadth and potential for more idiosyncratic growth. Overall, this size mix is well‑balanced and closely aligned with broad, capitalization‑weighted index standards.
True holdings
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23 Taiwan Semiconductor Manufacturing Co. Ltd. 2.76%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
NV NVIDIA Corporation 1.52%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 1.33%
Part of fund(s):- Vanguard S&P 500 ETF
-
SS Samsung Electronics Co Ltd 1.08%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
AS ASML Holding N.V. 1.02%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
MS Microsoft Corporation 0.98%
Part of fund(s):- Vanguard S&P 500 ETF
-
07 Tencent Holdings Ltd 0.77%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
AM Amazon.com Inc 0.73%
Part of fund(s):- Vanguard S&P 500 ETF
-
00 SK Hynix Inc 0.60%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.60%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 11.38%
Looking through the ETFs’ top ten holdings, there is moderate concentration in a handful of very large global companies, mostly in technology and related fields. The single biggest underlying name is around 2.8% of the portfolio, with others like NVIDIA, Apple, Samsung, and Microsoft all under 2%. That suggests no one company dominates, even among the giants. Overlap between the two funds exists where they both hold major global firms, but total known overlap is limited by the fact we only see top‑10 positions. In practice, actual overlap is likely higher. Even so, the visible data shows a diversified core with only modest hidden concentration risk at the individual company level.
Factors
Factor exposure is broadly market‑like across value, size, momentum, and quality, all landing in the neutral band. Factor investing looks at characteristics such as cheapness (value) or recent winners (momentum) that research links to long‑term performance differences. The stand‑out tilts here are higher yield and higher low volatility. A higher yield score means the portfolio leans slightly toward stocks that pay more dividends than the market average. A higher low‑volatility score indicates a mild tilt to stocks that historically moved less than the market. Together, these tilts suggest a slight bias toward steadier, more income‑oriented equities without extreme departures from a broad market profile.
Risk contribution
-
Vanguard Total International Stock Index Fund ETF Shares
Weight: 80.00% 80.7% -
Vanguard S&P 500 ETF
Weight: 20.00% 19.3%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the international ETF is 80% of the allocation and contributes about 81% of the risk, while the S&P 500 ETF is 20% and adds about 19% of the risk. The risk‑to‑weight ratios are very close to 1 for both, meaning neither fund is disproportionately volatile relative to its size. In other words, risk is roughly proportional to weight, with no hidden “problem child” position amplifying swings beyond what its allocation would suggest. This is consistent with combining two broad, diversified index funds.
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 current mix sits below the efficient frontier, with a Sharpe ratio of 0.46. The Sharpe ratio measures return per unit of risk, using the risk‑free rate as a baseline. The optimal mix of these same two funds, without adding anything new, has a Sharpe of 0.83, while the minimum‑variance mix is also higher at 0.68. Being about 1.3 percentage points below the frontier at the same risk level means this exact 80/20 split isn’t making the most of the available risk‑return trade‑off. In principle, simply reweighting between the two funds could improve efficiency without changing the building blocks.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 2.46%
The portfolio’s blended dividend yield is about 2.46%, coming from roughly 2.8% on international stocks and 1.1% on US large caps. Dividend yield is the annual cash payout as a percentage of the investment value, like rent on a property. Here, income makes a meaningful but not dominant contribution to total return, with price movements still driving most of the long‑term growth. The somewhat higher yield on the international portion lines up with its factor tilt toward yield and the generally higher payouts in many non‑US markets. This ongoing cash flow can help smooth the experience during flat or choppy markets, especially when reinvested.
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) 0.05%
Costs are impressively low: the weighted total expense ratio (TER) is about 0.05% per year. TER is the annual fee charged by the funds, taken directly out of returns, a bit like a small service charge on your account. For every $10,000 invested, that’s around $5 a year in fund fees, which is extremely competitive versus the broader fund universe. Low ongoing costs free up more of the portfolio’s gross return to compound over time, and that effect becomes significant over long horizons. This cost profile is a real strength of the portfolio and aligns well with best practices for broad, passive equity investing.
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