Broad low cost global stock allocation tilted to large cap growth and US leadership
Report created on Mar 26, 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%
The portfolio is refreshingly simple: two broad stock ETFs, roughly 70% in a US large-cap index and 30% in a total international stock index, plus a tiny cash slice. That means almost the entire allocation is in equities, with no bonds or alternatives. Structurally, this is a classic “global 70/30” stock mix, which leans toward the US while still giving meaningful exposure to the rest of the world. A straightforward structure like this is easy to monitor and rebalance. For someone using this as a core growth engine, the key takeaway is that all the risk and return is coming from global stocks, so expectations should match that.
Growth
Historically, $1,000 grew to about $3,321 over ten years, a compound annual growth rate (CAGR) of 13.53%. CAGR is like average speed over a long road trip, smoothing out bumps along the way. This trailed the US-only benchmark slightly (14.12%) but beat the global benchmark (11.57%), which is exactly what you’d expect from a US-tilted global mix. The worst peak‑to‑trough drop, or max drawdown, was about -33.85%, similar to both benchmarks, showing this behaves like a typical equity portfolio in crashes. The main takeaway: returns have been strong, with drawdowns in line with broad markets, but including international stocks has modestly dampened upside versus a pure US approach.
Projection
The Monte Carlo simulation projects possible 10‑year paths by remixing historical returns thousands of times, like running many alternate histories based on past behavior. It shows a median outcome of roughly +375%, with a low‑end (5th percentile) of +56% and a high‑end well above that. An annualized simulated return around 13.23% is close to the historical figure, which is consistent with the portfolio’s equity focus. Importantly, 991 out of 1,000 scenarios end positive, but that doesn’t remove the chance of tough stretches or lost decades. The key caveat: simulations look backward to go forward, and markets don’t have to repeat. Treat these numbers as rough guide rails, not promises.
Asset classes
- Stocks 99%
- Cash 1%
Asset‑class exposure is almost entirely in stocks (99%) with a token 1% in cash and nothing in bonds or other diversifiers. That makes this a pure growth allocation, with returns driven by company earnings and valuations rather than interest payments or real assets. Compared with a typical “balanced” mix that might hold 40–60% bonds, this sits firmly on the higher‑risk, higher‑reward side. The benefit is maximum long‑term growth potential; the drawback is sharper drawdowns and potentially long recovery times after big sell‑offs. For someone wanting smoother rides or nearer‑term withdrawals, pairing this with a separate bond or cash sleeve can help tame volatility without disrupting the simple core.
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 but clearly tilted: about 28% in technology, followed by financials, industrials, consumer cyclicals, healthcare, and communication services. Tech and tech‑adjacent businesses (including many platform and semiconductor firms) play an outsized role, which aligns closely with modern equity benchmarks that have become increasingly tech‑heavy. This alignment is actually a positive sign of diversification, since it mirrors global index construction rather than making concentrated bets on niche themes. The flip side is that tech‑driven portfolios can be more sensitive to interest rates and innovation cycles, leading to faster rises and sharper pullbacks. Overall, the sector mix is well spread across the economy and broadly consistent with best‑practice index allocations.
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% is in North America, with the rest spread across Europe, Japan, developed Asia, emerging Asia, and smaller allocations to Australasia, Latin America, and Africa/Middle East. That’s a clear lean toward the US and Canada, more than many “world market” yardsticks but very much in line with common practice for US‑based investors. This tilt has helped over the last decade, as US markets have outpaced many others. The positive here is solid global diversification beyond the home market, which can cushion region‑specific shocks. The trade‑off is that if leadership shifts toward other regions, a heavy North American weight might undercapture that outperformance.
Market capitalization
- Mega-cap 46%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 2%
Market‑cap exposure is dominated by mega and big companies: about 79% combined in mega and big caps, 17% in mid caps, and only 2% in small caps. Large firms tend to be more stable, more diversified businesses with better access to capital, which can reduce volatility relative to a small‑cap‑heavy approach. At the same time, very small companies often provide different growth and risk patterns that can enhance diversification over long horizons. This portfolio’s structure is strongly aligned with standard index investing practice, which weights companies by size. That’s beneficial for liquidity and implementation, though it means less exposure to potential small‑cap “value add” during periods when smaller firms shine.
True holdings
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NV NVIDIA Corporation 5.12%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard S&P 500 ETF
- Vanguard Total International Stock Index Fund ETF Shares
-
AA Apple Inc 4.65%
Part of fund(s):- 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
-
MS Microsoft Corporation 3.47%
Part of fund(s):- 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
-
AM Amazon.com Inc 2.43%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard S&P 500 ETF
- Vanguard Total International Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.16%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard S&P 500 ETF
- Vanguard Total International Stock Index Fund ETF Shares
-
AV Broadcom Inc 1.80%
Part of fund(s):- 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
-
GO Alphabet Inc Class C 1.72%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard S&P 500 ETF
- Vanguard Total International Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.68%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard S&P 500 ETF
- Vanguard Total International Stock Index Fund ETF Shares
-
TS Tesla Inc 1.34%
Part of fund(s):- 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
-
BR Berkshire Hathaway Inc 1.10%
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 25.47%
Looking through the ETFs, the top exposures are the biggest global names: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire Hathaway. These appear mainly through the US fund, with some overlap via international holdings of US multinationals. Overlap across ETFs means a larger effective bet on these mega‑caps than a simple fund count suggests. Because only top‑10 ETF holdings are used, actual overlap is likely somewhat higher. This tilt toward a handful of giants boosts participation in market leaders but can raise sensitivity to their specific fortunes. The practical takeaway is that performance will be quite tied to how large US tech and tech‑adjacent companies do.
Factors
Factor exposure shows strong tilts toward low volatility and momentum. Factors are like underlying “personality traits” of stocks—such as cheapness (value), trendiness (momentum), or stability (low volatility)—that research has linked to returns over decades. A high low‑vol score suggests a bias toward steadier, lower‑beta names within the broad equity universe, which can soften some swings relative to a pure market‑beta portfolio. The notable momentum tilt means holdings have often been recent winners, which can boost returns in trending markets but hurt when leadership reverses sharply. With average signal coverage modest, these readings are more directional than precise, but they still indicate a portfolio that favors stable, trend‑following large caps rather than deep value, small size, or high‑yield styles.
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 drives overall ups and downs, which can differ a lot from simple weights. Here, the S&P 500 ETF is 70% of the portfolio but contributes about 72.5% of total volatility, while the international ETF is 30% of weight and around 27.5% of risk. That near‑one‑to‑one relationship means no single holding is secretly dominating risk far beyond its size. It reflects the fact that both funds are diversified stock baskets with broadly similar volatility profiles. This is actually a healthy alignment: the part of the portfolio that is bigger is also the main driver of risk, in roughly proportionate fashion, making ongoing monitoring and rebalancing straightforward.
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 portfolio sits on the efficient frontier, meaning that for its specific mix of holdings, the risk‑adjusted profile is already efficient, not wasteful. The Sharpe ratio—a measure of return per unit of volatility—is 0.66 for the current mix. There’s an “optimal” configuration using the same two funds with a slightly higher expected return and Sharpe (0.77) at modestly higher risk, and a minimum‑variance mix with lower risk but also lower return and Sharpe. Because you’re already on the frontier, any changes would be about personal preferences: either edging closer to the higher‑Sharpe allocation for more return per risk, or closer to minimum variance for a gentler ride.
Dividends
- Vanguard S&P 500 ETF 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%, coming from roughly 1.2% on the US ETF and 3.0% on the international ETF. Dividends are the cash payouts companies send to shareholders, and over long periods they can be a meaningful chunk of total return, especially when reinvested. For a growth‑oriented, large‑cap equity mix, a sub‑2% yield is normal and in line with many broad benchmarks. This means most of the portfolio’s expected return is driven by price appreciation rather than income. For investors not needing current cash flow, reinvesting these dividends automatically is a simple way to harness compounding over time.
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%
Portfolio costs are impressively low, with an overall expense ratio around 0.04%. The expense ratio is the annual fee charged by the funds, quietly deducted from returns, much like a small service fee. Over decades, even tiny differences in fees can snowball into significant gaps in ending wealth. Being at this ultra‑low level is a major structural advantage and strongly aligned with best practices in index investing. It leaves more of the underlying market return in the investor’s pocket and reduces the hurdle that active managers would need to clear to justify higher fees. Cost‑wise, this setup is already very close to optimal.
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