Broad three fund portfolio with strong global diversification and moderate stock heavy risk profile
Report created on May 4, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 29.98% -
BN Vanguard Total Bond Market Index Fund ETF Shares
BND - US9219378356 20.02%
This portfolio is a classic three‑fund mix: about half in a broad US stock ETF, just under a third in international stocks, and roughly one‑fifth in a total bond market ETF. That means around 80% in growth‑oriented assets and 20% in income‑oriented, stabilizing bonds. This setup is simple yet covers thousands of securities through only three funds. Structurally, this is a broadly diversified, stock‑heavy allocation that will move meaningfully with global equity markets while still having a bond sleeve that can cushion some downturns. The straightforward design also makes it easy to understand where returns and risk are coming from, which can help keep expectations realistic over time.
Growth
From 2016 to early 2026, $1,000 in this portfolio grew to about $2,973, a compound annual growth rate (CAGR) of 11.56%. CAGR is like average speed on a road trip: it smooths out the bumps to show overall pace. The portfolio’s max drawdown of about ‑29.5% during early 2020 was slightly milder than the US and global market benchmarks, which fell by around a third. However, it lagged the US market by 3.69% per year and the global market by 1.10% per year. That’s the trade‑off of including bonds and broader diversification: somewhat lower long‑run returns in exchange for gentler extremes.
Projection
The Monte Carlo projection uses past return and volatility patterns to simulate 1,000 different 15‑year futures for this same mix. Think of it as running the portfolio through many alternate histories to see a range of possible outcomes, not a prediction of any single one. The median result turns $1,000 into about $2,651, with a “middle” band from roughly $1,937 to $3,696. The wide p5–p95 range shows that outcomes can vary a lot, even with the same strategy. As always, these simulations rely on historical data, so they can’t capture future regime shifts or unprecedented events.
Asset classes
- Stocks 80%
- Bonds 20%
With 80% in stocks and 20% in bonds, the asset‑class mix leans clearly toward growth while still using bonds as a stabilizer. Compared with many generic “balanced” allocations that often sit closer to a 60/40 split, this one is more aggressive on the equity side. Stocks drive most long‑term growth but also most of the ups and downs, while bonds generally provide income and can soften equity drawdowns. This allocation is well‑balanced in the sense that it includes both major building blocks, yet the tilt toward stocks means overall portfolio behavior will still feel much more like an equity portfolio than a bond‑heavy one.
Sectors
- Technology 21%
- Financials 13%
- Industrials 10%
- Consumer Discretionary 8%
- Health Care 7%
- Telecommunications 6%
- Consumer Staples 4%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure is broadly spread, with technology at about 21%, followed by financials, industrials, and consumer‑oriented sectors. No single sector dominates the portfolio, and the distribution looks similar to popular global equity benchmarks, which is a strong indicator of good diversification. A noticeable tech presence is common in market‑cap‑weighted portfolios today and can boost growth when innovation‑driven companies perform well. At the same time, meaningful allocations to financials, industrials, health care, and others help prevent the portfolio from being overly tied to the fate of any one part of the economy or a single theme.
Regions
- North America 52%
- Europe Developed 11%
- Japan 5%
- Asia Developed 4%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, the portfolio has just over half of its equity exposure in North America, with the rest spread across developed Europe, Japan, other parts of Asia, and emerging regions. This is fairly close to global market weights, so it aligns well with broad world equity standards. Having more than 40% of equity exposure outside North America reduces reliance on one economy or currency. That global reach means different economic cycles, interest‑rate decisions, and political environments can contribute to returns. It won’t eliminate risk—global markets often drop together—but it does reduce the impact of any single region’s issues.
Market capitalization
- Mega-cap 34%
- Large-cap 25%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 1%
This breakdown covers the equity portion of your portfolio only.
Market capitalization exposure is skewed toward mega‑ and large‑cap companies, together making up nearly 60% of the equity portion, with the rest in mid, small, and micro caps. This mirrors the structure of broad market indices, where the biggest companies naturally carry more weight. Larger firms tend to have more stable earnings and deeper markets, which can lower individual stock risk. The inclusion of smaller companies adds diversification and some potential for higher growth, but with greater volatility. Overall, this mix reflects a market‑like size distribution rather than a strong tilt toward either tiny or giant companies.
True holdings
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NV NVIDIA Corporation 3.20%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 2.96%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.19%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 1.60%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.33%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.17%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.06%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.03%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.00%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.83%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 16.35%
This breakdown covers the equity portion of your portfolio only.
Looking through the ETFs, the largest underlying exposures are familiar names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and others, each currently under about 3.5% of the total portfolio. These appear through the broad index funds rather than as direct single‑stock bets. There is some overlap—several of these companies are held in both US and international funds where applicable—but each still represents a modest slice of the whole. Because only ETF top‑10 holdings are visible, actual overlap is likely somewhat higher. Even so, the data suggests concentration risk in individual companies is limited rather than extreme.
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.
Factor exposure is mostly neutral across value, size, momentum, and quality, meaning the portfolio behaves much like the broad market on those dimensions. The two notable tilts are higher yield (61%) and higher low volatility (61%). Factor exposure is like the mix of ingredients in a recipe—here, there’s a slightly larger dose of income‑paying and historically steadier stocks. A higher yield tilt can increase the role of dividends in total returns, while a low‑volatility tilt often means smoother price swings. Together, these traits fit with the observed pattern of somewhat gentler drawdowns than pure equity benchmarks.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 50.00% 63.8% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 29.98% 34.3% -
Vanguard Total Bond Market Index Fund ETF Shares
Weight: 20.02% 1.9%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from its weight. Here, the US stock ETF is 50% of the portfolio but contributes about 64% of the risk, indicating it’s the main engine of volatility. The international stock ETF is 30% of weight and about 34% of risk, so it pulls its risk “fair share.” The bond ETF, though 20% of the allocation, contributes less than 2% of total risk—bonds are acting as a stabilizing anchor. This pattern is typical of stock‑heavy portfolios, where even a modest bond sleeve can meaningfully dampen swings.
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 efficient frontier chart, this portfolio sits on or very close to the curve, meaning its mix of return and risk is already efficient given these three holdings. The Sharpe ratio—return minus cash, divided by risk—is 0.52 for the current allocation, compared with 0.79 for the highest‑Sharpe mix using the same funds and 0.25 for the minimum‑variance mix. That shows there are mathematically possible weightings with either higher risk‑adjusted returns or lower volatility, but the existing setup is already doing a strong job. It balances risk and return without obvious inefficiencies in how the three funds are combined.
Dividends
- Vanguard Total Bond Market Index Fund ETF Shares 3.60%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 2.11%
The overall dividend yield is about 2.11%, combining roughly 1.10% from US stocks, 2.80% from international stocks, and 3.60% from bonds. Yield here reflects the cash income paid out annually relative to the portfolio value. For a portfolio that’s 80% stocks, a bit above 2% is a meaningful contributor to total return but not the primary driver—most growth still comes from price changes. The bond component is especially important for income, given its higher yield. This income stream can help smooth the ride during flat or choppy markets, even though distributions themselves can fluctuate over time.
Ongoing product costs
- Vanguard Total Bond Market Index Fund ETF Shares 0.03%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
Total ongoing fund costs (TER) are about 0.04% per year, which is extremely low by industry standards. TER, or total expense ratio, is the annual fee charged by the funds, taken directly out of returns. At this level, costs barely nibble at performance, especially over long horizons. Many portfolios carry fees several times higher, which can compound into a noticeable drag over decades. Here, the cost structure is a real strength: it supports keeping more of whatever the market delivers. Combined with broad diversification, these low fees create a solid structural foundation for long‑term compounding.
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