Broad low cost global equity portfolio with strong diversification and efficient risk return positioning
Report created on Mar 24, 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
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 63.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 34.00% -
BI Vanguard Intermediate-Term Bond Index Fund ETF Shares
BIV - US9219378190 1.20% -
VG Vanguard Long-Term Treasury Index Fund ETF Shares
VGLT - US92206C8477 1.20% -
FB Fidelity Salem Street Trust - International Bond Index Fund
FBIIX - US31635T7321 0.60%
The portfolio is dominated by equities, with about 96% in stocks, a tiny 3% in bonds, and 1% in cash. Two broad stock ETFs make up 97% of the allocation, giving exposure to thousands of companies worldwide in a very streamlined way. This structure is typical of a growth-oriented setup where the main goal is long-term capital appreciation rather than stability. Because it is so equity-heavy, account swings will be meaningful during market drops, but the breadth of holdings helps spread company-specific risk. For someone still accumulating wealth, this type of simple, mostly equity mix can be an efficient, easy-to-manage core approach.
Growth
From late 2019 to March 2026, a hypothetical $1,000 grew to about $2,152, a compound annual growth rate (CAGR) of 13.74%. CAGR is like your “average speed” over the whole trip, smoothing out the bumps year to year. This trailed the U.S. market slightly (15.01%) but beat the global market (12.53%), which is very respectable. The maximum drawdown, or largest peak-to-trough fall, was around -33%, similar to both benchmarks. That level of decline is normal for a growth-heavy allocation and shows the importance of staying invested through big market drops to capture the strong long-run gains.
Projection
The 10-year Monte Carlo simulation uses historical returns and volatility to spin up 1,000 possible future paths for a $1,000 investment. Think of it as rolling the dice many times based on how the portfolio has behaved before, then looking at the spread of outcomes. The median scenario ends around +85%, while the 5th percentile is roughly -29%, reminding you that bad decades do happen. The average simulated annual return, 5.27%, is much lower than recent history, which is a helpful reality check. All simulations are just models, though — markets change, and past patterns never guarantee what comes next.
Asset classes
- Stocks 96%
- Bonds 3%
- Cash 1%
Asset class allocation is very straightforward: overwhelmingly stocks, with only a sliver in bonds and cash. This is exactly what you’d expect from a growth profile and lines up with many age-based or accumulation-focused strategies. The small bond exposure hardly dents volatility, but it does add a modest buffer and some income, especially via the bond funds’ higher yields. Compared with a more balanced or conservative mix, this portfolio accepts higher short-term risk in exchange for higher expected long-term returns. Anyone wanting smoother rides or near-term spending money would generally hold a noticeably larger bond or cash slice.
Sectors
- Technology 25%
- Financials 15%
- Industrials 12%
- Consumer Discretionary 9%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 3%
- Real Estate 3%
Sector exposure is broad and looks very similar to common global benchmarks, which is a strong sign of diversification. Technology leads at around 25%, followed by financials, industrials, consumer cyclicals, healthcare, communication services, and then smaller weights in defensive and “old economy” areas like utilities, energy, materials, and real estate. A tech tilt is normal for modern index funds, because tech companies have grown so large. This can make returns more sensitive to interest rates and innovation cycles, but the presence of every major sector helps cushion sector-specific shocks. Overall, the sector mix is well-balanced and aligns closely with global standards.
Regions
- North America 66%
- Europe Developed 13%
- Japan 5%
- Asia Developed 5%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
- No data 1%
Geographically, about two-thirds of the portfolio is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and emerging regions. That lean toward North America mirrors many global equity benchmarks and reflects the large size of U.S. markets. It has been a tailwind over the last decade, as U.S. stocks outperformed many other regions. Still, a third of the portfolio is outside North America, which meaningfully reduces dependence on any single country or currency. This allocation is well-balanced and aligns closely with global standards while still maintaining a clear anchor in the U.S. market.
Market capitalization
- Mega-cap 42%
- Large-cap 30%
- Mid-cap 18%
- Small-cap 5%
- Micro-cap 2%
Market capitalization is tilted toward the largest companies, with about 42% in mega caps and 30% in big caps, then stepping down through mid, small, and micro positions. This is exactly how broad market index funds are built: companies are weighted by size, so the giants naturally dominate. Large caps tend to be more stable and liquid, which can reduce some idiosyncratic risk versus a small-cap-heavy approach, but it also means less explicit tilt toward higher-risk, higher-return small stocks. The presence of mid, small, and micro caps still adds diversification and growth potential, but they’re not the main driver of outcomes.
True holdings
-
NV NVIDIA Corporation 3.89%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Intermediate-Term Bond Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 3.71%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard Intermediate-Term Bond Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.78%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard Intermediate-Term Bond Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 1.92%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Intermediate-Term Bond Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.73%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Intermediate-Term Bond Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.44%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard Intermediate-Term Bond Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.36%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.34%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.17%
Part of fund(s):- Vanguard International Equity Index Funds - Vanguard FTSE Emerging Markets ETF
- Vanguard Total International Stock Index Fund ETF Shares
- iShares Asia 50 ETF
-
TS Tesla Inc 1.08%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 20.42%
Looking through the ETFs, the biggest underlying company exposures are familiar mega-cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, TSMC, and Tesla. None are held directly; they show up via the index funds. Several of these appear in more than one index, which creates some hidden concentration even though you only own a few funds. For example, Alphabet shows up in two share classes, and the large tech names dominate global indices today. This is standard for cap-weighted index investors, but it is worth being aware that broad funds can still lead to big tilts toward a handful of very large companies.
Factors
Factor exposure data points to meaningful tilts toward size, yield, and low volatility, with moderate momentum and limited signal coverage overall. “Factors” are traits like value or quality that help explain why assets move the way they do. A size tilt here mostly means the portfolio behaves similarly to the broad market rather than leaning into niche segments. The low volatility tilt suggests a slight bias toward relatively steadier names, which can help soften drawdowns a bit. The yield tilt is based on sparse data, so it should be interpreted carefully. Essentially, factor-wise this behaves like a broadly diversified core equity holding.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 63.00% 68.2% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 34.00% 31.8% -
Vanguard Intermediate-Term Bond Index Fund ETF Shares
Weight: 1.20% 0.1% -
Fidelity Salem Street Trust - International Bond Index Fund
Weight: 0.60% 0.0% -
Vanguard Long-Term Treasury Index Fund ETF Shares
Weight: 1.20% 0.0%
Risk contribution shows how much each holding adds to the portfolio’s overall ups and downs, which can differ from its weight. Here, the U.S. total market ETF is 63% of the weight but contributes about 68% of the risk, while the international ETF is 34% of weight and 32% of risk. The tiny bond positions contribute almost no risk, acting mainly as modest stabilizers and income sources. This alignment between weight and risk is healthy and intuitive for a two-fund core. If the equity–bond split ever changes meaningfully, revisiting whether risk contributions still match your intended balance becomes important.
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, given these funds, the weights are already arranged very efficiently. The Sharpe ratio, a measure of return per unit of risk, is solid at 0.62. There is an “optimal” mix with a higher Sharpe of 0.71, slightly more risk, and higher expected return, but it uses the same ingredients with different weights. Staying on the frontier is more important than chasing tiny theoretical improvements. If goals or risk tolerance change, reweighting between the existing equity and bond funds could shift you toward either the optimal point or a calmer, lower-risk spot.
Dividends
- Vanguard Intermediate-Term Bond Index Fund ETF Shares 4.10%
- Fidelity Salem Street Trust - International Bond Index Fund 4.10%
- Vanguard Long-Term Treasury Index Fund ETF Shares 4.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 1.90%
The overall dividend yield is around 1.9%, with stocks yielding roughly 1.2–3% and bonds above 4%. Yield is the cash income you get from holdings, paid out as dividends or interest, and it can be useful for reinvestment or spending. For a growth-focused investor, dividends are usually reinvested automatically, quietly boosting long-term compounding. This yield level is pretty typical for a global stock-heavy portfolio with a small bond sleeve. It won’t drive the majority of total return, but it contributes a steady baseline that can be especially helpful during flat or choppy market periods.
Ongoing product costs
- Vanguard Intermediate-Term Bond Index Fund ETF Shares 0.04%
- Fidelity Salem Street Trust - International Bond Index Fund 0.06%
- Vanguard Long-Term Treasury Index Fund ETF Shares 0.04%
- 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 sit around 0.04%, which is impressively low and a real strength here. These expense ratios are what the fund providers charge each year, and they quietly chip away at returns. Over decades, even a difference of 0.3–0.5 percentage points annually can add up to a large dollar amount. By using broad, low-fee index funds, this portfolio keeps more of the market’s return in your pocket rather than handing it to managers. From a cost perspective, this is about as efficient as it gets and strongly supports better long-term performance and compounding.
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