A low cost broadly diversified stock portfolio tilted to the US with strong historic growth

Report created on Dec 17, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is very simple and very focused: roughly three quarters in a broad US stock fund and one quarter in a broad international stock fund, with a tiny cash slice. That structure looks a lot like many standard global equity benchmarks, just with a tilt toward the US. Simplicity here is a strength because it’s easy to understand, easy to maintain, and avoids overlap confusion. Since it’s almost fully in stocks, the ride can be bumpy even though it’s labeled “balanced” in risk terms. Anyone using this mix could consider whether the near‑100% stock exposure really matches their comfort with big temporary drops.

Growth Info

Historically, this mix shows a very strong compound annual growth rate (CAGR) of about 13.75%. CAGR is just the “average speed” of growth per year, as if returns were smoothed out. A -34.65% max drawdown means that at one point, a $100,000 starting amount could have dropped to roughly $65,000 before recovering. That kind of fall is totally normal for an all‑equity portfolio but can feel brutal in real time. The fact that returns have been high doesn’t mean future returns will match; it mostly shows that staying invested through past crashes has been well rewarded.

Projection Info

The Monte Carlo analysis, which runs 1,000 different “what if” paths using historical patterns and randomness, points to a very wide range of possible futures. Ending values from about 59% to more than 500% of the starting amount show that long‑term stock investing can be both very rewarding and very uncertain. An annualized simulated return of 13.15% and 988 out of 1,000 runs ending positive is encouraging, but not a promise. These simulations rely heavily on past volatility and correlations, which may not repeat. This kind of tool is best used to test “can I handle the bad cases?” rather than to forecast a specific number.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Nearly 99% in stocks and 1% in cash means this portfolio is diversified within one main asset class but not across multiple ones. The upside is clear: maximum exposure to stock market growth, which has historically outperformed bonds and cash over long stretches. The trade‑off is that there’s little built‑in cushion when markets fall sharply, so short‑term losses can be large. Many broad benchmarks for “balanced” investors mix in meaningful fixed income or other stabilizers; this setup instead behaves more like a classic growth or aggressive equity stance. Anyone using it can think about whether adding even a modest buffer asset would better match their personal risk comfort.

Sectors Info

  • Technology
    30%
  • Financials
    15%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure is nicely spread, with technology leading at around 30%, followed by financials, industrials, consumer sectors, and healthcare. This looks very similar to many broad market indexes today, meaning the portfolio benefits from alignment with global sector weights. A tech tilt has boosted returns in recent years but can also mean bigger swings when interest rates rise or growth expectations cool. Having double‑digit exposure in several sectors is healthy and helps avoid over‑reliance on any single economic theme. Overall, the sector mix is well‑balanced and aligns closely with global standards, which is a strong indicator of solid diversification across different parts of the economy.

Regions Info

  • North America
    77%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio leans heavily toward North America at around 77%, with the rest spread across Europe, Asia, and other regions. That US tilt is very common and has been rewarded over the last decade as US stocks outperformed many international markets. The international slice still adds useful diversification, since different regions can lead or lag at different times due to currencies, politics, and local economies. Compared with common benchmarks, this mix is slightly more US‑centric but still broadly diversified overseas. One thing to think about is whether the current international weight feels right for the long run, especially if non‑US markets experience a period of catch‑up performance.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The market cap breakdown is dominated by mega and big companies, with meaningful exposure to mid caps and a smaller slice in small and micro caps. This is exactly what you’d expect from broad index funds that track the whole market. Large companies tend to be more stable and widely followed, while smaller ones can be more volatile but sometimes offer higher growth potential. Having the bulk in big names keeps risk somewhat calmer, yet the mid and small segments still provide growth and diversification across company sizes. This structure is very much in line with major benchmarks and supports a healthy spread across different types of businesses.

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 a risk‑return basis, this portfolio already sits close to the classic “global stock market” point on an Efficient Frontier chart. The Efficient Frontier is a way of showing the best possible trade‑offs between risk and return using only the chosen ingredients. Since both holdings are broad stock funds, shifting between them mainly tweaks regional exposure rather than overall volatility. That means there may be limited room to change the risk‑return ratio without adding new asset types. Within the current lineup, the main dial is how much to tilt between domestic and international stocks, depending on beliefs about future growth and personal comfort with home‑country bias.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.50%

A total dividend yield of about 1.5% is modest but reasonable for a growth‑oriented stock portfolio. The international fund’s yield is higher than the US fund’s, which is typical given different payout cultures around the world. Dividends can act like a small “paycheck” from holdings and have historically made up a meaningful portion of long‑term stock returns, especially when reinvested. With a yield at this level, the main driver of outcomes is still price growth, not income. This setup suits someone more focused on building wealth over time than on generating immediate cash flow, though the dividends can still help cushion returns in flat markets when prices aren’t moving much.

Ongoing product costs Info

  • 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 costs around 0.04% per year are extremely low and a real highlight of this portfolio. Fees work like friction: the less you pay, the more of the market’s return you actually keep. Over long horizons, shaving even half a percent off costs can add up to a large difference in ending wealth, so keeping expenses near zero is a big structural advantage. These cost levels are well below typical active funds and even below many other index options. The costs are impressively low, supporting better long‑term performance and leaving more room for compounding to work in your favor without getting quietly eaten away by fees.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey