Globally diversified stock portfolio with simple structure low costs and balanced risk exposure
Report created on Apr 10, 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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VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 90.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 10.00%
This portfolio is extremely simple: two broad stock ETFs, with about 90% in a total-world fund and 10% in an international fund. That means everything is in equities, spread across thousands of companies worldwide, but delivered through just two building blocks. Simplicity matters because it reduces the odds of mistakes and makes it easier to stay the course during volatility. A setup like this leans fully into global growth while avoiding the complexity of mixing many overlapping funds. The main takeaway is that structure here is clean and intentional: a one‑fund core plus a modest tilt toward non‑US stocks, all within a balanced‑risk profile.
Growth
Historically, $1,000 grew to about $3,048 over the last decade, a compound annual growth rate (CAGR) of 11.82%. CAGR is like your average “speed” over the whole trip, smoothing out the bumps. This trailed the US market by around 2.76% a year but was only slightly behind the global market. The max drawdown was about -34%, meaning at one point you’d have seen roughly a third of value temporarily disappear, then recover in about five months. That’s the emotional cost of being 100% in stocks. The key takeaway is that returns were strong but required stomaching sharp short‑term drops, consistent with a balanced‑to‑growth risk profile.
Projection
The Monte Carlo simulation runs 1,000 alternate futures based on past volatility and returns, like rolling the dice many times to see a range of outcomes. The median 15‑year outcome turns $1,000 into about $2,770, with a likely middle band between roughly $1,777 and $4,117. There’s about a 73% chance of ending with a gain, and the average simulated return is around 7.99% per year. But these numbers lean heavily on historical patterns; markets don’t repeat perfectly. The important takeaway is that outcomes cluster around growth, but the spread is wide enough that planning should allow for both weaker and stronger paths.
Asset classes
- Stocks 100%
All assets here are equities: 100% in stocks, no bonds or cash buffers. Asset classes are like different “engines” in a portfolio, and mixing them usually smooths the ride because they react differently to shocks. Being fully in stocks maximizes growth potential but also maximizes sensitivity to economic cycles and market swings. For a balanced‑risk label, this is actually quite equity‑heavy; many “balanced” mixes would include a meaningful bond slice. The main implication is that short‑term ups and downs can be sizable, so this setup is better aligned with long time horizons and a tolerance for volatility.
Sectors
- Technology 24%
- Financials 17%
- Industrials 13%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 5%
- Energy 4%
- Utilities 3%
- Real Estate 3%
Sector exposure is broad, with technology the largest slice at about 24%, followed by solid allocations to financials, industrials, consumer areas, and health care. This looks very similar to common global equity benchmarks, which is a strong sign of diversification rather than a big side‑bet on any one part of the economy. A tech‑tilt at this level is normal for a global index and reflects where market value has concentrated, not an aggressive active bet. This alignment with global norms is a positive: it lets sector winners and losers rotate over time without the portfolio needing constant tweaking or prediction.
Regions
- North America 58%
- Europe Developed 17%
- Japan 7%
- Asia Developed 7%
- Asia Emerging 6%
- Australasia 2%
- Africa/Middle East 2%
- Latin America 1%
Geographically, about 58% is in North America, with the rest spread across Europe, Japan, other developed Asia, and emerging regions. That’s quite close to the global stock market’s natural mix, where the US is large but not everything. Compared to many US‑centric portfolios, this is notably more international, which reduces dependence on a single economy and currency. The underweight or overweight to any specific region is modest, so there’s no big regional bet implied here. This allocation is well‑balanced and aligns closely with global standards, which is excellent for long‑term diversification without needing to time regional cycles.
Market capitalization
- Mega-cap 44%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 5%
- Micro-cap 1%
Market‑cap exposure skews toward mega‑ and large‑cap companies, together making up about 75% of the portfolio, with the rest in mid, small, and micro caps. Bigger companies tend to be more stable and easier to trade, but can be slower growers; smaller firms can grow faster yet swing more. This pattern mirrors broad global indices, so there’s no strong intentional tilt toward tiny or speculative names. The advantage is that risk is anchored in established businesses while still leaving some room for smaller‑company growth. Overall, this size mix is sensible, mainstream, and supports a balanced risk‑return profile.
True holdings
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NV NVIDIA Corporation 3.38%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 3.13%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 2.37%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.64%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.58%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.48%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 1.20%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.20%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.15%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.93%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 18.04%
Looking through the ETFs, the biggest underlying exposures are familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, plus leaders in chips and social media. Several of these appear multiple times across the funds, which creates hidden concentration even in a broad index approach. Overlap is probably understated, since only top‑10 ETF holdings are counted. This shows how “owning the market” still means having large stakes in a small group of global giants. The practical takeaway is that while fund count is low, exposure to mega‑cap tech‑driven companies is meaningfully amplified beneath the surface.
Factors
Factor exposure is mostly neutral across value, size, momentum, quality, and yield, meaning the portfolio behaves much like the broad market on these characteristics. Factors are like underlying “flavors” — for example, value means cheaper stocks, momentum means recent winners, and quality means strong balance sheets. The one notable tilt is toward low volatility at 61%, a mild lean toward steadier stocks. That usually helps soften the worst drawdowns but can lag in roaring bull markets led by high‑beta names. The key takeaway is that factor risk is well‑spread, with a slight smoothing effect from the low‑vol tilt.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 90.00% 90.5% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 10.00% 9.5%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which isn’t always proportional to weight. Here, the world ETF at 90% weight contributes about 90.5% of risk, while the international ETF at 10% contributes about 9.5%. That near one‑to‑one relationship means no single position is secretly dominating risk beyond its size; the structure is tidy and predictable. With only two broad, diversified funds, position‑level risk is already well managed. If you ever wanted to dial risk up or down, small shifts between these two would adjust things without introducing concentration issues.
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 right on or very near the efficient frontier. The efficient frontier is the curve of the best possible return for each risk level using your existing building blocks. The current Sharpe ratio — return per unit of risk — is 0.51, while a slightly tweaked mix could reach about 0.69, but only with tiny changes in risk and return. Since the portfolio is already effectively on the frontier, the allocation is efficient for its risk level. That’s a strong sign the mix is doing its job well without needing extra complexity or tinkering.
Dividends
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.81%
The blended dividend yield is around 1.81%, with the international slice slightly higher than the global fund. Yield here is the cash income you’d get each year as a percentage of your investment, separate from price changes. A yield in this range is typical for a global equity portfolio and reflects a mix of higher‑payout regions and more growth‑oriented companies that reinvest profits. For someone focused mainly on long‑term growth, this is perfectly reasonable: most of the return historically has come from price appreciation, not dividends. For heavy income needs, though, this level of yield alone might feel modest.
Ongoing product costs
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.07%
Total ongoing costs are impressively low at about 0.07% a year. That’s the total expense ratio (TER), the annual fee taken by the funds, and it’s well below the average for equity ETFs. Costs may seem small, but over decades they compound like negative interest, quietly eating into returns. Keeping fees this low effectively leaves more of the market’s return in your pocket instead of flowing to product providers. This is a real structural strength of the portfolio: it’s hard to improve on this fee level without sacrificing breadth or quality of exposure, so you’re starting from a very efficient base.
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