Two fund globally diversified stock portfolio with strong efficiency and broad market style exposure
Report created on Mar 25, 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 Stock Market Index Fund ETF Shares
VTI - US9229087690 70.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00%
This portfolio is a simple two-fund mix: a broad US total stock ETF at 70% and a broad international stock ETF at 30%. That means every dollar is in stocks, spread across thousands of companies worldwide, with a clear tilt toward the US. Structurally, this is very close to a “textbook” global equity allocation, just with a slightly higher US share than global market weights. A setup like this is easy to understand and maintain because there are few moving parts and both funds are highly diversified on their own. For someone wanting one core growth engine rather than a collection of niche bets, this kind of structure is a very solid foundation.
Growth
From 2016 to early 2026, $1,000 grew to about $3,141, which is a compound annual growth rate (CAGR) of 12.17%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. Over this period, the portfolio slightly lagged the US market but beat the global market, which makes sense given its partial international tilt. The worst peak‑to‑trough drop (max drawdown) was about ‑34.6%, roughly in line with both benchmarks. This shows the portfolio captured strong long‑term growth but still faced deep, but typical, equity‑style declines. Past performance can’t guarantee future results, but historically this mix has rewarded patience through volatility.
Projection
The Monte Carlo projection, which runs 1,000 simulated futures based on historical patterns, gives a sense of possible 15‑year outcomes. Monte Carlo is basically a “what if” machine: it shuffles returns in many plausible ways to see a range of ending values, not a single forecast. Here, the median path grows $1,000 to about $2,796, with a fairly wide typical range from roughly $1,863 to $4,175. Extreme but still plausible outcomes spread from near break‑even to very strong growth. About three‑quarters of simulations end positive, with an average annualized return around 8.2%. This underlines that long‑term odds have been favorable for a 100% stock mix, but year‑to‑year paths can be bumpy and unpredictable.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with 0% in bonds, cash, or alternatives. Asset classes are the broad “buckets” your money lives in, and they behave differently in stress: stocks can grow faster but swing more, while bonds usually move less and sometimes cushion stock drops. A 100% equity allocation typically suits growth‑focused investors who can ride out large market declines in exchange for higher long‑run return potential. The upside is maximum exposure to global business growth; the trade‑off is no built‑in stabilizer when markets fall sharply. If someone wants smoother ride and shallower drawdowns, they’d usually mix in more defensive asset classes alongside equities.
Sectors
- Technology 27%
- Financials 15%
- Industrials 12%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 3%
- Real Estate 3%
Sector exposure is broad and close to global norms, with technology the largest slice around 27%, followed by financials, industrials, consumer areas, and health care. That tech lead reflects the dominance of large, profitable tech‑related companies in today’s stock markets, not an active bet in this portfolio. A tech‑heavy tilt can boost returns when innovation and growth stocks are in favor, but it can also mean sharper swings if interest rates rise or sentiment turns against high‑growth names. The key positive here is that no single non‑tech sector dominates; exposure is spread across the main parts of the economy, which helps avoid being over‑reliant on one specific industry cycle.
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 developed Europe, Japan, other developed Asia, and a modest slice in emerging regions like Asia, Latin America, and Africa/Middle East. Compared with a pure global market cap index, this is somewhat more US‑tilted, but still meaningfully international. That US emphasis has been beneficial over the last decade, while the international piece adds diversification across currencies, economic cycles, and policy environments. In practice, this mix reduces the risk of being tied entirely to a single country, while still letting the largest and most liquid market drive the bulk of returns. Currency moves can add noise, but also provide diversification benefits over time.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 6%
- Micro-cap 2%
The market cap mix is dominated by mega‑caps and large‑caps (over 70% combined), with moderate exposure to mid‑caps and a smaller slice to small and micro‑caps. Market capitalization is simply company size by stock market value; bigger firms often be more stable, while smaller ones can be more volatile but sometimes faster‑growing. This distribution closely mirrors global equity benchmarks, which is a strength: it means you’re not taking a deliberate heavy bet on tiny or speculative companies. The modest allocation to smaller names still gives some exposure to that growth potential without overwhelming the portfolio’s risk profile, keeping the overall behavior largely aligned with the broad stock market.
True holdings
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NV NVIDIA Corporation 4.33%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.12%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.09%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.14%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.92%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.60%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.51%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.49%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.20%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- 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
- Top 10 total 22.42%
Looking through the ETFs’ top holdings, the portfolio has meaningful exposure to a handful of mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and TSMC. None of these are owned directly; they appear via both funds, which can create some hidden concentration even though each ETF is broadly diversified. Coverage here only uses ETF top‑10 lists, so actual overlap is likely higher further down the holding lists. The takeaway is that a relatively small set of giant companies quietly drives a noticeable share of returns and risk. That’s not unusual today, but it’s useful to remember that big US and global leaders are a key engine underneath this “plain” index structure.
Factors
Factor exposures are all in the “neutral” range for value, size, momentum, quality, yield, and low volatility. Factors are like underlying traits — such as cheapness, recent outperformance, or stability — that research has linked to long‑term return patterns. A neutral reading means the portfolio behaves a lot like the overall market on these dimensions rather than leaning hard into any specific style. That’s consistent with a core index approach and helps avoid the frustration of being heavily tilted toward a factor that can underperform for many years. The main implication is that returns should broadly reflect global equity markets, not a specialized smart‑beta or style play.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 70.00% 72.8% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 27.2%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the US total market ETF is 70% of the capital but about 73% of the risk, while the international ETF is 30% of the capital and 27% of the risk. Those ratios are very close to 1, meaning each fund’s risk roughly matches its size, with no hidden “risk hog.” That’s a positive sign: most of the volatility is where you’d intuitively expect it to be. If someone ever wanted to dial down overall swings, they’d adjust the high‑risk, high‑weight piece (the US fund) rather than chasing tiny positions.
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, the current mix sits right on or very near the frontier, which is the curve showing the best possible return for each risk level using just these two funds. The Sharpe ratio — a measure of return per unit of risk above the risk‑free rate — is 0.51 for the current portfolio, with 0.73 at the optimal point and 0.59 at minimum variance. That means the existing allocation is already quite efficient: there isn’t a glaringly better combination of these same holdings that would dramatically improve the risk/return balance. Any tweaks would be more about personal comfort with volatility than fixing structural inefficiency.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 1.74%
The combined dividend yield is about 1.74%, with the US fund around 1.2% and the international fund near 3.0%. Dividend yield is the annual cash payout as a percentage of price, like rent from owning a property. For a 100% stock, growth‑oriented mix, this moderate yield is typical and suggests most of the return will likely come from price appreciation rather than income. That can suit investors who are still in the accumulation phase and plan to reinvest dividends instead of spending them. For income‑focused investors, this yield is a nice bonus but probably not enough on its own to meet significant cash‑flow needs without selling some shares periodically.
Ongoing product costs
- 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 costs are impressively low at about 0.04% per year. The expense ratio (TER) is what the fund charges annually to operate, and here both ETFs are at the ultra‑low end of the spectrum. Over decades, even small fee differences compound; paying 0.04% versus, say, 0.5% keeps more of the market’s return in your pocket. This cost profile is a major advantage of the portfolio: it supports better long‑term performance without requiring any extra effort. In plain terms, the structure is doing exactly what it should — giving you broad exposure at almost negligible cost — which is one of the clearest positives in this setup.
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