Globally diversified stock index portfolio with broad coverage and relatively low costs
Report created on Jul 8, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 75.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 25.00%
This portfolio is very straightforward: two broad stock index ETFs, with 75% in international stocks and 25% in the US total market. That means every dollar is in equities, spread across thousands of companies around the world. Structurally, this is a “hold the whole world” approach with a deliberate tilt away from the US compared to many common global mixes. That simplicity matters because fewer moving parts often make it easier to understand what’s driving returns. The heavy international share means results will depend more on markets outside the US than a typical US‑centric portfolio, which can change how it behaves versus familiar US benchmarks over time.
Growth
From mid‑2016 to mid‑2026, $1,000 in this mix grew to about $2,885, a compound annual growth rate (CAGR) of 11.22%. CAGR is like average speed on a road trip, smoothing out all the bumps. This trailed both the US market (15.22%) and the global market benchmark (12.73%), mainly because the US strongly outperformed most other regions over this period. The portfolio’s worst drop, or max drawdown, was about ‑34.6% in early 2020, similar in depth to the benchmarks and recovered in seven months. That shows equity‑like risk: large declines can happen, but the recovery timeframe was relatively quick for such a shock.
Projection
The Monte Carlo projection takes the portfolio’s past behavior and simulates 1,000 possible 15‑year futures, mixing up returns randomly. Think of it like running lots of alternate timelines using historical volatility and return patterns. The median outcome shows $1,000 growing to about $2,775, with a central “likely” range from roughly $1,789 to $4,158. The wide $932 to $7,623 full range shows how uncertain long‑term equity returns can be. About 74% of simulations end above the starting value, reflecting that stocks historically rise more often than they fall over long periods. Still, these are just statistical what‑ifs, not promises, and future markets can behave very differently from the past.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with no bonds, cash, or alternative assets. That creates a very clear risk profile: returns are driven entirely by equity markets, with no built‑in ballast from more stable assets. In good market environments, a 100% equity allocation often benefits from strong growth, but during downturns it can experience sharper and more frequent swings. Compared with a mixed stock‑bond portfolio, this structure prioritizes long‑term growth potential over short‑term stability. The diversification happens within the equity sleeve—across many companies and regions—rather than across different asset classes with very different risk behaviors.
Sectors
- Technology 22%
- Financials 20%
- Industrials 15%
- Consumer Discretionary 9%
- Health Care 8%
- Basic Materials 6%
- Telecommunications 6%
- Consumer Staples 5%
- Energy 5%
- Utilities 3%
- Real Estate 3%
Sector exposure is quite balanced: technology is largest at 22%, followed by financials at 20% and industrials at 15%. No single sector dominates, and the mix looks close to broad global equity benchmarks. This alignment is helpful because it avoids outsized bets on one theme, like only tech or only energy, which can amplify ups and downs when that area is in or out of favor. A diversified sector spread tends to smooth returns as leadership rotates over time. For example, when economically sensitive sectors struggle, more defensive areas like consumer staples or utilities may cushion part of the impact, even within an all‑stock portfolio.
Regions
- North America 31%
- Europe Developed 27%
- Asia Developed 12%
- Japan 11%
- Asia Emerging 10%
- Australasia 3%
- Africa/Middle East 3%
- Latin America 2%
- Europe Emerging 1%
Geographically, this portfolio is genuinely global and actually underweights the US compared with many world indices. North America is 31%, while Europe developed is 27%, Japan 11%, and a meaningful slice is in both developed and emerging Asia plus smaller allocations to Australasia, Latin America, and Africa/Middle East. Compared to common global benchmarks where the US often makes up around 60%, this is a more internationally tilted mix. That broad spread is a strong diversification point, reducing reliance on one economy or currency. It also means performance will reflect many different economic and political environments, sometimes lagging when US stocks are strongly leading.
Market capitalization
- Mega-cap 45%
- Large-cap 30%
- Mid-cap 17%
- Small-cap 4%
- Micro-cap 1%
By market size, about 45% is in mega‑caps and 30% in large‑caps, with mid‑caps at 17% and only modest exposure to small and micro‑caps. This is typical of cap‑weighted index funds, where the largest companies naturally dominate the index. The heavy mega‑cap share means well‑known global giants drive a lot of the return and risk, while smaller companies still add some diversification and growth potential without overwhelming the portfolio. Because small and micro‑caps can be more volatile, their relatively small weight helps keep overall volatility closer to that of broad market benchmarks, rather than a more aggressive small‑cap‑heavy profile.
True holdings
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23 Taiwan Semiconductor Manufacturing Co. Ltd. 2.96%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
NV NVIDIA Corporation 1.68%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
SS Samsung Electronics Co Ltd 1.63%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
AA Apple Inc. 1.58%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
00 SK Hynix Inc 1.39%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
MS Microsoft Corporation 1.15%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AS ASML Holding N.V. 1.04%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
AM Amazon.com Inc 0.90%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.76%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 0.73%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 13.80%
Looking through the ETFs, the top underlying positions include Taiwan Semiconductor, NVIDIA, Samsung Electronics, Apple, SK Hynix, Microsoft, ASML, Amazon, Alphabet, and Broadcom. These are all major global companies, often big players in semiconductors and broader technology businesses. The largest single underlying exposure, Taiwan Semiconductor, is still under 3% of the portfolio, and the others are each under 2%. That indicates no extreme single‑company concentration based on available top‑10 data. Because only ETF top‑10 holdings are visible, some overlap further down the lists isn’t captured, but the visible layer already shows diversified leadership rather than one dominant stock.
Factors
Factor exposure is mostly neutral, meaning the portfolio behaves a lot like the broad market on characteristics such as value, size, momentum, and quality. Two factors stand out: yield and low volatility both show “high” tilts relative to a market average. Factor exposure is like checking which ingredients—like cheaper stocks, higher yields, or steadier price patterns—show up more often in the mix. A higher yield tilt suggests a slightly stronger income component than the broad market. The low volatility tilt suggests a bias toward stocks that have historically moved a bit less than average, which can sometimes mean gentler swings in rough markets, although not a guarantee.
Risk contribution
-
Vanguard Total International Stock Index Fund ETF Shares
Weight: 75.00% 75.0% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 25.00% 25.0%
Risk contribution looks at how much each holding adds to the portfolio’s ups and downs, which can differ from simple weights. Here, risk contribution lines up almost exactly with allocation: the international ETF is 75% of the weight and contributes about 75% of the risk, and the US ETF is 25% and contributes about 25% of risk. That one‑to‑one pattern suggests the two funds have similar volatility and are fairly correlated. There’s no hidden risk hotspot where a small position dominates the overall behavior. This even split in risk terms reinforces the idea that the portfolio’s main dial is simply how much is allocated to international versus US stocks.
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.
The risk vs. return, or efficient frontier, analysis shows this portfolio sits right on or very near the frontier using just these two holdings. The efficient frontier represents the best expected return for each level of risk, given the ingredients available. The current portfolio’s Sharpe ratio, a measure of return per unit of risk, is 0.47, while the maximum Sharpe attainable with different weights is 0.79. The minimum‑variance mix has nearly the same risk and return as the current one. That confirms the present allocation is already quite efficient for its risk level—there isn’t obvious “free” improvement just from reweighting these two ETFs.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.60%
- Weighted yield (per year) 2.22%
The combined dividend yield is about 2.22%, with the international fund paying around 2.60% and the US total market fund about 1.10%. Dividend yield is the annual cash payout relative to price, like a “rental income” stream from stocks. In this portfolio, income is slightly more driven by the international allocation, which tends to have higher yields than the US. Dividends can be an important part of total return over long periods, especially when reinvested, but they also move with company profits and payout policies. This yield level is consistent with a broad global equity portfolio rather than a dedicated high‑income strategy.
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%
The overall cost level is very low: the US ETF charges a 0.03% total expense ratio (TER) and the international ETF 0.05%, for a blended TER of about 0.04%. TER is the annual fee taken by the fund manager, a bit like a small management toll each year. Over time, lower fees leave more of the portfolio’s returns in the investor’s pocket, and the difference can compound significantly across decades. These costs are impressively low even by index fund standards and align well with best practices for cost‑efficient investing. Structurally, the fee drag here is minimal relative to typical long‑term equity return expectations.
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