Globally diversified stock portfolio using two broad market ETFs with very low ongoing costs

Report created on Apr 12, 2026

Risk 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

The portfolio is as simple as it gets: two global stock ETFs at 50% each, both accumulating and fully equity. That means every euro is working in company shares rather than being split across bonds or cash. Simplicity like this is powerful because it’s easy to understand, maintain, and stress‑test. With just two funds tracking very broad indices, you avoid the complexity and overlap risk that comes from juggling many niche products. The key implication is that risk comes almost entirely from global stock markets rising or falling, not from fund selection. For someone comfortable with equity ups and downs, this is a clean and sensible structure.

Growth Info

Since mid‑2019, €1,000 grew to about €2,106, a compound annual growth rate (CAGR) of 11.64%. CAGR is like your average speed on a long drive, smoothing out the bumps to show the typical yearly gain. The portfolio slightly beat the global equity market but lagged the US market, which had an exceptional run over this period. The worst drop was about –33.5% in early 2020, in line with major markets. That shows this setup behaves much like a balanced global equity index: strong long‑term growth potential but with big temporary drawdowns that a holder needs to ride out without panic selling.

Projection Info

The Monte Carlo projection simulates many possible 15‑year paths using historical patterns of returns and volatility. Think of it as running the portfolio through 1,000 different “what if” market histories to see a range of outcomes. The median ending value of €2,755 on €1,000 invested points to an annualised return around 8.1%, with a wide but reasonable spread between good and bad scenarios. About three‑quarters of simulations end positive, yet some paths barely break even. This underlines that even a well‑diversified equity mix can have long flat or weak periods. These simulations are not forecasts, just statistical replays based on the past.

Asset classes Info

  • Stocks
    100%

All of the portfolio is in stocks, with 0% in bonds, cash, or alternatives. That’s a clear choice: maximum long‑term growth orientation and no built‑in shock absorber from more defensive assets. Compared to many “balanced” mixes that often hold 30–60% in bonds, this is more like a classic growth setup. The benefit is higher expected returns over long horizons; the trade‑off is larger swings from year to year and more painful drawdowns during crashes. For someone with a stable income and a long time horizon, that can be entirely reasonable, but it does rely on emotional and financial ability to withstand deep, temporary losses.

Sectors Info

  • Technology
    26%
  • Financials
    16%
  • Industrials
    12%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure is broadly spread, with technology the largest at 26%, followed by financials, industrials, consumer areas, and health care. This looks very close to global equity benchmarks, which today are naturally tilted toward tech and related industries. A tech‑tilt can boost returns in periods of innovation and growth but often comes with extra sensitivity to interest rates and investor sentiment. Importantly, no single sector dominates to an extreme degree, and all major parts of the economy are represented. This well‑balanced sector mix is a strong indicator of healthy diversification across different business models and economic drivers.

Regions Info

  • North America
    68%
  • Europe Developed
    16%
  • Japan
    6%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Around 68% of the equity exposure is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and a modest slice of emerging markets. This is very similar to global market weights, where US and Canadian markets are naturally dominant due to their size. Such alignment with global geography is a positive sign: it avoids heavy home bias and ensures participation in growth wherever it happens. The flip side is that returns and risk are heavily influenced by the fortunes of North American companies and currencies. Over decades, this global weighting has historically been a sensible default.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    17%

Market capitalisation is skewed toward mega‑cap and large‑cap companies, with almost half in mega‑caps and a further 35% in large‑caps. This mirrors how global indices are constructed: the biggest companies take up the most space. Large firms often bring more stability, liquidity, and business diversification compared with smaller companies. At the same time, the 17% allocation to mid‑caps still provides some exposure to potentially faster‑growing businesses without making the portfolio overly volatile. Overall, this size distribution is well‑balanced and aligns closely with global standards, giving a good blend of resilience and growth potential driven by established market leaders.

True holdings Info

  • NVIDIA Corporation
    4.63%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Apple Inc
    4.23%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Microsoft Corporation
    3.11%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Amazon.com Inc
    2.21%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Alphabet Inc Class A
    1.99%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Alphabet Inc Class C
    1.64%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Broadcom Inc
    1.59%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Meta Platforms Inc.
    1.55%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Tesla Inc
    1.24%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    0.79%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Top 10 total 22.98%

Looking through the ETFs’ top holdings, the largest exposures are to a handful of mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. These together already account for a meaningful slice of the portfolio, even though they only represent the visible top‑10 of each ETF. Because the same giants appear in both funds, there is hidden concentration in these companies. This is normal in broad indices today, as markets themselves are top‑heavy. The main takeaway is that portfolio behaviour will be quite sensitive to how these big technology‑driven firms perform, especially during sharp market moves.

Risk contribution Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR
    Weight: 50.00%
    50.5%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    Weight: 50.00%
    49.5%

Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, each ETF is 50% and contributes almost exactly half the total risk, with risk/weight close to 1. That means neither fund is secretly dominating the volatility; they both behave very similarly in terms of day‑to‑day movement. This symmetry reflects their broad, overlapping exposure and similar market roles. As a result, any change in allocation between them would only marginally change total risk. The main driver of portfolio volatility remains global stock markets themselves rather than any single holding or fund.

Redundant positions Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR
    Vanguard FTSE All-World UCITS ETF USD Accumulation
    High correlation

The two ETFs are described as “almost identically” correlated, meaning they tend to move together in the same direction by similar amounts. Correlation measures how often and how strongly assets move in sync; high correlation reduces the diversification benefit of holding both. In this case, the overlap in holdings and broad global equity exposure explains why they behave so similarly. The practical implication is that, from a risk perspective, this feels quite close to owning one global equity fund, just split in half. That’s fine structurally, but additional diversification would usually come from mixing in assets that move differently, not highly similar ones.

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 efficient frontier analysis compares risk (volatility) and return to see how well the mix uses what’s already in the portfolio. The current allocation has a Sharpe ratio of 0.51, while the optimal mix of the same two funds reaches about 0.70–0.68 with very similar risk and return numbers. The Sharpe ratio is a score for risk‑adjusted returns, where higher is better. The report notes the portfolio is on or very near the efficient frontier, meaning it already uses these holdings effectively for its chosen risk level. Any potential improvement from reweighting would be minor; structurally, the balance is already efficient.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
  • Weighted costs total (per year) 0.20%

Total ongoing fees, measured by the ETFs’ TERs (Total Expense Ratios), are around 0.20% per year. TER is the annual percentage taken by the fund to cover management and operating costs. That level is impressively low for such broad global exposure and sits right in line with the cheapest options on the market. Low costs are one of the few things investors can control, and shaving even half a percent annually can add up significantly over 20–30 years. Here, costs are not a drag on performance; they actively support better long‑term compounding. Structurally, this is a real strength of the setup.

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