Globally diversified stock portfolio with strong yield tilt and a single stock adding extra risk
Report created on May 19, 2026Risk profile
5/7
Diversification profile
4/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 40.00% -
VG Vanguard FTSE Europe Index Fund ETF Shares
VGK - US9220428745 20.00% -
VP Vanguard FTSE Pacific Index Fund ETF Shares
VPL - US9220428661 20.00% -
BA The Boeing Company
BA - US0970231058 10.00% -
VW Vanguard FTSE Emerging Markets Index Fund ETF Shares
VWO - US9220428588 10.00%
This portfolio is made up entirely of stocks, split mainly across four broad index ETFs plus one single company. Around 80% sits in low-cost Vanguard funds that cover large chunks of the US, Europe, Pacific, and emerging markets, while 10% is concentrated in one aerospace and defense stock. This structure means most of the risk and return comes from broad equity markets, with an extra layer of company-specific risk from the individual stock. A pure‑equity mix like this tends to move strongly with global market cycles, rising and falling more sharply than a portfolio that mixes in bonds or cash, but also fully participating in stock-market growth over time.
Growth
Over the last decade, a hypothetical $1,000 in this portfolio grew to about $3,163, a compound annual growth rate (CAGR) of 12.26%. CAGR is like average speed on a road trip, smoothing out bumps along the way. This lagged both the US market (15.75%) and the global market (13.08%), so returns were strong in absolute terms but weaker than broad benchmarks. The max drawdown was roughly -40% during early 2020, deeper than the benchmarks’ ~-34%, showing sharper downside in stress periods. Only 28 days generated 90% of returns, underlining how missing a handful of strong days can materially affect long‑term outcomes.
Projection
The Monte Carlo projection uses past volatility and returns to simulate many possible 15‑year paths for a $1,000 investment. Think of it as running 1,000 alternate futures based on historical patterns, then seeing the range of outcomes. The median ending value is $2,663, equivalent to about 7.72% per year, with a central “likely” band from $1,825 to $4,032. There’s roughly a three‑in‑four chance of finishing ahead of $1,000, but also a meaningful possibility of ending close to or even below the starting value. These simulations are not forecasts; they simply show how similar risk and return characteristics could play out under many random sequences.
Asset classes
- Stocks 100%
All of the portfolio is in equities, with no bonds, cash, or alternative assets included. That makes the asset allocation straightforward but also firmly on the higher‑risk, higher‑volatility side of the spectrum. In broad market terms, many “all‑world” equity indices look somewhat similar in being 100% stocks, but investors often mix in bonds or cash to smooth returns. Here, all diversification happens within the stock bucket—across regions, sectors, and company sizes—rather than between asset classes. This structure typically leads to larger swings in account value, especially during recessions or market panics, while fully harnessing equity growth in long expansions.
Sectors
- Technology 22%
- Industrials 22%
- Financials 15%
- Consumer Discretionary 9%
- Health Care 8%
- Telecommunications 7%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 3%
- Utilities 3%
- Real Estate 2%
Sector exposure is fairly balanced but with a couple of notable tilts. Technology and industrials are neck‑and‑neck as the largest groups at about 22% each, followed by financials at 15% and consumer sectors plus healthcare making up much of the rest. Compared with a typical global equity benchmark that’s often tech‑heavy, this mix gives more relative weight to industrial and economically sensitive businesses. That can help when global manufacturing, travel, and trade are strong, but it can also amplify downturns when cyclical sectors come under pressure. The modest exposure to utilities, real estate, and energy means defensive and commodity‑linked parts of the market play a smaller role.
Regions
- North America 50%
- Europe Developed 20%
- Japan 11%
- Asia Developed 8%
- Asia Emerging 5%
- Australasia 3%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is meaningfully diversified beyond the US. About 50% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and a slice of emerging markets including Asia, Latin America, and Africa/Middle East. A typical global market index currently has a higher US share, so this portfolio leans more toward non‑US developed markets than the global norm. That alignment with global regions is broadly healthy for diversification, reducing reliance on a single economy or currency. It does, however, mean performance can differ noticeably from a purely US‑focused approach, especially in periods when US stocks strongly outperform or lag the rest of the world.
Market capitalization
- Mega-cap 41%
- Large-cap 39%
- Mid-cap 15%
- Small-cap 2%
By market capitalization, the portfolio is dominated by large, established companies: around 41% in mega‑caps and 39% in large‑caps, with smaller portions in mid‑caps and only 2% in small‑caps. Market cap just means the total value of a company’s shares. Mega‑ and large‑cap stocks tend to be more stable and mature, with deeper trading markets and greater analyst coverage. That often translates into somewhat lower volatility than a portfolio packed with small, speculative names, but it can also mean fewer dramatic “home runs.” The relatively light small‑cap exposure suggests the portfolio will generally behave similarly to mainstream global indices rather than swinging more wildly with smaller companies.
True holdings
-
-
NV NVIDIA Corporation 3.14%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 2.58%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 1.96%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.68%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.45%
Part of fund(s):- Vanguard S&P 500 ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.28%
Part of fund(s):- Vanguard FTSE Emerging Markets Index Fund ETF Shares
-
AV Broadcom Inc 1.28%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.16%
Part of fund(s):- Vanguard S&P 500 ETF
-
SS Samsung Electronics Co Ltd 1.00%
Part of fund(s):- Vanguard FTSE Pacific Index Fund ETF Shares
- Top 10 total 25.52%
Looking through the ETFs’ top holdings, the largest single named exposure is the directly held Boeing position at 10%, with no additional Boeing exposure coming through the funds. The top ETF look‑through names are familiar global giants like Nvidia, Apple, Microsoft, Amazon, Alphabet, TSMC, Broadcom, and Samsung, each sitting around 1–3% of the overall portfolio. Because only ETF top‑10 holdings are captured, overlap is likely understated, but we can already see a cluster in mega‑cap technology and communication names. This kind of overlap creates “hidden” concentration: several different funds all end up owning the same large companies, so those firms can drive portfolio behavior more than the number of line items suggests.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure across value, size, momentum, quality, and low volatility is broadly neutral, meaning it looks a lot like the general market on those dimensions. A neutral exposure suggests the portfolio isn’t heavily tilted toward “cheap,” “fast‑rising,” or “defensive” stocks versus a standard index. The one notable tilt is yield, which scores high at 62%. Factor investing treats these characteristics as ingredients that help explain returns. A higher yield tilt means, on average, the holdings pay somewhat more in dividends than the wider market. Historically, yield‑oriented stocks can provide a steadier income stream but may lag during periods when investors chase high‑growth, non‑dividend payers.
Risk contribution
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Vanguard S&P 500 ETF
Weight: 40.00% 37.4% -
Vanguard FTSE Europe Index Fund ETF Shares
Weight: 20.00% 19.1% -
Vanguard FTSE Pacific Index Fund ETF Shares
Weight: 20.00% 17.3% -
The Boeing Company
Weight: 10.00% 17.2% -
Vanguard FTSE Emerging Markets Index Fund ETF Shares
Weight: 10.00% 9.0%
Risk contribution measures how much each holding adds to the portfolio’s overall ups and downs, which can differ from its simple weight. The three largest ETFs together are about 80% of the portfolio and contribute roughly 74% of total risk—reasonably aligned. The standout is Boeing: at 10% of assets, it contributes over 17% of total risk, with a risk/weight ratio of 1.72. That means this single stock is much bumpier than the diversified ETFs and has an outsized influence on volatility. In practice, sharp moves in this one company can noticeably sway the portfolio’s daily and monthly returns, even though it’s only a tenth of the capital.
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 chart shows the current portfolio has an annualized return of 13.50% with volatility of 18.09%, giving a Sharpe ratio of 0.53. The Sharpe ratio compares excess return over the risk‑free rate to volatility; higher means more return per unit of risk. Here, the optimal portfolio using the same holdings but different weights reaches a Sharpe of 0.84, while the minimum‑variance mix scores 0.72. The current allocation sits about 2.7 percentage points below the efficient frontier at its risk level, indicating it’s not using these specific holdings as efficiently as possible. In other words, just changing the mix—without adding anything new—could historically have improved risk‑adjusted returns.
Dividends
- Vanguard FTSE Europe Index Fund ETF Shares 2.80%
- Vanguard S&P 500 ETF 1.00%
- Vanguard FTSE Pacific Index Fund ETF Shares 2.90%
- Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.50%
- Weighted yield (per year) 1.79%
The blended dividend yield for this portfolio is about 1.79%, with higher yields from Europe, Pacific, and emerging markets offsetting the lower S&P 500 yield. Dividend yield is the annual cash payout as a percentage of price, like rent from owning shares. This yield sits a bit above the US large‑cap average but below some dedicated income strategies. For an all‑equity portfolio, that’s a reasonable balance: there is a meaningful contribution from dividends, yet most of the total return historically has come from price appreciation. Dividend levels can and do change over time as companies adjust payouts, so this figure is a snapshot rather than a guarantee.
Ongoing product costs
- Vanguard FTSE Europe Index Fund ETF Shares 0.06%
- Vanguard S&P 500 ETF 0.03%
- Vanguard FTSE Pacific Index Fund ETF Shares 0.08%
- Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
- Weighted costs total (per year) 0.05%
Costs are notably low. The total expense ratio (TER) across the ETFs averages around 0.05% per year, which is well below the cost of many actively managed funds. TER is the annual fee charged by a fund as a percentage of assets, quietly deducted in the background. Over long periods, keeping this number small can make a real difference, because every fraction of a percent saved stays invested and can compound. With no obvious high‑fee outliers here, the cost structure is a clear strength of the portfolio and supports better alignment with the underlying market returns before considering any other factors.
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