Broad global equity portfolio with strong US focus and impressively low costs
Report created on May 4, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is very straightforward: two broad equity ETFs, one for the US market at 80% and one for international stocks at 20%. That means every dollar is fully invested in stocks, split between domestic and overseas companies. Structurally, this is simple and transparent, which makes it easier to understand what’s driving results over time. Because both funds are broad “total market” style funds, the portfolio leans on market-cap weighting, where bigger companies naturally take larger slices. Overall, the structure creates instant exposure to thousands of companies worldwide through just two building blocks, with the US clearly in the driver’s seat and international stocks playing a smaller but still meaningful supporting role.
Growth
From 2016 to 2026, $1,000 in this portfolio grew to about $3,689, a compound annual growth rate (CAGR) of 14%. CAGR is like your average speed on a road trip, smoothing out the bumps along the way. The max drawdown, or largest peak-to-trough drop, was about -35% during early 2020, which is a significant but typical equity-level decline. Compared with benchmarks, the portfolio lagged the US market by about 1.25% per year but beat the global market by about 1.34% per year. That pattern fits its mix: heavy US exposure but still some drag from non-US stocks that performed more modestly over this period.
Projection
The Monte Carlo simulation projects many possible 15‑year paths by remixing patterns from historical returns. Think of it as running 1,000 “what if” futures where markets behave similarly to the past but with randomness. The median outcome turns $1,000 into about $2,806, with a central band from roughly $1,785 to $4,332. There’s about a 74% chance of ending with more than you started, but some paths finish near flat around $999, while others grow much higher. These numbers are not forecasts or promises; they just show a distribution of plausible outcomes if long-term returns and volatility resemble history, which can always change.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with 0% in bonds, cash, or alternatives. That’s why its behavior is tightly linked to equity market ups and downs rather than interest rates or bond markets. A 100% equity allocation historically offers higher return potential but also deeper and faster drawdowns. Compared with many diversified multi‑asset setups that mix in bonds or other assets, this structure is more growth-oriented and market-sensitive. The Monte Carlo results and the 2020 drawdown both reflect that: there’s strong long-term growth in favorable periods, but short-term swings are meaningful because no other asset class is present to dampen the ride.
Sectors
- Technology 28%
- Financials 14%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
Sector-wise, the portfolio is led by technology at 28%, followed by financials, industrials, consumer discretionary, and healthcare in smaller but still sizable slices. This pattern looks broadly similar to many global equity benchmarks where tech has grown to be a major component. A tech-tilted portfolio like this can benefit when innovation-driven companies are in favor, but it can feel more volatile when interest rates rise or when growth stocks fall out of fashion. At the same time, exposure to areas like financials, healthcare, and consumer-related sectors adds balance, so returns are not tied to a single economic story or industry cycle.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 81% of the portfolio is in North America, with the rest spread across Europe, Japan, other developed Asia, emerging Asia, and smaller allocations to Australasia, Latin America, and Africa/Middle East. This is more US-heavy than most global market-cap benchmarks, which usually put the US closer to 60%. That tilt has helped over the last decade because US stocks outperformed many other regions, but it also concentrates results in one currency and one main economy. The international sleeve still adds meaningful diversification, especially in regions that may behave differently across interest-rate cycles, commodity trends, or local economic shocks.
Market capitalization
- Mega-cap 41%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
On market cap, the portfolio is dominated by mega-cap and large-cap companies, which together make up about 72%. Mid-caps sit around 19%, with small and micro-caps at 8% combined. That’s very close to standard total-market index profiles, where the largest companies naturally dominate due to their size. Larger companies often have more stable earnings and better access to capital, which can make returns somewhat smoother than a small-cap-heavy approach. At the same time, having some exposure to mid, small, and micro caps lets the portfolio tap into potential growth from younger or more niche businesses without letting them drive overall volatility.
True holdings
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NV NVIDIA Corporation 5.12%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.74%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.50%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.56%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.13%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.86%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.69%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.59%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.33%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 1.09%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 25.60%
Looking through to the top holdings, the biggest underlying exposures are familiar large US names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire Hathaway. Together, the top ten exposures add up to a meaningful slice of the portfolio, even though they sit inside diversified ETFs. Many of these appear in both the US and international fund where applicable, which can create overlap and hidden concentration. Since only top‑10 ETF holdings are used, overlap is likely understated. The takeaway is that the portfolio’s day‑to‑day moves will be strongly influenced by the fortunes of a relatively small group of mega-cap global leaders.
Factors
Factor exposure across value, size, momentum, quality, yield, and low volatility is broadly neutral, with all scores hovering near 50%. Factor exposure is like checking which “traits” the portfolio leans into—cheap vs expensive, large vs small, stable vs volatile, and so on. A neutral profile means the mix behaves a lot like the overall market rather than making a big bet on any one style. That can be helpful if you prefer returns that broadly track mainstream indices instead of swinging more sharply when a particular factor, like momentum or value, goes in or out of favor. The portfolio’s performance should mainly reflect broad market conditions.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 80.00% 82.5% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 17.5%
Risk contribution shows how much each holding drives overall volatility, not just how big it is. Here, the US total market ETF weighs 80% but contributes about 82.5% of total risk, while the international ETF at 20% weight contributes around 17.5%. So risk is slightly more concentrated in the US sleeve than the percentages alone suggest, but still very proportional. This pattern is typical for two broad equity funds that are fairly correlated. It means the portfolio’s ups and downs are overwhelmingly shaped by US equity behavior, with the international piece softening or amplifying that a bit rather than dominating the risk profile.
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 on or very close to the efficient frontier. The efficient frontier shows the best attainable return for each risk level using just these two funds in different mixes. The current Sharpe ratio—risk‑adjusted return—of 0.6 is lower than the optimal portfolio’s 0.8, but the difference comes with only modest shifts in risk and return. The minimum-variance mix has slightly less risk but also lower expected return. Overall, the data suggests the present allocation already uses these two building blocks efficiently, balancing return and volatility well for an all‑equity setup without obvious wasted risk.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.44%
The overall dividend yield for the portfolio is about 1.44%, blending a roughly 1.10% yield from the US fund and 2.80% from the international fund. Dividends are the cash payments companies make to shareholders, and they can be a steady component of total return alongside price changes. For a growth-tilted equity portfolio like this, most of the long-term return historically comes from capital appreciation rather than very high yields. Still, a moderate, diversified dividend stream can help smooth overall outcomes a bit, especially in periods when prices move sideways but companies continue to distribute part of their profits.
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) 0.03%
Total ongoing costs are very low, with an overall TER around 0.03%. The US ETF charges 0.03% and the international ETF 0.05%, both at the low end of industry ranges for broad index funds. TER, or Total Expense Ratio, is the annual fee taken inside the fund, similar to a tiny management toll. Over long horizons, lower fees mean more of the market’s return stays in your account instead of going to providers. This cost profile is impressively low and a real strength of the portfolio, supporting better long-term compounding compared with higher-fee approaches tracking similar broad markets.
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