Global equity core with a strong growth tilt and efficient structure at very low cost
Report created on Jun 17, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 80.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 20.00%
This portfolio is intentionally simple, holding just two equity ETFs: a broad global stock fund at 80% and a focused momentum strategy on large US stocks at 20%. That means every dollar is in stocks, with no bonds or cash buffer built into the structure. A concentrated lineup like this is easy to understand and manage because each position has a clear role: global core exposure plus a return‑seeking satellite. The trade‑off is that all risk and return come from one asset class. When global shares rise, the portfolio should fully participate; when they fall, there is little built‑in dampening. Structurally, it’s a straightforward growth‑oriented equity mix.
Growth
One or more local-currency benchmark funds are unavailable for this report.
Historically, the portfolio turned $1,000 into about $4,105 over the period shown, a compound annual growth rate (CAGR) of 17.01%. CAGR is like average speed on a road trip: it smooths the ups and downs into one yearly number. This comfortably beat the global market benchmark’s 14.70% CAGR, so the mix captured extra return. The max drawdown, or worst peak‑to‑trough drop, was about -33%, very similar to the benchmark’s fall. That shows the portfolio did not take on dramatically higher downside swings than the market while still outperforming. As always, past returns describe what happened but do not guarantee similar results going forward.
Projection
The Monte Carlo simulation projects many possible future paths using the portfolio’s historical risk and return as a guide. Think of it as running 1,000 alternate futures where markets move differently each time. After 15 years, the median outcome grows $1,000 to around $2,748, with a central “likely” band between roughly $1,785 and $4,155. There are also more extreme but less frequent paths, from about $959 to $7,255 in the 5th–95th percentile range. This results in an average simulated annual return of 7.94%. These numbers aren’t forecasts; they’re probability ranges based on the past. Real‑world outcomes can be better or worse, especially if future market conditions differ from history.
Asset classes
- Stocks 100%
All of the portfolio is in stocks, with 0% in bonds, cash, or alternatives. That makes it a pure equity portfolio, fully tied to the fortunes of global companies. Equity‑only portfolios typically offer higher long‑term growth potential but also more pronounced short‑term swings, since there’s no stabilizing fixed‑income component. Relative to many broad “all‑in‑one” benchmarks that mix stocks and bonds, this is a more growth‑heavy stance. The benefit is clear exposure to global corporate earnings and innovation. The cost is that downturns can be sharp and there’s no internal buffer from steadier asset classes. The portfolio’s behaviour will therefore be highly linked to stock market cycles.
Sectors
- Technology 33%
- Financials 14%
- Industrials 12%
- Telecommunications 8%
- Consumer Discretionary 8%
- Health Care 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is tilted toward technology at about one‑third of the portfolio, with financials and industrials as the next largest buckets. Smaller allocations spread across areas like consumer businesses, health care, energy, and utilities. Compared with a typical global equity benchmark, this structure leans a bit more toward growth‑oriented and economically sensitive sectors and a bit less toward defensive areas like utilities and staples. Tech‑heavier portfolios often benefit when innovation and digital adoption are rewarded by markets, but they can feel sharper moves when interest rates rise or when sentiment toward high‑growth companies reverses. Overall, the sector mix remains broad, even with a clear overweight in technology.
Regions
- North America 71%
- Europe Developed 11%
- Asia Developed 5%
- Japan 5%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 71% of the portfolio sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, and emerging regions. Global equity benchmarks today also have a strong North American tilt, so this allocation is broadly aligned with market weights, which is a positive sign for diversification. There is still meaningful exposure to Europe and Asia, but these regions play a supporting role rather than driving the outcome. This structure means portfolio results are heavily influenced by US and Canadian markets and currencies. When North America does well, that concentration helps; when it lags, the portfolio has less offset from other regions.
Market capitalization
- Mega-cap 42%
- Large-cap 35%
- Mid-cap 17%
- Small-cap 4%
- Micro-cap 1%
By market capitalization, the portfolio is dominated by mega‑cap and large‑cap companies, which together make up over three‑quarters of the exposure. Mid‑caps have a decent presence, while small and micro‑caps are only a thin slice. Larger companies tend to be more established, with deeper resources and more analyst coverage, so their share prices can be somewhat less volatile than very small firms. However, they’re also more tied to global economic trends and broad index moves. The modest small‑cap share provides some exposure to potentially faster‑growing businesses without driving overall risk. This large‑cap tilt is common in index‑based portfolios and aligns with the global equity market’s natural structure.
True holdings
-
NV NVIDIA Corporation 4.98%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 3.03%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 2.70%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.42%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 2.26%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MU Micron Technology Inc 2.20%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 1.91%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.75%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.22%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.93%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 23.38%
Looking through the ETFs, the biggest underlying positions include major global technology and internet names such as NVIDIA, Apple, Microsoft, Alphabet, Amazon, and Meta, plus key semiconductor companies. These stocks appear via the funds, not as direct holdings, but they still shape performance. Several of these names show up in both ETFs’ top holdings, creating overlap and a hidden concentration in a handful of large tech‑related companies. Because only top‑10 holdings are visible, that overlap is likely understated. When these giants have strong runs, the portfolio can benefit significantly; when they stumble, their collective weight means they can have an outsized impact on short‑term results.
Factors
Factor exposure across value, size, momentum, quality, yield, and low volatility all sits in the “neutral” band around market averages. Factors are characteristics like “cheap vs. expensive” or “stable vs. volatile” that research has linked to long‑term returns. A neutral reading around 50% means the portfolio behaves similarly to a broad market index for each factor, rather than strongly favoring or avoiding any style. That’s notable given the dedicated momentum ETF: its effect is largely diluted by the larger global core fund. This balanced factor profile suggests that the portfolio’s performance is driven more by overall market movements and broad growth trends than by targeted factor bets.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 80.00% 78.3% -
Invesco S&P 500® Momentum ETF
Weight: 20.00% 21.7%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weight. Here, the global ETF is 80% of the allocation and contributes about 78% of total risk, while the momentum ETF is 20% of the allocation but contributes roughly 22% of risk. That slight “risk/weight” premium for the momentum fund reflects its more volatile nature: per dollar invested, it moves a bit more than the core holding. Overall, risk is not excessively concentrated in the smaller position; it roughly matches the size of each line. This is a clean, intuitive risk structure for a two‑fund portfolio.
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 shows that the current mix is already on or very near the curve of best possible risk/return combinations using these two funds. The Sharpe ratio, which measures return per unit of risk above a risk‑free rate, is 0.71 for the current portfolio. The maximum Sharpe version using only these holdings could be higher at 1.04, but it would also take on more volatility. The minimum‑variance mix would lower risk slightly while maintaining a reasonable Sharpe. Since the existing allocation lies close to the frontier, the portfolio is making efficient use of its two ingredients from a pure risk/return standpoint, without obviously wasteful weighting.
Dividends
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- Weighted yield (per year) 1.42%
The combined dividend yield is about 1.42%, with the global ETF around 1.60% and the momentum ETF lower at 0.70%. Dividend yield is the cash income paid out each year as a percentage of the current value. In this portfolio, income plays a secondary role compared with capital growth; most return historically has come from price appreciation. That’s typical for growth‑tilted, large‑cap global equity portfolios, especially those with heavy technology and US exposure. Dividends still matter as a steady, relatively predictable component of total return, but they are not the dominant driver. Investors relying mainly on income would see this more as a growth engine with a modest yield attached.
Ongoing product costs
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.08%
Costs are impressively low: the weighted total expense ratio (TER) is about 0.08% per year. TER is the annual fee charged by the funds, expressed as a percentage of invested assets. At this level, only $0.80 out of every $1,000 is taken in fees each year. That’s well below the average cost for many actively managed strategies and even cheaper than many index mixes. Over long periods, low fees can make a noticeable difference, since less return is lost to expenses and more stays invested to compound. From a cost perspective, this portfolio is very efficient, which supports better long‑term outcomes relative to higher‑fee alternatives with similar exposures.
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