Two fund globally diversified all equity portfolio with strong North American tilt and efficient risk profile

Report created on May 19, 2026

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is built from just two broad equity ETFs: roughly 70% in a Vanguard all‑equity fund and 30% in an iShares core equity fund. Together they create a simple, buy‑and‑hold, globally diversified stock mix with no bonds or cash in the strategic allocation. A “balanced” risk label here reflects overall volatility rather than a mix of stocks and bonds. Structurally, this is an equity‑only engine that will move up and down with stock markets. The simplicity is a clear strength: rebalancing and maintenance are straightforward, and the building blocks are diversified funds rather than concentrated single stocks.

Growth Info

From August 2019 to May 2026, a $1,000 investment grew to about $2,487, which is a compound annual growth rate (CAGR) of 14.5%. CAGR is like the average speed on a long road trip, smoothing out all the bumps along the way. Over this period, the portfolio almost exactly matched the global equity market’s CAGR and slightly lagged the US market, which had unusually strong returns. The deepest drop was about -30% during early 2020, similar to global markets. That recovery took around eight months, showing that while drawdowns can be sharp, diversified equity portfolios have historically bounced back over time.

Projection Info

The Monte Carlo projection uses past return and volatility patterns to simulate 1,000 alternate futures for the next 15 years. Think of it as rolling the dice many times with today’s portfolio profile to explore a range of possible outcomes, not a prediction. The median result turns $1,000 into about $2,670, with most simulations landing between roughly $1,765 and $4,060. There are also more extreme cases, both good and bad, underscoring that equities can deliver a wide range of experiences. These numbers rely on historical characteristics, so they’re informative but not guaranteed paths for the future.

Asset classes Info

  • US Equity
    61%
  • Stocks
    39%

Asset‑class exposure is effectively 100% global equities, with no intentional allocation to bonds or other defensive assets. Within that, about 61% is labelled US equity and 39% as broader “stocks,” which likely bundles non‑US developed and emerging markets. Being fully in equities means the portfolio leans into growth potential and accepts meaningful short‑term swings. Compared with classic “balanced” mixes that include bonds, this structure typically has higher return potential but also larger drawdowns. The strong diversification score reflects how broadly the equity slice is spread, even though the overall asset‑class mix is growth‑oriented rather than income‑ or stability‑focused.

Sectors Info

  • Financials
    21%
  • Technology
    20%
  • Industrials
    12%
  • Basic Materials
    9%
  • Consumer Discretionary
    8%
  • Energy
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Utilities
    3%
  • Real Estate
    2%

This breakdown covers the equity portion of your portfolio only.

Sector exposure is spread widely, with financials (21%) and technology (20%) as the two largest slices, followed by industrials and basic materials. This is broadly in line with many global equity benchmarks, where financials and tech often sit near the top. A portfolio where no single sector dominates helps reduce the impact if one area faces a rough patch. For example, if technology struggles during a period of rising interest rates, other sectors like financials, energy, or consumer businesses can cushion the effect. The presence of all major sectors, including smaller allocations to utilities and real estate, supports a well‑balanced sector profile.

Regions Info

  • North America
    74%
  • Europe Developed
    12%
  • Japan
    5%
  • Asia Developed
    4%
  • Asia Emerging
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, about 74% of the portfolio is in North America, with smaller allocations to Europe, Japan, other developed Asia, and emerging regions. This creates a noticeable North American tilt compared to global market indexes, where North America is important but typically not quite this dominant. A strong home‑region exposure often reflects the large size and depth of those markets and can feel familiar to many investors. The remaining spread across Europe, Asia, and emerging markets still adds global diversification, giving exposure to different economic cycles and currencies, even though the portfolio clearly leans toward North American companies.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

This breakdown covers the equity portion of your portfolio only.

By market capitalization, the portfolio tilts strongly toward larger companies: 44% in mega‑caps and 31% in large‑caps, with the rest spread across mid, small, and a sliver of micro‑caps. Market cap is basically company size in the stock market, and larger firms often have more stable cash flows and broader business lines, which can reduce idiosyncratic risk. The inclusion of mid and small caps adds some extra growth potential and diversification because smaller firms may behave differently across market cycles. Overall, this mix looks similar to broad global equity indexes, where big companies dominate but smaller ones are still meaningfully represented.

True holdings Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    30.57%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard US Total Market
  • iShares Core S&P Total U.S. Stock Market Index ETF
    7.25%
    Part of fund(s):
    • iShares Core Equity Portfolio
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares
    5.02%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard FTSE Emerging Markets All Cap Index ETF
  • Royal Bank of Canada
    2.11%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard FTSE Canada All Cap
    • iShares Core Equity Portfolio
    • iShares Core S&P/TSX Capped Composite
  • Toronto Dominion Bank
    1.43%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard FTSE Canada All Cap
    • iShares Core Equity Portfolio
    • iShares Core S&P/TSX Capped Composite
  • Shopify Inc
    1.40%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard FTSE Canada All Cap
    • iShares Core Equity Portfolio
    • iShares Core S&P/TSX Capped Composite
  • Enbridge Inc
    0.99%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard FTSE Canada All Cap
    • iShares Core Equity Portfolio
    • iShares Core S&P/TSX Capped Composite
  • Bank of Montreal
    0.88%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard FTSE Canada All Cap
    • iShares Core Equity Portfolio
    • iShares Core S&P/TSX Capped Composite
  • Agnico Eagle Mines Limited
    0.87%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard FTSE Canada All Cap
    • iShares Core Equity Portfolio
    • iShares Core S&P/TSX Capped Composite
  • Brookfield Corporation
    0.86%
    Part of fund(s):
    • Vanguard All-Equity ETF Portfolio
    • Vanguard FTSE Canada All Cap
    • iShares Core Equity Portfolio
    • iShares Core S&P/TSX Capped Composite
  • Top 10 total 51.39%

This breakdown covers the equity portion of your portfolio only.

Looking through the ETFs, the biggest underlying exposure is a broad US total‑market fund, making up about 30.6% of the portfolio, with an additional 7.3% via an iShares US total‑market ETF. That’s a lot of US stock market exposure packaged through different issuers but ultimately tied to similar underlying companies. There are also noticeable single‑company weights in major Canadian names like Royal Bank of Canada, TD, and Shopify, plus emerging markets through Vanguard’s EM ETF. Because the analysis only uses ETF top‑10 holdings, actual overlap is likely higher, so hidden concentration in big global leaders is probably somewhat understated here.

Risk contribution Info

  • Vanguard All-Equity ETF Portfolio
    Weight: 70.00%
    71.2%
  • iShares Core Equity Portfolio
    Weight: 30.00%
    28.8%

Risk contribution shows how much each holding adds to overall ups and downs, which can differ from its simple weight. Here, the Vanguard ETF at 70% weight contributes about 71% of total risk, while the iShares ETF at 30% adds around 29%. That near one‑to‑one relationship (risk/weight near 1 for both) suggests the two funds have similar volatility and move quite similarly. There isn’t a small position that secretly dominates risk, and no single holding contributes far more risk than its size would suggest. This matches the idea of a straightforward two‑fund, broad‑market structure without a hidden high‑octane slice.

Redundant positions Info

  • iShares Core Equity Portfolio
    Vanguard All-Equity ETF Portfolio
    High correlation

The two ETFs in this portfolio are highly correlated, essentially moving almost identically over time. Correlation measures how often assets move together, on a scale from -1 to +1, and very high values mean they tend to rise and fall at the same moments. That’s expected for two global equity funds that both own a lot of US and developed‑market stocks. High correlation within equities is normal, but it also means there’s limited “zig‑when‑others‑zag” behavior between these specific holdings. Diversification benefits mainly come from the thousands of underlying companies, not from these two ETFs behaving very differently from each other.

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‑versus‑return chart, the current portfolio sits right on or very close to the efficient frontier. The efficient frontier represents the best trade‑offs between risk (volatility) and expected return that can be achieved using just the existing holdings in different mixes. The current Sharpe ratio of about 0.73—where Sharpe measures return earned per unit of risk—is a bit below the mathematically “optimal” mix using these same two ETFs, but the difference is small. This indicates the present allocation is already using its components efficiently, without obvious inefficiencies in how risk and return are balanced.

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