Globally tilted stock portfolio with broad diversification and room to fine tune risk and return
Report created on Mar 20, 2026Risk 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.
What type of investor this portfolio is suitable for
Balanced Investors
An investor well-matched to this setup is comfortable with meaningful market swings in pursuit of long-term growth. They likely have a multi-decade horizon, focus on wealth building rather than near‑term spending, and can emotionally tolerate seeing their account value drop by a third during severe downturns without panicking. They appreciate simplicity—owning the global stock market through a couple of low‑cost funds—rather than constantly tweaking holdings. Goals might include retirement, financial independence, or legacy building, with returns driven mainly by broad global equity performance. A moderate-to-high risk tolerance, paired with discipline and patience, is important for staying the course here.
Positions
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Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 86.96% -
Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 13.04%
This portfolio is almost entirely in stocks, with roughly 98% in equities and about 2% in cash. It holds just two broad-market ETFs, one focused on domestic stocks and one on international stocks, with a strong tilt toward international at nearly 87% of the total. This structure is simple, transparent, and easy to manage, which helps avoid overlap and complexity. A mostly stock portfolio will swing up and down more than a mix that includes bonds, but it also offers higher long-term growth potential. The key takeaway is that this setup is designed for growth and diversification, not short‑term stability or income.
Growth
Over the last decade, a hypothetical $1,000 in this mix grew to about $2,500, a compound annual growth rate (CAGR) of 10.62%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. That is solid, but it lagged the US market benchmark at 14.28% and the global market at 11.72%. The portfolio’s max drawdown, or worst peak-to-trough drop, was about -34.75%, similar to the benchmarks. So downside pain has been comparable to the market, but upside has been somewhat lower. Remember, historical returns don’t guarantee the future, especially for a portfolio tilted away from past winners.
Projection
The Monte Carlo simulation projects many possible 10‑year paths based on how the portfolio behaved historically, then summarizes the range of outcomes. Think of it as running 1,000 alternate futures using past volatility and returns. In these simulations, the median outcome is roughly a 382% cumulative gain over 10 years, with even the pessimistic 5th percentile still positive at around 64%. The average simulated annualized return is 13%, but this is just a model, not a promise. Simulations assume the future rhymes with the past, which may not hold if markets, interest rates, or global growth change in unexpected ways.
Asset classes
- Stocks 98%
- Cash 2%
Asset-class-wise, this is effectively an all‑equity portfolio, supplemented only by a small 2% cash buffer. That aligns with a growth‑oriented mindset and a longer time horizon, because stocks have historically outperformed bonds and cash over decades, while suffering larger short‑term swings. Compared with a classic “balanced” mix that might hold 40–60% bonds, this setup is more aggressive. The upside is strong participation in global equity growth; the downside is deeper drawdowns in bear markets. For someone who can stay invested through rough patches, this can be effective, but those needing near‑term stability might normally add more defensive assets.
Sectors
- Financials 21%
- Technology 18%
- Industrials 16%
- Consumer Discretionary 9%
- Health Care 8%
- Basic Materials 7%
- Consumer Staples 5%
- Telecommunications 5%
- Energy 4%
- Utilities 3%
- Real Estate 3%
Sector exposure is nicely spread: financial services lead at 21%, then technology at 18% and industrials at 16%, with consumer, healthcare, materials, energy, utilities, and real estate all meaningfully represented. This broad spread closely resembles global equity benchmarks, which is a strong signal of diversification. Tech is important but not overwhelmingly dominant, unlike some US‑only portfolios that lean heavily on a handful of mega‑cap names. The benefit is that performance won’t hinge on a single sector doing well. If one segment lags, others can offset it. This balanced structure helps smooth returns across different economic environments and policy cycles.
Regions
- Europe Developed 32%
- North America 21%
- Japan 14%
- Asia Developed 13%
- Asia Emerging 12%
- Australasia 4%
- Africa/Middle East 3%
- Latin America 2%
- Europe Emerging 1%
Geographically, the portfolio is notably global: around a third in developed Europe, just over a fifth in North America, and substantial weight in Japan plus developed and emerging Asia. Compared with typical global benchmarks that lean more heavily to the US, this mix is clearly more international. That aligns with “broad diversification” best practices and reduces reliance on any one country’s economy or politics. The trade‑off is that if US stocks continue to outperform, returns may trail a US‑heavy portfolio. On the other hand, if leadership broadens or rotates to other regions, this kind of spread can shine and reduce single‑country risk.
Market capitalization
- Mega-cap 46%
- Large-cap 30%
- Mid-cap 17%
- Small-cap 4%
- Micro-cap 1%
Market-cap allocation is anchored in large companies, with about 46% in mega caps and 30% in big caps, then 17% in mid caps and small/micro making up the rest. That’s very similar to a global market-weighted index. Large firms typically bring more stability, deeper liquidity, and more analyst coverage, which can moderate volatility relative to a small‑cap‑heavy approach. The modest but real exposure to smaller companies keeps some growth optionality, as small caps can outperform over long periods. Overall, this structure supports a core “own the market” philosophy while still capturing the broader corporate spectrum from giants to emerging players.
True holdings
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Taiwan Semiconductor Manufacturing Co. Ltd. 2.99%Part of fund(s):
- Vanguard International Equity Index Funds - Vanguard FTSE Emerging Markets ETF
- Vanguard Total International Stock Index Fund ETF Shares
- iShares Asia 50 ETF
-
Samsung Electronics Co Ltd 1.38%Part of fund(s):
- Vanguard Total International Stock Index Fund ETF Shares
-
ASML Holding N.V. 1.12%Part of fund(s):
- Vanguard Total International Stock Index Fund ETF Shares
-
NVIDIA Corporation 0.81%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Tencent Holdings Ltd 0.81%Part of fund(s):
- Vanguard International Equity Index Funds - Vanguard FTSE Emerging Markets ETF
- Vanguard Total International Stock Index Fund ETF Shares
- iShares Asia 50 ETF
-
SK Hynix Inc 0.78%Part of fund(s):
- Vanguard Total International Stock Index Fund ETF Shares
-
Apple Inc 0.77%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard Total International Stock Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Roche Holding AG 0.65%Part of fund(s):
- Vanguard Total International Stock Index Fund ETF Shares
-
Alibaba Group Holding Ltd 0.64%Part of fund(s):
- Vanguard International Equity Index Funds - Vanguard FTSE Emerging Markets ETF
- Vanguard Total International Stock Index Fund ETF Shares
- iShares Asia 50 ETF
-
Novartis AG 0.63%Part of fund(s):
- Vanguard Total International Stock Index Fund ETF Shares
- Top 10 total 10.58%
Looking through the ETFs, the largest underlying exposures are global giants like TSMC, Samsung, ASML, NVIDIA, Tencent, Apple, and major pharma names. Several of these appear via both funds, which creates hidden concentration in big, dominant companies even if no single stock looks oversized. Because only top‑10 ETF holdings are used, overlap is likely understated, but you can still see a clear tilt toward major semiconductor and tech platforms. This isn’t inherently bad; these firms have driven a lot of global returns. It just means the portfolio may be more sensitive to swings in global technology and digital economy trends than the simple ETF list suggests.
Factors
Factor exposure shows strong tilts to size, low volatility, and momentum. Factors are like underlying “personalities” of stocks—characteristics such as value, quality, or trend persistence that research links to long‑term returns. A high size signal here likely reflects meaningful exposure to smaller companies compared with a pure mega‑cap focus, while the strong low‑volatility tilt suggests a bias toward steadier names within each region. The notable momentum tilt means the portfolio tends to own recent winners, which can boost returns in trending markets but may hurt when leadership flips suddenly. Average signal coverage is modest, so these readings are directional, not precise.
Risk contribution
-
Vanguard Total International Stock Index Fund ETF Shares
Weight: 86.96% 87.4% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 13.04% 12.6%
Risk contribution measures how much each holding drives the portfolio’s ups and downs, which can differ from its simple weight. Here, the international ETF carries about 87% of total risk, very close to its 87% weight, and the domestic ETF contributes roughly 13% of risk on a 13% weight. The risk-to-weight ratios being near 1.0 suggests both funds have similar volatility and correlation profiles relative to the whole. This is a clean, intuitive pattern: risk is spread in line with capital. If the aim were to dial down sensitivity to non‑US markets, shifting weights between the two ETFs would be the primary lever.
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.
On the risk–return chart, the current portfolio sits below the efficient frontier. The efficient frontier represents the best achievable expected return for each risk level using only the existing holdings but different weightings. With a Sharpe ratio of 0.51, the current mix is less efficient than both the minimum‑variance option (Sharpe 0.60) and the optimal Sharpe portfolio (0.75). The encouraging part is that improvements are possible without adding any new funds—just by rebalancing between the two ETFs. Shifting closer to the optimal mix could either increase expected return at similar risk or reduce risk at similar return, depending on personal preference.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 3.10%
- Weighted yield (per year) 2.85%
The overall dividend yield of about 2.85% is fairly robust for an equity-focused portfolio. One fund yields roughly 1.2%, while the international ETF stands around 3.1%, so most income comes from foreign companies, which often pay higher dividends than US peers. Dividends can be an important part of total return, especially when reinvested, because they steadily add shares over time. For a growth-oriented investor, automatically reinvesting distributions helps compound wealth. For someone later seeking income, this starting yield plus potential growth in payouts could contribute meaningfully to cash flow, though it will still be more variable than bond-based income.
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) 0.05%
Total ongoing costs (TER) sit at about 0.05%, which is impressively low and a real strength. TER, or total expense ratio, is the annual fee charged by funds, taken directly out of returns. Keeping costs down is one of the few things investors can control, and small differences compound significantly over decades. Paying 0.05% instead of, say, 1% per year leaves far more of the portfolio’s natural growth in your pocket. This cost level is right in line with best practices for long‑term index investing and strongly supports the portfolio’s ability to track broad markets efficiently.
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