Broad low cost equity portfolio with strong US focus and moderate global diversification
Report created on May 30, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 70.00% -
AV Avantis® U.S. Equity ETF
AVUS - US0250728856 15.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 15.00%
This portfolio is a three‑fund, 100% equity mix tilted heavily toward the US market. About 70% sits in a broad US large‑cap index, 15% in a more diversified US equity ETF that adds smaller and more value‑oriented names, and 15% in a global ex‑US fund. This kind of structure is simple yet powerful: one core holding, one US satellite, and one international piece. Structurally, it aims to capture global equity growth while leaning toward the familiar US market. The buy‑and‑hold assumption means the US weight will naturally drift with market movements, so the US share could grow if it continues outperforming, subtly changing the portfolio’s character over time.
Growth
From late 2019 to May 2026, $1,000 in this portfolio grew to about $2,689, which is a compound annual growth rate (CAGR) of 16.03%. CAGR is like your average yearly “speed” over the whole trip, smoothing out bumps. Over this period the portfolio slightly lagged the broader US market by 0.67% per year, but beat the global market by 1.92% per year. The worst peak‑to‑trough fall (max drawdown) was about -34% during early 2020, similar to the benchmarks. That shows this portfolio has behaved very much like a mainstream growth‑oriented equity mix, with strong returns but meaningful short‑term swings.
Projection
The Monte Carlo simulation projects many possible futures by “reshuffling” patterns from past returns to see a wide range of outcomes. It’s like running 1,000 alternate timelines for this same portfolio over 15 years. The median path turns $1,000 into about $2,682, with most simulations (the middle 50%) landing between roughly $1,777 and $4,203. There’s also a wide outer band from about $986 to $7,753, reminding us that markets can surprise in both directions. The average annualized return across simulations is 8.21%, notably lower than the recent historical 16% CAGR, underlining that the past six years were strong and may not repeat. All simulations are still just estimates, not promises.
Asset classes
- Stocks 100%
Every dollar here is in stocks, with no bonds, cash, or alternative assets. That creates a very “pure” growth profile: high participation in market upswings and full exposure to equity downturns. Asset classes behave differently across economic cycles—bonds often cushion stock declines, while cash barely moves but doesn’t grow much. A 100% equity allocation maximizes exposure to stock market drivers, which can be rewarding over long stretches but can feel rough in sharp sell‑offs. Relative to many blended portfolios, this one trades stability for growth potential, which also lines up with the “Growth Investors” risk classification and the mid‑high risk score of 5 out of 7.
Sectors
- Technology 32%
- Financials 14%
- Consumer Discretionary 10%
- Telecommunications 10%
- Industrials 10%
- Health Care 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector exposure is broad, but not even. Technology is the largest slice at 32%, followed by financials at 14%, then consumer discretionary, telecoms, and industrials each around 10%. Smaller allocations go to healthcare, staples, energy, materials, utilities, and real estate. This looks broadly comparable to many major global indexes, just with a noticeable tech tilt. Sector mix matters because different areas of the economy react differently to interest rates, regulation, and economic growth. A sizable tech and consumer focus often boosts growth in strong markets but can increase sensitivity to rate hikes and shifts in investor sentiment around innovation and earnings expectations.
Regions
- North America 86%
- Europe Developed 6%
- Asia Developed 2%
- Japan 2%
- Asia Emerging 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the portfolio is strongly US‑centric: about 86% in North America, with the rest spread modestly across developed Europe, Japan, developed Asia, emerging Asia, Australasia, and Africa/Middle East. Compared to a typical global market‑cap index, this is a clear overweight to the US and an underweight to the rest of the world. Geographic mix matters because economies, currencies, and policy regimes differ widely. A heavy home tilt has worked well in a period when US stocks outperformed and the dollar was strong, but it also means portfolio results are tightly tied to US corporate earnings and US economic conditions, with relatively limited diversification from other regions.
Market capitalization
- Mega-cap 44%
- Large-cap 33%
- Mid-cap 19%
- Small-cap 3%
- Micro-cap 1%
By market cap, this portfolio is dominated by larger companies: roughly 44% mega‑cap, 33% large‑cap, 19% mid‑cap, and only about 4% combined in small and micro caps. Big companies typically have more diversified business lines and steadier access to capital, so their stock prices often move less dramatically than tiny firms. At the same time, smaller companies can go through bigger growth spurts, both up and down. This mix leans toward the stability and transparency of large firms while still keeping a meaningful mid‑cap sleeve for some additional growth and diversification. It’s broadly similar to a standard broad‑market equity fund, not an aggressive small‑cap tilt.
True holdings
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NV NVIDIA Corporation 6.37%
Part of fund(s):- Avantis® U.S. Equity ETF
- Vanguard S&P 500 ETF
-
AA Apple Inc 5.30%
Part of fund(s):- Avantis® U.S. Equity ETF
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.98%
Part of fund(s):- Avantis® U.S. Equity ETF
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.48%
Part of fund(s):- Avantis® U.S. Equity ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.96%
Part of fund(s):- Avantis® U.S. Equity ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.36%
Part of fund(s):- Avantis® U.S. Equity ETF
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.24%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.84%
Part of fund(s):- Avantis® U.S. Equity ETF
- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.22%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 0.99%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 30.73%
Looking through the ETFs, the top exposures are familiar US giants: NVIDIA, Apple, Microsoft, Amazon, Alphabet (both share classes), Broadcom, Meta, Tesla, and Berkshire Hathaway. These names show up in more than one fund, so the combined weights stack up—NVIDIA alone adds to about 6.37%, Apple 5.30%, and Microsoft 3.98%. Because we only see top‑10 holdings, total overlap is likely understated, but it’s clear that a relatively small group of large US tech and growth companies exerts a lot of influence. That concentration is common in modern equity portfolios, yet it means portfolio outcomes will be closely linked to the fortunes of these particular mega‑caps.
Factors
Factor exposures are broadly neutral across the board: value, size, momentum, quality, yield, and low volatility all sit around the 50% “market‑like” mark. Factors are basically investing “ingredients” that help explain how and why stocks move—like whether they’re cheap (value), fast‑rising (momentum), or stable (low volatility). A neutral factor profile means this portfolio behaves similarly to a broad market index rather than intentionally leaning into any one style. That can be comforting because returns are less tied to any single factor cycle, but it also means the portfolio isn’t explicitly targeting factor premia beyond what’s embedded in the market itself.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 70.00% 71.4% -
Avantis® U.S. Equity ETF
Weight: 15.00% 15.7% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 15.00% 12.9%
Risk contribution shows how much each holding drives overall ups and downs, which can differ from its weight. Here, the picture is very clean: the S&P 500 ETF is 70% of the portfolio and contributes about 71% of the total risk, almost a one‑for‑one match. The Avantis US Equity ETF is 15% weight and about 16% of risk, while the international ETF is 15% weight but only about 13% of risk. That slightly lower risk share for the international piece suggests it adds some diversification. Overall, risk is not wildly concentrated in a small position; it mainly tracks where the money is actually invested, with the S&P 500 fund clearly in the driver’s seat.
Redundant positions
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High correlationAvantis® U.S. Equity ETFVanguard S&P 500 ETF
The correlation data shows the Avantis U.S. Equity ETF and the Vanguard S&P 500 ETF move almost identically. Correlation measures how often assets move together, on a scale from -1 to 1; highly correlated assets often rise and fall at the same time. Here, the strong link means these two US funds behave very similarly day‑to‑day, so owning both doesn’t dramatically change the ride compared with just holding US stocks. The main diversification benefit within this portfolio instead comes from the international ETF, which is exposed to different economies and currencies. During US‑specific shocks, that non‑US slice has more potential to behave differently than the closely aligned US pair.
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 efficient frontier chart, the current portfolio sits on or very near the curve, which means it’s making good use of the three holdings for its chosen risk level. The efficient frontier represents the best possible return for each risk level using only these funds with different weightings. The current Sharpe ratio—return per unit of volatility—is 0.65, while the mathematically optimal mix reaches 0.82 with slightly higher risk. There’s also a minimum‑variance version with lower risk but also lower expected return. Since the current point is close to the frontier, the allocation is considered efficient, not leaving obvious “free” risk‑adjusted return on the table within this specific fund set.
Dividends
- Avantis® U.S. Equity ETF 0.90%
- Vanguard S&P 500 ETF 1.00%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.24%
The combined dividend yield is about 1.24%, with the US ETFs yielding around 0.9–1.0% and the international ETF higher at 2.7%. Dividend yield is the annual cash payout as a percentage of price, like a “cash-back” rate from your holdings. In this portfolio, dividends make up a modest share of total return; most of the historical growth has come from price appreciation. That’s typical for growth‑oriented, large‑cap US exposure, where companies often reinvest profits rather than paying them out. The international slice slightly boosts yield, reflecting different payout norms abroad. Over time, reinvested dividends can still add a meaningful compounding effect even if the headline yield looks modest.
Ongoing product costs
- Avantis® U.S. Equity ETF 0.15%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.05%
Total ongoing fund costs (TER, or total expense ratio) average around 0.05%, thanks to the two ultra‑low‑cost Vanguard ETFs and the still‑reasonable 0.15% fee on the Avantis fund. TER is the annual fee charged by the ETF manager, quietly deducted from returns. Costs matter because they compound every year—money not paid in fees stays invested and can grow. At 0.05%, this portfolio sits at the very low end of the cost spectrum for diversified equity investing. That’s a clear strength: the structure is doing what it should, giving broad equity exposure while keeping friction from fees about as low as current products realistically allow.
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