Globally diversified stock portfolio combining total world exposure with a strong ex US component
Report created on Jul 4, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
VE Vanguard FTSE All-World ex-US Index Fund ETF Shares
VEU - US9220427754 50.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 50.00%
This portfolio is extremely simple: two broad stock ETFs at 50% each, one covering the whole world and one specifically ex‑US. In practice that means every dollar is spread across thousands of companies, with a notable tilt toward markets outside the US compared with a pure world fund. A two‑fund structure like this reduces complexity while still giving meaningful diversification. Because both funds are broad, they move largely with global equity markets rather than any narrow theme. The balanced 50/50 split also shows up in the risk stats, where each fund contributes almost exactly half the overall volatility, signalling a very even structure without a single dominant position.
Growth
Over the last decade, $1,000 grew to about $2,995, a compound annual growth rate (CAGR) of 11.63%. CAGR is like your average speed on a long trip, smoothing out bumps along the way. This trailed both the US market and the global market, mainly because non‑US stocks lagged US shares over this period. The worst drop, or max drawdown, was about ‑34% during early 2020, very similar to the benchmarks, which is typical for an all‑equity portfolio. Only 29 days made up 90% of total returns, underlining how a small number of strong days can drive long‑term results and why staying invested matters in equity‑heavy portfolios.
Projection
The Monte Carlo projection uses past returns and volatility to simulate thousands of possible 15‑year paths. Think of it as re‑rolling history many times with slightly different sequences. The median outcome turns $1,000 into about $2,826, with a wide “likely” band from roughly $1,859 to $4,175. A 75% chance of ending above $1,000 reflects the historical growth bias of stocks but still leaves meaningful downside risk. The average simulated annual return, 8.21%, is lower than the backward‑looking 11.63% CAGR, which is a more conservative take. As always, these simulations are illustrations, not promises — markets can behave very differently from past data.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with no bonds, cash, or alternatives. Asset classes are broad groups like equities, fixed income, and real assets, each reacting differently to economic shifts. A 100% equity allocation typically means higher expected long‑term growth but also larger and more frequent drawdowns. Compared to a classic “balanced” mix that blends stocks and bonds, this structure leans clearly toward growth and market risk. On the positive side, being fully in equities makes the portfolio straightforward and transparent. On the flip side, there’s no built‑in stabilizer that historically cushions stock market falls, so short‑term ups and downs will be more pronounced.
Sectors
- Technology 23%
- Financials 20%
- Industrials 14%
- Consumer Discretionary 9%
- Health Care 8%
- Telecommunications 6%
- Basic Materials 6%
- Consumer Staples 5%
- Energy 5%
- Utilities 3%
- Real Estate 2%
Sector exposure is very broad: technology is the largest at 23%, followed by financials at 20% and industrials at 14%, with no sector overwhelmingly dominant. This looks quite similar to diversified global benchmarks, which is a strong indicator of healthy diversification. Tech and related industries still play a major role, which is common today, but they do not crowd out other areas like consumer, healthcare, or energy. Sector diversification matters because different parts of the economy can lead or lag at different times. This mix suggests returns will likely track the overall business cycle rather than hinging on one narrow industry or theme.
Regions
- North America 37%
- Europe Developed 25%
- Asia Developed 11%
- Japan 10%
- Asia Emerging 9%
- Australasia 3%
- Africa/Middle East 2%
- Latin America 2%
- Europe Emerging 1%
Geographically, the portfolio is spread across North America (37%), developed Europe (25%), developed and emerging Asia, Japan, and smaller allocations to Australasia, Latin America, and Africa/Middle East. This is closer to a “rest‑of‑world plus US” balance than the typical global index, which is more heavily US‑tilted. Such a spread helps reduce reliance on any single economy, currency, or policy regime. When one region struggles, others may be more resilient. The slightly larger non‑US presence relative to common benchmarks means performance can diverge meaningfully from a US‑centric index, particularly in periods when international markets either catch up or fall behind.
Market capitalization
- Mega-cap 48%
- Large-cap 32%
- Mid-cap 16%
- Small-cap 3%
By market capitalization, the portfolio is anchored in mega‑caps (48%) and large‑caps (32%), with modest mid‑cap exposure (16%) and a small allocation to small‑caps (3%). Market cap just means company size in the stock market. This pattern is very close to global index norms, where the biggest firms dominate total value. Larger companies often bring more stable earnings and better liquidity, while smaller ones can offer higher growth but bumpier rides. With most exposure in the biggest names, the portfolio’s behavior will be strongly shaped by global blue‑chip companies. The limited small‑cap slice adds some diversification without dramatically increasing volatility.
True holdings
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23 Taiwan Semiconductor Manufacturing Co. Ltd. 2.92%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
NV NVIDIA Corporation 2.09%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc. 1.90%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 1.41%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
SS Samsung Electronics Co Ltd 1.19%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
-
AM Amazon.com Inc 1.10%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
00 SK Hynix Inc 1.02%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.95%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 0.87%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AS ASML Holding N.V. 0.76%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
- Top 10 total 14.18%
Looking through to the top holdings across both ETFs, the biggest indirect positions are in major global technology and semiconductor names like TSMC, NVIDIA, Apple, Microsoft, Samsung, and others. Each of these sits around 1–3% of the total portfolio, which is quite modest on its own. There is some overlap where the same company appears in both funds, but the combined weights still stay relatively low. Because only the top 10 ETF holdings are captured, actual overlap is somewhat higher but still diffuse. Overall, this indicates no single company dominates, even among the giants, which supports the diversification story seen in other breakdowns.
Factors
Factor exposure shows a notable tilt toward value at 61%, while size, momentum, quality, yield, and low volatility all sit close to neutral. Factors are like personality traits of stocks — characteristics that research links to long‑term return patterns. A mild value tilt means the portfolio leans slightly toward stocks trading at lower prices relative to fundamentals, rather than paying up for higher‑growth names. Historically, value has gone through long cycles of under‑ and out‑performance, so this tilt can help or hurt depending on the environment. The near‑neutral readings on other factors suggest behavior broadly similar to the overall market, without strong style bets.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 50.00% 50.2% -
Vanguard FTSE All-World ex-US Index Fund ETF Shares
Weight: 50.00% 49.8%
Risk contribution shows each ETF driving about half of the portfolio’s overall volatility, almost exactly matching their 50% weights. Risk contribution looks at how much each holding adds to the portfolio’s ups and downs, which can differ a lot from simple allocation if one asset is far more volatile. Here, the risk/weight ratio of 1.00 for both funds signals that neither ETF is dramatically riskier than the other per dollar invested. That even spread means the portfolio’s overall behavior is shaped by both global and ex‑US exposures, without a hidden “risk anchor” sitting in one position, which is consistent with the simple two‑fund structure.
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 suggests the current portfolio sits right on or very near the efficient frontier. The Sharpe ratio, which compares excess return over the risk‑free rate to volatility, is 0.5 for the current mix, while an optimized version using the same holdings could in theory reach about 0.73. However, the minimum‑variance and current portfolios share the same risk and return numbers here, reinforcing that the existing allocation is already highly efficient at this risk level. In plain terms, given these two ETFs, there isn’t much room to improve the historical risk/return trade‑off just by tweaking weights — the structure is working cleanly.
Dividends
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 2.60%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- Weighted yield (per year) 2.10%
The blended dividend yield is about 2.1%, with the ex‑US fund yielding around 2.6% and the total world fund about 1.6%. Dividend yield is the annual cash payout as a percentage of price, similar to interest from a savings account, though less predictable. Non‑US markets often have higher average yields than the US, which explains the difference between the two ETFs. In a 100% equity portfolio like this, dividends can be an important slice of total return, especially over long periods where reinvested payouts compound. At the same time, dividend levels can fluctuate as companies change policies, so future income may differ from today’s snapshot.
Ongoing product costs
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.07%
Costs are impressively low, with both ETFs charging a total expense ratio (TER) of 0.07%, leading to a portfolio‑level TER of 0.07%. TER is the annual fee taken by the fund manager, expressed as a percentage of assets, and it quietly reduces returns each year. Keeping this number small is powerful because lower fees leave more of the market’s growth in the portfolio, and the difference compounds over time. These costs are very competitive even within the low‑cost index fund space, meaning fees are unlikely to be a meaningful drag on long‑term performance. Structurally, this is a clear strength of the portfolio.
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