A single ETF portfolio that offers global exposure with a balanced risk profile

Report created on Aug 5, 2025

Risk profile Info

4/7
Balanced
← Less risk More risk →

Diversification profile Info

4/5
Broadly Diversified
← Less diversification More diversification →

Positions

This portfolio is entirely invested in the Vanguard Total World Stock Index Fund ETF Shares, achieving broad diversification across both geographic regions and sectors with a single investment. This approach simplifies portfolio management and aligns with a balanced risk profile, as evidenced by a risk score of 4 out of 7. The ETF's composition across technology, financial services, and other sectors mirrors a global economic representation, which is beneficial for spreading risk and capturing worldwide growth.

Growth Info

Historically, the portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 11.18%, with a maximum drawdown of -34.21%. These figures indicate a strong performance relative to the inherent risks, as a higher drawdown typically suggests greater volatility. The days contributing to 90% of returns highlight the importance of staying invested despite market fluctuations. Comparing this performance to benchmarks could offer further insight into its relative strength.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median simulation suggesting a 313.1% return. This forward-looking analysis, while based on historical data, underscores the potential for significant growth but also reflects the inherent uncertainty in investing. Investors should consider these projections as one of many tools in assessing future possibilities, not guarantees.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's near-total allocation to stocks, with a minimal cash position, underpins its growth orientation. This asset class distribution supports a balanced risk tolerance by offering the potential for high returns while accepting moderate volatility. Adjusting the cash-to-stock ratio could fine-tune the risk-return profile to more closely match investor preferences.

Sectors Info

  • Technology
    24%
  • Financials
    18%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation is heavily weighted towards technology and financial services, with meaningful positions in industrials and consumer cyclicals. This sector spread is reflective of the global market's composition but may expose the portfolio to sector-specific risks, such as regulatory changes in technology or market fluctuations affecting financial services. Diversifying further within sectors could mitigate these risks.

Regions Info

  • North America
    65%
  • Europe Developed
    15%
  • Asia Emerging
    6%
  • Japan
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (65%), with diversified exposure across developed and emerging markets worldwide. This geographic distribution supports risk mitigation through diversification while capitalizing on growth opportunities in various economies. However, the heavy North American emphasis might warrant rebalancing to ensure global economic shifts do not disproportionately impact the portfolio.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's emphasis on mega and big-cap stocks (74% combined) suggests a focus on established, large-scale companies, likely contributing to its balanced risk profile. Medium, small, and micro-cap stocks offer growth potential but with increased volatility. Introducing more small and micro-cap exposure could enhance returns at the cost of higher risk.

Dividends Info

  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.70%

The portfolio's dividend yield of 1.70% contributes to its total return, providing a steady income stream in addition to potential capital gains. While not the primary focus for growth-oriented investors, dividends offer a cushion during market downturns and compound over time, enhancing long-term returns.

Ongoing product costs Info

  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio is highly cost-efficient, maximizing the investor's return potential by minimizing overhead costs. This low-cost structure is particularly advantageous over the long term, as even small differences in fees can significantly impact compounded returns.

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