Two fund global stock portfolio with broad diversification and efficient risk adjusted performance
Report created on Apr 7, 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.
Positions
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 70.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00%
The portfolio is a super-simple two-fund setup: about 70% in a total US stock market ETF and 30% in a total international stock ETF. That means 100% in stocks, spread across thousands of companies worldwide, with no bonds, cash, or alternatives. This kind of structure is easy to understand and maintain, which is a big plus for long-term investing. Because both funds are very broad, you’re getting instant diversification by company, country, sector, and size. The key takeaway is that this is a straightforward “own almost everything” equity portfolio, best suited to someone who accepts stock-market ups and downs in exchange for higher long-term growth potential.
Growth
From 2016 to early 2026, a $1,000 investment grew to about $3,275, which works out to a 12.65% Compound Annual Growth Rate (CAGR — like your average speed over a long road trip). That slightly lagged the pure US market but beat the global market, showing that mixing US and international stocks has still delivered very competitive results. The worst drawdown was about -35% during the 2020 crash, which is normal for an all‑stock portfolio. It also took only about five months to recover, which is relatively quick. The big lesson: returns have been strong, but they came with sharp, temporary drops — staying invested through those drops was crucial.
Projection
The Monte Carlo simulation takes past returns and volatility and then runs 1,000 random “what if” paths to see a range of possible 15‑year outcomes. It’s like running the market 1,000 different ways using the same weather patterns. The median projection turns $1,000 into about $2,914, with a wide but reasonable range around that. Around 76% of simulations end positive, and the average annualized return across simulations is 8.29%. That’s lower than the recent historical 12.65%, reflecting more conservative expectations. Key caveat: simulations use history as a guide, but future returns, inflation, and interest rates can be very different, so these numbers are scenarios, not promises.
Asset classes
- Stocks 100%
All of this portfolio is in stocks — there’s no allocation to bonds, cash, or other asset classes. That’s more aggressive than many “balanced” portfolios, which often mix in bonds to smooth the ride. Being 100% in equities boosts growth potential but also means bigger and more frequent drawdowns, like the ~35% drop seen in 2020. For someone with a long horizon and steady nerves, this can be a perfectly sensible choice. The main takeaway is that risk management here has to come from your own behavior and time horizon, not from built‑in bond cushioning. If shorter‑term stability is important, a multi‑asset mix is usually more forgiving.
Sectors
- Technology 27%
- Financials 15%
- Industrials 12%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 3%
- Real Estate 3%
Sector exposure is broad, with technology the largest slice at 27%, followed by meaningful allocations to financials, industrials, consumer, health care, and others. This is very much in line with how global equity markets are currently structured, so the sector mix is well-balanced and aligns closely with global standards. Tech and communication-related areas do stand out, which is typical of modern index funds and helps explain strong past returns. The flip side is that if high-growth, rate-sensitive sectors struggle or if interest rates rise sharply, this portfolio will feel it. Still, because no single sector overwhelms the rest, the sector diversification here is a solid strength.
Regions
- North America 72%
- Europe Developed 11%
- Japan 5%
- Asia Developed 4%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 72% is in North America, with the rest spread across developed Europe, Japan, other Asian markets, and smaller slices in emerging regions like Latin America and Africa/Middle East. That North America tilt is very similar to global market-cap benchmarks, where US stocks dominate. This alignment with the global opportunity set is a positive — it means you’re not making a big active bet on or against any particular region. The international 30% piece adds currency and economic diversification beyond the US, which can help when leadership rotates between regions. The key point: this is a globally diversified, but still US-anchored, equity exposure.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 6%
- Micro-cap 2%
The market-cap mix leans heavily toward mega- and large-cap companies, which together make up over 70% of the exposure, with meaningful but smaller slices in mid, small, and micro caps. That’s exactly what you’d expect from total-market, cap-weighted index funds. Bigger companies tend to be more stable and liquid, while small caps can swing more and sometimes add extra long‑term return. This blend gives you a core of relatively steadier giants plus some growth potential from smaller firms. The diversification across sizes is healthy and very much in line with broad market norms, which is a reassuring sign that you’re not overexposed to any one size segment.
True holdings
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NV NVIDIA Corporation 4.33%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.12%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.09%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.14%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.92%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.60%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.51%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.49%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.20%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.03%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
- Top 10 total 22.42%
Looking through the ETFs’ top holdings, a lot of exposure is concentrated in the world’s largest tech and growth names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla. These show up via the funds rather than as direct positions, and some appear in both US and international indices (for example, through different share classes or listings). That creates “hidden” concentration in a handful of mega‑caps, even though the portfolio looks very diversified at the fund level. This isn’t unusual for market‑cap index investing, but it means portfolio performance will be meaningfully influenced by how these few giants behave, especially in technology-driven environments.
Factors
Factor exposure — things like value, size, momentum, quality, yield, and low volatility — is very close to neutral across the board. In practice, that means the portfolio isn’t making big “bets” on any particular style; it behaves a lot like the overall global stock market. Factor investing targets traits that research has linked to returns over decades, but leaning too hard into any single factor can create long dry spells. Here, the well-balanced factor profile is a strength: performance will mainly be driven by broad market moves rather than style swings. For someone who just wants simple, market‑like exposure, this neutral factor stance is exactly what you’d hope to see.
Risk contribution
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Vanguard Total Stock Market Index Fund ETF Shares
Weight: 70.00% 72.8% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 27.2%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. The US total market ETF is 70% of the portfolio but contributes about 73% of the risk, making it the main driver of volatility. The international ETF, at 30% weight, contributes about 27% of risk. That’s actually pretty proportional and suggests no hidden “time bomb” position. Because both funds are broad and relatively similar in risk, the split is well behaved. The main lever you have, if you ever want to dial risk up or down, is adjusting the US vs. international mix or adding other asset classes, not tinkering with lots of tiny positions.
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‑return chart, the current mix sits right on or very near the efficient frontier. The efficient frontier is the curve showing the best possible return for each risk level using just these two holdings in different proportions. The portfolio’s Sharpe ratio — a measure of return per unit of risk — is 0.54, compared with 0.75 for the theoretical optimal mix and 0.61 for the minimum‑variance mix. That tells us there’s only modest room for improvement by fine‑tuning weights, and the existing allocation is already quite efficient for its risk level. In other words, for such a simple two‑fund setup, the trade‑off between risk and return is working well.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.90%
- Weighted yield (per year) 1.71%
The blended dividend yield is about 1.71%, with the US fund around 1.2% and the international fund closer to 2.9%. Dividends are the cash payouts companies share with investors, and while they’re not huge here, they still make up a meaningful slice of total return over time, especially when reinvested. This yield level is pretty typical for broad global equity funds today. It fits a growth‑oriented approach where most value comes from price appreciation rather than income. If someone is focused on building long-term wealth rather than living off portfolio income right now, this yield profile is perfectly consistent with that goal.
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) 0.04%
Costs are impressively low: about 0.04% per year in total fund expenses. That’s 4 cents annually for every $100 invested. Expense ratios like this are a quiet but powerful advantage because fees come off returns every single year, and lower drag compounds over time. Relative to many actively managed funds or more niche products, this cost level is among the best available. The structure here is doing exactly what it should: delivering broad, market-like exposure at minimal cost. That strong cost efficiency gives you more of the underlying market return, which is one of the few things investors can reliably control.
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