Efficient broad equity portfolio with strong US focus and solid risk adjusted return profile
Report created on Apr 18, 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 43.05% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 40.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 16.95%
The portfolio is made up of three low-cost index ETFs, all invested in stocks, with no bonds or cash. Roughly 83% sits in broad US equity funds, while the remaining slice is in a global equity ETF that adds some non-US exposure. This structure is very simple and leans heavily on broad market indexes rather than niche themes. That kind of simplicity matters because it reduces the chances of big allocation mistakes and makes behavior easier to manage. The main takeaway is that this is a straightforward, stock-only setup: growth-oriented, easy to maintain, but reliant on equities for both gains and shocks.
Growth
From 2016 to 2026, $1,000 grew to about $3,746, which is a compound annual growth rate (CAGR) of 14.17%. CAGR is like your average speed on a long road trip, smoothing out the bumps along the way. The max drawdown of about -34% during early 2020 shows the kind of hit this all-stock mix can take in a crash, similar to broad US and global markets. The portfolio lagged the US market slightly but beat the global market comfortably. That pattern fits a US-tilted approach: strong historical results, but with volatility that long-term investors must be prepared to ride out.
Projection
The Monte Carlo simulation projects many possible 15-year paths by remixing historical returns and volatility. Think of it as running 1,000 alternate futures to see the range of outcomes, not to predict a single number. The median outcome grows $1,000 to about $2,676, with a wide “likely” band and some scenarios close to break-even even after 15 years. An average simulated annual return of 8% is solid but lower than the recent past, reminding that history can’t simply be repeated. The key lesson is to treat these simulations as a risk map, not a promise, and keep expectations realistic.
Asset classes
- Stocks 100%
All of the allocation is in stocks, with 0% in bonds, cash, or alternatives. That’s great for long-term growth potential but means no built-in cushion from safer assets when markets fall. Asset class diversification is often the main lever for smoothing the ride because bonds and cash tend to move differently from stocks, especially in big selloffs. Here, the ride will be almost entirely driven by equity markets. That aligns with a growth mindset but may feel rough during downturns. A general takeaway is that time horizon and emotional tolerance need to match this 100% equity structure.
Sectors
- Technology 31%
- Financials 13%
- Consumer Discretionary 10%
- Industrials 10%
- Health Care 10%
- Telecommunications 10%
- Consumer Staples 5%
- Energy 4%
- Utilities 3%
- Basic Materials 2%
- Real Estate 2%
Sector exposure is fairly broad, but technology stands out at around 31%, clearly above what many broad global benchmarks would show. Financials, consumer, industrials, and health care are meaningfully represented, while areas like utilities, real estate, and basic materials are quite small. A tech-heavy tilt can be powerful in periods of innovation and low rates, but it can also mean sharper drawdowns when interest rates rise or sentiment turns against growth companies. The important point is that risk isn’t evenly spread across sectors; portfolio ups and downs are likely to be influenced heavily by the tech and communication-related areas.
Regions
- North America 93%
- Europe Developed 3%
- Japan 1%
- Asia Emerging 1%
- Asia Developed 1%
Geographically, the portfolio is dominated by North America at roughly 93%, with only modest exposure to Europe, Japan, and emerging Asia. This is a much stronger US tilt than a typical global equity benchmark, where the US is big but not this overwhelming. The benefit is alignment with the market that has led performance for the past decade. The trade-off is that economic, political, or currency shocks specific to the US could impact the entire portfolio more than a globally balanced mix. The takeaway: global diversification is modest and most of the story here is what happens in US markets.
Market capitalization
- Mega-cap 43%
- Large-cap 33%
- Mid-cap 18%
- Small-cap 4%
- Micro-cap 1%
Market capitalization exposure is skewed toward mega- and large-cap companies, which together make up around three-quarters of the equity allocation. Mid-caps are present in a meaningful way, while small- and micro-caps are only a small slice. Big companies tend to be more stable and widely followed, which can reduce company-specific risk compared to a small-cap-heavy portfolio. However, smaller firms can sometimes deliver higher long-term growth, with more volatility. This mix leans into the stability and liquidity of large businesses while still leaving some room for mid- and smaller-cap upside, which is a sensible, benchmark-like profile.
True holdings
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NV NVIDIA Corporation 6.46%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 5.81%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 4.30%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 3.16%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.62%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 2.29%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 2.09%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.96%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 1.63%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 1.21%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 31.52%
Looking through the ETFs, a big chunk of the visible exposure is concentrated in a handful of mega-cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet. Several of these appear across multiple ETFs, creating hidden overlap even though everything is “diversified” on the surface. Overlap may be understated because only top-10 holdings are captured, so the true concentration is probably a bit higher. This matters because when the same giants sit in every fund, portfolio behavior leans more heavily on their fortunes. The general takeaway: broad index funds still carry meaningful exposure to a small group of dominant companies.
Factors
Factor exposure across value, size, momentum, quality, yield, and low volatility sits close to neutral, meaning the portfolio behaves similarly to the broad market on these dimensions. Factors are like underlying “traits” of stocks that research links to returns, such as being cheap (value) or stable (low volatility). With everything near the 50% mark, there are no strong bets on any style winning or losing. That’s actually a strength: it avoids the risk of being badly out of sync when a specific factor falls out of favor. The portfolio’s behavior should broadly mirror the overall equity market’s style mix.
Risk contribution
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Vanguard Total Stock Market Index Fund ETF Shares
Weight: 43.05% 43.9% -
Vanguard S&P 500 ETF
Weight: 40.00% 40.1% -
Vanguard Total World Stock Index Fund ETF Shares
Weight: 16.95% 16.0%
Risk contribution shows how much each holding drives the portfolio’s total ups and downs, which isn’t always the same as its weight. Here, each ETF’s risk share is very close to its allocation: the US total market fund contributes about 44% of risk, the S&P 500 about 40%, and the world fund around 16%. That neat alignment is a positive sign; there’s no single position quietly dominating volatility beyond its size. In practice, it means that changes in allocation weights are a straightforward way to tweak risk, since each holding’s impact is proportional and easy to reason about.
Redundant positions
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High correlationVanguard S&P 500 ETFVanguard Total Stock Market Index Fund ETF SharesVanguard Total World Stock Index Fund ETF Shares
The three ETFs move almost identically, with very high correlations. Correlation measures how often assets move together; when correlation is close to 1, they tend to rise and fall at the same time. That’s unsurprising here because all three track broad equity indexes with heavy US exposure. The implication is that, even though there are three funds, diversification among them is limited in terms of behavior during big market moves. When stocks drop broadly, all three are likely to fall together. True diversification would typically involve mixing in assets that don’t move in lockstep with global equities.
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 portfolio sits right on or very near the efficient frontier. The efficient frontier represents the best possible expected return for each level of risk using just the existing holdings in different weights. The current Sharpe ratio, which measures return per unit of risk above a risk-free rate, is solid and close to the maximum achievable with these three ETFs. That means the existing mix is already an efficient use of what’s in the toolkit. Any refinements would be about tweaking preferences, not fixing a big efficiency gap, which is a reassuring place to be.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Weighted yield (per year) 1.20%
The overall dividend yield for the portfolio is around 1.2%, reflecting the current income paid out by the underlying stocks. That’s fairly typical for broad US-focused equity indexes today, especially those tilted toward larger growth-oriented companies. Dividends can be a helpful component of total return, particularly for investors who like the idea of regular cash flow, but here they’re a relatively small piece of the story. Most of the expected return is likely to come from price appreciation rather than income. For a growth-focused equity mix, that’s perfectly normal and aligned with modern index market dynamics.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.04%
The total expense ratio (TER) across the three ETFs is extremely low at roughly 0.04% per year. TER is the annual fee charged by the funds, and keeping it low means more of the market’s return stays in your pocket. Over long periods, even small differences in fees can compound into meaningful amounts, so this is a real strength of the portfolio. The use of Vanguard’s broad index ETFs keeps costs near the rock-bottom range available. From a cost-efficiency standpoint, this setup is already doing exactly what many experts aim for and needs no structural improvement.
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