Two fund global equity mix with strong US tilt and very low ongoing costs
Report created on Apr 24, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VU Vanguard S&P 500 UCITS Acc
VUAA - IE00BFMXXD54 80.00% -
VW Vanguard FTSE Developed Europe UCITS ETF EUR Accumulation
VWCG - IE00BK5BQX27 20.00%
This portfolio is extremely simple: two stock ETFs, with about 80% in a broad US index and 20% in developed Europe. That means every euro is invested in shares, with no bonds or cash drag in the mix. A structure like this is easy to understand and track, because each fund holds hundreds of underlying companies. Simplicity matters because it reduces the chances of overlapping strategies you do not realise you have. Here the design is clear: a core global equity approach, but intentionally tilted toward the US compared with Europe. That tilt means the portfolio’s behaviour will be heavily shaped by what happens in large American companies.
Growth
Over the period shown, €1,000 grew to about €2,111, which is a compound annual growth rate (CAGR) of 12.65%. CAGR is like an average yearly “speed” over the whole journey, smoothing out the bumps. The portfolio slightly lagged the US market benchmark but beat the global market benchmark, reflecting its strong US tilt but lack of exposure beyond developed markets. The maximum drawdown was around -34% in early 2020, similar to the benchmarks, showing it moved in line with major markets in a crisis. Needing 10 months to recover illustrates that full equity portfolios can experience deep but recoverable setbacks.
Projection
The forward projection uses a Monte Carlo simulation, which basically means the computer runs many “what if” paths using historical volatility and returns to estimate a wide range of possible futures. Here, 1,000 simulations over 15 years give a median outcome of about €2,800 from €1,000, with a broad possible range from roughly €883 to €8,146. This range shows how uncertain long‑term equity returns can be, even if the average annualised return across all paths (8.18%) looks attractive. Importantly, Monte Carlo results are not predictions; they are illustrations based on the past. Real future returns can sit outside even the 5–95% interval.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with no explicit allocation to bonds, cash, or alternative assets. That makes it straightforward to understand: performance will behave similarly to global developed equity markets, just with a US and Europe focus. From a diversification angle, having only one asset class means there is no built‑in cushion from traditionally steadier assets like high‑quality bonds. On the other hand, equity‑only portfolios fully capture the long‑term growth and volatility of companies. The portfolio classification as “balanced” here comes from the provider’s framework, but in pure asset‑class terms this is a 100% equity structure.
Sectors
- Technology 29%
- Financials 14%
- Industrials 11%
- Health Care 10%
- Consumer Discretionary 9%
- Telecommunications 9%
- Consumer Staples 6%
- Energy 4%
- Utilities 3%
- Basic Materials 3%
- Real Estate 2%
Sector exposure is broadly spread but clearly led by technology at about 29%, followed by financials, industrials, health care, and consumer sectors. This roughly mirrors many developed market indices where tech and related industries dominate the top companies. A tech‑heavy tilt can be positive in periods of innovation and low interest rates, because growth stocks often thrive in those environments. However, it can increase sensitivity when rates rise or when markets rotate toward more defensive or value‑oriented sectors. The presence of meaningful weights in financials, industrials, and health care adds balance, helping avoid an “all eggs in one industry” profile.
Regions
- North America 80%
- Europe Developed 20%
Geographically, about 80% of the portfolio is in North America and 20% in developed Europe. That is more US‑tilted than a typical world index, which usually spreads more into other regions. This concentration has historically been beneficial during periods when US large‑caps outperformed, but it also means portfolio outcomes are tightly linked to the US economy, currency, and regulatory environment. The 20% stake in Europe adds some regional diversification within developed markets, exposing the portfolio to different business cycles and policy decisions. However, there is essentially no direct allocation to other major regions, so global diversification is focused on the transatlantic axis only.
Market capitalization
- Mega-cap 47%
- Large-cap 35%
- Mid-cap 17%
- Small-cap 1%
The portfolio leans strongly into very large companies, with around 47% in mega‑caps and 35% in large‑caps. Mid‑caps take about 17%, and small‑caps are only 1%. Market capitalisation, or “market cap,” is simply the total value of a company’s shares; big companies tend to be more stable and widely followed. This large‑cap bias is typical of broad index ETFs and generally reduces company‑specific risk compared with portfolios dominated by small, volatile names. The trade‑off is that potential small‑cap return premia are only modestly captured. Day‑to‑day movements will therefore be driven mainly by the world’s biggest, headline‑making companies.
True holdings
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NV NVIDIA Corporation 6.08%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
-
AA Apple Inc 5.34%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
-
MS Microsoft Corporation 3.94%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
-
AM Amazon.com Inc 2.92%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
-
GO Alphabet Inc Class A 2.40%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
-
AV Broadcom Inc 2.11%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
-
GO Alphabet Inc Class C 1.92%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
-
ME Meta Platforms Inc. 1.80%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
-
TS Tesla Inc 1.50%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 UCITS Acc
-
BR Berkshire Hathaway Inc 1.26%
Part of fund(s):- Vanguard S&P 500 UCITS Acc
- Top 10 total 29.27%
Looking through the ETFs, the top individual exposures are familiar global giants like NVIDIA, Apple, Microsoft, Amazon, and Alphabet. Together, just the top ten underlying companies represent a significant slice of the overall portfolio, especially given the heavy US index weight. Several of these names appear across both ETFs, creating some overlap and therefore extra concentration in a handful of mega‑caps. Because the look‑through only covers ETF top‑10 holdings, actual overlap may be somewhat higher. This pattern is common in cap‑weighted index approaches, where the largest and most successful companies gradually take up more space in the portfolio over time.
Risk contribution
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Vanguard S&P 500 UCITS Acc
Weight: 80.00% 82.9% -
Vanguard FTSE Developed Europe UCITS ETF EUR Accumulation
Weight: 20.00% 17.1%
Risk contribution shows how much each holding drives the overall ups and downs, which can differ from simple weights. The US ETF is 80% of the portfolio but contributes about 83% of the total risk, so its movements dominate performance. The Europe ETF, at 20% weight, adds around 17% of risk, slightly less than its size would suggest. A risk/weight ratio above 1 means a position punches above its weight in volatility terms; below 1 means the opposite. Here, the balance is intuitive: the core US holding is both the largest and the main risk driver, while the European sleeve modestly diversifies that picture.
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 shows the current mix is already on or very close to the frontier, meaning that for its chosen holdings and risk level, the allocation is considered efficient. The Sharpe ratio, which measures return per unit of risk above the risk‑free rate, is 0.56 for the current portfolio, compared with 0.74 for the optimal and 0.67 for the minimum‑variance mix. Those alternatives tweak risk slightly higher or lower while improving risk‑adjusted returns using the same two ETFs. The fact that the existing structure sits near the frontier is a positive sign: the simplicity of the 80/20 split is not coming at a big efficiency cost.
Ongoing product costs
- Vanguard S&P 500 UCITS Acc 0.07%
- Vanguard FTSE Developed Europe UCITS ETF EUR Accumulation 0.10%
- Weighted costs total (per year) 0.08%
Ongoing costs are impressively low, with a total expense ratio (TER) around 0.08% per year. TER is like a small annual “membership fee” charged inside each fund, deducted automatically from returns. Keeping this figure low is powerful over long periods because every euro not spent on fees stays invested and compounds. In this case, costs are well below average for actively managed funds and competitive even within the index‑fund world. That supports better long‑term outcomes without requiring any extra effort. The combination of simple structure and low TER is a notable strength of this portfolio’s design.
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