Globally diversified two fund portfolio balancing growth with strong downside resilience and low maintenance
Report created on Apr 26, 2024Risk profile
4/7
Diversification profile
4/5
Positions
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VG Vanguard FTSE All-World UCITS ETF
VGWL - IE00B3RBWM25 80.00% -
VA Vanguard Global Aggregate Bond UCITS ETF EUR Hedged Income
VAGE - IE00BG47KB92 20.00%
The structure is extremely simple: roughly 80% in a global stock ETF and 20% in a global bond ETF hedged to euros. This kind of two-fund setup is easy to manage and naturally diversified across thousands of securities, even if only two tickers appear on the statement. Simplicity matters because fewer moving parts reduce behavioral mistakes like overtrading or chasing hot themes. With this mix, growth clearly dominates but there is a built-in stabilizer from bonds. The main takeaway is that this is a classic “set it and mostly forget it” allocation, well suited to someone who wants broad global exposure with only minimal ongoing oversight.
Growth
From mid‑2019 to early‑2026, $1,000 grew to about $1,796, a compound annual growth rate (CAGR) of 8.94%. CAGR is the “average speed” of growth per year over the whole period. This lagged both the US market and global equity benchmarks, which isn’t surprising given the 20% bond slice acting as a brake in strong bull markets. The max drawdown of about ‑27.8% was noticeably milder than the roughly ‑33% drops in the benchmarks. That smaller fall is valuable; limiting deep losses can help investors stay invested. Overall, the tradeoff is slightly lower return in exchange for smoother, more comfortable ride.
Asset classes
- Stocks 80%
- Bonds 20%
The 80% stocks and 20% bonds split is a textbook “balanced leaning growth” allocation. Stocks drive long‑term appreciation, while bonds act as a cushion during market stress and periods of equity volatility. Many global balanced portfolios sit somewhere between 60/40 and 80/20, so this lands toward the higher‑risk side of the normal range, which aligns with the given risk score. The hedged global bond fund should reduce currency swings on the fixed‑income portion, keeping that safety component more predictable. Overall, the mix delivers meaningful downside mitigation without sacrificing the essential growth engine required for multi‑decade goals like retirement or generational wealth building.
Sectors
- Technology 21%
- Financials 13%
- Industrials 9%
- Consumer Discretionary 8%
- Health Care 7%
- Telecommunications 7%
- Consumer Staples 4%
- Basic Materials 3%
- Energy 3%
- Utilities 2%
- Real Estate 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure is quite broad, with technology the largest slice at 21%, followed by diversified areas such as financials, industrials, and consumer‑related businesses. This pattern is very similar to global market indices, where tech naturally dominates due to high market values. A tech‑tilt can boost returns when innovation and growth stories are rewarded, but it tends to be more sensitive during periods of rising interest rates or regulatory pressure. The encouraging element is that other sectors are well represented, so outcomes are not solely tied to one theme. This balance helps smooth returns when leadership rotates between economically sensitive sectors and more defensive, steady‑earning businesses.
Regions
- North America 50%
- Europe Developed 12%
- Japan 5%
- Asia Developed 5%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, about half of the equity allocation is in North America, with the rest spread across Europe, developed Asia, emerging Asia, and smaller regional slices. This is broadly in line with global stock market capitalization, where North America naturally dominates. Such alignment is positive because it avoids big home‑country bets and lets the world’s markets decide the regional mix. A global spread can reduce the impact of any single economy’s downturn, political shock, or policy change. It also captures growth from different business cycles. The key implication is that long‑term outcomes will track the overall health of the global economy rather than relying heavily on one country or region.
Market capitalization
- Mega-cap 39%
- Large-cap 27%
- Mid-cap 13%
This breakdown covers the equity portion of your portfolio only.
The equity portion leans clearly toward mega‑cap and large‑cap companies, together making up around two‑thirds of exposure, with a modest slice in mid‑caps. Large, established firms often have more stable cash flows, stronger balance sheets, and better access to capital than smaller peers, which can mean smoother performance in crises. The tradeoff is potentially lower explosive upside compared to portfolios that deliberately emphasize small‑cap or niche segments. For many investors, this is a reasonable compromise: you get broad market growth driven by global leaders, while still maintaining some diversity down the size spectrum. The overall profile is stability‑oriented rather than aggressively seeking small‑cap risk premia.
True holdings
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NV NVIDIA Corporation 3.37%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
AA Apple Inc 3.13%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
MS Microsoft Corporation 2.37%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
AM Amazon.com Inc 1.64%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
GO Alphabet Inc Class A 1.48%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.26%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
AV Broadcom Inc 1.20%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
GO Alphabet Inc Class C 1.20%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
ME Meta Platforms Inc. 1.15%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF
-
TS Tesla Inc 0.92%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard FTSE All-World UCITS ETF
- Top 10 total 17.73%
This breakdown covers the equity portion of your portfolio only.
Looking through the equity ETF’s top holdings, exposure is naturally tilted toward mega‑cap global leaders like NVIDIA, Apple, Microsoft, Amazon, and Alphabet. Several of these appear together inside the same fund, which means the portfolio’s long‑term equity returns will be strongly influenced by how a relatively small group of giants perform. Overlap analysis is incomplete because only top‑10 positions are captured, so total diversification is actually wider than shown. Still, it’s useful to realize that broad index funds can quietly concentrate risk in today’s largest companies. The key takeaway: the equity side behaves like the global market, where mega‑caps are central drivers rather than many small independent bets.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows a very strong tilt toward low volatility, with a score of 96% versus a neutral 50%. Low‑volatility investing favors stocks that historically move less than the overall market, aiming for fewer sharp ups and downs. This fits nicely with the balanced risk score and suggests the equity holdings should be relatively calm compared to more aggressive growth portfolios. There is also a mild tilt toward value and yield, meaning a bias toward cheaper, income‑producing companies rather than pure high‑growth names. The practical implication: in roaring bull markets the portfolio might lag punchier strategies, but during choppy or bear markets it is more likely to hold up better, supporting long‑term compounding.
Risk contribution
-
Vanguard FTSE All-World UCITS ETF
Weight: 80.00% 99.4% -
Vanguard Global Aggregate Bond UCITS ETF EUR Hedged Income
Weight: 20.00% 0.6%
Although bonds are 20% of the weight, they contribute less than 1% of total portfolio risk; almost all volatility comes from the global equity ETF. This illustrates how risk contribution works: it measures each holding’s share of total ups and downs, not just its size. Bonds here are extremely low volatility relative to stocks, so they act mainly as ballast rather than as a significant risk driver. The equity ETF’s risk‑to‑weight ratio above 1 shows it is more volatile than the total portfolio. For someone targeting a different risk level, adjusting the stock/bond split is the most direct and impactful lever to change how bumpy the ride feels.
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 close to the efficient frontier. The efficient frontier is the curve showing the best possible return for each risk level using only the existing holdings. The current Sharpe ratio of 0.55, while below the theoretical maximum of 0.65, is appropriate for its volatility level and indicates an efficient use of risk. Sharpe ratio compares return to volatility; higher values mean more reward per unit of risk. Since this portfolio already looks well‑optimized, further gains in risk‑adjusted performance would mostly come from thoughtfully shifting the overall risk level (more or less bonds) rather than from reweighting the two existing funds.
Dividends
- Vanguard FTSE All-World UCITS ETF 0.60%
- Weighted yield (per year) 0.48%
The estimated yield around 0.48% is relatively modest, reflecting today’s lower dividend policies and the global equity mix. Dividends are cash payments from companies that can provide a small, steady return component alongside price changes. For investors focused on long‑term growth rather than current income, a lower yield is not necessarily a drawback; companies often reinvest profits into new projects, buybacks, or expansion instead of paying them out. The bond ETF should also provide some interest income, though that is not fully captured in the equity‑centric yield figure. Overall, this setup is more growth‑oriented than income‑oriented, better suited to reinvesting distributions than funding near‑term spending needs.
Ongoing product costs
- Vanguard Global Aggregate Bond UCITS ETF EUR Hedged Income 0.10%
- Vanguard FTSE All-World UCITS ETF 0.19%
- Weighted costs total (per year) 0.17%
Total ongoing costs are impressively low, with a blended total expense ratio (TER) of about 0.17%. TER represents the annual fee charged by the funds, quietly deducted within the fund rather than as a separate bill. Low costs are powerful because they compound in your favor; every dollar not spent on fees stays invested, earning returns year after year. This cost level is well below many actively managed options and aligns strongly with best‑practice index investing. Over multi‑decade horizons, even a 0.5% difference in fees can translate into a substantial gap in final wealth, so keeping expenses this lean is a major structural strength of the portfolio.
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