Two fund global equity portfolio with strong diversification and impressively low ongoing investment costs
Report created on Apr 15, 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 built from just two broad-based stock ETFs: roughly 70% in a total US market fund and 30% in a total international fund. That means every dollar is in equities, but spread across thousands of companies worldwide rather than a handful of names. Structurally, this is a very clean, textbook “core” setup: one home-market building block and one overseas building block. The simplicity matters because fewer moving parts make it easier to understand risk, track performance, and stay disciplined. As a takeaway, this kind of straightforward structure is usually a strong foundation for long-term investing, provided the all‑stock risk level fits the investor’s comfort and time horizon.
Growth
From 2016 to early 2026, $1,000 grew to about $3,304, which works out to a 12.75% Compound Annual Growth Rate (CAGR). CAGR is like your average speed on a road trip, smoothing out bumps along the way. This result trailed the US market alone but slightly beat the global market, which is exactly what you’d expect from a blend of both. The worst drop was about -34.6% during early 2020, recovering in roughly five months. That’s a real-world reminder that stock-only portfolios can fall hard but may also bounce back strongly. Past performance can’t predict the future, but it shows this setup has behaved like a solid, diversified equity portfolio.
Projection
The Monte Carlo simulation projects many possible 15‑year paths using historical return and volatility patterns, a bit like running 1,000 alternative weather forecasts. The median outcome grows $1,000 to around $2,805, with a wide “likely” band between about $1,848 and $4,240. There’s roughly a 75% chance of ending with more than you started. These numbers are not promises; they’re statistical estimates based on the past, which may not repeat. The big lesson is that even with an aggressive all‑stock mix, long‑term outcomes can vary a lot, so planning should focus on ranges rather than a single number and assume future returns could be lower than history.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with no bonds or cash-like assets. That’s a deliberate choice: equities offer higher expected long-term returns but come with deeper and more frequent drawdowns. Diversification is happening within the stock bucket rather than across different asset classes. Compared with typical “balanced” portfolios that might hold 40–60% bonds, this is clearly more growth‑oriented and less focused on smoothing the ride. The upside is strong participation in global economic growth; the downside is that in bad markets, there’s no built‑in cushion. Anyone using a setup like this generally needs a long horizon and a separate safety buffer outside the portfolio.
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 around the high‑20s, followed by financials, industrials, consumer areas, and health care. This looks very similar to major global benchmarks, which is a good sign that the diversification is doing its job. Tech being the biggest sector has been a tailwind in recent years but also means sensitivity to interest rates and innovation cycles. If growth stocks wobble, this portfolio will feel it. The positive takeaway is that nothing here looks wildly unbalanced or speculative; the sector mix closely tracks the global market, which is generally what you want from broad index funds.
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, roughly 72% is in North America, with the rest spread across developed Europe, Japan, other parts of Asia, and smaller allocations to emerging regions. That’s slightly more home-biased than a pure global market but still meaningfully international. Compared to common benchmarks, the US share is a bit high but not extreme. This tilt benefits if US stocks continue to lead but means returns lean heavily on one economy and currency. The presence of Europe, Japan, and emerging markets adds diversification against local shocks. Overall, this is a strong, globally aware allocation with a sensible home tilt that aligns well with many long-term investing frameworks.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 6%
- Micro-cap 2%
The portfolio leans strongly toward mega‑ and large‑cap companies, which together make up over 70% of the exposure, with smaller slices in mid, small, and micro caps. That’s almost exactly how broad market-cap-weighted indices behave: bigger companies dominate simply because they’re worth more. Large firms tend to be more stable and liquid, which can dampen some volatility compared with a heavy small‑cap tilt. At the same time, smaller companies can offer different growth patterns and return drivers. Here, their modest share still contributes diversification, but they won’t drive the bus. This market-cap mix is very much “market-like” and fits a broad-based, low-maintenance approach.
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, the top exposures cluster in mega-cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. Several of these appear across both US and international funds where applicable, which creates some hidden concentration even though each ETF is diversified. Because we only see each ETF’s top 10 holdings, overlap is likely understated; in reality, more companies are shared under the hood. This pattern is normal for broad index trackers today, where a small group of giants drives a big chunk of returns. The key takeaway is that while you own thousands of stocks, headline performance will still be heavily influenced by a handful of global leaders.
Factors
Factor exposure across value, size, momentum, quality, yield, and low volatility sits right around neutral for every factor. Factor exposure is basically how much the portfolio leans into specific characteristics that research links to returns, like cheapness (value) or recent winners (momentum). Being neutral means the holdings behave similarly to the global market, without big tilts toward any special style. That’s actually a feature for many investors: you’re not making a hidden bet on, say, value stocks or high yielders. The flip side is you’re not intentionally exploiting any factor premiums either. For a simple core allocation, this even-handed profile is very well aligned with broad index investing.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 70.00% 72.7% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 27.3%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from simple weights. Here, the US total market ETF is 70% of the allocation but accounts for about 73% of total risk, while the international fund is 30% of the weight and about 27% of risk. That’s very proportional and suggests no single position is wildly dominating volatility beyond its size. In other words, the risk you’re taking looks consistent with the way you’ve allocated capital. If someone ever wanted to tweak the ride—smoother or spikier—changing the split between these two funds would directly and predictably adjust overall risk.
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 risk–return chart shows the portfolio sitting right on or very close to the efficient frontier. The efficient frontier represents the best achievable return for each level of risk using just these holdings in different mixes. Your current mix has a Sharpe ratio around 0.54, while the mathematically optimal combo of the same two funds would reach about 0.76 with slightly higher expected return and only modestly more risk. That means the existing allocation is already quite efficient; there isn’t a glaring imbalance. If someone wanted to fine‑tune, they could nudge weights toward that optimal point, but the big picture is that this setup is already doing its job well.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.61%
The combined dividend yield is about 1.61%, reflecting roughly 1.1% from the US fund and 2.8% from international holdings. Dividend yield is the cash income you get each year as a percentage of your investment, separate from price changes. This level is typical for a growth‑oriented global equity mix and suggests most of the return is expected to come from capital appreciation rather than income. For long‑term accumulators, that can work very well, especially if dividends are reinvested. For someone needing current cash flow, though, this yield alone may not cover spending needs and might need to be paired with other income sources or withdrawal plans.
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%
Total ongoing fees are impressively low at about 0.04% per year (the TER, or Total Expense Ratio, shows what the funds charge annually). That’s a huge positive: costs are one of the few things investors can control, and small differences compound over decades. Paying 0.04% instead of, say, 0.5% keeps almost all of the portfolio’s growth in your pocket. Relative to the diversification and global exposure you’re getting, this cost level is excellent and very much aligned with best practices. It also makes it easier for the portfolio to track benchmark returns closely without a big drag from management fees over time.
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