Two fund portfolio nails the basics then falls asleep at the diversification wheel
Report created on Apr 14, 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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VO Vanguard S&P 500 ETF
VOO - US9229083632 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
Structurally this is the investing equivalent of ordering the sampler platter and then stopping after two items. Eighty percent in an S&P 500 ETF and twenty percent in an international ETF is so textbook it could teach itself, but it’s also a bit lazy. You’ve basically said “US stocks plus a side salad of everything else” and walked away. Simple is good; simple and unquestioned is less good. The upside is that this is easy to understand and maintain. The downside is that any flaw in “owning the world through two big blobs” is baked straight into your results with zero nuance.
Growth
Performance-wise, this thing did very well… while still managing to be slightly worse than just going full US market. A 13.59% CAGR means $1,000 turned into $3,556 over the period, which is great on paper. But the pure US market did 14.42%, quietly flexing in the corner, while the global market lagged at 11.91%. You basically paid in underperformance versus the US to beat a broader global blend. Max drawdown at -33.87% was almost identical to the benchmarks, so you took the full gut-punch of 2020 anyway. Past data is like yesterday’s weather: informative, but not a contract with the future.
Projection
The Monte Carlo projections are basically the market saying, “You’ll probably be fine, but don’t get cocky.” Monte Carlo is just a fancy way of throwing your portfolio through a thousand alternate universes to see the range of outcomes. Median result: your $1,000 becomes about $2,773 in 15 years, with a decent 75.5% chance of ending positive. But the range is brutal: from roughly $980 (literally going nowhere for 15 years) to over $8,000 if markets are feeling generous. The main lesson: this setup leans on risk assets only, so the ride will depend entirely on how nice or mean the market feels to stocks.
Asset classes
- Stocks 100%
Asset class “diversification” here is just stocks cosplaying as a complete plan. You’re 100% in equities, zero in anything that behaves differently when stocks puke. That’s fine if the plan is long-term growth and emotional fortitude, but calling it “balanced” is generous. It’s like a diet of only protein — works great until something goes wrong and you realize fiber existed for a reason. No bonds, no alternatives, no cash buffer. The takeaway: this is an all-in bet on global companies, not a mixed-menu portfolio. Anyone expecting smooth sailing is on the wrong boat. This thing is built to move.
Sectors
- Technology 30%
- Financials 14%
- Industrials 10%
- Consumer Discretionary 10%
- Telecommunications 10%
- Health Care 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
Sector-wise, you’re basically a tech-forward index hugger with a mild case of FOMO. Around 30% in technology sets the tone: you live and die with whatever the chip and software giants are doing. The rest is spread respectably across financials, industrials, consumer stuff, and the usual suspects, so there’s no single cartoonishly bad tilt beyond tech dependence. The risk is obvious: if growth darlings stumble or regulation finally stops being a sleepy spectator, your portfolio catches a cold, not a sneeze. Sector exposure here screams “I trust the broad market’s sector mix” — which is fine, just don’t pretend it’s original thinking or insulated from tech hangovers.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
Geography here is “USA and some background extras.” North America at 81% basically steamrolls everything else, while Europe, Japan, and the rest get tossed in like garnish on a very US-centric plate. Sure, this mirrors global market-cap weighting tilted by your 80% S&P position, but it also means your economic exposure is heavily tied to one region’s policy, politics, and currency. Calling this “global diversification” is like saying you’ve traveled the world because you had sushi in New York. It’s not wrong, just incomplete. If the US stumbles hard while other regions do fine, you’re still going to feel very American pain.
Market capitalization
- Mega-cap 46%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
Market cap exposure is basically a love letter to the giants. About 46% in mega-caps and 34% in large-caps means over 80% of your money is riding on the biggest, most widely owned companies on earth. Mid-caps get a bit-part role, and small-caps at 1% are barely an afterthought, like a rounding error you kept out of politeness. This gives you stability relative to a small-cap-heavy setup, but it also means less exposure to smaller, potentially faster-growing companies. It’s the blue-chip comfort blanket approach: less chaos, less spice, and fewer truly independent sources of return when megacaps all move together — which they usually do.
True holdings
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NV NVIDIA Corporation 5.86%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 5.31%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.97%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.78%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.46%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.06%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.97%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.92%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.54%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.26%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 29.11%
The look-through is a greatest-hits tech playlist with a slightly international remix, all wrapped in index branding. NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, Tesla — it’s like you went to the “top ten biggest hype machines” aisle and just said yes. The overlap is hidden inside those two ETFs, and remember we’re only seeing top-10 holdings, so real duplication is higher. You think you’re diversified across thousands of stocks, but a big chunk of your fate rests on the same few megacaps everyone else owns. It’s diversification cosplay: looks spread out, but the drivers are painfully concentrated.
Factors
Factor profile: aggressively… normal. Everything — value, size, momentum, quality, yield, low volatility — sits in that dull “neutral” range. You basically bought the market’s personality off the rack with no tailoring. Factor exposure is like the ingredient list behind your returns: some people tilt toward cheap stocks, or high quality, or low volatility. You? You said, “Just give me whatever everyone else is having.” The upside is no accidental weird bets; the downside is zero intentional edge. This portfolio will behave almost exactly like vanilla global equity factors — which means when broad markets struggle, nothing in here is designed to zig while they zag.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 80.00% 82.3% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 17.7%
Risk contribution is where we see who’s actually driving the chaos, and surprise: it’s the S&P 500 seat hog. At 80% weight, it contributes about 82% of total risk, while the 20% international piece drags along just 18% of the volatility. Risk contribution basically asks, “Who’s shaking the portfolio the hardest?” and the answer is: the US block, by a mile. That makes the whole thing far more “US portfolio with some window dressing” than true blend. If something ever forced you to dial down portfolio risk, you wouldn’t need a PhD: you’d just tweak that one giant lever labeled “S&P 500 exposure.”
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, this portfolio actually behaves like it reads the textbooks. Sharpe ratio of 0.58 isn’t thrilling, but the efficient frontier says you’re sitting right on or very near the optimal curve for what you own. Translation: with just these two funds, the risk/return tradeoff is reasonably efficient. You’re not leaving big, obvious gains on the table just by having dumb weights. The “optimal” version nudges Sharpe up to 0.79 with slightly higher return and small extra risk, while the minimum-variance mix is calmer but also less rewarding. So structurally efficient? Yes. Perfectly designed for your goals and nerves? That’s a different question.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.44%
Dividend yield at 1.44% is basically pocket change with a passport. The US block drips out a modest 1.10%, and the international piece boosts that a bit with 2.80%, but this is clearly a growth-first, income-second arrangement. If someone tried to pitch this as an income portfolio, they’d be laughed out of the room. Dividends help smooth the ride a little, but here they’re more like a side snack, not the main meal. Over time they’ll matter, but don’t kid yourself: the real driver of your outcome will be price moves, not sweet little quarterly payouts.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.03%
Costs are almost suspiciously good. A total TER of about 0.03% is so low it’s basically charity. You’re paying Vanguard couch-cushion money to run a globally diversified equity portfolio, which is about as close to “free” as mainstream investing gets. This is one area where you absolutely did not mess up — no fancy closet-index funds charging 0.6% to hug the same benchmark. That said, low cost doesn’t fix concentration, risk, or asset mix. It just means when the market slaps you around, you’re not also getting pickpocketed by fees on the way down. Small victory, but a real one.
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