A highly diversified all equity portfolio tilted toward global value with strong historic growth
Report created on Dec 31, 2025Risk profile
4/7
Diversification profile
5/5
Positions
-
VE Vanguard All-Equity ETF Portfolio
VEQT - CA92201C1077 70.00% -
VV Vanguard Global Value Factor
VVL - CA92207U1012 30.00%
This portfolio is built from two broad funds, with about 70% in an all‑equity global mix and 30% in a global value tilt. That combination creates a simple structure but with plenty of underlying holdings, which matches the “highly diversified” label and a balanced profile risk score of 4 out of 7. This kind of setup matters because it keeps things easy to manage while still spreading risk across many companies and regions. Keeping the core‑satellite style balance (a broad core plus a focused tilt) looks sensible here, though checking every few years that the 70/30 split still fits your comfort with ups and downs could help keep the risk level aligned with your goals.
Growth
With a historic compound annual growth rate (CAGR) of 13.67%, a hypothetical 10,000 investment would have grown impressively over the backtested period. CAGR is like an average yearly “cruising speed” over a long trip, smoothing out bumps along the way. The max drawdown of about -33% shows that while returns were strong, the portfolio did experience deep but not extreme temporary losses, which is typical for an all‑equity mix. Versus common equity benchmarks, this growth is very competitive and suggests the structure has worked well. Still, past performance can’t guarantee similar future results, so using these figures mainly as rough guidance for expectations is wise.
Projection
The Monte Carlo analysis uses 1,000 simulated paths based on historical patterns to see many possible futures, not just one. It shows a 5th percentile outcome of about 80% of initial value and a median outcome of around 4.7 times the starting amount, with an average simulated annualized return near 14.5%. Monte Carlo is helpful because it highlights a range of outcomes, including bad‑case scenarios, rather than a single forecast. However, it assumes the future will behave broadly like the past, which is a big simplification. Taking these simulations as a rough map rather than a precise prediction can help set expectations while keeping room for surprises.
Asset classes
- US Equity 52%
- Stocks 22%
The portfolio is essentially 100% equity, with about 52% classified as US equity and 22% as broader global equity, and no meaningful allocation to bonds or cash. That pure‑equity stance is why the risk score lands in the mid‑to‑higher range despite being labelled “balanced.” All‑equity setups typically ride bigger market swings but also offer higher long‑term growth potential. Compared with a classic balanced benchmark that might hold 40–60% bonds, this portfolio is clearly more growth‑focused. This growth orientation is absolutely fine if large short‑term drops are acceptable, but anyone wanting smoother returns might consider gradually mixing in some lower‑volatility assets outside this core.
Sectors
- Financials 23%
- Technology 18%
- Industrials 11%
- Consumer Discretionary 10%
- Energy 8%
- Health Care 8%
- Basic Materials 7%
- Telecommunications 6%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
Sector exposure is broad and nicely spread: financial services (23%), technology (18%), industrials (11%), and consumer cyclicals (10%) lead, with meaningful stakes in energy, healthcare, basic materials, and others. This aligns well with major global benchmarks and is a strong indicator of healthy diversification. There’s a modest tilt toward financials and a solid chunk in technology, which means performance can be sensitive to interest rates, credit conditions, and innovation cycles. Tech‑ and financial‑heavy mixes often do well in growth periods but can be bumpy around rate hikes or banking stress. Keeping this broad, benchmark‑like sector spread looks constructive and doesn’t suggest any worrying concentration.
Regions
- North America 75%
- Europe Developed 12%
- Japan 5%
- Asia Developed 3%
- Asia Emerging 3%
- Africa/Middle East 1%
- Australasia 1%
Geographically, roughly 75% sits in North America, with 12% in developed Europe, 5% in Japan, 3% in other developed Asia, and small allocations to emerging regions. This is very similar to global market‑cap benchmarks, which tend to be heavily tilted toward North America, especially the US. That alignment is a positive sign, as it taps into the world’s largest, most liquid markets while still giving some exposure to overseas opportunities. The relatively small stake in emerging economies keeps risk moderate but also limits potential long‑term catch‑up growth from those regions. Sticking close to global weights is a solid default that many long‑term investors prefer.
Market capitalization
- Mega-cap 33%
- Large-cap 30%
- Mid-cap 21%
- Small-cap 8%
- Micro-cap 7%
The market‑cap mix is well spread: about 33% mega cap, 30% big, 21% medium, 8% small, and 7% micro. This looks nicely balanced and aligns closely with global norms, though it may lean a bit more into smaller companies than some broad indexes. Market capitalization simply reflects company size; smaller stocks often have higher growth potential but bigger price swings, while mega caps tend to be steadier. This blend supports both diversification and long‑term growth, with a healthy core in large firms and meaningful exposure down the size spectrum. Keeping this size balance intact helps avoid over‑reliance on either giant blue chips or more volatile small names.
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.
Efficient Frontier analysis looks for the mix of existing holdings that gives the best trade‑off between risk and return. Here, a more “efficient” portfolio with the same risk level is projected to return about 13.8%, slightly above the current setup, with an optimal portfolio also targeting around 13.8% return at a risk level near 15.9%. Efficiency just means the best possible risk‑return ratio using the same ingredients, not necessarily better diversification or a different goal. These optimizations rely heavily on historical relationships, which may change, so they’re more of a helpful guide than a blueprint. Small allocation tweaks might marginally improve the profile, but the existing mix is already quite solid.
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