Broad global equity allocation with strong diversification and impressively low implementation costs
Report created on Mar 27, 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.
What type of investor this portfolio is suitable for
Balanced Investors
This kind of setup fits an investor who is growth‑oriented, comfortable with stock market swings, and thinking in decades rather than years. Risk tolerance would be moderate‑to‑high: fine with temporary 30–40% drawdowns as long as long‑term growth remains on track. Goals might include retirement savings, building substantial net worth, or funding major future expenses far down the road. The person is likely to value simplicity, low costs, and broad diversification rather than frequent trading or niche bets. They’re okay with a US tilt but still want meaningful global exposure. Emotional resilience and the ability to stick with a plan during downturns are important traits for this profile.
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 structure is very straightforward: two broad equity index ETFs, roughly 70% domestic and 30% international. Everything is in stocks, with no bonds or alternatives. This kind of “core two‑fund” setup is simple, transparent, and easy to maintain. Simplicity matters because fewer moving parts reduce the chances of unintended bets or neglected positions over time. A 70/30 global split is a common approach used by many long‑term investors and aligns well with mainstream asset allocation frameworks. The key implication is that outcomes will be dominated by global stock market behavior, so short‑term swings can be meaningful even though long‑term growth potential is strong.
Growth
Historically, $1,000 grew to about $3,192 over ten years, a compound annual growth rate (CAGR) of 12.34%. CAGR is like an average yearly “speed” of growth over the full period. That return slightly lagged the US market alone but beat the global market, showing that including international stocks hasn’t hurt results and even helped versus a pure global blend. The maximum drawdown of about -34.6% shows the kind of drop experienced in tough markets; that’s normal for an all‑equity mix but still emotionally challenging. Only 30 days produced 90% of returns, underscoring that missing a few strong days can have a big impact, which supports staying invested through volatility.
Asset classes
- Stocks 100%
All capital is in stocks, with 0% in bonds, cash, or other asset classes. Equities historically deliver higher long‑term returns than safer assets, but they also experience larger and more frequent drops. Having 100% in stocks aligns with growth‑focused investors who can handle significant volatility and have long horizons. Compared with common “balanced” blends that mix stocks and bonds, this is more aggressive in risk terms even though the risk label is “balanced.” The benefit is strong growth potential; the trade‑off is that there’s little built‑in cushion during market downturns. Anyone using a setup like this generally needs either a long runway or other safety nets outside this 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 reasonably broad, with technology the largest slice at 27%, followed by financials, industrials, consumer‑related areas, and health care. This pattern is similar to mainstream global indexes where tech and communication‑related fields have grown as a share of market value. A notable point is that tech‑heavy allocations can be more sensitive to interest rate moves and changes in market sentiment about growth. On the other hand, having meaningful stakes in financials, industrials, and defensive sectors like consumer staples and utilities helps smooth things somewhat. Overall, this sector mix is well-balanced and aligns closely with global standards, providing diversified exposure to different parts of the economy.
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, about 72% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and a modest slice in emerging regions. This is somewhat US‑tilted versus a pure global market weight but still offers solid international diversification. Geographic spread matters because different regions can lead or lag at various times depending on growth, currency shifts, and local events. A home‑biased but globally diversified mix like this captures US innovation while still participating in opportunities elsewhere. The main implication is that overall performance will be driven largely by North American markets, while international holdings can reduce single‑country risk and add long‑term balance.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 6%
- Micro-cap 2%
Market capitalization exposure is dominated by mega‑ and large‑cap stocks, which together make up around 73% of the portfolio. Mid‑caps, small‑caps, and micro‑caps provide the remaining slice. Large companies tend to be more stable, widely researched, and liquid, which can lead to smoother performance compared to a portfolio heavily tilted to tiny firms. Smaller companies, while more volatile, often bring higher growth potential and add diversification because they don’t always move in lockstep with giants. This mix is very typical of broad index investing and keeps risk anchored in well‑established businesses, with enough exposure to smaller names to benefit from that segment’s long‑run growth without dominating risk.
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 to the underlying holdings, the largest exposures are mega US names like Nvidia, Apple, Microsoft, Amazon, Alphabet, and Meta, plus giants like Tesla and Taiwan Semiconductor. These appear only via the ETFs, not as separate single‑stock bets, which keeps things diversified despite the high weights. Because both funds are broad market trackers, overlap in these big names is expected and actually mirrors the global equity market structure. The coverage statistic is relatively low because only top‑10 ETF holdings are visible, so true diversification is wider than it appears here. The main takeaway is that there is some natural concentration in global leaders, which is normal for cap‑weighted index investing.
Factors
Factor exposures are mostly mild, with low tilts to value, size, momentum, and quality, and neutral exposure to yield and low volatility. Factors are like “traits” of stocks—such as being cheap (value) or stable (low volatility)—that research has linked to returns over decades. Low scores here mean the portfolio is broadly market‑like, not strongly leaning into or away from any particular trait. Neutral yield and low volatility suggest the income level and stability profile roughly match the overall market. This well-balanced factor profile is what you’d expect from broad cap‑weighted index funds and should behave similarly to the global equity market across different environments, without big systematic bets.
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 adds to the portfolio’s ups and downs, which can differ from its weight. Here, the US total market ETF is 70% of assets but contributes about 73% of total risk, while the international ETF is 30% of assets and about 27% of risk. That’s quite proportional, a sign that neither position is unexpectedly dominating volatility. When risk and weight are closely aligned like this, the portfolio behaves intuitively: the bigger holding drives more of the ride, but not wildly more than its size would suggest. If desired, changing the 70/30 split would be the cleanest way to dial overall risk up or down.
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 portfolio has an expected return of 13.05% and volatility of 17.36%, with a Sharpe ratio of 0.64. The Sharpe ratio measures return per unit of risk, like “how much payoff per bump in the ride.” The optimal mix of these same two funds has a higher Sharpe of 0.74, while the minimum‑risk blend has 0.59. Because the current point sits below the efficient frontier, there’s room to improve risk‑adjusted returns just by tweaking weights, not by adding new products. Small shifts toward the optimal allocation could either boost expected return for similar risk or reduce risk for a similar expected return, depending on your comfort level.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 1.74%
The overall dividend yield is about 1.74%, blending roughly 1.2% from US stocks and 3.0% from international holdings. Dividends are cash payments from companies and can be an important component of total return, especially over long periods as they’re reinvested. This yield level is consistent with a broad equity portfolio focused more on growth than income. For investors not relying on cash flow today, reinvesting dividends helps compound wealth over time. For those who eventually care about income, this base yield could be a starting point supplemented later by other income‑oriented assets if needed. Right now, the main role of dividends here is steady reinvestment rather than high current payout.
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%
Costs are impressively low, with a blended ongoing charge (TER) of about 0.04% per year. TER, or total expense ratio, is like a small annual “membership fee” charged as a percentage of assets. Keeping that fee tiny leaves more return in your pocket, and the difference compounds meaningfully over decades. This cost level is far better than typical active funds and even many index products, and it’s a real structural advantage of this setup. When everything else is uncertain—future returns, interest rates, economic cycles—low costs are one of the few things that reliably improve long‑term outcomes, so this is a major positive of the portfolio construction.
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