Broad low cost global equity mix with strong US focus and efficient risk profile
Report created on Apr 11, 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 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is a very clean two-fund setup: about 80% in a total US stock market ETF and 20% in a total ex-US international equity ETF. So it holds thousands of companies worldwide through just two positions, with 100% in stocks and no bonds or alternatives. That makes the structure simple, transparent, and easy to maintain. A pure-equity mix like this tends to suit investors who can handle meaningful ups and downs in exchange for higher long-term growth potential. The big upside here is broad global equity exposure with minimal moving parts; the tradeoff is that there’s no built-in cushion from safer assets during market stress.
Growth
From 2016 to early 2026, $1,000 grew to about $3,454, which is a compound annual growth rate (CAGR) of 13.24%. CAGR is like your “average speed” over the whole trip, smoothing out bumps along the way. The portfolio slightly lagged the US market but beat the global market, which is a pretty healthy result. The max drawdown, or worst peak‑to‑trough drop, was about −34.7% during early 2020, similar to the benchmarks, and it recovered in about five months. This shows the portfolio behaves like a classic stock-heavy mix: strong growth historically, but with sharp temporary declines that require patience to ride out.
Projection
The Monte Carlo simulation projects a wide range of possible outcomes over 15 years using historical volatility and return patterns. Monte Carlo simply means the computer runs many “what if” paths, randomly mixing up good and bad years based on past data. The median outcome turns $1,000 into about $2,739, with a central range from roughly $1,774 to $3,999. There’s a 73% chance of a positive result, and the average simulated annual return is about 7.9%. These numbers are helpful for setting expectations, but they’re not promises: markets can behave very differently from history, especially over long periods.
Asset classes
- Stocks 100%
All of the portfolio is in equities, with no allocation to bonds, cash, or alternatives. That 100% stock exposure maximizes long-term growth potential but also maximizes sensitivity to equity market swings. In calmer markets and long bull runs, this can feel great; during deep drawdowns, it can feel brutal. Balanced investors often hold some mix of stocks and bonds so that one can offset the other at times. Here, the “balance” is coming from global diversification within stocks, not from mixing asset classes. This is well-aligned for someone prioritizing long-term growth and comfortable with significant volatility.
Sectors
- Technology 28%
- Financials 14%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 3%
Sector exposure is reasonably broad but leans clearly toward technology at about 28%, with financials, industrials, and consumer-focused areas making up much of the rest. This profile is similar to global benchmarks, which currently give a large share to tech and related industries. A tech-heavy allocation tends to benefit when innovation and growth stories drive markets, but it can be more sensitive to interest rate moves and sentiment shifts about future earnings. The encouraging part is that other sectors like health care, financials, and industrials still have meaningful weights, helping avoid an all‑or‑nothing bet on any single economic story.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
Geographically, about 81% sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, and emerging markets. That US tilt is stronger than a pure global market-cap index, where the US usually sits closer to 60%. This home-country emphasis has helped over the past decade because US stocks outperformed many regions. The flip side is that a lot of risk is tied to one economy, one policy regime, and mainly one currency. The 20% international slice does provide a useful diversifier, but global events that hit US equities hard will strongly drive the overall portfolio.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
Market cap exposure is dominated by mega- and large-caps, together over 70%, with a solid but smaller slice in mid-, small-, and micro-caps. That pattern closely mirrors broad market indexes, where the biggest companies naturally take up the most space. Larger firms tend to be more stable and liquid, so they can damp some of the volatility you might see in a small‑cap‑heavy portfolio. At the same time, having non‑trivial exposure to smaller companies keeps a growth and innovation element in the mix. This is a well-balanced structure for capturing the overall equity premium without leaning heavily into niche size bets.
True holdings
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NV NVIDIA Corporation 4.94%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.71%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.53%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.44%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.19%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.82%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.73%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.70%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.38%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 1.10%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 25.54%
Looking through the top holdings, exposure is concentrated in the biggest global names, mainly via the US fund: companies like Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla. Many of these appear in both ETFs’ top holdings, so there is some overlap, even though we only see the top 10 for each fund. This overlap creates a meaningful but not extreme tilt toward the mega-cap growth leaders that have dominated recent returns. It’s not inherently a problem, but it does mean portfolio behavior will be heavily influenced by how these few giants perform, especially in periods when their valuations or growth prospects shift.
Factors
Factor exposures across value, size, momentum, quality, yield, and low volatility all come out near neutral, around 50% on the scale. Factor investing focuses on underlying characteristics like “cheap vs. expensive” (value) or “big vs. small” (size) that research links to long-term returns. A neutral profile means this portfolio behaves a lot like the broad market rather than intentionally leaning into any one style. That’s a positive sign for someone wanting straightforward market exposure: you’re not making hidden bets on, say, high dividend stocks or aggressive growth. Returns will mainly track overall global equity trends instead of factor-specific cycles.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 80.00% 82.5% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 17.5%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from its weight. Here, the US total market ETF is 80% of the portfolio but contributes about 82.5% of total risk, while the 20% international ETF contributes 17.5% of risk. That’s very close to proportional, indicating no single position is wildly dominating volatility beyond its size. This kind of alignment is healthy: the portfolio’s behavior is intuitive and easy to understand. If someone ever wanted to dial risk up or down, modest shifts between these two funds would meaningfully change overall volatility in a predictable way.
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 on or very close to the efficient frontier. The efficient frontier is the curve showing the best possible return for each risk level using these two holdings in different weights. The current Sharpe ratio, a measure of risk‑adjusted return, is 0.56 versus 0.76 for the theoretical optimal and 0.62 for the minimum‑risk mix. Being near the frontier means the allocation is already quite efficient: there’s no obvious “free lunch” from simple reweighting. Any tweaks would only slightly fine‑tune the tradeoff between risk and return, rather than fixing a structural inefficiency.
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) 1.44%
The combined dividend yield is about 1.44%, with the US fund around 1.10% and the international fund higher at 2.80%. Dividend yield is the cash income you receive each year as a percentage of what you invested, like getting small rent checks from owning businesses. In this setup, dividends are a modest but steady contributor to total return; most of the growth historically has come from price appreciation. For growth-focused investors, reinvesting these dividends can quietly boost compounding over time. For income-focused investors, the current yield is relatively low, so this structure is more about long-term growth than high immediate cash flow.
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) 0.03%
Total costs are impressively low, with expense ratios of 0.03% on the US fund and 0.05% on the international fund, leading to a blended fee of about 0.03%. The expense ratio is what the fund charges each year to run the strategy; lower fees leave more of the return in your pocket. This is a real strength of the portfolio: cost drag is almost negligible compared with many alternatives. Over decades, saving even a fraction of a percent annually can translate into a noticeably larger portfolio value, because you’re compounding on a bigger base every year. The fee structure here strongly supports long-term performance.
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