Broad global stock focus with modest bond ballast and efficient risk balance
Report created on May 30, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 70.00% -
VE Vanguard FTSE All-World ex-US Index Fund ETF Shares
VEU - US9220427754 20.00% -
BN Vanguard Total Bond Market Index Fund ETF Shares
BND - US9219378356 10.00%
This portfolio is built around a very simple three‑fund structure, with 70% in a total US stock ETF, 20% in a global ex‑US stock ETF, and 10% in a broad US bond ETF. So 9 out of 10 dollars are in stocks and 1 in bonds. That makes it clearly growth‑oriented, with a small stabilizer from bonds rather than a heavy safety cushion. A three‑fund setup like this is easy to understand and track, which is a big practical plus. Structurally, it behaves a lot like a global stock portfolio with a mild US tilt and a thin layer of bond ballast to soften, but not eliminate, equity volatility.
Growth
From mid‑2016 to May 2026, $1,000 in this mix grew to about $3,490, a compound annual growth rate (CAGR) of 13.35%. CAGR is like average speed on a road trip, smoothing out the bumps along the way. Over the same period, it trailed the US market benchmark, which grew faster, but slightly beat the global market benchmark. The worst peak‑to‑trough drop was about ‑32% during early 2020, similar in depth to the benchmarks and fully recovered within roughly five months. That shows this equity‑heavy portfolio experienced real but not extreme drawdowns relative to markets, with long‑term growth strongly driven by stock exposure.
Projection
The Monte Carlo projection uses many randomized paths based on historical patterns to estimate a range of future outcomes. Think of it as running the next 15 years a thousand different ways and seeing where $1,000 tends to land. The median result is about $2,780, with most simulations falling between roughly $1,862 and $4,114. There are also more extreme but less likely paths from about $1,061 to $7,140. The average simulated return is 7.97% a year, with a 76% chance of ending positive. These numbers are not promises; they simply translate past‑like behavior into a spread of possible futures, which can be wider than people often expect.
Asset classes
- Stocks 90%
- Bonds 10%
Asset‑class wise, the portfolio is 90% stocks and 10% bonds. This is firmly in the “equities in the driver’s seat” camp, where return and risk are both dominated by stock markets. Bonds here act more as a shock absorber than a full safety net, providing income and some stability when stocks wobble, but not enough to fully offset large equity swings. Compared with many broad “balanced” allocations, the bond slice is relatively small, so the ride will tend to be closer to a stock portfolio than a classic half‑stocks‑half‑bonds mix. That said, even a 10% bond cushion can reduce overall volatility meaningfully versus 100% stocks.
Sectors
- Technology 27%
- Financials 13%
- Industrials 10%
- Consumer Discretionary 9%
- Telecommunications 8%
- Health Care 8%
- Consumer Staples 4%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
This breakdown covers the equity portion of your portfolio only.
Across sectors, the portfolio leans most heavily toward technology at 27%, followed by financials at 13% and industrials at 10%. The remaining sectors are spread more modestly, with consumer discretionary, telecom, health care, and others each in single digits. This pattern is quite similar to many broad global indexes today, where tech‑related companies have grown large and naturally take up more space. Higher tech exposure often brings more sensitivity to interest rates and innovation cycles, so returns can be punchier in both directions. At the same time, the presence of multiple other sectors helps prevent the portfolio from being a pure single‑theme bet.
Regions
- North America 71%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, about 71% of the portfolio sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, and various emerging regions. That heavy North American share is in line with global market‑cap weights today, where US stocks in particular dominate. This alignment is actually a strength, because it matches how the global equity market itself is currently composed rather than making a big regional guess. The remaining exposure offers some diversification to different economies and currencies, but the portfolio’s behavior will still be heavily tied to North American market trends, especially those in the US.
Market capitalization
- Mega-cap 38%
- Large-cap 28%
- Mid-cap 16%
- Small-cap 5%
- Micro-cap 2%
This breakdown covers the equity portion of your portfolio only.
By market capitalization, the portfolio is anchored in larger companies: 38% mega‑cap and 28% large‑cap, with smaller slices in mid‑cap, small‑cap, and micro‑cap names. That pattern is typical for index‑tracking funds that weight holdings by company size. Large and mega‑caps tend to be more stable and widely followed, which can dampen some volatility versus a portfolio dominated by tiny firms. At the same time, mid‑ and small‑caps still make up a meaningful minority, bringing extra diversification and sensitivity to different parts of the business cycle. Overall, this mix reflects the global market structure rather than a targeted size bet.
True holdings
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NV NVIDIA Corporation 4.64%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.02%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.05%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.58%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.26%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 2.00%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.78%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.35%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.09%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 0.85%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 23.62%
This breakdown covers the equity portion of your portfolio only.
Looking through to the top underlying holdings, a handful of very large US companies account for several percentage points of the portfolio: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire Hathaway all appear via the ETFs. Because both stock funds own many of the same giants, these names show up multiple times, creating overlap. That overlap is normal for broad market funds, but it does mean the portfolio is more sensitive to the fortunes of these mega‑caps than the simple three‑fund list suggests. Note that this view only uses ETF top‑10 holdings, so true overlap is actually higher.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure here is very close to neutral across the board: value, size, momentum, quality, yield, and low volatility all sit around the market‑average 50% mark. Factors are like underlying “traits” of stocks — such as being cheap, fast‑rising, or low‑risk — that research links to long‑term return patterns. A neutral profile means this portfolio is not making a deliberate bet on any one trait. Instead, it behaves much like the broad global market, rising and falling with overall conditions rather than strongly with any particular factor cycle. That neutrality is consistent with using broad, cap‑weighted index funds as the building blocks.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 70.00% 79.7% -
Vanguard FTSE All-World ex-US Index Fund ETF Shares
Weight: 20.00% 19.6% -
Vanguard Total Bond Market Index Fund ETF Shares
Weight: 10.00% 0.7%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weight. Here, the US total stock ETF is 70% of assets but roughly 80% of total risk, so its movements largely set the tone for the whole portfolio. The ex‑US stock ETF roughly matches its weight in risk contribution, while the bond ETF is 10% of assets but contributes less than 1% of risk — a tiny share. This highlights how even a modest bond slice can be very calming. It also shows that any major swing in the US stock market will be the main story for this portfolio’s volatility.
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 current portfolio has a Sharpe ratio of 0.59, while the “optimal” mix of these same three funds would reach about 0.81 at slightly higher return and risk. Sharpe ratio is a way to compare reward per unit of volatility, using a risk‑free rate as a baseline. The minimum‑variance mix would be much calmer but with much lower return and Sharpe. Importantly, the current allocation sits on or very near the efficient frontier, meaning that for its level of risk, it’s making good use of these holdings. In other words, it’s already an efficient blend of the ingredients you’re using.
Dividends
- Vanguard Total Bond Market Index Fund ETF Shares 3.90%
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 2.60%
- Vanguard Total Stock Market Index Fund ETF Shares 1.00%
- Weighted yield (per year) 1.61%
The overall dividend yield for the portfolio is around 1.61%, combining roughly 1.0% from US stocks, 2.6% from ex‑US stocks, and 3.9% from bonds. Yield is the cash income paid out each year relative to investment value, usually from dividends and bond interest. Here, income is a meaningful but secondary part of the total return story; most of the growth historically has come from price changes in the stock market, not payouts. The higher yield on international stocks and bonds provides a bit more cash flow diversification, which can be helpful in different rate environments, even though the main driver remains capital appreciation.
Ongoing product costs
- Vanguard Total Bond Market Index Fund ETF Shares 0.03%
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.04%
The portfolio’s total expense ratio (TER) is about 0.04%, with each underlying ETF charging between 0.03% and 0.07% annually. TER is the ongoing fee the fund takes each year to cover management and operations. At this level, costs are impressively low and firmly in line with best‑in‑class index pricing. Low fees matter because they are one of the few things investors can reliably control, and small percentage differences compound significantly over decades. Here, the cost structure is a real strength: it allows most of the portfolio’s gross market return to show up in your account instead of being eaten by fund expenses.
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