Two fund US stock portfolio with strong large cap focus and very low costs
Report created on Apr 18, 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 50.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00%
This portfolio is built from just two broad US equity ETFs, each at 50%, giving a simple 100% stock mix. Structurally, it blends a large‑cap index with a total US market index that layers in mid, small, and micro caps. That keeps things straightforward: no bonds, no alternatives, no international funds. This kind of setup is easy to understand and track, because both funds are diversified baskets rather than single stocks. The trade-off is that diversification is mostly “within” one asset class and one country. So while stock-level risk is spread out, portfolio behavior will still be tightly linked to the ups and downs of the US equity market overall.
Growth
From 2016 to 2026, $1,000 in this portfolio grew to about $3,878, a compound annual growth rate (CAGR) of 14.56%. CAGR is like your average yearly “cruising speed” over the full period, smoothing out the bumps. Returns landed very close to the broad US market and comfortably ahead of a global equity benchmark. The deepest drop, or max drawdown, was about -34% during early 2020, similar to the benchmarks. That shows the portfolio has fully participated in both rallies and sharp setbacks typical of stocks. As always, past performance describes what happened in that specific decade; it doesn’t lock in what the next one will look like.
Projection
The forward projection uses a Monte Carlo simulation, which is basically thousands of “what if” paths built from past return and volatility patterns. Here, a $1,000 starting amount ends with a median outcome around $2,818 after 15 years, with a wide range of possible results. The central band ($1,826–$4,066) reflects many scenarios where stocks grow but with plenty of bumps. The lower tail reaching roughly back to $997 reminds you that long flat or rough stretches can happen. The average simulated annual return of 8.10% is lower than the historical 14.56%, reflecting more conservative assumptions. These simulations are not forecasts, just statistically informed sketches of what could happen.
Asset classes
- Stocks 100%
All of this portfolio sits in one asset class: stocks. That’s why the risk label is “growth” and the diversification score is low. Stocks historically offer higher return potential than bonds or cash, but with larger and more frequent swings. Having no stabilizing assets means the portfolio’s value will move closely with equity markets, both up and down. Compared to multi‑asset portfolios that mix in bonds or other diversifiers, this structure is more concentrated in growth risk. The positive side is full exposure to equity upside; the flip side is that there’s no built‑in cushion from more defensive asset classes during market stress.
Sectors
- Technology 32%
- Financials 12%
- Telecommunications 10%
- Health Care 10%
- Consumer Discretionary 10%
- Industrials 9%
- Consumer Staples 5%
- Energy 4%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector-wise, the portfolio leans heavily on technology at 32%, with meaningful slices in financials, telecommunications, health care, and consumer areas. This looks broadly similar to major US equity benchmarks, where tech and related industries have grown as large winners. A tech‑tilted structure can be powerful in periods when innovation and digital platforms drive market gains. However, it can also mean more sensitivity to things like interest rate changes, regulation, or shifts in investor appetite for growth stories. Because the funds track broad indices, sector weights will naturally evolve over time as markets reprice different parts of the economy, rather than through active sector bets.
Regions
- North America 99%
Geographically, about 99% of the portfolio is in North America, which is essentially a pure US equity position. That’s very different from a global index, where the US is large but not almost everything. A strong home-country focus makes performance tightly linked to one economy, one political system, and largely one currency. This can be helpful if income and spending are also in dollars, because currency risk is low. On the other hand, it means developments in other regions have little direct impact on the portfolio. Historically, the US has done very well, but leadership between regions can and does change over long stretches.
Market capitalization
- Mega-cap 43%
- Large-cap 33%
- Mid-cap 19%
- Small-cap 4%
- Micro-cap 1%
By market cap, there’s a clear large‑company skew: 43% in mega caps and 33% in large caps, with mid, small, and micro caps making up the remainder. That pattern is typical for capitalization‑weighted US indices, where the biggest companies naturally dominate. Large and mega caps tend to be more established businesses, often with diverse revenue streams and strong competitive positions, which can make them relatively more stable than tiny firms. The smaller slice in mid and small caps adds some exposure to potentially higher growth but also higher volatility names, without allowing them to dominate the ride. Overall, the size mix is very close to a standard US market structure.
True holdings
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NV NVIDIA Corporation 6.99%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 6.29%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 4.65%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 3.42%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.83%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 2.48%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 2.26%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 2.12%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.77%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 1.47%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 34.24%
Looking through to the top holdings, a handful of big names—NVIDIA, Apple, Microsoft, Amazon, Alphabet, and others—collectively represent a meaningful chunk of the portfolio. Many of these appear in both ETFs, which creates overlap: the same companies drive returns from multiple directions. That’s normal for US index funds but it does mean the portfolio’s fortunes are closely tied to how these giants perform. Since coverage only uses ETF top‑10 lists, true overlap is likely higher than shown. In practice, the portfolio is diversified across hundreds of stocks, yet the largest firms still carry outsized influence on overall performance.
Factors
Across the main style factors—value, size, momentum, quality, yield, and low volatility—the portfolio sits right around neutral on all measures. Factor exposure describes how much you tilt toward certain characteristics that research links to returns, like cheaper stocks (value) or recent winners (momentum). A neutral reading means this setup behaves a lot like the broad market, without intentional style tilts. That’s consistent with market‑cap weighted index funds. In different market environments, factor‑tilted strategies can swing ahead or behind; this one is more of a “plain vanilla” baseline. The benefit is simplicity and fewer surprises from style bets; the trade‑off is not deliberately emphasizing any particular return driver.
Risk contribution
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Vanguard Total Stock Market Index Fund ETF Shares
Weight: 50.00% 50.4% -
Vanguard S&P 500 ETF
Weight: 50.00% 49.6%
Risk contribution shows how much each holding adds to the portfolio’s overall ups and downs, which can differ from its simple weight. Here, each ETF is 50% of the portfolio and each contributes roughly half the total risk. Because the two funds are very similar and highly correlated, their volatility impact is almost perfectly shared. That means there isn’t a hidden “risk hot spot” lurking in a small but very volatile position. Instead, risk is essentially split down the middle between the two broad baskets. This even risk distribution aligns well with the straightforward 50/50 position sizing visible in the weights.
Redundant positions
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High correlationVanguard S&P 500 ETFVanguard Total Stock Market Index Fund ETF Shares
The correlation data shows that the two ETFs move almost identically. Correlation measures how often and how closely assets move together, on a scale from -1 to +1. Here, the relationship is effectively +1, meaning when one goes up or down, the other tends to move in the same direction and by a similar amount. That’s expected because both track broad US stocks with heavy overlap in holdings. The implication is that the second ETF doesn’t add much in the way of day‑to‑day diversification; it mostly reinforces the same equity exposure. Diversification benefits in this portfolio come more from the many companies inside the indices, not from differences between the two funds.
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 vs. return chart plots annualized volatility on the x‑axis and expected return on the y‑axis, with the efficient frontier showing the best achievable combinations using these two funds. The current portfolio’s Sharpe ratio of 0.62 is slightly below the optimal and minimum‑variance points, which both have a Sharpe of 0.8. The note indicates the current mix sits on or very near the frontier, meaning that, given only these two holdings, the allocation is already highly efficient for its risk level. In other words, with this limited fund set, there’s little room to improve the risk/return tradeoff just by shuffling weights between them.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Weighted yield (per year) 1.10%
The overall dividend yield is about 1.10%, matching the yield of each ETF. That’s typical for broad US equity indices today, where returns have leaned more on price growth than cash payouts. Dividends matter because they’re a steady component of total return, especially when reinvested over long periods. In this portfolio, dividends play a supporting role rather than being a major income engine. Most of the return experience will come from changes in share prices of the underlying companies. For someone tracking performance, it’s helpful to remember that headline index charts usually show price moves alone, while total return quietly includes these ongoing cash distributions.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.03%
Costs are impressively low at a total expense ratio (TER) of 0.03%. TER is the annual fee charged by the funds, taken inside the ETF, so you never see a bill but the cost slightly reduces returns each year. At this level, the drag is minimal and compares very favorably to typical active funds or higher‑fee products. Over decades, trimming even small percentages off fees can compound into a meaningful difference. Here, fees are not a major story—structure and market behavior matter far more. This low‑cost foundation is a strong feature of the portfolio and supports keeping more of whatever returns the market delivers.
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