Two fund global stock portfolio with strong US focus and simple low cost equity exposure
Report created on Apr 19, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 85.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 15.00%
This portfolio is very simple: two broad stock index ETFs, with about 85% in a US large‑cap fund and 15% in a total international stock fund. That means all exposure is in equities, with no bonds or cash included in the strategic mix. Structurally, this creates a “core and satellite” style: the US ETF is the core driver, while the international ETF adds some global diversification around the edges. The reported risk score of 4/7 and “balanced” label reflect that it is diversified within stocks, but not across different asset classes. The overall setup is straightforward, transparent, and easy to understand, which often makes ongoing monitoring and maintenance more manageable.
Growth
Over the last decade, $1,000 in this portfolio grew to about $3,743, a compound annual growth rate (CAGR) of 14.16%. CAGR is like average speed on a road trip: it smooths out all the bumps to show steady yearly progress. The portfolio slightly trailed the US market benchmark but clearly beat the global market benchmark, helped by its strong US tilt. The worst drop, or max drawdown, was about -34% during early 2020, very similar to the benchmarks. That shows this portfolio has behaved much like broad equity markets: strong long‑term growth but meaningful temporary setbacks. As always, past returns don’t guarantee similar outcomes in the future.
Projection
The forward projection uses Monte Carlo simulation, which means the system takes historical patterns of returns and volatility, shuffles them thousands of times, and maps many possible futures. For this portfolio, the median outcome turns $1,000 into around $2,733 over 15 years, with a wide “likely range” between roughly $1,783 and $4,138. That wide spread illustrates how uncertain long‑term equity returns can be, even when the average annual return across simulations (around 8.08%) looks appealing. There is also a meaningful chance of flat or negative outcomes, reminding that simulations are not forecasts, but tools to visualize potential paths based on the past.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% allocated to bonds, real estate funds, or cash. That creates a clear growth‑oriented profile: equity markets tend to offer higher long‑term return potential, but also higher short‑term ups and downs. Compared with a multi‑asset benchmark that mixes stocks and bonds, this portfolio will usually be more volatile and more tied to equity market cycles. The “balanced” classification here really refers to how diversified the stock side is, not to a blend of defensive and growth assets. This all‑equity mix makes performance heavily dependent on how global stock markets behave over time.
Sectors
- Technology 31%
- Financials 14%
- Consumer Discretionary 10%
- Industrials 10%
- Telecommunications 10%
- Health Care 10%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
Sector-wise, the portfolio leans toward Technology at about 31%, with Financials, Consumer Discretionary, Industrials, Telecom, and Health Care each around 10%. Smaller slices go to Consumer Staples, Energy, Materials, Utilities, and Real Estate. This pattern is quite close to broad market indices, where tech and tech‑adjacent companies naturally make up a large share by market value. A tech‑heavy exposure often benefits from innovation and growth trends but can feel sharper swings when interest rates change or when sentiment turns against high‑growth business models. The portfolio’s overall sector structure is well‑balanced and aligns closely with global standards for diversified equity exposure.
Regions
- North America 86%
- Europe Developed 6%
- Japan 2%
- Asia Developed 2%
- Asia Emerging 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, about 86% of the portfolio sits in North America, with relatively small allocations to Europe, Japan, other developed Asia, emerging Asia, Australasia, and Africa/Middle East. This heavy North American tilt is stronger than in typical global market indices, which usually allocate a larger share to non‑US regions. That means portfolio results are heavily influenced by the US economy, US corporate earnings, and the US dollar. When US stocks outperform the rest of the world, this positioning helps; when non‑US markets lead, the benefit is smaller. The modest international slice still provides some exposure to different currencies and economic cycles, improving diversity versus US‑only holdings.
Market capitalization
- Mega-cap 46%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
Market capitalization exposure is skewed toward the largest companies, with about 46% in mega‑caps and 34% in large‑caps, plus a smaller share in mid‑caps and only 1% in small‑caps. That’s quite typical for cap‑weighted index funds, where bigger companies naturally dominate. Large firms often have more stable earnings and more diversified businesses, which can dampen company‑specific risk compared with extremely small firms. At the same time, limited small‑cap exposure means the portfolio participates less in the sometimes higher‑growth, higher‑volatility dynamics of smaller companies. Overall, the market‑cap profile looks very similar to mainstream global equity benchmarks and supports broad, liquid exposure.
True holdings
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NV NVIDIA Corporation 6.44%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 5.66%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 4.18%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 3.09%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.54%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.23%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 2.04%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.90%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.59%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.33%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 31.02%
Looking through the ETFs, the largest underlying holdings include NVIDIA, Apple, Microsoft, Amazon, the two Alphabet share classes, Broadcom, Meta, Tesla, and Berkshire Hathaway. Together, these top positions represent a sizable chunk of the portfolio’s equity exposure, even though you don’t hold them directly. Because these giants often appear in both ETFs, there is some hidden overlap that increases effective concentration in a handful of mega‑cap names. The overlap figure is likely understated because only each ETF’s top ten are included, but it already illustrates that portfolio behavior will be strongly influenced by the performance of a small group of dominant global companies.
Factors
Factor exposures here are essentially neutral across the board: value, size, momentum, quality, yield, and low volatility all sit close to 50%, which is defined as market average. Factors are like investing “ingredients” that academic research links to returns, such as preferring cheaper stocks (value) or higher‑quality balance sheets (quality). A neutral profile means the portfolio is not making strong bets on any of these styles; it behaves much like a broad market index. This kind of balance can help avoid the experience of strongly factor‑tilted strategies that may outperform dramatically in some environments and lag just as dramatically in others.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 85.00% 87.0% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 15.00% 13.0%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from its simple weight. Here, the S&P 500 ETF is 85% of assets but contributes about 87% of total risk, while the international ETF is 15% of assets and just 13% of risk. That close match between weight and risk suggests there are no hidden high‑volatility positions punching far above their size. It also reinforces that portfolio behavior is dominated by the US ETF: swings in US equities will largely dictate overall volatility, while the international sleeve modestly diversifies but doesn’t transform the risk profile.
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 efficient frontier analysis suggests this portfolio sits on or very near the efficient frontier, meaning that, given these two ETFs, the current weight mix is already an efficient balance of risk and return. The Sharpe ratio, which measures return per unit of risk above a risk‑free rate, is 0.61 for the current portfolio versus 0.80 for the mathematically “optimal” mix and 0.65 for the minimum‑variance mix. The differences are not dramatic, and all points are clustered closely. This indicates the existing allocation is doing a good job of converting risk into return, with only modest potential gains from fine‑tuning weights between the same funds.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.36%
The portfolio’s overall dividend yield is about 1.36%, with the US ETF yielding around 1.10% and the international ETF about 2.80%. Dividends are cash payments from companies, and while they’re only part of total return, they can add a small, ongoing income stream on top of price movements. The relatively modest yield here is consistent with a growth‑oriented equity mix dominated by large US companies, many of which prioritize reinvesting profits rather than paying high dividends. Over long periods, reinvested dividends can meaningfully boost total returns, even when the headline yield looks low in any given year.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.03%
Costs in this portfolio are impressively low. The total expense ratio (TER) comes out around 0.03%, with the US ETF at 0.03% and the international ETF at 0.05%. TER is the annual fee charged by the funds, expressed as a percentage of assets — like a small “maintenance fee” baked into the price. Compared with typical active funds, these levels are extremely competitive and align with best‑in‑class index pricing. Low ongoing costs mean less performance drag compounding over time, which supports better long‑term outcomes. This cost structure is a clear strength and provides a very solid foundation for equity investing.
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