Broad low cost stock only portfolio with strong global tilt and efficient risk balance
Report created on Mar 25, 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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SC Schwab U.S. Broad Market ETF
SCHB - US8085241029 70.00% -
SC Schwab International Equity ETF
SCHF - US8085248057 30.00%
This portfolio is built from just two ETFs: a broad U.S. stock fund at 70% and a broad international stock fund at 30%. That means it’s a pure 100% stock allocation with no bonds or cash buffers. Structurally, it’s very simple, which helps with transparency and day‑to‑day management. A 70/30 split between domestic and international stocks is a common structure for long‑term investors in the U.S., and it keeps everything easy to rebalance. The key takeaway is that this setup is intentionally growth‑oriented and will ride the full ups and downs of global stock markets, so it fits best when the time horizon is long and short‑term volatility is acceptable.
Growth
From 2016 to early 2026, a hypothetical $1,000 grew to about $3,291, for a compound annual growth rate (CAGR) of 13.49%. CAGR is like your average “speed” over the whole trip, smoothing out bumps along the way. This slightly trailed the U.S. market benchmark but outpaced the global market benchmark, which is a solid outcome for a diversified mix. The max drawdown, or worst peak‑to‑trough drop, was around -34.8%, similar to broad markets. That’s a reminder that stocks can fall sharply even in strong long‑run portfolios. Historical results are encouraging, but they don’t guarantee the future, so the main takeaway is that this return path came with meaningful but normal equity‑level drawdowns.
Projection
The Monte Carlo simulation projects many possible 10‑year paths using the portfolio’s historical returns and volatility. Monte Carlo is basically a “what if” engine that randomizes thousands of futures based on past patterns, not a crystal ball. Here, the median outcome suggests roughly a 398% cumulative return over 10 years, while even the 5th percentile still shows a positive though modest gain. About 993 out of 1,000 scenarios end with gains, and the average simulated annual return is close to the historical figure. The key limitation is that this assumes the future behaves “statistically” like the past. It’s most useful for illustrating the range of possible outcomes and emphasizing that actual results can vary widely year to year.
Asset classes
- Stocks 100%
All of the portfolio sits in one asset class: stocks. That creates a very clean, growth‑first profile but no built‑in cushion from bonds, cash, or alternative assets. Asset classes behave differently in various market environments; for example, high‑quality bonds often hold up when stocks fall, softening drawdowns. By contrast, a 100% equity allocation will tend to move more directly with stock market cycles, both up and down. This is not inherently good or bad; it just means the portfolio is designed for someone who can tolerate full equity volatility and doesn’t need to dampen swings through fixed income or other stabilizing assets, especially during deep bear markets.
Sectors
- Technology 27%
- Financials 16%
- Industrials 12%
- Health Care 10%
- Consumer Discretionary 9%
- Telecommunications 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is broad, with technology leading at 27%, followed by financial services, industrials, healthcare, and consumer‑related areas, plus smaller stakes in energy, materials, utilities, and real estate. This spread across 11 sectors is nicely in line with diversified global benchmarks and is a strong indicator of healthy diversification within equities. A tech tilt is typical for modern broad market indexes because large tech and tech‑adjacent firms dominate market caps. That tilt can be powerful in growth periods but may feel bumpier when interest rates rise or sentiment turns against high‑growth names. Overall, the sector mix looks well balanced and consistent with broad‑market best practices.
Regions
- North America 73%
- Europe Developed 15%
- Japan 6%
- Asia Developed 3%
- Australasia 2%
Geographically, about 73% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and Australasia. This is very similar to global market‑cap weights, just with a modest home‑country tilt to the U.S., which is common for U.S. investors. The benefit of this mix is strong exposure to the world’s largest and most liquid markets while still capturing diversification from foreign economies and currencies. However, returns will still be heavily driven by North American performance. The key takeaway is that this allocation is well‑balanced and aligns closely with global standards, giving a good blend of domestic familiarity and international diversification.
Market capitalization
- Mega-cap 44%
- Large-cap 31%
- Mid-cap 17%
- Small-cap 4%
- Micro-cap 1%
By market cap, about 44% is in mega‑caps, 31% in big companies, 17% in mid‑caps, and only small slices in small and micro caps. That’s classic cap‑weighted exposure, where the largest firms dominate but smaller companies still play a supporting role. Larger companies tend to be more stable and established, while smaller ones can be more volatile but sometimes offer higher growth potential. This structure naturally reduces the impact of extreme moves in tiny firms while still capturing the broad market. The takeaway is that most risk and returns will be driven by the largest companies, which ties back to those mega‑cap names seen in the look‑through holdings.
True holdings
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NV NVIDIA Corporation 4.82%
Part of fund(s):- Schwab U.S. Broad Market ETF
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AA Apple Inc 4.04%
Part of fund(s):- Schwab U.S. Broad Market ETF
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MS Microsoft Corporation 3.22%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
AM Amazon.com Inc 2.23%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
GO Alphabet Inc Class A 1.92%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
AV Broadcom Inc 1.66%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
GO Alphabet Inc Class C 1.53%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
ME Meta Platforms Inc. 1.48%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
TS Tesla Inc 1.20%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Broad Market ETF
-
BR Berkshire Hathaway Inc 0.98%
Part of fund(s):- Schwab U.S. Broad Market ETF
- Top 10 total 23.08%
Looking through the ETFs, the largest underlying exposures are familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire. These show up because broad index funds are weighted by company size, so the biggest firms naturally dominate. There’s some overlap where the same company appears in both U.S. and international funds via cross‑listings or related structures, although overlap is understated since only ETF top‑10 data are used. The hidden message: even with just two funds, there’s still a meaningful concentration in a handful of huge companies that drive a lot of index performance, which is normal for cap‑weighted indexing but worth understanding before market swings hit these names.
Factors
Factor exposure shows strong signals in size, low volatility, and momentum. Factors are like underlying “personality traits” of investments—such as cheapness (value), trendiness (momentum), or stability (low volatility)—that research has linked to returns over decades. A size exposure tilt here mainly reflects broad indexing across company sizes, while the low volatility and momentum tilts suggest the portfolio leans a bit toward steadier and trending stocks relative to a purely neutral baseline. Momentum can help in strong, trending markets but can hurt when trends abruptly reverse. Low volatility can soften some swings but doesn’t eliminate risk. Signal coverage isn’t complete, so these readings are approximate; still, the overall factor mix points to a balanced, slightly quality‑oriented equity profile.
Risk contribution
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Schwab U.S. Broad Market ETF
Weight: 70.00% 72.8% -
Schwab International Equity ETF
Weight: 30.00% 27.2%
Risk contribution measures how much each holding adds to the overall portfolio’s ups and downs, which can differ from its simple weight. Here, the U.S. ETF is 70% of the portfolio but contributes about 73% of the total risk, while the international ETF is 30% of the weight and roughly 27% of the risk. That’s very close to proportional, suggesting no hidden “risk hogs” between the two funds. In other words, risk is shared about how you’d expect from the weights. If someone ever wanted to dial risk up or down, adjusting the split between these two ETFs would directly and predictably shift the portfolio’s overall volatility 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.
On the risk‑return chart, the current portfolio has an expected return of 13.4% with volatility of 17.37% and a Sharpe ratio of 0.66. The Sharpe ratio measures return per unit of risk, similar to how much “miles per gallon” you’re getting from the volatility taken. The current mix sits on the efficient frontier, meaning that for its risk level, it’s already using these two funds in a very efficient way. There is a slightly higher Sharpe ratio available at a bit higher risk (the “optimal” point), and a slightly calmer option at lower expected return (minimum variance). The key message: the current allocation is already efficient, and any change would be more about personal risk preference than fixing a flaw.
Dividends
- Schwab U.S. Broad Market ETF 1.20%
- Schwab International Equity ETF 3.40%
- Weighted yield (per year) 1.86%
The blended dividend yield is about 1.86%, with the U.S. side yielding around 1.2% and the international side closer to 3.4%. Dividends are cash payments from companies and form a steady part of total return, especially over long periods when they’re reinvested. For a 100% stock portfolio, this yield is pretty typical, especially given today’s market valuations and the tech tilt, since many growth‑oriented companies pay lower dividends. The takeaway is that this portfolio is geared more toward capital appreciation than high current income. Over time, reinvesting those modest but consistent dividends can quietly boost compounding even if they don’t feel large year to year.
Ongoing product costs
- Schwab U.S. Broad Market ETF 0.03%
- Schwab International Equity ETF 0.06%
- Weighted costs total (per year) 0.04%
Total ongoing fund costs (TER) are impressively low at about 0.04% per year. TER, or total expense ratio, is the annual fee charged by funds as a percentage of your investment—like a small, automatic service charge. Staying this low is a major strength because fees come off returns every year, and small differences compound meaningfully over decades. Many investors pay 0.3%–1% or more, so 0.04% is extremely efficient. This cost structure strongly supports better long‑term performance and keeps more market return in your hands. In terms of expenses, this setup is already very close to best‑in‑class and doesn’t really need improvement.
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