A comprehensive look at a globally diversified portfolio with a focus on simplicity and low costs

Report created on Aug 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The Vanguard Total World Stock Index Fund ETF Shares represent a portfolio that is entirely invested in a single ETF, aiming for global stock market exposure. This approach simplifies investment decisions and management but also concentrates risk and opportunity in the performance of one fund. The ETF's composition reflects a broad spectrum of sectors and geographies, with a significant tilt towards technology and financial services. While this single-focused diversification strategy might raise questions about risk concentration, it also aligns with the goal of capturing global market returns through one investment vehicle.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.53%, with a maximum drawdown of -34.21%. These figures suggest a resilient performance through various market conditions, albeit with a notable period of significant value decline. The days contributing most to returns indicate that a small number of trading days drive the majority of gains, a common characteristic of equity investments. Comparing this performance to a diversified benchmark could provide additional context on risk-adjusted returns.

Projection Info

Monte Carlo simulations, using historical data to forecast future performance, suggest a wide range of outcomes for this portfolio. With a median projected growth of 395.4% and a high probability of positive returns in future scenarios, the analysis underscores the potential for substantial growth. However, the reliance on past data limits the projection's ability to predict unforeseen market shifts or global economic changes, emphasizing the importance of ongoing risk assessment.

Asset classes Info

  • Stocks
    98%
  • Cash
    1%

The portfolio's asset allocation leans heavily towards stocks (98%), with a minimal cash holding. This composition underscores a growth-oriented strategy, suitable for investors with a higher risk tolerance. The negligible allocation to other asset classes limits diversification benefits that could mitigate volatility, suggesting a review of the potential to incorporate bonds or alternative investments for risk management.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation reveals a strong emphasis on technology and financial services, which may drive growth but also expose the portfolio to sector-specific downturns. The diversification across other sectors, like industrials and consumer cyclicals, helps balance this concentration to an extent. However, the evolving market landscape and sector performance trends warrant a periodic review to ensure alignment with investment objectives.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with a bias towards mega and large-cap stocks, suggests a preference for established, potentially more stable companies. While this may offer some protection against market volatility, the relatively smaller allocation to mid, small, and micro-cap stocks could limit exposure to high-growth opportunities. Balancing this allocation might enhance returns while managing risk.

Dividends Info

  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.70%

With a total dividend yield of 1.70%, the portfolio provides a modest income stream, contributing to total returns. This yield, while not the primary focus of a growth-oriented strategy, offers a cushion during market volatility. Investors should consider their income needs and whether a higher dividend yield, potentially at the expense of growth, aligns with their investment goals.

Ongoing product costs Info

  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, maximizing the potential for net returns. Keeping costs minimal is crucial for long-term investment success, as fees can significantly erode gains over time. This cost efficiency is a strong aspect of the portfolio, aligning with best practices for maximizing investor returns.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey