Globally diversified stock portfolio balancing US exposure with strong allocation to international markets
Report created on Jul 4, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
VE Vanguard FTSE All-World ex-US Index Fund ETF Shares
VEU - US9220427754 50.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 50.00%
This portfolio is extremely simple in structure, holding just two broad stock index ETFs at 50% each. One fund owns the total global stock market, while the other focuses on stocks outside the US, so together they create a globally diversified all‑equity mix. Simplicity like this matters because it makes the overall risk profile easier to understand and track over time. With no bonds or alternatives in the mix, the portfolio is fully exposed to stock market ups and downs, which helps explain its “balanced” but equity‑heavy risk score of 4/7. The even 50/50 split also means each ETF has an almost identical impact on overall behaviour.
Growth
From mid‑2016 to mid‑2026, a hypothetical $1,000 investment grew to about $2,995, which is an annualized, or compound, return (CAGR) of 11.63%. CAGR is like your average driving speed over a long road trip, smoothing out all the stops and accelerations. Over the same period, both the US market and global market grew faster, so this portfolio underperformed by 3.79 and 1.34 percentage points per year respectively. The max drawdown, or worst peak‑to‑trough fall, was about ‑34%, very similar to the benchmarks. That shows the portfolio’s downside has been in line with broad markets, even if the upside lagged somewhat.
Projection
The Monte Carlo simulation projects many possible 15‑year paths by randomly re‑mixing past returns, rather like shuffling and re‑dealing the same deck of historical cards. Across 1,000 simulations, the median outcome takes $1,000 to about $2,777, with most results falling between roughly $1,796 and $4,226. The average simulated annual return is 8.15%, and about three‑quarters of the runs end with a positive result. These numbers are not forecasts or guarantees; they just show the range of outcomes that would have been possible if the future behaved like the past. Real‑world results can be better or worse, especially if markets experience new kinds of shocks.
Asset classes
- Stocks 100%
Every dollar here is in stocks, so the asset class mix is 100% equities and 0% bonds, cash, or alternatives. Asset classes are broad buckets like stocks, bonds, and real estate that tend to react differently to economic conditions. A single‑asset‑class portfolio can move more sharply because there is nothing structurally offsetting stock market swings. Compared with many “balanced” portfolios that blend equities with fixed income, this one leans much more toward growth and volatility. The upside is that it fully captures global equity returns; the trade‑off is that there’s no built‑in cushion from other asset types during market stress.
Sectors
- Technology 23%
- Financials 20%
- Industrials 14%
- Consumer Discretionary 9%
- Health Care 8%
- Telecommunications 6%
- Basic Materials 6%
- Consumer Staples 5%
- Energy 5%
- Utilities 3%
- Real Estate 2%
Sector exposure is quite broad, with notable weights in technology, financials, and industrials, and meaningful slices in areas like consumer, health care, telecoms, and energy. This spread resembles diversified global equity benchmarks, which is a strong sign of sector diversification. Technology is the largest slice at 23%, so tech trends and innovation cycles may stand out in performance, but no single sector appears overwhelmingly dominant. Sector balance matters because different parts of the economy tend to lead and lag at different times. A portfolio that roughly mirrors the sector mix of the global market tends to avoid over‑reliance on one economic story.
Regions
- North America 37%
- Europe Developed 25%
- Asia Developed 11%
- Japan 10%
- Asia Emerging 9%
- Australasia 3%
- Africa/Middle East 2%
- Latin America 2%
- Europe Emerging 1%
Geographically, the portfolio is genuinely global: around 37% in North America, 25% in developed Europe, and meaningful exposure across developed and emerging Asia, Japan, Australasia, and smaller regions. This looks more spread out internationally than a typical world index, which is usually more heavily US‑tilted. Geographic diversification helps reduce the impact of any single country’s economic or political issues because different regions can be at different points in their cycles. It also spreads currency exposure. In practice, this means the portfolio doesn’t live or die by one market; returns are influenced by a wide range of global economies.
Market capitalization
- Mega-cap 48%
- Large-cap 32%
- Mid-cap 16%
- Small-cap 3%
Market‑cap exposure leans heavily toward the largest companies, with about 48% in mega‑caps and 32% in large‑caps, while mid‑caps and small‑caps make up a smaller share. Market capitalization simply reflects a company’s total stock market value; bigger firms often have more diversified businesses and, historically, somewhat lower volatility than very small companies. This size mix is broadly similar to global equity benchmarks, so it aligns well with standard index investing. The relatively modest small‑cap exposure means less sensitivity to the often bumpier ride of tiny firms, while still maintaining some participation in that part of the market.
True holdings
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 2.87%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
NV NVIDIA Corporation 2.09%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc. 1.90%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 1.41%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.10%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.95%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
SS Samsung Electronics Co Ltd 0.89%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
-
AV Broadcom Inc 0.87%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 0.74%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AS ASML Holding N.V. 0.70%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
- Top 10 total 13.49%
Looking through the ETFs into their top holdings, the biggest underlying names are familiar global leaders like Taiwan Semiconductor, NVIDIA, Apple, Microsoft, Amazon, Alphabet, Samsung, Broadcom, and ASML. Together, the top ten underlying holdings account for only a small percentage of the overall portfolio, and there’s no single name that dominates. Some companies appear in both ETFs, so there is a bit of overlap, especially in large global tech and semiconductor firms, which slightly increases hidden concentration in those areas. Because only top‑10 holdings are visible, the actual overlap is likely somewhat higher, but still spread across many names.
Factors
Factor exposure is broadly balanced, with most factors sitting around “neutral,” meaning close to the global market average. The one mild standout is value at 61%, which suggests a slight tilt toward cheaper stocks based on fundamentals like earnings or book value. Factor exposure is like checking which “ingredients” drive a portfolio’s behaviour beyond basic sector and region splits. A modest value lean can sometimes help when cheaper parts of the market recover or outperform, but it can lag during long stretches when investors favour fast‑growing, expensive stocks. Overall, this portfolio behaves a lot like a standard broad market index.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 50.00% 50.2% -
Vanguard FTSE All-World ex-US Index Fund ETF Shares
Weight: 50.00% 49.8%
Risk contribution, which measures how much each holding adds to total ups and downs, is almost perfectly aligned with weights: each ETF is 50% of the portfolio and contributes about half of the risk. This one‑to‑one relationship happens because both funds are broadly diversified and have similar volatility. It also shows there are no hidden “hot spots” where a smaller‑looking position dominates risk. With just two very broad funds, overall portfolio risk is essentially the same as global stock market risk, rather than being driven by any single theme or niche exposure. That simplicity makes the risk profile easier to monitor.
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 sits on or very close to the efficient frontier, which is the curve showing the best expected return for each risk level using these two funds. The Sharpe ratio, a measure of return per unit of risk, is 0.5 for the current mix and higher (0.73) for the mathematically optimal combination. However, the minimum‑variance and current portfolios share the same risk and return, confirming this allocation is already highly efficient. In plain terms, given these two holdings and their history, the portfolio is using them in a way that balances risk and reward effectively.
Dividends
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 2.60%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- Weighted yield (per year) 2.10%
The blended dividend yield is about 2.1%, combining a higher yield from the ex‑US fund and a lower one from the total world fund. Dividend yield is just the annual cash payout as a percentage of price, and it forms part of total return alongside price changes. This level of income is typical for a broad global stock portfolio and reflects a mix of mature, dividend‑paying companies and growth firms that reinvest profits instead of paying them out. While dividends can provide a modest cash stream, their value here is mostly as a steady background contributor rather than a dominant performance driver.
Ongoing product costs
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.07%
Both ETFs charge a very low ongoing fee of 0.07%, giving the whole portfolio an impressively low cost profile. This annual charge, often called the Total Expense Ratio (TER), is taken inside the fund and quietly reduces returns each year. Low costs are one of the few things investors can control and tend to compound into a meaningful edge over long periods. Compared with many actively managed or niche funds, this fee level is well below average and aligns with best‑in‑class index investing practices. In short, the portfolio’s cost structure is a real strength supporting long‑term performance.
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