Global index portfolio with broad stock diversification and very low ongoing costs
Report created on Aug 3, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 62.50% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 37.50%
This portfolio is built from just two broad stock index ETFs, one covering the total US market and the other covering international stocks. The split of about 63% domestic and 38% international creates a simple structure that still reaches thousands of companies worldwide. Everything is in equities, with no bonds or cash positions included in the allocation. A two-fund setup like this is easy to understand and maintain while still capturing a large share of global market activity. The high equity share means growth potential is tied closely to how global businesses perform, and portfolio ups and downs will largely mirror global stock markets over time.
Growth
Over the period shown, a $1,000 investment grew to about $3,324, which works out to a Compound Annual Growth Rate, or CAGR, of 12.82%. CAGR is like an average yearly “speed” over the whole journey, smoothing out the bumps. The worst peak‑to‑trough drop was around -34.5% during early 2020, similar in depth and recovery time to major global indices. Compared with the US market benchmark, the portfolio lagged a bit, but it slightly outpaced the global market benchmark. This pattern is consistent with having meaningful non‑US exposure during a decade when US stocks were especially strong.
Projection
The Monte Carlo projection uses many random simulations based on historical behavior to estimate a range of future outcomes. Think of it as replaying many alternate histories where returns vary from year to year, instead of assuming a smooth path. Here, the median outcome turns $1,000 into about $2,758 over 15 years, with a wide “middle band” from roughly $1,794 to $4,330. There are also more extreme but less likely paths on both the high and low side. These numbers are not promises; they simply show what could happen if markets behave in ways broadly similar to the past, reminding that risk and uncertainty are always present.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with no allocation to bonds, cash, or alternative assets. That makes the asset class mix straightforward: it is fully exposed to equity market growth and equity market risk. In contrast, many blended portfolios include some bonds, which tend to move differently from stocks and can dampen volatility. A 100% stock allocation means there is no built‑in cushion from more stable asset classes during market downturns. The flip side is that the portfolio captures the full long‑term return potential of global equities, so swings will be larger but so will the direct link to company earnings and global economic trends.
Sectors
- Technology 31%
- Financials 16%
- Industrials 12%
- Consumer Discretionary 9%
- Health Care 9%
- Telecommunications 7%
- Consumer Staples 4%
- Basic Materials 4%
- Energy 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is spread across the economy, with technology the largest slice at about 31%, followed by meaningful weights in financials, industrials, consumer areas, and health care. This pattern broadly reflects how today’s stock markets are structured, where tech and related industries have grown to be big portions of major indices. A sizable tech weight can boost returns when innovation and growth companies are in favor, but it can also amplify volatility when interest rates rise or sentiment turns against high‑growth businesses. The presence of smaller but still noticeable stakes in sectors like energy, utilities, and real estate adds some balance across economic cycles.
Regions
- North America 65%
- Europe Developed 13%
- Asia Developed 7%
- Japan 6%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 65% of the portfolio is in North America, with the rest spread across developed Europe, Asia, Japan, and a smaller slice in emerging regions. This is reasonably close to global market weights, where US and Canadian companies also dominate total stock market value. The result is a portfolio that’s anchored in North America but still meaningfully exposed to other major economies. That mix helps reduce dependence on any single region’s growth, policy decisions, or currency moves. At the same time, the strong North American tilt means portfolio performance will still be heavily influenced by how that region’s markets and economy behave.
Market capitalization
- Mega-cap 42%
- Large-cap 30%
- Mid-cap 18%
- Small-cap 6%
- Micro-cap 2%
By market capitalization, the portfolio leans toward larger companies, with mega‑caps and large‑caps making up around 72%, while mid‑caps, small‑caps, and micro‑caps fill out the rest. Market cap simply measures a company’s total value in the stock market, and broad index funds usually weight holdings by this size. Bigger companies tend to be more established and less volatile than the smallest names, which can make returns a bit more stable than a portfolio heavily tilted to small‑caps. Including mid and smaller companies, even at lower percentages, still adds exposure to different growth profiles and business stages across the corporate landscape.
True holdings
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NV NVIDIA Corporation 3.95%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc. 3.65%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.38%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 1.98%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.80%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.58%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
AV Broadcom Inc 1.54%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.42%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MU Micron Technology Inc 1.12%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.06%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 20.48%
Looking through the ETFs, the largest underlying holdings include well‑known global firms like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. Several of these appear in both funds, so there is some overlap that increases effective exposure to a handful of mega‑cap companies. Because only top‑10 ETF holdings are shown, this overlap is likely understated compared with the true picture. Hidden concentration in a few giants means those companies can have an outsized impact on overall portfolio performance, especially around big news events or sector swings. Still, they sit within very broad index funds, so no single stock dominates the total allocation.
Factors
Factor exposures across value, size, momentum, quality, yield, and low volatility all sit in the neutral range, close to market averages. Factors are like underlying “personality traits” of stocks that research has linked to long‑term return patterns. A neutral profile means this portfolio doesn’t lean strongly into or away from any of these traits; it mostly reflects the broad market’s mix. In practice, that suggests performance is likely to track the general equity market rather than behave very differently in specific environments. There is no pronounced tilt that might help or hurt dramatically under certain market conditions, which keeps behavior relatively straightforward.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 62.50% 65.2% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 37.50% 34.8%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the US total market ETF makes up about 62.5% of the allocation but contributes around 65% of the total risk, slightly more than its size alone would suggest. The international ETF contributes a bit less risk than its weight. This pattern is consistent with US equities having been somewhat more volatile or differently correlated than international stocks over the measured period. Overall, risk is still shared fairly proportionally between the two funds, with no single position dominating risk in an extreme way.
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 shows the current portfolio lying on or very close to the frontier, meaning that for its level of risk, it’s using the available holdings effectively. The Sharpe ratio, which compares excess return to volatility, is 0.55 for the current mix, while the maximum‑Sharpe combination of these same two ETFs reaches 0.78 at slightly higher risk. The minimum‑variance blend carries a little less risk with a Sharpe around 0.63. Since the existing allocation already sits near the efficient curve, the overall tradeoff between risk and return is reasonably well balanced using just these two building blocks.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.60%
- Weighted yield (per year) 1.66%
The portfolio’s overall dividend yield is about 1.66%, combining a lower yield from the US total market ETF and a higher yield from the international ETF. Dividend yield is the annual cash payout as a percentage of the investment’s price, similar to rent from a property relative to its value. Here, income is a modest but steady component of total return, with most long‑term growth likely coming from price appreciation rather than payouts. International markets currently contribute more of the dividend income, reflecting different corporate payout habits globally. Reinvested dividends can quietly add to long‑term compounding over time.
Ongoing product costs
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
Total ongoing fund costs, as measured by the Total Expense Ratio (TER), average around 0.04% per year, which is impressively low. TER is the annual fee charged by the fund provider, taken directly from fund assets, a bit like a small service fee baked into the price. Keeping costs this low means that more of the portfolio’s gross returns stay in the investor’s pocket instead of going to fees. Over long periods, even small differences in costs can compound into meaningful amounts, so this cost structure is a real positive. The portfolio aligns well with best practices around low‑fee, index‑based investing.
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