Global stock portfolio with strong diversification and a tilt toward steadier lower volatility equity behavior
Report created on May 31, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 80.00% -
AV Avantis ALL Equity Markets Value ETF
AVGV - US0250722164 20.00%
This portfolio is extremely simple: two equity ETFs, with about 80% in a broad global stock index and 20% in an all‑equity value‑focused fund. That means every dollar is invested in stocks, but spread across thousands of companies through the funds. Structurally, this keeps the portfolio easy to understand and maintain while still capturing a wide slice of global markets. The large core “total world” position basically mirrors the global stock market. The added value ETF slightly tilts the overall mix toward companies trading at lower prices relative to fundamentals, without overwhelming the core. Overall, the structure points to a globally diversified equity portfolio with one clear, intentional style tilt layered on top.
Growth
Over the period shown, $1,000 grew to $1,747, which implies a Compound Annual Growth Rate (CAGR) of 21.17%. CAGR is like the average yearly “speed” of growth over the whole trip, smoothing out bumps along the way. The portfolio’s max drawdown of -16.57% means the largest peak‑to‑trough drop was about one‑sixth of its value before recovering. Compared to benchmarks, it slightly lagged the US market but edged out the global market, with similar or slightly smaller drawdowns. Only 24 days made up 90% of returns, highlighting how a handful of strong days drove most gains. This underlines how missing just a few big up days can dramatically change long‑term outcomes.
Projection
The Monte Carlo projection uses 1,000 simulated paths based on historical returns and volatility to estimate a range of future outcomes. Think of it as rolling the dice many times on possible market paths while keeping the broad risk and return profile similar to history. The median outcome grows $1,000 to about $2,821 over 15 years, with a central range from roughly $1,873 to $4,325. The very wide 5th–95th percentile band ($973–$7,926) shows how uncertain long‑term equity results can be. The average simulated annual return of 8.26% is comfortably above the assumed cash line. Still, simulations are not forecasts; they rely on past patterns persisting, which can change due to new economic or market regimes.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with no bonds, cash, or alternatives listed. That creates a very “pure” equity exposure where returns largely rise and fall with global corporate earnings and valuations. From a diversification angle, all the variety comes from differences among stocks rather than across asset classes. Compared to many broad benchmarks that mix in bonds or other assets, this is more growth‑oriented and typically more volatile. The high diversification score reflects breadth within equities, not across asset types. In practice, this setup can capture long‑term stock market growth but also means portfolio swings are closely tied to equity market ups and downs without a built‑in stabilizer from bonds.
Sectors
- Technology 25%
- Financials 17%
- Industrials 13%
- Consumer Discretionary 11%
- Telecommunications 8%
- Health Care 7%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 5%
- Utilities 2%
- Real Estate 2%
Sector exposure is broadly spread, with technology as the largest slice around a quarter of the portfolio, followed by meaningful stakes in financials, industrials, and consumer‑related areas. Smaller allocations to health care, energy, staples, materials, utilities, and real estate round out the mix. This pattern looks broadly similar to many global equity benchmarks where technology is prominent but not overwhelmingly dominant. Tech‑heavy segments can react strongly to changes in interest rates and growth expectations, while financials and industrials often respond more to economic cycles. The relatively balanced spread across many sectors helps reduce the impact of any one industry’s downturn. This alignment with common global sector weights is a strong indicator of healthy diversification inside the equity bucket.
Regions
- North America 64%
- Europe Developed 14%
- Asia Developed 6%
- Japan 6%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio has a clear tilt toward North America at 64%, with Europe Developed at 14%, Japan and Asia Developed together at 12%, and smaller slices in emerging regions and other areas. This pattern closely resembles many global stock indices, where US and North American companies dominate overall market value. The benefit is alignment with the global market’s current composition, which has historically been driven heavily by large North American firms. The trade‑off is that portfolio behavior will be strongly influenced by North American economic conditions and currency moves, even though there is still meaningful exposure to Europe and Asia. Having at least modest stakes in emerging and smaller regions adds some diversification beyond the largest markets.
Market capitalization
- Mega-cap 38%
- Large-cap 29%
- Mid-cap 21%
- Small-cap 8%
- Micro-cap 2%
The portfolio leans toward the biggest companies, with 38% in mega‑caps and 29% in large‑caps, while mid‑caps, small‑caps, and micro‑caps together make up about 31%. This structure mirrors a typical market‑cap‑weighted global index, where the largest firms naturally take up more space. Larger companies often have more stable earnings and better access to capital, which can lead to relatively smoother performance compared with smaller, more volatile firms. The meaningful but smaller slice in mid and small caps adds some potential for higher growth and more idiosyncratic returns. Overall, the size mix points to a mostly large‑company portfolio with a secondary layer of smaller firms rather than a strong small‑cap tilt.
True holdings
-
NV NVIDIA Corporation 3.32%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 2.99%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 2.15%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 2.05%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.61%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 1.37%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.26%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.20%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.15%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.77%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 17.87%
Looking through the ETFs, the top underlying positions include familiar global giants like NVIDIA, Apple, Microsoft, Amazon, Alphabet (both share classes), Broadcom, Taiwan Semiconductor, Meta, and Tesla. Together, these top holdings are a modest share of the total portfolio, and coverage data shows more than 60% of holdings sit beyond the published top‑10 lists. That means actual diversification is broader than what’s visible here. Still, several of these companies appear across both funds, which creates some overlap and a mild hidden concentration in mega‑cap growth names. Since only top‑10 ETF holdings are captured, overlap is likely understated, but even this partial view confirms meaningful exposure to a handful of very large, influential companies.
Factors
Factor exposure is broadly balanced, with value, size, momentum, quality, and yield all showing neutral readings around the market average. In factor terms, that suggests the portfolio behaves a lot like a broad global index rather than a specialized factor strategy, despite the value‑tilted sub‑fund. The main notable tilt is toward low volatility at 62%, which indicates a mild preference for stocks that historically have had smaller price swings. Factor exposure describes how much the portfolio leans into these characteristics, which research links to long‑term return drivers. A higher low‑volatility tilt can sometimes soften drawdowns relative to a pure market portfolio, though it may lag during aggressive, speculative rallies. Overall, the factor mix points to a steady, diversified equity profile.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 80.00% 80.0% -
Avantis ALL Equity Markets Value ETF
Weight: 20.00% 20.0%
Risk contribution shows each holding’s share of the portfolio’s overall ups and downs, which can differ from its weight. Here, the picture is very straightforward: the world stock ETF is 80% of the portfolio and contributes about 80% of total risk, while the value ETF is 20% and contributes about 20% of risk. That one‑to‑one relationship (risk/weight near 1.0 for both) indicates neither fund is disproportionately volatile relative to its size. There are no hidden hotspots where a small position quietly drives a large chunk of risk. All portfolio risk effectively comes from these two diversified building blocks, and their relative impact on volatility mirrors their dollar allocations almost exactly.
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 compares risk (volatility) and expected return combinations using just the existing holdings. The current portfolio has a Sharpe ratio of 1.14, while the optimal and minimum‑variance portfolios both show a higher Sharpe of 1.35 at almost identical risk levels. The Sharpe ratio is a simple measure of risk‑adjusted return: how much extra return you get for each unit of volatility above the risk‑free rate. Since the current mix sits on or very near the efficient frontier, it’s already using these two funds in a highly efficient way. The takeaway is that, given just these holdings, the portfolio’s risk/return positioning is strong and doesn’t show obvious waste in how risk is being taken.
Dividends
- Avantis ALL Equity Markets Value ETF 1.90%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- Weighted yield (per year) 1.66%
The combined dividend yield for the portfolio is about 1.66%, with the value ETF yielding slightly more than the total world fund. Dividend yield is the annual cash payout from holdings as a percentage of current value, similar to rent on a property relative to its price. For a 100% equity portfolio, this is a modest income stream, meaning most of the expected return comes from price appreciation rather than cash distributions. The slightly higher yield on the value‑tilted fund nudges the overall yield up a bit but doesn’t transform the portfolio into an income‑heavy strategy. In practice, dividends here act as a small but steady component of total return rather than the main driver.
Ongoing product costs
- Avantis ALL Equity Markets Value ETF 0.26%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.11%
The weighted ongoing cost (TER) of the portfolio is very low at about 0.11% per year, thanks to the 80% allocation to the 0.07% total world ETF and the modest 20% slice in the 0.26% value ETF. TER, or Total Expense Ratio, is the annual fee charged by the funds, taken directly out of returns. Even small differences in costs compound significantly over long periods, so keeping these low helps more of the portfolio’s gross returns reach the investor. Compared with typical active or higher‑fee funds, this cost level is impressively low and clearly supports better long‑term performance potential. From a fee perspective, the structure is a real strength of this portfolio.
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