Broad low cost global stock mix with strong diversification and efficient risk return profile
Report created on Jul 21, 2024Risk profile
4/7
Diversification profile
4/5
Positions
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SP SPDR® Portfolio S&P 1500 Composite Stock Market ETF
SPTM - US78464A8053 60.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 40.00%
The portfolio is built from just two broad stock index ETFs, with roughly 60% in a total US market fund and 40% in a total international fund. That creates a simple, “own almost everything” approach while still being easy to manage. Structurally, it mirrors how many large institutions and target-date funds build their equity slice. Having only stocks means it targets growth rather than capital stability, so short‑term swings can be meaningful. The big takeaway is that this is a clean, straightforward equity structure: globally diversified, growth‑oriented, and very easy to maintain over time without constantly tweaking individual positions.
Growth
From 2016 to early 2026, $1,000 grew to about $3,033, giving a compound annual growth rate (CAGR) of 11.77%. CAGR is the “average speed” of growth per year, smoothing out ups and downs. The max drawdown of about -34% shows the worst peak‑to‑trough fall, which is typical for an all‑stock mix during major selloffs. Compared to the US market, returns were modestly lower, but they slightly beat the global market. That’s consistent with a blend of US and international stocks. The main takeaway: the portfolio delivered strong long‑term growth with volatility roughly in line with broad equity markets.
Asset classes
- Stocks 100%
All of the allocation sits in stocks, with no bonds, cash, or alternative assets. That makes the portfolio highly focused on long‑term growth but also fully exposed to equity market swings. In calmer times, this can feel comfortable, but during sharp drawdowns, there is no defensive ballast to cushion declines. Relative to a typical “balanced” allocation that mixes stocks and bonds, this is more aggressive. The main takeaway: this structure suits investors who can ride through substantial short‑term drops in pursuit of higher long‑run returns, but it relies on emotional discipline during bear markets.
Sectors
- Technology 26%
- Financials 16%
- Industrials 12%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is fairly broad, with the largest share in technology and sizable allocations to financials, industrials, consumer areas, health care, and telecom. This pattern is quite close to major global equity benchmarks, which is a strong indicator of diversification. A tech tilt means returns can be more sensitive to growth expectations and interest rates; tech‑heavy markets often do better when rates are stable or falling and can wobble when borrowing costs jump. Still, no single sector dominates excessively. The key takeaway: sector balance is solid and benchmark‑like, supporting diversified growth without an extreme bet on any one economic theme.
Regions
- North America 63%
- Europe Developed 15%
- Japan 6%
- Asia Developed 6%
- Asia Emerging 6%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 63% is in North America with the rest spread across Europe, Japan, other developed Asia, emerging Asia, Australasia, and small slices of Africa/Middle East and Latin America. This split is reasonably close to a market‑cap‑weighted view of global equities, where the US naturally dominates but other regions still have a meaningful role. Such a pattern helps reduce reliance on any single economy or currency over the very long term. The big takeaway: geographic diversification is broad and well‑aligned with global standards, which is a healthy foundation for long‑horizon equity investing.
Market capitalization
- Mega-cap 45%
- Large-cap 31%
- Mid-cap 17%
- Small-cap 5%
- Micro-cap 1%
The portfolio leans heavily into mega‑ and large‑cap companies, which together make up more than three‑quarters of exposure, with the remainder in mid, small, and micro caps. This profile is typical of market‑cap‑weighted index funds, where giants dominate the index by design. Large companies often have more stable earnings and deeper markets, which can slightly dampen volatility, while the smaller slice in mid/small caps adds some extra growth potential and diversification. The takeaway: the size mix tracks broad markets well, giving a core of established firms with a modest satellite of smaller, potentially faster‑growing businesses.
True holdings
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NV NVIDIA Corporation 4.16%
Part of fund(s):- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
-
AA Apple Inc 3.63%
Part of fund(s):- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
-
MS Microsoft Corporation 2.81%
Part of fund(s):- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
-
AM Amazon.com Inc 1.98%
Part of fund(s):- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
-
GO Alphabet Inc Class A 1.74%
Part of fund(s):- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
-
AV Broadcom Inc 1.45%
Part of fund(s):- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
-
GO Alphabet Inc Class C 1.37%
Part of fund(s):- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.37%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.28%
Part of fund(s):- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
-
TS Tesla Inc 1.02%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- SPDR® Portfolio S&P 1500 Composite Stock Market ETF
- Top 10 total 20.80%
Looking through the ETFs, the biggest underlying exposures are familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, TSMC, Meta, and Tesla. These appear because broad index funds are weighted by company size, so the largest firms naturally dominate the top holdings. Several names show up via both ETFs, which adds some hidden concentration in global tech leaders even though there are only two funds. Overlap is likely higher than shown because we only see ETF top‑10s. The takeaway: despite broad diversification, portfolio behavior will be meaningfully influenced by the largest global technology and platform companies.
Factors
Factor exposures — value, size, momentum, quality, yield, and low volatility — all sit in a neutral, market‑like range. Factor exposure is basically how much a portfolio leans into certain characteristics that research links to returns and risk, like favoring cheap stocks (value) or steady companies (quality). Here, no factor stands out as a big tilt either toward or away. That means behavior should roughly mirror the broad global stock market rather than acting like a specialized “factor” strategy. The main implication: results will be driven more by overall market direction than by any targeted style bets, which keeps things simple and predictable.
Risk contribution
-
SPDR® Portfolio S&P 1500 Composite Stock Market ETF
Weight: 60.00% 62.2% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 40.00% 37.8%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weight. Here, the 60% US ETF contributes about 62% of total risk, while the 40% international ETF contributes around 38%. That near one‑to‑one relationship suggests no hidden risk outlier; each fund’s volatility is broadly in line with its size in the portfolio. This alignment is a positive sign that position sizing already reflects how bumpy each segment tends to be. The big takeaway: risk is shared between the two funds in a balanced way, without one quietly dominating the ride.
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 mix sits right on or very close to the efficient frontier, with a Sharpe ratio of 0.61. The Sharpe ratio compares return to volatility, like measuring how much reward you get per unit of bumpiness. An “optimal” portfolio of the same holdings but slightly different weights would improve the Sharpe to about 0.74 with a bit more risk, while the minimum‑variance mix offers slightly lower risk and return. Since your current allocation is already efficient for its risk level, there’s no clear need to change holdings; any tweaks would be about fine‑tuning preferences, not fixing flaws.
Dividends
- SPDR® Portfolio S&P 1500 Composite Stock Market ETF 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 1.92%
The blended dividend yield is about 1.92%, coming from roughly 1.2% on the US side and 3.0% internationally. Dividends are the cash payouts companies share with investors, and over long horizons they contribute a meaningful slice of total return, especially when reinvested. A moderate yield like this fits a growth‑oriented global equity portfolio: it adds a steady income component without sacrificing exposure to companies that reinvest heavily for expansion. The key takeaway: while this setup is not a high‑income approach, the dividend stream provides a helpful baseline return that can compound alongside price appreciation.
Ongoing product costs
- SPDR® Portfolio S&P 1500 Composite Stock Market ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
Total ongoing costs are impressively low at about 0.04% per year, thanks to the ultra‑cheap ETFs used. The total expense ratio (TER) is like a small annual membership fee taken directly from fund assets. Over decades, shaving even a few tenths of a percent can add up to thousands of dollars, because lower drag allows compounding to work harder. Being this close to the lowest costs available is a major strength and aligns with best practices followed by many large institutional investors. The main takeaway: the fee structure strongly supports long‑term performance by minimizing avoidable friction.
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