Two fund global stock portfolio with broad diversification and efficient risk level for long term growth
Report created on Apr 20, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 50.00%
This portfolio is extremely simple: two broad stock index ETFs split 50/50 between US and international markets. That means every dollar is fully invested in equities, with no bonds or cash included in the structure. The US fund covers almost the entire domestic stock market, while the international fund spreads across developed and emerging markets outside the US. This kind of “total market plus total international” mix is a classic way to build very wide coverage with minimal moving parts. The equal split also means neither side dominates the portfolio, so returns reflect both US and non‑US stock performance in roughly equal measure over time.
Growth
Over the last decade, a $1,000 investment in this mix grew to about $3,111, which works out to a 12.07% compound annual growth rate (CAGR). CAGR is like your average speed on a long road trip, smoothing out the bumps. That’s slightly behind the US market alone, which was unusually strong at 14.79%, and almost identical to the global market at 12.16%. The portfolio’s worst drop, or max drawdown, was about -34%, similar to the benchmarks. This shows that while it fully shares stock-market ups and downs, its long‑run growth has closely tracked a broad global equity experience rather than chasing any single region’s surge.
Projection
The Monte Carlo projection uses many random simulations based on historical patterns to estimate a range of future outcomes. Think of it as rolling the dice 1,000 times with past volatility and returns as inputs, not as a prediction. Here, the median outcome turns $1,000 into around $2,718 after 15 years, with a wide “likely” range from roughly $1,794 to $4,334. There’s also a 73.5% chance of finishing with more than the starting amount. These numbers highlight that even diversified stock portfolios can end much higher or only modestly higher, and history-based simulations can’t capture future shocks, policy changes, or structural market shifts.
Asset classes
- Stocks 100%
All of this portfolio sits in one asset class: stocks. There are no bonds, cash, or alternatives in the mix. That’s important because asset classes are the main drivers of risk and return; with 100% equities, the portfolio leans toward higher growth potential but also higher short‑term swings. Compared with many “balanced” mixes that blend stocks and bonds, this structure is more growth‑oriented and less cushioned during market sell‑offs. The positive side is very straightforward exposure: performance is almost entirely explained by global stock markets, without the extra complexity or dampening effect of fixed income or other diversifiers that behave differently in stressful periods.
Sectors
- Technology 24%
- Financials 17%
- Industrials 13%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 7%
- Consumer Staples 5%
- Basic Materials 5%
- Energy 4%
- Utilities 3%
- Real Estate 3%
Sector-wise, the portfolio is spread across the full economy, with technology the largest slice at 24%, followed by financials at 17% and industrials at 13%. No single sector dominates excessively, and the proportions look broadly similar to global equity benchmarks. A tech-leaning but not extreme allocation is common in modern stock markets, since many large companies operate in that space. This balance means performance is influenced by a wide set of business drivers: interest rates, consumer spending, manufacturing, healthcare innovation, and more. When one segment struggles—say, energy or financials—others can partially offset it, supporting diversification within the equity bucket itself.
Regions
- North America 54%
- Europe Developed 18%
- Japan 8%
- Asia Developed 7%
- Asia Emerging 7%
- Australasia 2%
- Africa/Middle East 2%
- Latin America 1%
Geographically, the portfolio is well spread: around 54% in North America, 18% in developed Europe, with meaningful allocations to Japan, other developed Asia, and emerging markets. This is very close to global stock market weights, which tend to be US‑tilted but still diversified overseas. Such a structure means results depend on many economies and currencies rather than a single country’s fortunes. When US stocks outperform, the North American slice helps; when other regions catch up or lead, the international exposure participates. Currency moves can add noise in the short run, but they’re part of holding a genuinely global stock portfolio that reflects worldwide corporate activity.
Market capitalization
- Mega-cap 44%
- Large-cap 30%
- Mid-cap 18%
- Small-cap 5%
- Micro-cap 1%
The market-cap breakdown shows a strong tilt to very large companies: 44% mega‑cap and 30% large‑cap, with the rest in mid, small, and a touch of micro‑cap. That mirrors how global indexes are built, where the biggest firms naturally take up the most space. Larger companies often have more diversified businesses and more stable access to capital, which can reduce company‑specific risk compared with concentrating in tiny names. The presence of mid and small caps adds exposure to businesses that might grow faster but can be more volatile. Overall, the mix offers a broad spectrum of company sizes without leaning heavily into any one capitalisation bucket.
True holdings
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NV NVIDIA Corporation 3.20%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 2.96%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.19%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.73%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.60%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.33%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.17%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.06%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.00%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.83%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 17.05%
Looking through the ETFs’ top holdings, familiar global giants like NVIDIA, Apple, Microsoft, TSMC, and Amazon appear, together making up a noticeable slice of the covered portion. Several of these names show up in both the US and international funds (for example, dual share classes or cross‑listings), which creates some overlap. That overlap means the portfolio is slightly more exposed to a handful of mega‑cap leaders than a quick ticker list suggests, even though the overall structure is still diversified. Because the look‑through only considers ETF top‑10 holdings, actual overlap across the full lineup is likely higher but remains spread across many companies.
Factors
Factor exposure here is largely market‑like, with value, size, momentum, quality, and yield all sitting in the neutral range around 50–60%. Factor investing looks at traits—like cheapness (value) or recent winners (momentum)—that research links to returns. This portfolio’s main standout is a somewhat higher exposure to low volatility at 61%, a mild tilt toward steadier stocks that historically bounce around a bit less. That doesn’t remove risk, but it can slightly soften some swings compared with a pure market-weighted mix. Otherwise, the factor pattern suggests a broad, core equity portfolio that doesn’t strongly bet on any single style winning or losing.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 50.00% 51.8% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 50.00% 48.2%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which isn’t always the same as its weight. Here, it’s very balanced: the US ETF is 50% of the portfolio and contributes about 52% of risk, while the international ETF is 50% and contributes around 48%. A risk/weight ratio close to 1 for both funds means neither is disproportionately amplifying volatility. In practice, this tells you that day‑to‑day movements are shared fairly evenly between US and non‑US stocks. There isn’t a hidden “risk hog” position, which aligns with the intent of a simple, symmetric two‑fund global equity structure.
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 suggests this portfolio is already on or very close to the best risk/return curve possible using its two holdings. The current allocation has a Sharpe ratio of 0.51, while the maximum Sharpe portfolio hits 0.77 with slightly higher risk, and the minimum‑variance mix has 0.63 with a tad lower risk. The Sharpe ratio measures return per unit of volatility after accounting for a risk‑free rate, like judging how much “extra” you get for each bump in the ride. Being right on or near the frontier means that, for this 100% equity set, the existing 50/50 split is already an efficient trade‑off.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.95%
The combined dividend yield is about 1.95%, coming from roughly 1.10% in the US fund and 2.80% in the international fund. Dividends are cash payments companies make to shareholders, and over long periods they can be a meaningful slice of total return, especially when reinvested. Here, the yield is moderate, consistent with a broad global equity portfolio where some firms prioritize payouts and others reinvest in growth. The higher yield on the international side reflects differences in corporate practices and sector composition abroad. While the main driver of this portfolio’s results is still price movement, the steady income stream adds a small, ongoing component to overall growth.
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%
Costs are impressively low, with a total expense ratio around 0.04% per year. The US ETF charges 0.03% and the international ETF 0.05%. TER is the annual fee taken by the fund provider; it comes out of returns before you see them, like a tiny service charge. In this case, the drag is very small compared with many actively managed funds or higher‑cost products. Over long horizons, keeping fees this low can noticeably preserve more of the portfolio’s gross returns, especially when compounding is involved. From a cost perspective, the structure is highly efficient and supports better long‑term performance relative to more expensive options.
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