Balanced global index portfolio with low costs and a mild tilt toward stability and future growth
Report created on Aug 26, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund Admiral Shares
VTSAX - US9229087286 45.00% -
VT VANGUARD TARGET RETIREMENT 2060 FUND INVESTOR SHARES
VTTSX - US92202E8396 30.00% -
VB Vanguard Total Bond Market Index Fund Admiral Shares
VBTLX - US9219376038 10.00% -
VT VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES
VTIAX - US9219098186 10.00% -
VE VANGUARD EMERGING MARKETS STOCK INDEX FUND ADMIRAL SHARES
VEMAX - US9220428414 5.00%
This portfolio is built mostly from broad Vanguard index funds, with one target-date fund in the mix. About three-quarters sits in two holdings: a total US stock market fund at 45% and a 2060 target-date fund at 30%. The rest spreads across US bonds, international stocks, and emerging markets. Structurally, it’s a fairly simple lineup that leans heavily on low-cost, diversified building blocks. Using both a total market fund and a target-date fund means there is some layering: the target-date fund already holds stocks and bonds inside it. That layering keeps things straightforward to manage but also means the real underlying mix is more stock-heavy than just looking at the bond slice alone might suggest.
Growth
From 2016 to 2026, a hypothetical $1,000 in this portfolio grew to about $3,174. That works out to a compound annual growth rate (CAGR) of 12.32%, meaning the investment grew as if it earned roughly 12.32% every year on average. That’s slightly behind the global market reference and a bit more behind the US market reference, which had a very strong decade. The worst drop, or max drawdown, was about -31% during early 2020, similar in depth but a touch milder than the benchmarks. As with most stock‑heavy portfolios, a small number of strong days (36 here) delivered most returns, showing how missing even a few big up days can matter a lot over time.
Projection
The forward projection uses a Monte Carlo simulation, which basically runs the portfolio’s past behavior through thousands of “what if” futures. It randomizes returns using historical patterns to create a range of possible outcomes, not a single forecast. In these 15‑year simulations, $1,000 ends around $2,643 in the middle scenario, with most paths landing between about $1,806 and $3,849. A smaller share of paths stretch much lower or much higher. The average simulated annual return is 7.5%. This illustrates that outcomes can vary a lot even with the same starting mix. It’s worth remembering that Monte Carlo models rely on past data and assumptions, so they’re a guide to possible ranges, not a promise.
Asset classes
- Stocks 87%
- Bonds 13%
By asset class, the portfolio holds about 87% in stocks and 13% in bonds. That makes it clearly equity‑focused but with a stabilizing bond sleeve. Stock-heavy portfolios tend to have higher long‑term growth potential but can swing more in the short term, while bonds usually dampen volatility and provide income. Relative to many “balanced” mixes that sit closer to a 60/40 split, this one leans more toward growth than defense. However, because the target‑date fund itself holds some bonds inside, the economic exposure to bonds is slightly higher than the headline 13% suggests. Overall, the allocation is growth-oriented while still keeping a modest cushion from fixed income.
Sectors
- Technology 27%
- Financials 13%
- Industrials 10%
- Consumer Discretionary 9%
- Telecommunications 8%
- Health Care 8%
- Consumer Staples 4%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
This breakdown covers the equity portion of your portfolio only.
Sector-wise, the portfolio is dominated by technology at 27%, with meaningful slices in financials, industrials, consumer areas, telecom, and health care. Smaller allocations sit in staples, energy, materials, utilities, and real estate. This distribution looks broadly similar to common global and US stock benchmarks, where tech and related industries take up a large share. A tech‑heavy tilt can boost returns during innovation booms but often means sharper moves when interest rates rise or investor sentiment turns against growth stories. The presence of a range of other sectors helps spread risk across different parts of the economy, which is consistent with the “total market” style of the core funds.
Regions
- North America 65%
- No data 10%
- Europe Developed 8%
- Asia Emerging 5%
- Asia Developed 5%
- Japan 3%
- Africa/Middle East 1%
- Australasia 1%
- Latin America 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, about 65% of equity exposure is in North America, with the rest spread across developed Europe, Japan, developed Asia, emerging Asia, Latin America, Africa/Middle East, and Australasia. This North America tilt is quite similar to global equity benchmarks, where US stocks dominate overall market value. Having meaningful, if smaller, stakes across multiple regions adds diversification against country‑specific shocks, like local recessions or policy changes. Relative to a purely US‑only approach, the additional international and emerging markets exposure opens the door to different economic cycles and currencies. Overall, the geographic spread is broadly diversified and aligns closely with global standards.
Market capitalization
- Mega-cap 37%
- Large-cap 26%
- Mid-cap 16%
- Small-cap 5%
- Micro-cap 1%
This breakdown covers the equity portion of your portfolio only.
Looking at company size, the portfolio leans strongly toward mega‑ and large‑cap stocks, with smaller but noticeable exposure to mid‑caps, and modest slices in small‑ and micro‑caps. This mirrors how global stock markets are weighted: big companies naturally take up most of the space. Larger firms tend to have more stable earnings and better access to capital, often making them less volatile than tiny companies. Including mid‑ and small‑caps adds some extra growth potential and diversification, since these companies can behave differently from giants. The overall pattern is consistent with a broad “own the whole market” approach rather than a focused bet on any particular size segment.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure is quite balanced across value, size, momentum, and quality, all hovering near neutral levels, meaning the portfolio behaves broadly like the overall market on these traits. The notable tilts are a higher exposure to low volatility and a lower exposure to yield. A low‑volatility tilt means the stocks inside, on average, have historically moved a bit less than the market, which can translate into somewhat smoother rides in rocky markets, though it doesn’t remove risk. The lower yield exposure simply reflects that many broad market and growth‑oriented holdings reinvest more profits into expansion rather than paying high dividends, so returns lean more on price changes than on income.
Risk contribution
-
Vanguard Total Stock Market Index Fund Admiral Shares
Weight: 45.00% 55.1% -
VANGUARD TARGET RETIREMENT 2060 FUND INVESTOR SHARES
Weight: 30.00% 30.4% -
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES
Weight: 10.00% 9.8% -
VANGUARD EMERGING MARKETS STOCK INDEX FUND ADMIRAL SHARES
Weight: 5.00% 4.5% -
Vanguard Total Bond Market Index Fund Admiral Shares
Weight: 10.00% 0.2%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from its weight. Here, the total US stock market fund is 45% of the assets but contributes about 55% of total risk. The target‑date fund is roughly in line with its weight, while international and emerging markets pieces add modest risk. The total bond market fund is 10% of the portfolio yet contributes almost no volatility, highlighting how bonds act as a stabilizer. Altogether, the top three positions drive over 95% of the risk, mainly because they are equity-heavy and highly diversified on their own. This concentration in broad indices is common and generally aligned with a simple core‑holding approach.
Redundant positions
-
High correlationVanguard Total Stock Market Index Fund Admiral SharesVANGUARD TARGET RETIREMENT 2060 FUND INVESTOR SHARES
The correlation view highlights that the total US stock market fund and the 2060 target‑date fund move almost identically. Correlation measures how often assets move together, on a scale from -1 (opposite directions) to +1 (in sync). When two holdings are highly correlated, owning both doesn’t add much diversification, even if they look different by name. In this case, the target‑date fund likely holds a large share of the same US stocks as the total market fund, so their return patterns closely match. This isn’t necessarily a problem, but it does mean that in big up or down US equity markets, both positions will tend to move in the same direction at roughly the same time.
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.
In the risk‑return analysis, this portfolio sits on or very close to the efficient frontier. The efficient frontier is the curve that shows the best possible expected return for each level of risk using these exact holdings, just with different weights. The current Sharpe ratio, a measure of return earned per unit of risk above the risk‑free rate, is 0.57. The optimal mix of the same holdings would have a higher Sharpe, but also a higher overall risk. Being on the frontier means that, for this particular risk level, the combination of funds is already making efficient use of what’s available, without obvious slack that reweighting alone would fix.
Dividends
- Vanguard Total Bond Market Index Fund Admiral Shares 4.00%
- VANGUARD EMERGING MARKETS STOCK INDEX FUND ADMIRAL SHARES 2.20%
- VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.50%
- Vanguard Total Stock Market Index Fund Admiral Shares 1.00%
- VANGUARD TARGET RETIREMENT 2060 FUND INVESTOR SHARES 1.80%
- Weighted yield (per year) 1.75%
The overall dividend yield for this portfolio sits around 1.75%, with higher income from the bond fund and international equities, and lower yields from US stocks and the target‑date fund. Dividend yield is the annual cash payout as a percentage of the current price, and it can be an important part of total return, especially when reinvested. Here, yields are relatively modest, which is consistent with a growth‑oriented, stock‑heavy mix where companies often retain earnings to reinvest. Most of the long‑term return historically has come from price appreciation rather than cash distributions. That said, the bond sleeve’s roughly 4% yield adds a distinct income component to the overall picture.
Ongoing product costs
- Vanguard Total Bond Market Index Fund Admiral Shares 0.04%
- VANGUARD EMERGING MARKETS STOCK INDEX FUND ADMIRAL SHARES 0.13%
- VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
- Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
- VANGUARD TARGET RETIREMENT 2060 FUND INVESTOR SHARES 0.08%
- Weighted costs total (per year) 0.06%
Costs are a clear strength. The weighted total expense ratio (TER) is about 0.06% per year, which is extremely low by industry standards. TER is the annual fee charged by funds, taken directly out of returns, a bit like a small service fee. Lower costs leave more of the portfolio’s growth in your hands over time, and that gap compounds. The lineup uses broad market index funds and a low‑fee target‑date fund, both of which are known for efficiency. This cost level is well-aligned with best practices and supports better long‑term performance compared with similar portfolios that pay several times more in annual fund charges.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey