Global equity index portfolio with strong US tilt and broadly diversified sector and size exposure
Report created on May 5, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VW Vanguard FTSE All-World UCITS ETF USD Accumulation
VWRA - IE00BK5BQT80 90.00% -
CS iShares Core S&P 500 UCITS ETF USD (Acc)
CSPX - IE00B5BMR087 10.00%
This portfolio is extremely simple: two global index-style equity ETFs, with 90% in a world fund and 10% in a US large-cap fund. Structurally, that means close to 100% of the risk and return comes from global stock markets, with no bonds or alternatives smoothing the ride. The smaller US fund leans the overall mix a bit more toward the US than a pure world allocation. A two-fund structure like this is easy to understand and track, which is helpful when markets are volatile. The simplicity also means that portfolio behaviour will be largely driven by broad market moves rather than stock-picking decisions or complex strategies.
Growth
From July 2019 to April 2026, £1,000 grew to about £2,289, a compound annual growth rate (CAGR) of 13.0%. CAGR is the “average yearly speed” of growth, smoothing out ups and downs over time. Over the same period, this slightly lagged the US market benchmark by 0.49% per year but beat the global market by 1.81% per year, which is a strong relative result. The worst peak-to-trough fall was about -33.6% during early 2020, deeper than the benchmarks’ drawdowns. This shows that while long‑term growth has been solid, the portfolio can still experience sharp short‑term drops, which is normal for an all‑equity allocation.
Projection
The Monte Carlo projection uses many randomised simulations based on historical behaviour to estimate a range of possible 15‑year outcomes. Think of it as “replaying history with shuffles” to see many plausible futures rather than a single forecast. The median result turns £1,000 into about £2,658, with a wide but sensible range between roughly £1,720 and £4,086 in the middle half of scenarios. Importantly, 72.2% of simulations end with a gain, and the average annualised return across all runs is 8.1%. These numbers are not promises; they simply show that historically similar risk/return patterns have often, but not always, rewarded patience over long horizons.
Asset classes
- Stocks 100%
Asset class exposure is very straightforward: 100% in stocks and 0% in bonds, cash, or alternatives. Equities historically have offered higher long‑term return potential than bonds but with larger swings in value along the way. This is why an all‑equity portfolio usually feels bumpier, especially during market stress. Compared with broad “balanced” mixes that often hold a sizable chunk in bonds, this portfolio leans clearly toward growth over stability. The upside is strong participation when global markets rise; the trade‑off is that there is no built‑in cushion from lower‑risk assets during equity downturns, so short‑term drawdowns can be more intense.
Sectors
- Technology 28%
- Financials 16%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 5%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is quite broad, with technology at 28% being the largest slice, followed by financials (16%), industrials (11%), and consumer‑focused areas and healthcare making up much of the rest. This pattern is relatively close to many global equity benchmarks, where tech and financials tend to be dominant. A tech‑tilt often adds growth potential but can increase sensitivity to interest rates and sentiment around innovation themes. The presence of meaningful weights in defensive sectors like consumer staples, utilities, and healthcare helps balance things somewhat. Overall, the sector mix is well‑spread, which reduces the risk of any single industry completely driving portfolio outcomes.
Regions
- North America 68%
- Europe Developed 13%
- Japan 5%
- Asia Developed 5%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 68% of the portfolio sits in North America, with Europe Developed at 13% and Japan and other developed and emerging Asian regions making up most of the remainder. This creates a clear US/North America tilt relative to some definitions of the global market, but still provides exposure across many economies and currencies. A strong North American share has historically been beneficial over the last decade, as that region has outperformed many others. At the same time, having allocations to Europe, Asia, and smaller regions adds diversification benefits, since different parts of the world can lead or lag at different points in the economic cycle.
Market capitalization
- Mega-cap 48%
- Large-cap 35%
- Mid-cap 17%
By company size, the portfolio leans heavily toward larger businesses: 48% mega‑cap, 35% large‑cap, and 17% mid‑cap, with practically no small‑cap representation. This is typical for cap‑weighted global index funds, where the biggest companies get the largest weights. Large and mega‑caps tend to be more established firms with more stable earnings and better access to capital, which can moderate some company‑specific risk. However, this also means less exposure to smaller, potentially faster‑growing firms, which can behave differently across cycles. The overall size mix is very much in line with mainstream global benchmarks, which is a sign of conventional, benchmark‑like construction.
True holdings
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NV NVIDIA Corporation 4.81%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
-
AA Apple Inc 4.27%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
-
MS Microsoft Corporation 3.21%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
-
AM Amazon.com Inc 2.39%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
-
GO Alphabet Inc Class A 2.01%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
-
AV Broadcom Inc 1.73%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
-
GO Alphabet Inc Class C 1.63%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
-
ME Meta Platforms Inc. 1.45%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.32%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
TS Tesla Inc 1.21%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares Core S&P 500 UCITS ETF USD (Acc)
- Top 10 total 24.04%
Looking through the ETFs, the top underlying exposures are well‑known global giants such as NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, TSMC, and Tesla. These top names together represent noticeable, but not overwhelming, portions of the portfolio, with the largest single company around 4.8%. There is overlap between the two ETFs, so some companies appear multiple times, which slightly magnifies their effective weight. Because only ETF top‑10 holdings are captured, total overlap is probably higher than reported. This concentration in global leaders is typical for cap‑weighted indexes and means portfolio performance will be closely linked to how these mega‑cap firms perform over time.
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.
On factors, the portfolio shows very low exposure to the Size and Yield factors, and high exposure to Low Volatility. Factor exposure describes how much a portfolio leans into traits like size, dividend yield, or stability that research has tied to returns. A very low Size score (5%) indicates a strong tilt away from smaller companies, aligning with the earlier observation of heavy mega‑ and large‑cap exposure. The very low Yield (14%) suggests a focus on companies that return less via dividends and more via retained earnings and growth. High Low Volatility (70%) points to a preference for steadier stocks, which can help soften swings compared with more aggressive, high‑beta names.
Risk contribution
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Vanguard FTSE All-World UCITS ETF USD Accumulation
Weight: 90.00% 89.8% -
iShares Core S&P 500 UCITS ETF USD (Acc)
Weight: 10.00% 10.2%
Risk contribution shows how much each holding adds to the portfolio’s overall ups and downs. Here, the Vanguard All‑World ETF at 90% weight contributes about 89.8% of total risk, while the iShares S&P 500 fund at 10% weight contributes roughly 10.2%. The risk/weight ratios are both very close to 1, meaning each fund’s share of volatility is almost identical to its share of capital. There are no small positions acting as outsized risk drivers, nor any large positions behaving unusually quietly. This is consistent with a simple two‑fund structure holding broad, diversified indices, where risk naturally lines up with the size of each position.
Redundant positions
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High correlationVanguard FTSE All-World UCITS ETF USD AccumulationiShares Core S&P 500 UCITS ETF USD (Acc)
The two ETFs move almost identically, with a very high correlation between the All‑World and S&P 500 funds. Correlation measures how often and how closely assets move together; highly correlated assets usually rise and fall at similar times. Because both funds track broad developed‑market equities with a strong US component, their behaviour unsurprisingly overlaps a lot. This means the second fund adds only limited diversification versus the first from a day‑to‑day volatility perspective. Instead, its main effect is to slightly tilt the geographic and company‑level mix, rather than fundamentally changing how the portfolio behaves in market sell‑offs or rallies.
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‑versus‑return chart, the current portfolio sits on or very near the efficient frontier. The efficient frontier is the curve showing the best expected return for each risk level using just these holdings with different weights. The current Sharpe ratio of 0.57 is lower than the optimal portfolio’s 0.81 but is achieved with slightly less risk and lower return. Since the current mix is already effectively on the frontier, it’s using the two available funds in an efficient way for its chosen risk level. The minimum variance point is also close by, confirming there are no glaring inefficiencies in the current weighting.
Ongoing product costs
- iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
- Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
- Weighted costs total (per year) 0.18%
The total ongoing cost, measured by Total Expense Ratio (TER), is around 0.18% per year across the two ETFs. TER is like a small annual “service fee” charged inside the funds to cover management and administration. In the world of diversified index funds, anything in this range is considered impressively low. Lower costs mean more of the underlying market return stays in the portfolio, which compounds over time. Compared with many active funds or older products that can charge several times as much, this fee level supports long‑term performance and aligns well with best practices for cost‑efficient, broadly diversified index investing.
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