Globally diversified stock portfolio with a momentum overlay and efficient structure at very low cost
Report created on Aug 17, 2026Risk profile
5/7
Diversification profile
3/5
Positions
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VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 80.00% -
VF Vanguard U.S. Momentum Factor
VFMO - US9219355081 20.00%
This portfolio is intentionally simple, holding just two equity ETFs: a total world stock fund at 80% and a US momentum ETF at 20%. The world fund gives broad, market‑cap weighted exposure across countries and company sizes, while the momentum sleeve tilts part of the portfolio toward recent outperformers. Structurally, that means most behavior will look similar to “the market,” with an extra growth‑oriented twist from momentum. Having only two holdings keeps trading and monitoring straightforward. The growth‑focused classification and 100% stock mix line up with the relatively higher risk score shown. Overall, the structure is easy to understand: global core plus a more active satellite that adds some extra return potential and variability.
Growth
Historically, $1,000 invested in this mix in early 2018 grew to about $2,712, a Compound Annual Growth Rate (CAGR) of 12.5%. CAGR is like the average speed of a road trip, smoothing out all the bumps along the way. Compared with benchmarks, this portfolio slightly beat the global market (11.78%) but lagged the US market (14.88%), which had an especially strong run. The maximum drawdown was about –34.7%, close to both benchmarks, falling sharply in early 2020 and recovering within roughly five months. Only 25 days generated 90% of returns, underlining how a handful of strong days can shape long‑term results and why staying invested through volatility has mattered historically.
Projection
The Monte Carlo projection uses historical return and volatility patterns to simulate many possible 15‑year paths for this portfolio. Think of it as running 1,000 “what if” futures, then looking at the distribution of outcomes. The median scenario turns $1,000 into roughly $2,705, implying an annualized return around 8.0%, while the middle half of outcomes ranges from about $1,792 to $3,985. The wider 5–95% band, from around $929 to $7,700, shows how uncertain long‑term equity results can be. These simulations are not forecasts or guarantees; they simply extend past behavior into the future, which may or may not repeat, especially over 15 years. Still, they help frame potential upside and downside around an all‑stock approach.
Asset classes
- Stocks 100%
All of this portfolio is invested in stocks, with 0% in bonds, cash, or alternatives. That makes it more sensitive to market swings but also fully exposed to equity growth potential. Compared to a typical broad benchmark that might blend some bonds, this is clearly a growth‑oriented equity allocation. From a diversification angle, all‑stock portfolios rely on diversification within equities (across regions, sectors, and company sizes) rather than across different asset classes. This setup tends to experience deeper drawdowns during major market stress but also benefits fully when global equities recover. It aligns nicely with the performance and risk numbers shown: strong long‑term growth historically, paired with noticeable short‑term ups and downs.
Sectors
- Technology 31%
- Financials 14%
- Industrials 13%
- Health Care 10%
- Consumer Discretionary 8%
- Telecommunications 7%
- Energy 5%
- Basic Materials 4%
- Consumer Staples 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is fairly spread out, with technology leading at 31%, followed by financials at 14% and industrials at 13%. Health care, consumer‑related sectors, telecom, and energy all have meaningful slices, while utilities and real estate are modest. This pattern is similar to many broad global equity indices, where tech and related industries have grown in weight over time. A tech‑heavy tilt can boost returns during innovation‑driven bull markets but can add volatility during rate hikes or when growth expectations cool. The presence of multiple other sectors at solid weights helps prevent the portfolio from being a single‑theme bet, which is a positive sign for sector diversification relative to pure niche strategies.
Regions
- North America 71%
- Europe Developed 11%
- Asia Developed 6%
- Japan 5%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 71% of the portfolio sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, and smaller slices in emerging regions. This US‑leaning pattern is common in global market‑cap indices, reflecting the large weight of US companies in world markets. Compared with a perfectly even global split, this introduces a meaningful home‑region tilt but still leaves roughly 30% outside North America for diversification. That foreign exposure adds sensitivity to different economic cycles, currencies, and policy environments, which can smooth long‑term returns. At the same time, the dominance of North America means portfolio outcomes remain heavily influenced by that single region’s stock market and currency trends.
Market capitalization
- Mega-cap 35%
- Large-cap 29%
- Mid-cap 20%
- Small-cap 9%
- Micro-cap 5%
The portfolio spans the full size spectrum, with 35% in mega‑caps, 29% in large‑caps, 20% in mid‑caps, and the rest in small and micro‑caps. This is typical of a market‑cap weighted global fund: most of the money naturally sits in the biggest companies, while smaller firms still contribute meaningful diversification. Larger companies tend to be more stable and liquid, which can moderate volatility, while mid, small, and micro‑caps can introduce more growth potential and sharper swings. Having exposure across sizes means the portfolio participates in leadership shifts—periods when smaller companies outperform or lag—without being overly concentrated in one part of the market‑cap spectrum. That mix supports a broad, market‑like risk profile.
True holdings
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NV NVIDIA Corporation 3.21%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc. 3.06%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 2.36%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.80%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.63%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- Vanguard U.S. Momentum Factor
-
AV Broadcom Inc 1.24%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.23%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.14%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.84%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
JP JPMorgan Chase & Co 0.64%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 17.14%
Looking through to the biggest underlying holdings, the top exposures are large, well‑known names like NVIDIA, Apple, Microsoft, Amazon, Alphabet (both share classes), and other major global firms. The largest single company exposure is just over 3%, and the top ten together still represent a relatively small slice of the overall portfolio. That suggests no single stock dominates outcomes, even though these names appear in both ETFs. Because only top‑10 ETF holdings are captured, actual overlap across funds is likely somewhat higher, but still spread across many big companies. This pattern reflects typical index‑like diversification where a handful of major firms matter, yet do not fully dictate the portfolio’s behavior by themselves.
Factors
Factor exposure is broadly neutral across the board. Value, size, momentum, low volatility, quality, and yield all sit in the “neutral” band, meaning the portfolio behaves similarly to the overall market on these style dimensions. Factor exposure describes how much a portfolio leans into characteristics that research has linked to returns, like cheapness (value) or trend‑following (momentum). Even with a dedicated momentum ETF, the total mix still nets out to roughly market‑like factor balance because 80% sits in a broad world index. This well‑balanced profile suggests the portfolio’s ups and downs are driven more by general equity market moves than by strong tilts toward any single factor theme.
Risk contribution
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Vanguard Total World Stock Index Fund ETF Shares
Weight: 80.00% 76.6% -
Vanguard U.S. Momentum Factor
Weight: 20.00% 23.4%
Risk contribution shows how much each holding drives the portfolio’s overall volatility, which can differ from its weight. Here, the global stock ETF is 80% of assets and contributes about 76.6% of risk, almost a one‑for‑one relationship. The US momentum ETF is 20% of weight but contributes roughly 23.4% of risk, so each dollar in that fund adds a bit more volatility than a dollar in the world fund. This is typical for a more concentrated, factor‑tilted ETF. Overall risk is still dominated by the broad world holding, which keeps the risk profile anchored to global markets, with the momentum slice adding a modest “spicier” component rather than overwhelming the portfolio.
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 frontier, meaning that for its mix of holdings, the risk/return trade‑off is efficient. The Sharpe ratio, which compares excess return to volatility (like return per unit of “bumpiness”), is 0.51 for the current allocation. The optimal Sharpe portfolio using these same two funds reaches 0.68 by taking more risk and higher expected return, while the minimum variance mix slightly lowers risk with a Sharpe of 0.65. Because the current point lies near the curve, there is no big “free lunch” from simple reweighting; the existing 80/20 split is already doing a solid job given the chosen ingredients.
Dividends
- Vanguard U.S. Momentum Factor 0.60%
- Vanguard Total World Stock Index Fund ETF Shares 1.50%
- Weighted yield (per year) 1.32%
The portfolio’s total dividend yield is about 1.32%, with the global ETF around 1.50% and the momentum ETF lower at 0.60%. Dividend yield measures annual cash payouts as a percentage of price, so this level indicates most expected return comes from price changes rather than income. That’s common for growth‑oriented, globally diversified equity portfolios where many companies reinvest profits instead of paying high dividends. Over time, even a modest yield can contribute meaningfully when reinvested, adding a steady component to total return. But day‑to‑day, the portfolio’s behavior will feel much more driven by market moves and company earnings expectations than by the stream of dividend payments.
Ongoing product costs
- Vanguard U.S. Momentum Factor 0.13%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.08%
Costs are impressively low, with a combined Total Expense Ratio (TER) of about 0.08%. TER is the annual fee charged by the funds as a percentage of invested assets, similar to a small “membership fee” baked into the price. For context, this level is well below the average actively managed equity fund and competitive even among index ETFs. Low ongoing costs support better long‑term outcomes because less return is lost to fees each year, and those savings compound over time. Given the broad global exposure and the added momentum sleeve, achieving this structure at such a low aggregate cost is a notable strength of the portfolio setup.
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