Two fund global equity blend with strong US tilt and efficient structure at very low cost
Report created on May 11, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 70.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00%
This portfolio is a simple two‑fund mix made up of 70% US large‑cap stocks and 30% international stocks. Everything is in equity ETFs, so there’s no fixed income or cash component in the core structure. This kind of simplicity makes it easy to understand what’s driving returns: mainly broad stock markets, with the US being the dominant engine. A concentrated lineup like this cuts down on overlap and complexity, while still giving exposure to thousands of companies through the underlying indices. The trade‑off is that all risk comes from stocks, so portfolio ups and downs are closely tied to global equity markets rather than being cushioned by other asset classes.
Growth
From mid‑2016 to early 2026, a hypothetical $1,000 in this portfolio grew to about $3,770. That works out to a Compound Annual Growth Rate (CAGR) of 14.25%, which is like the average “speed” of growth per year. Over the same period, the US market did a bit better at 15.51% CAGR, while the global market was lower at 12.91%. So the mix lagged a pure US exposure but beat a pure global one. The max drawdown, or worst peak‑to‑trough drop, was about ‑34%, similar to both benchmarks, and it took roughly five months to recover, showing typical equity‑style volatility.
Projection
The Monte Carlo projection uses past returns and volatility to simulate 1,000 different 15‑year futures for a $1,000 investment. Think of it as running many “what if” market paths based on historical patterns, not as a prediction. The median outcome lands around $2,743, with a central “likely” range from about $1,869 to $4,182. More extreme but still plausible paths run from roughly your starting $1,000 to just under $8,000. The average annualized return across all simulations is 8.12%, and about three‑quarters of simulations end positive. As always, this is a statistical picture; real markets can behave very differently from the past.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 100% allocated to equities and no bonds or alternatives. Asset classes are basically broad buckets like stocks, bonds, and cash that behave differently over time. Being fully in stocks means the portfolio is focused on long‑term growth and is more exposed to market swings than a mix including bonds. Compared with “balanced” blends that often hold a sizeable bond slice, this structure is more equity‑heavy. The benefit is stronger participation when equity markets rise, while the cost is experiencing the full force of stock market drawdowns without a built‑in stabilizer from other asset classes.
Sectors
- Technology 28%
- Financials 15%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector‑wise, the portfolio leans most heavily into technology at 28%, followed by financials at 15% and industrials at 11%. The rest is spread across consumer areas, health care, telecom, energy, materials, utilities, and real estate in single‑digit slices. This looks broadly similar to diversified global equity benchmarks, where technology and financials are usually among the largest components. Tech‑heavy allocations can see bigger swings when interest rates move or when growth expectations change quickly. Having noticeable, but smaller, allocations across more defensive sectors like consumer staples and utilities helps provide some balance, though the overall profile still reflects typical equity‑market cyclicality.
Regions
- North America 72%
- Europe Developed 11%
- Japan 5%
- Asia Developed 4%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 72% of the portfolio is in North America, with the rest spread across Europe, Japan, other developed Asia, and emerging regions. That means most of the risk and return are tied to one major market, its economy, and its currency. Compared with a pure global index, which usually has a lower North American share, this portfolio has a distinct US tilt. That tilt has historically helped during strong US equity cycles but also means performance is more dependent on how that region does relative to the rest of the world. The remaining exposure adds some diversification, but the center of gravity is clearly North American.
Market capitalization
- Mega-cap 46%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 2%
On market capitalization, almost half the portfolio sits in mega‑cap companies, with another third in large caps, and smaller portions in mid and small caps. Market cap is just the total value of a company’s shares, and big companies tend to be more stable and widely followed. This profile is close to standard broad‑market indices, which are naturally dominated by mega and large caps. The upside is that risk is anchored in mature, established firms that often have more stable earnings. The downside is relatively limited exposure to smaller companies, which can behave differently and sometimes move more sharply in both directions.
True holdings
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NV NVIDIA Corporation 5.31%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 4.66%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.44%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.55%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.09%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.83%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.68%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.57%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.31%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 1.10%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 25.54%
Looking through the ETFs’ top holdings, a handful of big names account for notable slices of the total portfolio: NVIDIA at about 5.3%, Apple at 4.7%, Microsoft at 3.4%, and Amazon around 2.6%, with other large tech and consumer names following. Because both funds track broad indices, the same mega‑caps appear in each, creating overlap that concentrates exposure to these giants. It’s worth noting that only ETF top‑10 positions are captured here, so overlap is likely understated. Still, the data shows that while the portfolio owns thousands of companies overall, the day‑to‑day moves are strongly influenced by a relatively small group of very large firms.
Factors
Factor exposure across value, size, momentum, quality, yield, and low volatility is essentially neutral, hovering close to 50% on each scale. Factors are like underlying “personality traits” of stocks — for example, value stocks are cheaper relative to fundamentals, while momentum stocks have been recent winners. A neutral profile means this portfolio behaves much like the broad market instead of leaning strongly into any one factor style. That can be helpful if a single factor goes through a rough patch, because the portfolio isn’t overly tied to it. At the same time, it doesn’t specifically aim to harvest extra returns from targeted factor tilts.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 70.00% 72.4% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 27.6%
Risk contribution shows how much each holding adds to overall ups and downs, which can differ from its weight. Here, the 70% US ETF contributes about 72% of total risk, roughly in line with its size, and the 30% international ETF contributes about 28%. The risk/weight ratios, just above 1.0 for the US ETF and just under 1.0 for the international fund, indicate neither is unusually risky relative to how much space it takes in the portfolio. Overall, risk is concentrated where capital is concentrated, in a fairly proportional way, with no small position unexpectedly dominating volatility.
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 efficient frontier chart, this portfolio sits on or very close to the curve, which represents the best return possible for each risk level using these two funds in different mixes. The Sharpe ratio, a common measure of risk‑adjusted return that compares excess return to volatility, is 0.62 for the current mix. The maximum‑Sharpe portfolio using the same building blocks scores higher at 0.84 with slightly more risk, while the minimum‑variance portfolio has lower risk and a Sharpe of 0.7. Being on the frontier means the current allocation is already making efficient use of its holdings for the chosen risk level.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.58%
The portfolio’s overall dividend yield is about 1.58%, combining roughly 1.10% from the US fund and 2.70% from the international fund. Dividend yield is the annual cash payout as a percentage of price, like rent from owning shares. Here, most of the return historically has come from price growth rather than income. The higher yield on the international slice slightly lifts the overall figure but doesn’t turn this into an income‑focused setup. Instead, dividends are a modest but steady component of total return, providing a bit of cash flow that can be reinvested or taken out, depending on how the investor manages the portfolio.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
Costs are impressively low, with expense ratios of 0.03% and 0.05% blending into a portfolio‑level TER of about 0.04%. The TER (Total Expense Ratio) is the annual fee charged by the funds, taken directly out of returns. Keeping this figure low helps more of the portfolio’s growth stay in the investor’s pocket, especially over long periods where even small percentages compound. These levels are very competitive compared with the broader fund universe and align well with low‑cost index investing principles. In practice, it means fees are unlikely to be a major drag on performance relative to similar index‑tracking strategies.
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