Globally diversified stock portfolio with strong US tilt low costs and broadly balanced risk profile
Report created on Apr 15, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
The portfolio is extremely simple: two broad stock index ETFs, with about 80% in a total US market fund and 20% in a total international fund. That means every dollar is in equities, spread across thousands of companies worldwide, with a clear tilt toward the US. A structure like this is easy to understand and manage, because it mostly just tracks global stock markets without constant tinkering. The main implication is that portfolio risk will move closely with global equities rather than cash or bonds. For many long-term investors, this kind of plain-vanilla stock mix is a solid core, especially when combined with separate cash or bond holdings elsewhere.
Growth
Historically, a $1,000 investment grew to about $3,435 over the last decade, which translates to a 13.2% compound annual growth rate (CAGR). CAGR is like your average speed on a long road trip, smoothing out bumps along the way. The portfolio slightly underperformed the US market but beat the broader global market, reflecting that big US tilt. The max drawdown of about -35% during early 2020 shows it can fall sharply in crises, similar to the benchmarks. Past returns are encouraging but can’t be assumed going forward, so it’s useful to treat them as a rough guide to potential volatility, not a promise.
Projection
The Monte Carlo projection runs 1,000 simulations using historical returns and volatility to estimate a range of 15‑year outcomes. Think of it as replaying alternate “what if” histories to see how often things turn out well or poorly. The median result grows $1,000 to about $2,826, with a wide but plausible range from roughly $951 to $7,997. About three-quarters of simulations end positive, and the average simulated annual return is around 8.3%. These numbers are not forecasts; they’re scenario ranges based on the past. The big takeaway is that long-term outcomes are likely positive but can vary a lot, so staying invested through ups and downs is crucial.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with no allocation to bonds, cash-like assets, or alternatives. This is very straightforward and keeps growth potential high, but it also means the portfolio fully rides out equity market swings with no built-in ballast. Many broad benchmarks mix stocks and bonds to smooth the ride, whereas this structure assumes that risk control will be handled elsewhere (for example, with cash savings or separate income assets). For someone comfortable with market volatility and focused on long-term growth, a 100% equity slice like this can make sense as part of a wider financial picture.
Sectors
- Technology 28%
- Financials 14%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 3%
Sector exposure is reasonably broad, with technology the largest slice at about 28%, followed by financials, industrials, consumer, health care, and telecom. This looks similar to a global cap‑weighted index, which is a strong sign that diversification is working well at the sector level. A sizable tech and communication share can drive strong returns in innovative periods but also increase sensitivity to changes in interest rates or regulatory pressures. The presence of energy, utilities, and real estate, even at smaller weights, helps provide some balance. Overall, this sector mix is aligned with global standards and doesn’t show any extreme concentration.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
Geographically, about 81% of the exposure is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and emerging markets. That’s more US‑heavy than a pure global market cap index, which typically has a somewhat lower US share. This tilt has helped in recent years given US outperformance, and it aligns with many investors’ preference for home‑market exposure. The trade-off is that economic and political events in the US will have an outsized impact on returns. Adding a modest international slice, as seen here, still provides some diversification benefits across currencies and growth cycles outside the US.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The market cap breakdown shows a strong core in mega‑ and large‑cap stocks (about 73%), with meaningful exposure to mid‑caps and a smaller allocation to small and micro caps. Larger companies tend to be more stable, more liquid, and easier to track with index funds, which can reduce company‑specific blow‑ups. The mid and small‑cap sleeve adds extra growth potential and diversification, as these firms often behave differently from the giants leading headlines. This distribution is typical of broad total‑market index funds and supports a healthy mix of stability and upside. It avoids the risk of being over‑concentrated in tiny, highly volatile names.
True holdings
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NV NVIDIA Corporation 4.94%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.71%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.53%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.44%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.19%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.82%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.73%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.70%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.38%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 1.10%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 25.54%
Looking through the ETFs, the biggest underlying exposures are well-known mega-cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. These appear via the index funds rather than as direct single-stock bets. While no single company dominates, the top tech and growth giants do make up a noticeable slice of the equity exposure. Because only ETF top-10 holdings are shown, actual overlap is likely higher than reported, especially in large US names. This kind of hidden clustering is normal in cap-weighted index funds but means portfolio results will be quite sensitive to the fortunes of a handful of mega-cap leaders.
Factors
Factor exposures across value, size, momentum, quality, yield, and low volatility are all in the “neutral” zone, sitting near the 50% market‑average level. Factors are like the underlying “flavors” of a portfolio that academic research links to long‑term returns. Having neutral factor tilts means this portfolio behaves much like the overall stock market rather than leaning into any particular style such as deep value, high dividend, or low volatility. The benefit is that it avoids betting heavily on one factor working in a given decade. This balanced profile is well-aligned with a core, buy‑and‑hold approach that aims to capture broad market returns.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 80.00% 82.5% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 17.5%
Risk contribution shows how much each holding adds to overall ups and downs, which can differ from its weight. Here, the US total market ETF is 80% of the portfolio but contributes about 82.5% of the risk, while the international fund is 20% of weight and about 17.5% of risk. That’s very close to proportional, meaning there’s no hidden “risk hog” beyond what the weights already suggest. It also tells you the portfolio’s volatility is mainly driven by US stocks. If someone wanted to adjust risk in future, shifting the mix between US and international would be the main lever rather than fine‑tuning many small positions.
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‑return chart, the current mix sits right on or very close to the efficient frontier, which is the curve showing the best possible return for each risk level using these two ETFs. The Sharpe ratio, a measure of return per unit of risk, is 0.56 for the current mix versus about 0.76 for the optimal combination and 0.62 for the minimum‑risk mix. Because the portfolio is already near the frontier, there’s no major inefficiency to fix; reweighting could fine‑tune things but wouldn’t radically change the profile. That’s a reassuring sign the allocation is working well for its chosen risk level.
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) 1.44%
The overall dividend yield is about 1.44%, coming from roughly 1.1% on the US fund and 2.8% on the international fund. That’s a modest income stream, typical for a growth‑oriented global equity mix. Dividends can feel small year to year, but reinvested over time they meaningfully add to total returns, especially when combined with capital gains. For someone who doesn’t need current income, automatically reinvesting dividends keeps the strategy simple and tax‑efficient in many account types. For income‑focused goals, though, this yield alone wouldn’t cover significant cash needs without selling shares periodically to generate withdrawals.
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) 0.03%
Costs are impressively low, with a blended total expense ratio (TER) around 0.03%. TER is the annual fee the fund charges, taken quietly out of assets each year. Over decades, even small differences in fees compound into meaningful gaps in ending wealth. Being at this ultra‑low level means you’re keeping almost all of the market’s return rather than giving it up in costs. This aligns very well with best practices in long‑term investing, where low fees are one of the few factors you can fully control. As a foundation, it doesn’t get much more cost‑efficient than this setup.
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