Broad global index portfolio with balanced stock and bond mix and efficient risk adjusted structure
Report created on May 30, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 60.00% -
BN Vanguard Total Bond Market Index Fund ETF Shares
BND - US9219378356 20.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is built from three broad Vanguard index ETFs, which keeps the structure simple and transparent. Around 60% is in a total US stock market fund, 20% in a total international stock fund, and 20% in a total US bond market fund. That means most of the risk and growth potential comes from stocks, while bonds offer some ballast. A three‑fund setup like this is a classic “core” structure because each fund holds thousands of underlying securities. The clear split between domestic stocks, international stocks, and bonds makes it easy to see what’s driving returns and how changes in markets or interest rates might flow through to the overall portfolio.
Growth
From mid‑2016 to late‑2026, $1,000 in this portfolio grew to about $3,193, which works out to a compound annual growth rate (CAGR) of 12.35%. CAGR is like your average speed on a road trip, smoothing out bumps along the way. This trailed the US market benchmark, which returned 15.54%, and was slightly behind the global market at 12.92%. The worst drop, or max drawdown, was about ‑29.7% during early 2020, a bit less severe than the benchmarks. That shows the bond slice helped cushion declines, even though the stock heavy mix meant returns still depended heavily on equity markets.
Projection
The Monte Carlo projection uses past returns and volatility to simulate many possible future paths, like running 1,000 alternate histories. In these 15‑year simulations, the median outcome turns $1,000 into about $2,725, with most paths landing between roughly $1,878 and $3,738. The overall average simulated annual return is 7.45%, and about three‑quarters of scenarios end with a gain. These numbers aren’t promises; they just show a range of what could happen if markets behaved similarly to the past. The wide “possible” range, from roughly $1,185 to $6,157, underlines how uncertain long‑term outcomes can be, even with a diversified, index‑based approach.
Asset classes
- Stocks 80%
- Bonds 20%
The portfolio holds 80% in stocks and 20% in bonds, which is firmly in “balanced but growth‑oriented” territory. Stocks are the main engine for long‑term growth but also bring more ups and downs. Bonds, especially a broad total market fund, tend to move differently and can soften equity shocks. Compared with very stock‑heavy portfolios, this mix trades some return potential for lower drawdowns and a smoother ride. Compared with bond‑heavy mixes, it leans more toward growth. This allocation lines up well with common balanced‑fund templates and helps explain why the portfolio’s drawdowns were milder than pure equity benchmarks while returns were still strongly equity‑driven.
Sectors
- Technology 24%
- Financials 12%
- Industrials 9%
- Consumer Discretionary 8%
- Telecommunications 7%
- Health Care 7%
- Consumer Staples 4%
- Energy 3%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
This breakdown covers the equity portion of your portfolio only.
Sector‑wise, the equity portion is tilted toward technology at 24%, with meaningful allocations to financials, industrials, consumer sectors, telecoms, and health care. That pattern looks a lot like broad global equity indexes today, where tech and related industries are a large slice of total market value. Tech‑heavier exposure can boost returns during innovation booms but often adds sensitivity to interest rates and market sentiment. The presence of more defensive areas like consumer staples, utilities, and health care, even at smaller weights, provides some balance. Overall, the sector mix is well‑aligned with broad index standards, which is a positive sign for diversification across different parts of the economy.
Regions
- North America 61%
- Europe Developed 7%
- Asia Developed 3%
- Japan 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, about 61% of equity exposure is in North America, with smaller slices in developed Europe, Japan, other developed Asia, and emerging regions. This mirrors global market weights reasonably well, where the US is the largest single market. A strong North American presence means portfolio performance is closely tied to that region’s economic and market cycle, currency, and policy environment. The international allocation still brings in companies and currencies from Europe, Asia, and other regions, adding diversification if local conditions differ. Underperformance or outperformance of non‑US markets relative to the US can affect how closely this portfolio tracks a pure US benchmark.
Market capitalization
- Mega-cap 34%
- Large-cap 24%
- Mid-cap 15%
- Small-cap 5%
- Micro-cap 1%
This breakdown covers the equity portion of your portfolio only.
Market capitalization exposure is anchored in larger companies: 34% in mega‑caps and 24% in large‑caps, with meaningful but smaller slices in mid‑caps and small‑caps, plus a tiny micro‑cap allocation. That pattern is typical for “total market” index funds, which weight companies by size. Bigger firms usually have more stable earnings, broad customer bases, and deeper resources, which can mean somewhat lower volatility than a portfolio dominated by small companies. The mid‑ and small‑cap exposure still adds some punch, since those companies can be more sensitive to economic cycles. This blend gives a good cross‑section of the market without leaning aggressively into any single size segment.
True holdings
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NV NVIDIA Corporation 3.98%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 3.44%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.62%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.21%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.94%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.71%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.52%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.16%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.93%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 0.77%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
- Top 10 total 20.28%
This breakdown covers the equity portion of your portfolio only.
Looking through the ETFs’ top 10 holdings, several large technology and communication names appear prominently, including NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, and Tesla. Because both US and international funds can hold some of the same global giants, these companies show up multiple times, which creates hidden concentration. For example, NVIDIA alone makes up nearly 4% of the portfolio’s look‑through slice, and Apple about 3.4%. The coverage only captures ETF top‑10 holdings, so overlap is likely understated. This illustrates how a simple three‑fund setup can still end up heavily influenced by a relatively small group of mega‑cap global leaders.
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 across value, size, momentum, quality, yield, and low volatility is essentially neutral, sitting close to market averages. Factors are like underlying “personality traits” of stocks that research has linked to returns over time, such as being cheap (value) or stable (low volatility). A neutral profile means this portfolio is not making big bets on any one style; it behaves much like the overall market rather than, say, favoring deep value stocks or high‑yield names. This is consistent with broad, market‑cap‑weighted index funds. The upside is that no single factor strongly drives results, which can help avoid large style‑specific booms and busts.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 60.00% 76.1% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 22.0% -
Vanguard Total Bond Market Index Fund ETF Shares
Weight: 20.00% 1.9%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from its weight. Here, the US stock ETF is 60% of assets but contributes about 76% of total risk, meaning it dominates day‑to‑day volatility. The international stock ETF, at 20% weight, adds about 22% of risk, while the bond ETF, also 20% by weight, contributes under 2%. That’s typical: bonds tend to be much steadier. The takeaway is that, in practical terms, this is mostly an equity‑risk portfolio with bonds acting as a stabilizer rather than an equal partner in driving performance.
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 risk‑return chart shows this portfolio is on or very close to the efficient frontier. The efficient frontier is the set of mixes, using these same holdings, that provide the highest expected return for each level of risk. The current Sharpe ratio of 0.56 (a measure of return per unit of risk above the risk‑free rate) is lower than the maximum achievable 0.81 but still reflects an efficient allocation. The “optimal” portfolio on the chart would take more risk for higher expected return, while the minimum variance portfolio would trade returns down for much lower volatility. Being near the frontier confirms the current weights use the chosen building blocks effectively.
Dividends
- Vanguard Total Bond Market Index Fund ETF Shares 3.90%
- Vanguard Total Stock Market Index Fund ETF Shares 1.00%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.92%
The overall dividend yield is about 1.92%, coming from a mix of bond interest and equity dividends. The bond ETF has the highest yield at roughly 3.9%, while US and international stocks yield around 1.0% and 2.7%, respectively. Dividends and bond interest provide a steady stream of cash returns, which can be taken out as income or reinvested to buy more shares. Over time, reinvested income can meaningfully boost total returns, even if the headline yield looks modest. The blend of lower equity yields and higher bond yields is consistent with a balanced stock‑bond mix where growth and income both contribute.
Ongoing product costs
- Vanguard Total Bond Market Index Fund ETF Shares 0.03%
- 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%
The total expense ratio (TER) for this portfolio is extremely low at about 0.03% per year, thanks to the use of broad Vanguard index ETFs. TER is the annual fee the funds charge, expressed as a percentage of invested assets. On $1,000, that’s roughly 30 cents a year, which is negligible in the short term and very friendly over decades. Low costs matter because fees come off returns every year and compound against you. Here, the costs are impressively low and strongly support better long‑term performance compared with higher‑fee alternatives tracking similar markets. This is a real structural strength of the portfolio.
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