Diversified global stock portfolio with efficient risk balance and a tilt toward growth focused regions
Report created on Apr 24, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 44.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 32.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 14.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00%
This portfolio is a simple four‑ETF, all‑equity mix, with a clear tilt toward broad index exposure. Around 44% sits in a US large‑cap index, 32% in global stocks outside the US, 14% in the total US market, and 10% in a dedicated US small‑cap value fund. That means most of the portfolio tracks broad, rules‑based indices, while a smaller slice adds a more targeted style exposure. Structurally, this creates a “core and satellite” feel, where the core index funds drive most of the behavior and the smaller satellite holding adds an extra return and risk dimension. The growth‑oriented risk score and “moderately diversified” label align well with this straightforward stock‑only setup.
Growth
From late 2019 to April 2026, a hypothetical $1,000 in this portfolio grew to about $2,394, giving a compound annual growth rate (CAGR) of 14.24%. CAGR is like average speed on a road trip, smoothing out all the bumps. Over the same period, the US market grew faster at 15.85% a year, while the global market was lower at 13.32%. So the portfolio lagged the US but beat the broader world. The worst drop, or max drawdown, was about −35%, slightly deeper than the benchmarks’ roughly −34%. The sharp COVID‑era fall and recovery (about five months to bounce back) underline that this is a high‑return but also high‑volatility, stock‑only mix. Past performance, of course, does not guarantee future results.
Projection
The Monte Carlo projection looks at many possible futures by “replaying” patterns from historical returns in thousands of random paths. It’s like running 1,000 alternate timelines for this same portfolio. Over 15 years, the median outcome is about $2,752 from $1,000, or an overall annualized 8.06% across all simulations. The middle 50% of scenarios land between roughly $1,760 and $4,268, with a wider 5–95% band from about $974 to $7,372. That spread shows how uncertain long‑term outcomes can be, even with the same starting mix. About 73% of simulations end positive, but a meaningful chunk do not, reminding that projections are illustrations based on the past, not promises.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% in bonds, cash, or alternatives. That makes the asset allocation very straightforward but also clearly growth‑oriented. Equities historically have offered higher long‑term returns than bonds, but with larger and more frequent swings in value. Many broad benchmarks mix in bonds; compared to those, this portfolio takes on more risk for potentially higher long‑run growth. The absence of other asset classes means there’s limited “cushion” during market downturns, so the ride can feel bumpier. On the plus side, spreading equity exposure across different funds and regions still provides diversification within the stock universe. The risk classification of 5/7 matches this all‑stock profile.
Sectors
- Technology 25%
- Financials 17%
- Industrials 12%
- Consumer Discretionary 11%
- Health Care 8%
- Telecommunications 8%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is fairly broad, with meaningful weights across many parts of the economy. Technology is the largest at 25%, followed by financials at 17% and industrials at 12%, with consumer‑related areas, health care, telecoms, energy, and staples all represented. This is reasonably close to common global equity benchmarks, though the tech share is still a noticeable driver. Tech‑heavy portfolios can see bigger ups and downs when interest rates change or when growth expectations swing. At the same time, having double‑digit exposure to financials and industrials, plus smaller allocations to energy, utilities, and real estate, helps avoid being one‑dimensional. Overall, the sector mix is well‑balanced and aligns closely with broad global index patterns.
Regions
- North America 70%
- Europe Developed 12%
- Japan 5%
- Asia Developed 5%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 70% of the portfolio sits in North America, with the rest spread across Europe, Japan, developed Asia, emerging Asia, and smaller slices in Australasia, Latin America, and Africa/Middle East. That US‑heavy tilt is common in many portfolios and has helped in a decade where US markets outperformed much of the world. Compared with global market‑cap benchmarks, this is somewhat more North America‑centric, since the US typically represents closer to 60% of world equity value. The non‑US exposure, though, is still meaningful at 30% and brings currency, policy, and economic diversification. This setup balances home bias with a real, though not dominant, allocation to the rest of the world.
Market capitalization
- Mega-cap 40%
- Large-cap 29%
- Mid-cap 16%
- Small-cap 8%
- Micro-cap 5%
By company size, the portfolio leans strongly toward large and mega‑cap stocks, with about 69% in those categories. Mid‑caps add another 16%, while small‑caps and micro‑caps together make up around 13%. Mega‑ and large‑cap companies often bring more stability and liquidity, so they tend to dominate broad market indices. The dedicated small‑cap value fund, plus the total market exposure, introduces smaller companies that can be more volatile but sometimes have different return patterns. This mix supports diversification across sizes: most risk and behavior will follow big, well‑known firms, but there is still a noticeable slice in smaller names that can move differently over a full cycle.
True holdings
-
NV NVIDIA Corporation 4.23%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 3.76%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.78%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.05%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.69%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.48%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.35%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.26%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.10%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
TS Tesla Inc 1.06%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 20.76%
Looking through the ETFs’ top holdings, a handful of familiar giants stand out: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Taiwan Semiconductor together make up a meaningful slice of the covered portion. NVIDIA alone is over 4% of the portfolio within this partial view. Because these names appear across multiple funds, they create overlap that can amplify their impact on performance. It’s worth noting coverage here is only about 25% of the portfolio, since we’re just looking at ETF top‑10 lists, so actual overlap is likely higher. This concentration in a few mega‑cap growth and tech‑related companies explains part of the portfolio’s sensitivity to that segment of the market.
Factors
Factor exposure across value, size, momentum, quality, low volatility, and yield is broadly neutral, meaning the portfolio behaves a lot like the general market on these dimensions. Factors are like underlying “traits” of stocks—such as being cheap (value) or stable (low volatility)—that research links to long‑term returns. Here, all scores sit close to 50%, which is the market average. That suggests no strong tilt toward, or away from, any specific style, even though one holding is explicitly a small‑cap value fund. The reason is that the large, broad index funds dominate overall exposure and keep the factor profile balanced. This well‑rounded factor mix can help the portfolio avoid being overly dependent on any single style environment.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 44.00% 44.4% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 32.00% 28.7% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 14.00% 14.5% -
Avantis® U.S. Small Cap Value ETF
Weight: 10.00% 12.5%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from simple weights. The S&P 500 ETF is 44% of the portfolio and contributes about 44% of the risk—almost a one‑for‑one match. The total US market fund is similar, with risk contribution close to its 14% weight. The international fund actually contributes slightly less risk than its 32% weight, suggesting its diversification benefits. The small‑cap value ETF, however, is 10% of the portfolio but adds about 12.5% of total risk, reflecting its higher volatility; its risk/weight ratio of 1.25 stands out. Overall, the top three holdings account for roughly 88% of portfolio risk, consistent with their dominant weights.
Redundant positions
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High correlationVanguard S&P 500 ETFVanguard Total Stock Market Index Fund ETF Shares
The correlation data highlights that the S&P 500 ETF and the total US stock market ETF move almost identically. Correlation measures how similarly assets move, on a scale from −1 (opposite) to +1 (in lockstep). Having two funds that track highly overlapping universes means they will behave very similarly, especially during sharp market moves. This doesn’t make the combination “bad,” but it does mean they don’t add much diversification relative to each other. The main diversification in this portfolio instead comes from international stocks and the different size segment added by small‑cap value. During broad US market sell‑offs, both US index funds are likely to move together, so most of the portfolio will follow that pattern.
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 portfolio sits on or very close to the efficient frontier. The efficient frontier represents the best expected return for each risk level, using different weightings of the existing holdings. The current mix has a Sharpe ratio of 0.58, which compares return to volatility after adjusting for a 4% risk‑free rate. The optimal portfolio on this curve has a higher Sharpe of 0.78 with slightly more risk and return, while the minimum variance version has lower risk and a Sharpe of 0.64. Because the current allocation is already described as efficient, it’s making good use of these four ETFs for the chosen risk level, even if other mixes could tilt slightly toward higher or lower risk.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.30%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.66%
The overall dividend yield is about 1.66%, with the international ETF offering the highest yield at 2.8% and the US funds sitting closer to 1.1–1.3%. Dividend yield is the annual cash payout as a percentage of price, and here it plays a modest but noticeable role in total return. For a growth‑oriented equity mix like this, most of the long‑term return historically tends to come from price changes rather than income. Still, dividends can help smooth the ride a bit by providing a small stream of cash, especially from non‑US markets where payout ratios are often higher. The yield level is consistent with a broad, diversified equity portfolio focused more on growth than on income.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard S&P 500 ETF 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) 0.06%
Costs are impressively low. The total ongoing fee, or TER, averages about 0.06% across the portfolio. TER (Total Expense Ratio) is the annual percentage fee charged by a fund to cover its running costs. Three of the ETFs are in the 0.03–0.05% range, while the more specialized small‑cap value fund is 0.25%. For context, many actively managed funds charge several times these levels. Over long periods, lower fees mean more of the portfolio’s return stays with the investor, and the difference compounds. Given the broad diversification and efficient structure, this cost profile is a real strength and supports better long‑term performance potential compared with higher‑fee alternatives tracking similar markets.
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