Two fund global stock portfolio with strong US tilt and low cost core equity exposure
Report created on Jun 11, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 65.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 35.00%
This portfolio is a simple two‑fund global stock mix: a US large‑cap index ETF at 65% and a broad international equity ETF at 35%. Everything is in stocks, so there is no built‑in bond or cash buffer. This kind of structure is easy to understand and maintain, because each holding is widely diversified on its own. The heavier weighting toward the US fund means portfolio behavior is dominated by the US market, with the international fund adding a meaningful but secondary role. This design offers straightforward global equity exposure while keeping the actual fund list very short, which helps reduce complexity without sacrificing breadth.
Growth
One or more local-currency benchmark funds are unavailable for this report.
From mid‑2016 to mid‑2026, $1,000 in this portfolio grew to about $3,619, a compound annual growth rate (CAGR) of 13.77%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. The portfolio slightly outpaced the global market benchmark, which returned 13.18% annually. The worst peak‑to‑trough decline was around ‑33.9% during early 2020, very similar to the benchmark’s drawdown. That shows the portfolio behaves much like the overall global market: strong growth over this period, but with substantial temporary drops that stock‑only portfolios can experience.
Projection
The Monte Carlo projection simulates many possible 15‑year paths for this portfolio using its historical ups and downs. Monte Carlo is basically a “what if” machine: it shuffles past return patterns to see a range of future outcomes, not a single forecast. The median result turns $1,000 into about $2,738, with a wide possible range from roughly $1,029 to $7,875 in the most common scenarios. The overall average simulated return is about 8.09% per year. This highlights two points: a reasonable chance of long‑term growth, and a big spread between good and bad outcomes. As always, simulations depend on past data and can’t guarantee future results.
Asset classes
- Stocks 100%
All of this portfolio is invested in stocks, with 0% in bonds, cash, or alternatives. Asset classes are broad groups like stocks, bonds, and real estate that react differently to economic conditions. A 100% stock allocation tends to offer higher long‑term growth potential but also larger and more frequent swings in value, especially during recessions or market shocks. The lack of other asset classes means diversification comes almost entirely from holding many different companies, not from mixing fundamentally different types of investments. This is a focused equity approach rather than a multi‑asset blend.
Sectors
- Technology 30%
- Financials 15%
- Industrials 11%
- Consumer Discretionary 10%
- Telecommunications 9%
- Health Care 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is spread across many areas, with technology the largest at 30%, followed by financials at 15% and industrials at 11%. This looks broadly similar to many global equity benchmarks, which are also tech‑heavy today. Sector allocation matters because different parts of the economy respond differently to things like interest rate changes, inflation, and growth cycles. A tech‑tilted portfolio can benefit when innovation and growth stocks lead markets, but may feel sharper swings when rates rise or sentiment turns against high‑growth names. The presence of financials, industrials, health care, and others helps avoid being a single‑theme portfolio.
Regions
- North America 68%
- Europe Developed 13%
- Asia Developed 6%
- Japan 5%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 68% of the portfolio sits in North America, with the rest spread mostly across developed Europe, Japan, and other Asian markets, plus small slices in emerging regions. This is broadly in line with global stock market weights, where US and Canadian companies make up a large share of total market value. Geographic allocation matters because different economies and currencies face their own cycles, policies, and risks. The strong US tilt means results will heavily track US market conditions, but the international 35% sleeve still adds meaningful exposure to other countries’ growth and policy environments, improving global diversification relative to a US‑only portfolio.
Market capitalization
- Mega-cap 46%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 2%
The portfolio leans strongly toward mega‑cap and large‑cap companies, which together account for about 79% of exposure. Mid‑caps add another 17%, while small‑caps are only around 2%. Market capitalization (or “market cap”) measures a company’s size by multiplying share price by shares outstanding. Larger companies tend to be more stable and widely followed, while smaller ones can be more volatile and sensitive to economic shocks, but sometimes offer higher growth potential. Here, the dominance of big firms suggests performance will generally track mainstream large‑cap equity trends, with limited direct influence from more volatile small‑cap segments.
True holdings
-
NV NVIDIA Corporation 5.10%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 4.19%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.19%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.72%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.36%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.08%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.88%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.41%
Part of fund(s):- Vanguard S&P 500 ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.34%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
TS Tesla Inc 1.13%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Top 10 total 25.41%
Looking through to the biggest underlying holdings, the top positions are familiar large tech and growth names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. Each of these appears via the ETFs rather than as direct single‑stock bets. Because both funds track broad indices, several of these companies show up in multiple places, creating some overlap and concentration at the company level even in a diversified fund mix. With top‑10 ETF holdings only, coverage is about 29%, so actual overlap is somewhat higher than visible here. This structure means a handful of mega‑cap names quietly drive a noticeable part of overall performance.
Factors
Factor exposure is broadly neutral across all six measured dimensions: value, size, momentum, quality, yield, and low volatility sit close to the 50% “market‑like” mark. Factors are characteristics, like being cheap (value) or fast‑rising (momentum), that research links to long‑term return patterns. A neutral profile indicates the portfolio behaves similarly to a broad global index, without strong tilts toward any specialized style. This can be helpful if the goal is to mirror the overall market’s behavior rather than making big bets on, say, deep value or high yield. It also means results will mainly reflect general equity conditions rather than factor timing.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 65.00% 67.3% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 35.00% 32.7%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weight. Here, the S&P 500 ETF is 65% of the portfolio but contributes about 67% of total risk, while the international ETF is 35% of holdings and about 33% of risk. Those ratios are very close to one, meaning each fund’s risk impact is roughly in line with its size. With only two holdings and similar risk levels, there isn’t a hidden “risk hot spot” where a smaller position dominates volatility. The portfolio’s behavior is essentially a straightforward blend of US and non‑US stock market risk.
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 possible return for each risk level using just these two holdings with different weightings. The portfolio’s Sharpe ratio of 0.6, which measures return per unit of risk over a risk‑free rate, is slightly below the maximum Sharpe of 0.83 but still aligned with an efficient mix. The minimum variance configuration would trade some return for slightly lower volatility. Since the current point is essentially on the frontier, the existing split is already using these two funds in a risk‑aware, effective way.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.70%
The combined dividend yield is around 1.7%, with the US ETF yielding about 1.1% and the international ETF about 2.8%. Dividend yield is the annual cash payout from holdings divided by their price, like interest from a savings account but not guaranteed. In this portfolio, most of the expected return historically has come from price growth rather than income. The income stream is modest but steady, reflecting the mix of growth‑oriented US stocks and somewhat higher‑yielding international companies. This setup aligns with a total‑return approach where dividends are one component of overall performance rather than the main focus.
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%
Total ongoing costs are very low at about 0.04% per year, based on the ETFs’ expense ratios of 0.03% and 0.05%. The expense ratio is what the fund charges annually to cover management and operating costs, taken directly from returns. Low costs matter because they compound over time: even small percentage differences can add up over decades. Here, fees are well below typical active fund levels and even lower than many index alternatives, which is a strong structural advantage. This cost profile supports keeping more of the portfolio’s gross return, helping long‑term growth without requiring any extra complexity.
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