Three fund globally diversified stock portfolio with low costs and efficient risk adjusted positioning
Report created on Mar 28, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Balanced Investors
An investor who fits this style is comfortable riding full equity market swings in exchange for strong long‑term growth potential. They typically have a long time horizon — 10 years or more — and can tolerate temporary losses of 30% or more without panicking. Goals might include building wealth for retirement, funding long‑range education needs, or growing a family nest egg rather than generating immediate income. They value simplicity, low costs, and broad diversification over trying to outsmart the market with tactical moves. Emotional resilience, patience, and a willingness to stay the course through global headlines are key traits.
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 40.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 10.00%
The portfolio is a pure three‑fund equity setup: half in a broad US large‑cap index, 40% in total international stocks, and 10% in a total US market fund. That means you’re fully in stocks, but spread widely across thousands of companies worldwide. Structurally, this is extremely simple and easy to maintain, which reduces behavioral mistakes and admin hassle. The slight duplication between the S&P 500 and total US market fund modestly increases US exposure but doesn’t materially hurt diversification. For most long‑term investors, this kind of straightforward structure is a solid foundation that’s easy to stick with through ups and downs.
Growth
From 2016 to early 2026, $1,000 grew to about $3,068, a compound annual growth rate (CAGR) of 11.89%. CAGR is like your average speed on a long road trip: it smooths the journey into a single yearly growth number. You slightly lagged the US market but beat the global market, showing that the international slice gently tempered performance versus a pure US approach. The worst drop, or max drawdown, was about -34%, similar to the benchmarks, which is typical for an all‑stock mix. This history shows strong long‑term growth, but also that you must be ready for sharp temporary declines in rough markets.
Asset classes
- Stocks 100%
Asset‑class wise, you’re 100% in stocks with no bonds or cash buffers. That maximizes long‑term growth potential but also maximizes exposure to market swings. Many “balanced” setups mix stocks with bonds to smooth volatility and soften drawdowns; here, the balance comes from global diversification within equities, not from adding safer assets. This structure fits someone with a long horizon who can tolerate large short‑term drops without selling. If stability or near‑term withdrawals are important, introducing a separate cash or bond bucket outside this core could make the ride emotionally easier without changing the core equity design.
Sectors
- Technology 26%
- Financials 16%
- Industrials 12%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 3%
- Real Estate 2%
Sector allocation is broadly similar to global equity benchmarks, with a notable but not extreme tilt toward technology around a quarter of the portfolio. Financials, industrials, and consumer sectors also hold meaningful weights, while utilities and real estate are relatively small. Tech‑heavy markets can outperform during innovation booms but may be more volatile when interest rates rise or when growth stories cool. The good news is your sector mix is well‑balanced and aligns closely with global standards, which is a strong indicator of diversification. You’re not making big sector bets; you’re mostly riding whatever the global market delivers.
Regions
- North America 63%
- Europe Developed 15%
- Japan 6%
- Asia Developed 6%
- Asia Emerging 6%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 63% sits in North America, with the rest spread across Europe, Japan, other developed Asia, emerging Asia, and smaller allocations to Australasia, Latin America, and Africa/Middle East. This is quite close to global market weights, just with a modest home‑country lean toward the US. That alignment is beneficial: it avoids concentrating too heavily in any single foreign region while still giving real exposure to international growth. When the US leads, this tilt helps; when other regions catch up, your 40% international slice still participates meaningfully. Overall, the geographic spread is broad and globally aware without being extreme.
Market capitalization
- Mega-cap 46%
- Large-cap 32%
- Mid-cap 17%
- Small-cap 3%
Market‑cap exposure is dominated by mega‑ and large‑cap companies, together close to 80%, with mid‑caps and a modest small‑cap slice rounding things out. Larger companies tend to be more stable and liquid, while smaller ones are more volatile but can offer higher growth over long periods. Your profile mirrors mainstream index funds: mainly big, established names with a seasoning of smaller firms. That’s a comfortable balance for many investors, limiting the wild swings that a heavy small‑cap tilt might bring but still leaving room for smaller‑company dynamics to contribute quietly in the background over time.
True holdings
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NV NVIDIA Corporation 4.28%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 3.91%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.92%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.04%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.81%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.51%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.45%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.41%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.37%
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
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 21.83%
Looking through the ETFs, the biggest underlying exposures are familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and TSMC. These companies appear across multiple funds, so their combined weights are higher than they look at first glance, even though coverage is limited to ETF top‑10 holdings. That creates a hidden tilt toward large technology and communication names, driven mostly by index design rather than stock picking. It’s not inherently bad, but it means your fortunes are meaningfully linked to how these giants perform. Understanding that overlap helps set expectations when big tech leads or lags.
Factors
Across the main investment factors — value, size, momentum, quality, yield, and low volatility — your exposures are right around “neutral,” meaning they look a lot like the broad market. Factor exposure is basically how much you lean into certain characteristics that academic research links to returns, like cheapness (value) or stability (low volatility). Here, there are no strong tilts either toward or away from any factor. That’s actually a strength: it means you’re not making hidden bets on a particular investing style, and your returns should track overall global equities rather than swinging dramatically with any single factor cycle.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 50.00% 51.6% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 40.00% 37.9% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 10.00% 10.5%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Your three ETFs contribute to risk almost exactly in line with their allocations: roughly 50%, 38%, and 11%. That tells us there’s no single fund quietly dominating volatility beyond its size, which is healthy. The US‑focused funds, especially the S&P 500 ETF, naturally shoulder slightly more risk as they hold more of the big, fast‑moving names. If your comfort level with risk ever changes, shifting weights between these existing funds is an easy way to dial total risk up or down.
Redundant positions
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High correlationVanguard Total Stock Market Index Fund ETF SharesVanguard S&P 500 ETF
Your S&P 500 ETF and total US stock ETF move almost identically, which is expected since they’re both broad US equity funds with lots of shared holdings. Correlation measures how similarly two assets move; when it’s very high, owning both doesn’t add much diversification. In practice, your diversification mainly comes from the international fund, not from having two overlapping US funds. That said, the structure is still clean and intentional, and many investors like using both for flexibility. Just remember that when US markets fall, both of these will generally move down together, amplifying the US‑equity ride.
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, your current mix sits right on or very near the efficient frontier, with a Sharpe ratio of 0.62. The efficient frontier is simply the best trade‑off between risk (volatility) and expected return given your existing building blocks. The optimal mix using just these funds has a higher Sharpe of 0.76 but also slightly more risk, while the minimum‑variance version is only a bit less risky with a similar Sharpe to your current setup. This tells us the allocation is already quite efficient: there isn’t an obvious “free lunch” from reweighting unless you decide you want a meaningfully different risk level.
Dividends
- Vanguard S&P 500 ETF 0.90%
- Vanguard Total Stock Market Index Fund ETF Shares 0.90%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 1.74%
The overall dividend yield sits around 1.74%, with the international fund paying noticeably more than the US funds. Dividend yield is the annual cash payout as a percentage of price, like rent from a property. In a portfolio like this, dividends are a steady but secondary part of total return; most growth historically comes from price appreciation. For long‑term accumulators, automatically reinvesting these dividends back into the funds quietly boosts compounding over time. If income becomes a goal later, modestly tilting toward higher‑yielding equity or adding income‑oriented assets could raise the payout, but at the moment this is a growth‑first setup.
Ongoing product costs
- 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) 0.04%
Your total expense ratio is about 0.04%, which is impressively low and firmly in best‑in‑class territory. TER is like a tiny annual membership fee baked into the fund’s price; lower fees leave more of the market’s return in your pocket. Over long horizons, even small percentage differences compound into large dollar amounts, so keeping costs this low is a real structural advantage. The fact you’re using broad, plain‑vanilla index ETFs from a low‑cost provider strongly supports better long‑term performance relative to higher‑fee options offering similar market exposure. On costs, you’re very much on the right track.
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