Globally diversified equity portfolio tilted to smaller cheaper stocks with solid long term growth focus

Report created on Apr 15, 2026

Risk 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.

Positions

This portfolio is a pure stock mix built from four broad ETFs, with a core in total US and total international markets and a sizable tilt to small-cap value. The 40% US total market and 30% international total market create a strong global backbone, while the two 15% small-cap value funds add a focused satellite allocation. Having everything in equities keeps the structure simple and geared toward growth, but also means there’s no built-in cushion from bonds or cash. The main takeaway is that this is an intentionally growth-heavy design, trading short-term stability for higher expected long-term returns and a clear, rules-based structure.

Growth Info

Over the period from late 2019 to early 2026, $1,000 grew to about $2,318, which is a compound annual growth rate (CAGR) of 13.77%. CAGR is like your average speed on a road trip, smoothing out bumps along the way. The portfolio slightly lagged the US market but beat the global market, which is a solid outcome for a diversified, factor-tilted mix. The worst drop was about -37.5% during early 2020, a bit deeper than the benchmarks’ drawdowns. That level of drawdown is normal for an all-stock portfolio. The key point: returns have been strong, but the ride can be rough, so comfort with big swings is essential.

Projection Info

The Monte Carlo projection uses many simulated paths, based on past volatility and returns, to estimate where $1,000 might land over 15 years. Think of it as running the market’s “movie” a thousand different ways to see a range of possible endings. The median outcome of about $2,627 corresponds to an annualized return near 7.9%, with a wide possible range from roughly $911 to $8,046. This shows that long-term growth is likely but far from guaranteed, and outcomes can differ a lot. Importantly, Monte Carlo still leans on history; it can’t predict future shocks. The main message: expect a wide cone of possibilities rather than a single precise number.

Asset classes Info

  • Stocks
    100%

All of the money is invested in stocks, with no allocation to bonds, cash, or alternative assets. That’s a clear, high-growth stance, well-suited to long horizons but inherently volatile over shorter periods. Compared with many blended portfolios that mix stocks and bonds, this structure offers higher expected returns but deeper drawdowns and more frequent big swings. This aligns with a “growth investor” risk profile: comfortable seeing portfolio values move sharply in exchange for long-run upside. The upside of this clarity is simplicity and low cost; the trade-off is that stability must come from the investor’s time horizon and temperament rather than from defensive asset classes.

Sectors Info

  • Technology
    19%
  • Financials
    18%
  • Industrials
    15%
  • Consumer Discretionary
    12%
  • Health Care
    7%
  • Basic Materials
    7%
  • Energy
    7%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is broadly spread, with notable weights in technology, financials, and industrials, and meaningful but smaller allocations across consumer areas, health care, basic materials, energy, telecoms, utilities, and real estate. This looks well-balanced and roughly in line with broad global equity benchmarks, which is a big plus for diversification. A moderate tech and semiconductor presence means performance will be sensitive to innovation cycles and interest rate moves, but not dominated by a single theme. The takeaway here is positive: the sector mix avoids big sector bets and supports smoother performance across different economic environments, even while the portfolio as a whole remains fully equity-driven.

Regions Info

  • North America
    59%
  • Europe Developed
    17%
  • Japan
    10%
  • Asia Developed
    5%
  • Asia Emerging
    4%
  • Australasia
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, around 59% sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, Australasia, Africa/Middle East, and Latin America. This is quite close to global market-cap weights, which naturally lean toward the US but still give meaningful exposure to the rest of the world. Being aligned with global market structure reduces the risk of overbetting on any single economy or currency. It also means returns will reflect how global capitalism as a whole performs rather than hinging on one region’s fortunes. That alignment with global norms is a real strength and helps support long-term resilience.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    21%
  • Mid-cap
    21%
  • Small-cap
    17%
  • Micro-cap
    8%

The portfolio has exposure across the full market-cap spectrum: about 30% in mega-caps, 21% in large-caps, 21% in mid-caps, 17% in small-caps, and 8% in micro-caps. This is more tilted toward smaller companies than a typical market-cap-weighted index, mainly due to the dedicated small-cap value funds. Smaller firms tend to be more volatile but have historically offered higher expected returns. Mega- and large-caps provide stability and liquidity, while small and micro names add growth potential and diversification. The key implication: this mix should behave a bit more “punchy” than a plain total-market tracker, especially during periods when smaller companies are in favor.

True holdings Info

  • NVIDIA Corporation
    2.47%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Apple Inc
    2.36%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Microsoft Corporation
    1.76%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Amazon.com Inc
    1.22%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class A
    1.10%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    1.03%
    Part of fund(s):
    • Vanguard Total International Stock Index Fund ETF Shares
  • Broadcom Inc
    0.91%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class C
    0.86%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Meta Platforms Inc.
    0.85%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Tesla Inc
    0.69%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Top 10 total 13.25%

Looking through to the biggest underlying holdings, there’s meaningful exposure to large, familiar names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Tesla, all through ETFs. Several of these appear across more than one fund, creating some hidden concentration at the very top of the portfolio. For example, both share classes of Alphabet show up, and multiple mega-cap tech and semiconductor names appear in the top list. Because this only captures ETF top-10 holdings, the actual overlap is likely wider, though still diversified in practice. The practical takeaway: while the portfolio owns thousands of companies, a noticeable slice of performance will still be driven by a handful of global giants.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 100%
Size
Exposure to smaller companies
High
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Neutral
Data availability: 100%
Yield
Preference for dividend-paying stocks
Neutral
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 100%

Factor exposure shows clear tilts toward value, size, and low volatility, with neutral momentum, quality, and yield. Factors are like underlying “styles” — value means cheaper stocks, size means smaller companies, and low volatility points to relatively steadier names. A strong value and size tilt means the portfolio leans into historically rewarded characteristics that can outperform over long periods but may lag during growth-led or mega-cap-driven rallies. The high low-volatility exposure can help slightly soften swings compared with a more aggressive small-cap growth tilt. Combined, this creates a thoughtful, research-backed structure that’s different from the market but still broadly diversified, accepting periods of underperformance to pursue long-term factor premiums.

Risk contribution Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Weight: 40.00%
    40.0%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 30.00%
    27.1%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 15.00%
    19.3%
  • Avantis® International Small Cap Value ETF
    Weight: 15.00%
    13.7%

Risk contribution shows how much each holding drives overall ups and downs, which can differ from simple weight. Here, the US total market ETF is 40% of the portfolio and contributes almost exactly 40% of risk — very proportional. The US small-cap value ETF is only 15% by weight but contributes about 19% of risk, reflecting its higher volatility; its risk/weight ratio of 1.29 signals it punches above its size in driving fluctuations. The international positions contribute slightly less risk than their weights. Overall, the balance looks reasonable, with no single holding dominating. Still, anyone especially sensitive to swings might focus on whether that extra small-cap value “spice” feels comfortable.

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 efficient frontier chart compares the current mix to the best possible combinations of these same four funds. The current portfolio has a Sharpe ratio of 0.56, while the optimal combination reaches 0.8 with slightly higher return and slightly lower risk. The Sharpe ratio measures return per unit of volatility, like miles per gallon for your risk. Sitting about 1.46 percentage points below the frontier means there’s room to improve risk-adjusted returns just by reweighting the existing ETFs, no new products required. That said, the current setup is still in a reasonable ballpark; it’s not wildly inefficient, just not fully optimized from a pure math standpoint.

Dividends Info

  • Avantis® International Small Cap Value ETF 2.80%
  • Avantis® U.S. Small Cap Value ETF 1.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.90%

The overall dividend yield sits around 1.9%, with higher yields from the international funds and a lower yield from the US total market. Dividends are the cash payments companies make to shareholders, and they can be an important contributor to long-term total return, especially when reinvested. A sub-2% yield is consistent with a growth-oriented global equity portfolio that includes lots of reinvestment-focused companies. This setup is more about growing the capital base than about generating immediate income. For someone prioritizing income, this level might feel modest; for a long-term growth focus, it’s a reasonable trade-off and adds a steady, if small, return component.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • 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) 0.12%

The weighted total expense ratio (TER) of about 0.12% per year is impressively low for a portfolio with this much diversification and factor tilting. TER is the annual percentage fee charged by funds to cover their operating costs, and even small differences compound over decades. Here, the very cheap Vanguard core funds anchor costs, while the Avantis small-cap value funds add a bit of cost but also targeted exposure. Relative to many active or complex strategies, this fee level is a meaningful strength. Keeping costs this low helps more of the portfolio’s gross return stay in your pocket over time, quietly boosting long-term outcomes.

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