Globally diversified growth portfolio with strong small value tilt and efficient risk adjusted profile
Report created on May 31, 2024Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 60.00% -
IW iShares Russell 1000 Value ETF
IWD - US4642875987 20.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00% -
IE iShares Public Limited Company - iShares Core MSCI EM IMI UCITS ETF
IEMIF 10.00%
The portfolio is a simple four‑ETF setup: a global total stock ETF as the 60% core, with 20% in large‑cap value, 10% in U.S. small‑cap value, and 10% in emerging markets. That means 40% sits in return‑seeking “tilts” away from a pure world index. Structure like this matters because the core provides broad market exposure while the satellite positions nudge long‑term behavior toward specific themes, like value and small caps. The big positive here is clarity and simplicity: it’s very easy to understand what is driving returns. The key question over time is whether that 40% in tilts still fits your comfort with added tracking error versus broad global equities.
Growth
From mid‑2020 to March 2026, $1,000 grew to about $2,080, a compound annual growth rate (CAGR) of 27.49%. CAGR is like your “average speed” over the trip, smoothing out all the bumps. That’s slightly ahead of the global equity benchmark and only modestly behind the U.S. market, which was exceptionally strong in this window. Max drawdown, the worst peak‑to‑trough loss, was about ‑22.8%, very similar to the benchmarks. This shows the portfolio captured strong upside while keeping downside in line with global stocks. The main takeaway: performance has been robust and consistent with a growth‑oriented equity strategy, without evidence of excessive risk-taking.
Asset classes
- Stocks 90%
- No data 10%
About 90% of the portfolio is clearly classified as stocks, with 10% in “no data,” which simply reflects incomplete classification rather than a known asset type. A near‑all‑equity stance is typical for growth investors with long horizons because stocks historically offer higher returns but larger volatility. This is very different from a mix that includes bonds or cash, which would usually dampen swings but lower expected growth. The upside of this approach is strong long‑term compounding potential; the trade‑off is living through sizable temporary drawdowns. For someone comfortable with equity‑like ups and downs, this asset mix is coherent and focused.
Sectors
- Technology 18%
- Financials 16%
- Industrials 12%
- Consumer Discretionary 9%
- Health Care 8%
- Telecommunications 7%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is broadly spread: technology is the largest at 18%, followed by financials at 16% and industrials at 12%, with the rest fairly evenly distributed. This is more balanced than many equity portfolios that lean heavily on a single growth sector. Sector balance matters because different parts of the economy lead at different points in the cycle—tech can dominate in low‑rate booms, while financials or energy may shine in other environments. The portfolio’s sector mix is nicely diversified and close to global norms, which is a strong indicator of resilience. It helps avoid being overly dependent on one economic narrative playing out perfectly.
Regions
- North America 67%
- Europe Developed 9%
- Japan 4%
- Asia Developed 4%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about two‑thirds of exposure sits in North America, with smaller slices across Europe, Japan, other developed Asia, and emerging regions like Asia EM, Latin America, and Africa/Middle East. This is a U.S./North America‑tilted but clearly global allocation, broadly similar to major world indices that are naturally dominated by the U.S. market. Geographic spread matters because regional cycles, currencies, and policy decisions can diverge sharply. Having meaningful but not dominant allocations outside North America allows participation in global growth while still anchoring in the world’s largest, most liquid market. This allocation is well‑balanced and aligns closely with global standards for equity diversification.
Market capitalization
- Mega-cap 30%
- Large-cap 27%
- Mid-cap 17%
- Small-cap 10%
- Micro-cap 5%
Market‑cap exposure skews toward mega and large caps (about 57%), with meaningful slices in mid, small, and even micro caps. That mirrors the structure of global markets but adds some extra punch in smaller companies via the dedicated small‑cap value fund. Size matters because larger firms tend to be more stable but slower‑growing, while smaller firms can be more volatile yet offer higher long‑term return potential. This mix gives a healthy “barbell”: stability from mega and large caps plus additional return potential and risk from smaller names. It’s a sensible size profile for someone targeting growth while still respecting diversification principles.
True holdings
-
NV NVIDIA Corporation 2.25%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 2.09%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.97%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Public Limited Company - iShares Core MSCI EM IMI UCITS ETF
-
MS Microsoft Corporation 1.58%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.45%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
GO Alphabet Inc Class A 1.39%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
GO Alphabet Inc Class C 1.13%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
AV Broadcom Inc 0.80%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.77%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.62%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 14.04%
The look‑through view shows familiar mega‑cap names—NVIDIA, Apple, TSMC, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla—appearing via the ETFs. None are direct single‑stock positions, but they recur across the broad global fund and, to a lesser degree, the other ETFs. Overlap like this creates hidden concentration because one company can influence several holdings at once, especially the very largest firms. That said, the top‑10 coverage is under 20%, so a big chunk of underlying exposure lies outside these names. The key takeaway is that, while there is some dependence on mega‑cap global leaders, the structure still keeps them as part of a diversified basket rather than outsized single‑stock bets.
Factors
Factor exposure shows two notable tilts: size at 62% and low volatility at 67%, both above market‑neutral (50%). Factors are like underlying “personality traits” of the portfolio—size captures tilts to smaller companies, and low volatility favors stocks that historically swing less. A size tilt can help in periods when smaller firms outperform, while a low‑volatility tilt often softens drawdowns in rough markets but may lag in sharp rallies. The other factors—value, momentum, quality, and yield—sit close to neutral overall, which keeps behavior from becoming too extreme. This combination suggests a growth‑oriented but somewhat smoother ride than a pure high‑beta equity approach.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 60.00% 60.1% -
iShares Russell 1000 Value ETF
Weight: 20.00% 18.3% -
Avantis® U.S. Small Cap Value ETF
Weight: 10.00% 14.5% -
iShares Public Limited Company - iShares Core MSCI EM IMI UCITS ETF
Weight: 10.00% 7.0%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from weight alone. The global core at 60% weight contributes about 60% of risk—very proportional. The U.S. small‑cap value ETF stands out: it’s 10% by weight but contributes about 14.5% of total risk, reflecting its higher volatility. The emerging markets ETF, also 10% by weight, contributes only about 7% of risk, so it’s relatively “risk‑light” here. When three holdings contribute over 90% of total risk, small tweaks to those weights can meaningfully change the ride. Periodic re‑sizing can help keep risk aligned with comfort levels.
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 analysis shows the current portfolio with a Sharpe ratio of 1.16, very close to the optimal portfolio’s 1.21 and above the minimum‑variance option’s 1.15. The Sharpe ratio tracks how much return you get per unit of volatility—higher is better. The efficient frontier curve suggests your mix is on or very near the frontier, meaning that, given these four ETFs, there’s no obvious reweighting that would dramatically improve the tradeoff. Tiny tweaks could squeeze out marginal gains, but the structure is already highly efficient for its risk level. That alignment is a strong signal the design is well thought‑through and coherent.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.40%
- iShares Russell 1000 Value ETF 1.70%
- Vanguard Total World Stock Index Fund ETF Shares 1.80%
- Weighted yield (per year) 1.56%
The portfolio’s overall dividend yield sits around 1.56%, with individual ETFs ranging from roughly 1.4% to 1.8%. That’s a modest income level, consistent with a growth‑oriented equity approach rather than an income‑focused one. Dividends matter because they add a steady component to total return and can cushion drawdowns slightly, but here they’re clearly secondary to price appreciation. For investors not relying on regular portfolio cashflow, this is perfectly fine and often tax‑efficient. The key takeaway is to view this setup as a long‑term compounding engine, where income is a nice bonus rather than the main feature or objective.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- iShares Russell 1000 Value ETF 0.19%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.10%
Costs are impressively low, with a blended total expense ratio (TER) of about 0.10%. TER is the annual fee baked into each fund, quietly reducing returns like a small “friction” charge. Keeping this friction low is one of the most reliable ways to improve long‑term outcomes, because every saved basis point compounds over decades. The choice of low‑cost index and smart beta ETFs is strongly aligned with best practices and supports better net performance versus pricier alternatives. From a cost perspective, there’s very little to optimize here—this is already in the “best‑in‑class” camp for a diversified equity portfolio.
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