Strong tilted equity core with smart factor overlays and room to boost global diversification

Report created on Mar 25, 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

The portfolio is overwhelmingly equity-focused, with around 95% in stocks, 3% in long-term government bonds, and a small slice in alternatives like gold and managed futures. Most of the equity risk lives in two big core positions that cover the broad US market, complemented by a handful of targeted factor and value-tilt funds. This setup behaves much more like a growth-focused stock portfolio than a classic “balanced” mix, because bonds and diversifiers are deliberately small. The structure is simple to understand and easy to maintain, which is a real strength. Anyone using a setup like this should just be aware that market swings will largely track stock markets rather than a traditional 60/40-type blend.

Growth Info

Over the period from late 2021 to early 2026, the portfolio turned a hypothetical $1,000 into about $1,556, for a compound annual growth rate (CAGR) of 11.27%. CAGR is basically the “average speed” of growth per year. That’s slightly behind the US market benchmark but ahead of the global market. The max drawdown, around -24%, is in line with the US market and a bit better than the global index, which means downside has been fairly typical for a stock-heavy mix. This shows the portfolio has delivered solid, competitive returns with no obvious red flags, but the ride has been very much an equity ride. As always, past returns don’t guarantee similar future results.

Projection Info

The Monte Carlo simulation uses the portfolio’s historical return and volatility to generate 1,000 possible 10‑year paths, a bit like running the future many times with different dice rolls. The median outcome roughly multiplies capital by about 3.5 over 10 years, with even the weak 5th percentile still positive but modest. The average simulated annual return, about 10.7%, lines up with recent history, though that’s not a promise. Most simulated paths end up positive, which reflects the strong equity bias and historical equity premium. The key point: there’s a wide range of possible outcomes, and bad stretches do happen. Planning around both the median and the weaker scenarios helps make sure savings goals survive a rough decade.

Asset classes Info

  • Stocks
    95%
  • Bonds
    3%
  • Other
    1%
  • Cash
    1%

Asset allocation is dominated by stocks, with only a small allocation to bonds and a thin slice to alternatives like gold and managed futures. Compared with many “balanced” mixes, this leans substantially more toward growth and away from defensive ballast. The long-term Treasury exposure does add some potential protection in deep equity selloffs, while the managed futures and gold can behave differently from stocks during certain macro shocks. Still, the overall profile is firmly equity-centric. This is well aligned with a long time horizon and tolerance for ups and downs, but might feel bumpy for anyone needing to draw cash soon. Matching this equity weight to actual savings goals and withdrawal timelines is important.

Sectors Info

  • Technology
    28%
  • Financials
    13%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is quite broad, with meaningful stakes across technology, financials, consumer cyclical and defensive areas, industrials, healthcare, energy, and more. Technology is the largest slice at around 28%, which is close to modern index norms and reflects how dominant tech-related firms have become in global markets. This tech tilt has helped performance in recent years but can mean more sensitivity to interest rate changes and innovation cycles. The rest of the portfolio spans all major economic sectors, which is a strong indicator of diversification and avoids heavy bets on any single industry beyond the natural tech leadership. This alignment with broad index sector weights is a positive sign for long-run balance.

Regions Info

  • North America
    88%
  • Europe Developed
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Japan
    1%

Geographically, the portfolio is very US‑centric: roughly 88% in North America, with only a small allocation to developed Europe, Japan, and emerging Asia. That’s a stronger home bias than global market indexes, which spread more weight across non‑US regions. The upside is simple: it captures US innovation and the strength of large American companies, which have led returns over the last decade. The trade‑off is more vulnerability if US markets lag or face prolonged headwinds while other regions do better. For investors aiming for global diversification, gradually increasing the share of international stocks can spread economic and political risk across more countries and currencies without radically changing the overall equity profile.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    30%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    2%
  • No data
    2%

By market cap, the portfolio skews heavily to mega‑ and large‑cap companies, with smaller but still meaningful slices in mid‑caps and small caps. This mirrors broad equity benchmarks fairly closely, while the added small‑cap value funds nudge exposure a bit down the size spectrum. Larger companies tend to be more stable and liquid, which can dampen extreme volatility compared to a pure small‑cap portfolio, while smaller companies provide some extra growth and value potential. This mix is a solid, mainstream structure that balances stability with some tilt toward smaller names. Anyone wanting more small‑cap punch would have to consciously increase that allocation, knowing it also raises volatility and tracking error.

True holdings Info

  • NVIDIA Corporation
    5.63%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Min Vol Factor ETF
    • iShares MSCI USA Quality Factor ETF
  • Apple Inc
    5.22%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Min Vol Factor ETF
    • iShares MSCI USA Quality Factor ETF
  • Microsoft Corporation
    3.93%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Min Vol Factor ETF
    • iShares MSCI USA Quality Factor ETF
  • Amazon.com Inc
    2.65%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Min Vol Factor ETF
  • Alphabet Inc Class A
    2.40%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Quality Factor ETF
  • Broadcom Inc
    1.98%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Min Vol Factor ETF
  • Alphabet Inc Class C
    1.92%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Min Vol Factor ETF
    • iShares MSCI USA Quality Factor ETF
  • Meta Platforms Inc.
    1.91%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Min Vol Factor ETF
    • iShares MSCI USA Quality Factor ETF
  • Tesla Inc
    1.48%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Berkshire Hathaway Inc
    1.27%
    Part of fund(s):
    • Schwab U.S. Broad Market ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total International Stock Index Fund ETF Shares
    • Vanguard Total Stock Market Index Fund ETF Shares
    • iShares MSCI USA Min Vol Factor ETF
    • iShares MSCI USA Quality Factor ETF
  • Top 10 total 28.40%

Looking through the ETFs, the top exposures are heavily clustered in the largest US growth names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet. These positions show up multiple times via the broad US funds, which creates hidden concentration even without any single-stock purchases. This overlap is normal for broad index-based portfolios, but it does mean a meaningful chunk of risk is tied to a small group of mega-cap companies. Because only ETF top-10 holdings are captured, actual overlap is likely somewhat higher. If someone prefers broader diversification away from these giants, they might consider whether this implicit tilt toward very large growth names is intentional or a byproduct of the chosen building blocks.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 6%
Size
Exposure to smaller companies
Very high
Data availability: 45%
Momentum
Exposure to recently outperforming stocks
Low
Data availability: 100%
Quality
Preference for financially healthy companies
Very high
Data availability: 2%
Yield
Preference for dividend-paying stocks
Very high
Data availability: 3%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 99%

Factor exposure shows clear tilts toward value, smaller size, and quality, with moderate exposure to low volatility and more neutral momentum and yield. Factors are like “personality traits” of stocks that research links to long-term return patterns. The strong value and size tilts come from the dedicated small-cap and value funds, while quality and low-volatility are reinforced by the specific factor ETFs. This means the portfolio may outperform when cheaper, smaller, and higher‑quality companies are in favor, but it can lag during strong growth or momentum-driven markets. The diversified factor mix is thoughtful and can smooth some extremes, though the relatively low signal coverage suggests some estimates are noisier and should be treated with caution.

Risk contribution Info

  • Vanguard S&P 500 ETF
    Weight: 42.86%
    45.1%
  • Vanguard Total Stock Market Index Fund ETF Shares
    Weight: 38.10%
    41.6%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 3.33%
    3.9%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 4.29%
    3.5%
  • iShares MSCI USA Quality Factor ETF
    Weight: 1.90%
    2.0%
  • Top 5 risk contribution 96.1%

Risk contribution highlights that the two big core US equity funds, despite being under 45% each by weight, together drive over 86% of the portfolio’s overall volatility. Add in the small‑cap value slice, and the top three positions contribute more than 90% of risk. Risk contribution measures how much each holding adds to the portfolio’s ups and downs, which can be very different from its dollar weight. This concentration is not automatically bad, as these are broad, diversified funds, but it does mean the smaller diversifiers currently have limited impact. Adjusting position sizes is the main lever for aligning where risk actually comes from with the intended risk profile.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    iShares MSCI USA Quality Factor ETF
    Vanguard S&P 500 ETF
    High correlation

Correlation describes how often assets move in the same direction at the same time. The core US equity funds and the US quality ETF are highly correlated, which makes sense because they own many of the same companies. High correlation is normal within a stock sleeve but limits diversification benefits, especially during sharp market selloffs when everything falls together. The small allocations to long-term Treasuries, gold, and managed futures are designed to introduce assets that may zig when stocks zag, but their impact is muted by their small size. Recognizing these correlation patterns helps explain why the portfolio behaves so similarly to the US market despite holding multiple different tickers.

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 the efficient frontier, meaning that for its specific mix of holdings, the weights are already structured in an efficient way. The efficient frontier is the curve showing the best possible return for each risk level using only these ingredients. However, the mathematically “optimal” portfolio on that curve has a much higher expected return with lower volatility, driven by different weights, and a same‑risk configuration could push expected return even higher. This gap suggests there’s room to improve the tradeoff by reweighting the existing funds, especially given the high correlation across US equity positions. The encouraging part: efficiency is solid already, and any future tweaks are about fine‑tuning rather than fixing big problems.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.10%
  • Avantis® Emerging Markets Value ETF 3.20%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • iMGP DBi Managed Futures Strategy ETF 5.60%
  • iShares MSCI USA Quality Factor ETF 1.00%
  • iShares MSCI USA Min Vol Factor ETF 1.60%
  • Vanguard Long-Term Treasury Index Fund ETF Shares 4.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.48%

The overall dividend yield is around 1.5%, which is fairly typical for a growth‑oriented US‑heavy equity portfolio. Some value and international positions pay higher yields, while the core US equity and factor funds sit closer to the market average. Dividends matter because they’re a steady component of total return, especially over decades when reinvested. But in this setup, capital growth from earnings and price appreciation is the main driver, not income. For someone focused on long-term accumulation, that’s perfectly reasonable and quite efficient. Anyone who expects to live off portfolio cash flow in the near term would likely need either a higher-yielding mix or a clear plan for selling shares to generate the needed income.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iMGP DBi Managed Futures Strategy ETF 0.85%
  • iShares Gold Trust 0.25%
  • iShares MSCI USA Quality Factor ETF 0.15%
  • iShares MSCI USA Min Vol Factor ETF 0.15%
  • Vanguard Long-Term Treasury Index Fund ETF Shares 0.04%
  • 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%

The blended cost (TER) of about 0.06% is impressively low given the mix of broad index funds and a few more specialized strategies. Low fees are powerful because they’re one of the few things an investor can control, and every basis point saved compounds over decades. The combination of ultra‑cheap core index ETFs with slightly pricier but still reasonable factor and value funds is a smart way to keep overall costs down while adding desired tilts. This cost profile is very well aligned with best practices and supports better long-term outcomes compared with similar portfolios built from higher‑fee funds or active managers.

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