Factor tilted global equity portfolio with strong value and size focus and solid long term returns

Report created on Apr 7, 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 100% equity mix built entirely from factor ETFs, with nine funds and no bonds or cash. The biggest slices go to U.S. small value, U.S. dividend/value, and U.S. quality growth-at-a-reasonable-price, each at 15%. International developed and emerging markets get meaningful but smaller allocations, with a mix of value and momentum styles. This all-equity, multi-factor structure is aggressive compared with a classic balanced mix that usually holds a large bond chunk. The upside is higher long-run growth potential; the trade-off is sharper swings along the way. For someone comfortable with volatility and focused on long horizons, this structure is a deliberate, coherent equity strategy rather than a random fund collection.

Growth Info

From early 2022 to April 2026, $1,000 grew to about $1,832, a compound annual growth rate (CAGR) of 16%. CAGR is like average speed on a long trip: it smooths the bumps and tells you the “per year” pace. Over the same period, the U.S. market returned 12.61% per year, and the global market 11.36%, so this mix outpaced both by 3–4.5 percentage points annually. The max drawdown, about -22%, was similar to the benchmarks, meaning the downside shock wasn’t worse despite the factor tilts. That’s encouraging, but always remember: past performance doesn’t guarantee future results, and these strong numbers likely include a very favorable environment for your chosen factors.

Projection Info

The Monte Carlo projection uses historical return and volatility patterns to simulate many possible 15‑year paths for this portfolio, a bit like running 1,000 “what if” market histories. The median outcome turns $1,000 into about $2,727, with a wide middle range from roughly $1,800 to $4,073 and a full 5–95% band from about $905 to $7,134. Across simulations, the average annualized return is 7.86% and roughly three-quarters of paths end positive. This is helpful for framing expectations: there’s a decent chance of solid growth, but outcomes vary a lot. Simulations rely on past data, though, so actual future returns may be higher or lower, especially if factor premiums or interest rates shift meaningfully.

Asset classes Info

  • Stocks
    100%

All assets here are stocks, so asset class diversification is intentionally narrow. Compared with a “balanced investor” benchmark, which might hold 40–60% in bonds or cash, this is a more growth‑oriented stance. Stocks historically have higher long‑term returns than bonds but also deeper and more frequent drawdowns. The benefit is maximizing exposure to global equity risk premiums and factor tilts; the cost is that when markets fall, there’s no built‑in ballast to soften the hit. For someone with a long time horizon and the emotional ability to sit through double‑digit declines, this can be reasonable. For shorter horizons, separate safety buckets outside this portfolio often make sense.

Sectors Info

  • Technology
    21%
  • Industrials
    18%
  • Financials
    17%
  • Consumer Discretionary
    9%
  • Basic Materials
    8%
  • Energy
    7%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure is fairly balanced, with technology the largest at 21%, followed closely by industrials (18%) and financials (17%). That’s less tech‑heavy than a typical U.S. large‑cap index today, which is often north of 30% tech. You also have notable slices in consumer discretionary, materials, energy, and smaller but real allocations to staples, utilities, telecom, and real estate. This spread helps avoid being overly tied to one economic theme. The modest tech tilt still captures growth trends, but the strong industrials and financials presence leans into more cyclical and value‑oriented areas. This diversified sector mix is a strength and aligns well with broad global benchmarks from a risk-spreading standpoint.

Regions Info

  • North America
    63%
  • Europe Developed
    13%
  • Japan
    8%
  • Asia Developed
    6%
  • Asia Emerging
    3%
  • Latin America
    2%
  • Africa/Middle East
    2%
  • Australasia
    1%
  • Europe Emerging
    1%

Geographically, about 63% of the portfolio sits in North America, with the rest spread across Europe, Japan, other developed Asia, and emerging regions. That North American weight is a bit higher than its share of global market capitalization but still in the same ballpark, so you’re not wildly home‑biased. Developed international markets get meaningful exposure, and emerging markets, while smaller, are not just a token allocation. This mix balances benefiting from U.S. market strength with participation in other economies and currencies. It helps reduce the risk that any single country’s policy, currency, or growth slump dominates long‑term outcomes, while still keeping the core anchored in deep, liquid markets.

Market capitalization Info

  • Large-cap
    27%
  • Mega-cap
    26%
  • Mid-cap
    22%
  • Small-cap
    17%
  • Micro-cap
    7%

Market capitalization is nicely spread across mega, large, mid, small, and even micro‑caps: roughly half in mega/large, about a fifth in mid‑caps, and a combined ~24% in small and micro. That’s a clear tilt toward smaller companies compared with a standard global index, which is heavily dominated by mega‑caps. Size exposure is important because smaller firms historically have offered higher long‑term returns, albeit with bumpier rides and more sensitivity to economic slowdowns. The upside is more diversification of return drivers and potential for idiosyncratic winners; the trade‑off is that downturns can feel sharper. Overall, this size mix aligns very well with the portfolio’s explicit small‑cap and value focus.

True holdings Info

  • NVIDIA Corporation
    2.25%
    Part of fund(s):
    • Capital Group Dividend Value ETF
    • Invesco S&P 500® Momentum ETF
    • iShares MSCI USA Quality GARP ETF
  • Microsoft Corporation
    1.54%
    Part of fund(s):
    • Capital Group Dividend Value ETF
    • iShares MSCI USA Quality GARP ETF
  • Broadcom Inc
    1.20%
    Part of fund(s):
    • Capital Group Dividend Value ETF
    • Invesco S&P 500® Momentum ETF
  • Meta Platforms Inc.
    1.14%
    Part of fund(s):
    • Capital Group Dividend Value ETF
    • iShares MSCI USA Quality GARP ETF
  • Lam Research Corp
    0.98%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • iShares MSCI USA Quality GARP ETF
  • Eli Lilly and Company
    0.93%
    Part of fund(s):
    • Capital Group Dividend Value ETF
    • iShares MSCI USA Quality GARP ETF
  • Alphabet Inc Class A
    0.88%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • iShares MSCI USA Quality GARP ETF
  • Apple Inc
    0.76%
    Part of fund(s):
    • iShares MSCI USA Quality GARP ETF
  • Raytheon Technologies Corp
    0.66%
    Part of fund(s):
    • Capital Group Dividend Value ETF
  • Applied Materials Inc
    0.63%
    Part of fund(s):
    • Capital Group Dividend Value ETF
  • Top 10 total 10.97%

Looking through ETF top-10s, exposure quietly clusters around a handful of big names like NVIDIA, Microsoft, Broadcom, Meta, and Apple. NVIDIA in particular stands out at roughly 2.25% total exposure, with others between about 0.6% and 1.5%. This happens because multiple funds independently own the same winners, creating overlap that isn’t obvious from ticker lists. Since coverage is limited to ETF top-10 holdings, actual overlap is probably higher further down the portfolios. Hidden concentration like this means a few mega-caps can drive more of the portfolio’s day-to-day moves than the headline “small value and momentum” story suggests. It’s not necessarily a problem, but it’s worth being aware of how much big-tech leadership is embedded.

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
Neutral
Data availability: 100%

Factor exposure shows clear, intentional tilts: value at 65% and size at 63% are both “high,” meaning a mild but consistent lean toward cheaper and smaller companies relative to the market. Momentum, quality, yield, and low volatility sit around neutral, so they behave more like the broad market. Factor investing is about leaning into characteristics research has tied to long‑term return premiums. A value and size tilt can outperform over decades but may lag during growth-led or mega‑cap booms. The neutral exposure to quality and low volatility avoids taking on an extreme “junk” profile, which is reassuring. Overall, this is a focused but not reckless factor profile that matches classic long‑term equity premium strategies.

Risk contribution Info

  • iShares MSCI USA Quality GARP ETF
    Weight: 15.00%
    17.6%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 15.00%
    17.6%
  • Invesco S&P International Developed Momentum ETF
    Weight: 14.00%
    12.9%
  • Capital Group Dividend Value ETF
    Weight: 15.00%
    12.8%
  • Avantis® International Small Cap Value ETF
    Weight: 14.00%
    12.6%
  • Top 5 risk contribution 73.4%

Risk contribution looks at how much each holding adds to total portfolio volatility, which can differ from its simple weight. Here, the three 15% and 14% positions in U.S. quality, U.S. small value, and international momentum together drive about 48% of total risk. Notably, the U.S. quality and U.S. small value funds each contribute slightly more risk than their weights (risk/weight around 1.17–1.18), while the international funds and dividend value contribute a bit less. That means the portfolio’s ups and downs are somewhat more tied to those two U.S. funds than a naive weight check suggests. If you ever want to smooth risk, modestly trimming the most “risk‑dense” positions can rebalance volatility without changing the fund lineup.

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 chart shows the current mix has an expected return of 16.69% with 17.36% volatility, giving a Sharpe ratio of 0.73 (Sharpe is return minus cash, divided by risk — a simple “efficiency” score). The optimal portfolio using the same holdings reaches a Sharpe of 1.04, while the minimum‑variance mix sits at 0.87. Being 2.33 percentage points below the efficient frontier at your current risk level means the same funds, in different weights, could deliver better risk‑adjusted returns. In plain language, the ingredients are strong but not yet arranged in the most efficient recipe. A future tweak to weights could either slightly boost expected return for similar risk or trim risk for similar return, without changing the fund lineup.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.00%
  • Avantis® Emerging Markets Value ETF 3.20%
  • Avantis® U.S. Small Cap Value ETF 1.40%
  • Capital Group Dividend Value ETF 1.10%
  • Freedom 100 Emerging Markets ETF 2.00%
  • Invesco S&P International Developed Momentum ETF 3.80%
  • Invesco S&P 500® Momentum ETF 0.90%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • iShares MSCI USA Quality GARP ETF 0.30%
  • Weighted yield (per year) 1.79%

The overall dividend yield is around 1.79%, with individual funds ranging from about 0.3% up to about 3.8%. That’s modest compared with classic income‑focused portfolios but perfectly normal for a growth‑tilted equity mix. dividends are just one piece of total return, alongside price appreciation. Here, the role of dividends is more about a steady “bonus” rather than primary income. For long‑term accumulators, a lower current yield isn’t a negative if earnings are being reinvested into growth. Over time, reinvested dividends still add meaningful compounding. The main point is that this setup is better suited to growing capital than funding near‑term spending needs purely from yield.

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%
  • Capital Group Dividend Value ETF 0.33%
  • Freedom 100 Emerging Markets ETF 0.49%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.26%

The portfolio’s total expense ratio (TER) comes in around 0.26%, which is very competitive for an actively factor‑tilted, multi‑ETF structure. Individual funds sit mostly in the 0.13–0.36% range, with one emerging markets ETF at 0.49%. Fees act like a small headwind every year, so keeping them modest is a big win for long‑term compounding. Over 15–20 years, even a 0.2–0.3 percentage point difference in annual costs can translate into thousands of dollars on a sizable account. Relative to typical factor and active funds, these costs are impressively low and support better net performance. From a cost perspective, this portfolio is on a solid, disciplined foundation.

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