Strong factor tilted global equity mix targeting long term growth with broad diversification
Report created on Apr 6, 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.
Positions
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AV Avantis® U.S. Equity ETF
AVUS - US0250728856 45.00% -
AV Avantis® International Equity ETF
AVDE - US0250727031 24.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 8.00% -
AV Avantis® Emerging Markets Equity ETF
AVEM - US0250726041 8.00%
This portfolio is a pure equity mix built entirely from five broadly diversified stock ETFs, with no bonds or cash. The largest slice leans on a core U.S. equity fund, supported by international developed markets, plus meaningful allocations to U.S. and international small-cap value and emerging markets. Being 100% in stocks means the portfolio aims squarely at growth rather than capital preservation. That’s powerful for long horizons but can feel rough in deep market selloffs. The clear structure is a plus: one core holding does the heavy lifting, while satellite positions add diversification and factor tilts. For someone wanting long-term growth, this style of “all-equity, globally diversified” setup is a solid, coherent approach.
Growth
Historically, $1,000 invested grew to about $2,306 over the period, giving a compound annual growth rate (CAGR) of 13.72%. CAGR is like average speed on a road trip, smoothing out bumps along the way. That return slightly lagged the U.S. market but beat the global market, which is a good sign for a diversified, factor-tilted approach. The portfolio saw a max drawdown of about -39% during early 2020, deeper than the benchmarks’ -34%. That drop, and the eight months to recover, show the kind of volatility a growth-oriented, all-stock allocation can experience. The big takeaway: performance has been strong overall, but it comes with real swings.
Projection
The Monte Carlo projection uses past returns and volatility to simulate many possible future paths, like rolling the dice 1,000 times on how markets could behave. Over 15 years, the “most likely” median outcome for $1,000 is about $2,807, with a fairly wide range from roughly $1,053 to $7,803 in the more extreme scenarios. The chance of ending with more than you started is about 73%, and the average simulated annual return is 8.24%. These numbers are not promises; they’re educated guesses based on history. Markets rarely repeat the past exactly, but simulations help set expectations about both potential upside and painful downside.
Asset classes
- Stocks 100%
Asset-class-wise, everything is in stocks: no bonds, no cash, no alternatives. That’s very straightforward and fits a growth classification, but it also means there’s no built-in cushion when markets fall. Equities historically provide higher long-term returns than bonds, but they do it by being more volatile. Compared with typical balanced portfolios that mix in fixed income, this setup will likely swing more month to month and during crises. The positive side is simplicity and maximum equity exposure to capture global economic growth. The trade-off is that anyone holding this needs either a very long horizon, a strong stomach for drawdowns, or both.
Sectors
- Financials 19%
- Technology 16%
- Industrials 15%
- Consumer Discretionary 12%
- Energy 10%
- Basic Materials 7%
- Telecommunications 6%
- Health Care 6%
- Consumer Staples 5%
- Utilities 3%
- Real Estate 1%
Sector exposure is nicely spread: financials, technology, and industrials are the three largest, followed by consumer areas, energy, materials, telecom, health care, staples, utilities, and a small slice of real estate. Nothing looks wildly out of line with global equity norms, and there’s no single sector that clearly dominates. That’s a big plus for diversification, since sector-specific shocks—like a tech selloff or an energy slump—are less likely to tank the whole portfolio. One implication: returns will be driven more by broad market moves and factor tilts than by a heavy bet on any particular industry theme. This aligns well with long-term, core investing principles.
Regions
- North America 63%
- Europe Developed 16%
- Japan 8%
- Asia Developed 4%
- Asia Emerging 3%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is anchored in North America at about 63%, with meaningful slices in developed Europe and Japan, plus smaller stakes in other developed and emerging regions worldwide. This looks reasonably close to global market weights, with a healthy U.S. tilt that isn’t extreme. That’s beneficial because it balances exposure to the world’s largest market with diversification into other economies and currencies. When one region underperforms, others can offset it. Currency swings and regional shocks will still show up, but you’re not overly tied to the fate of a single country. This is a strong geographic setup for a long-term global equity investor.
Market capitalization
- Mega-cap 26%
- Mid-cap 24%
- Large-cap 23%
- Small-cap 18%
- Micro-cap 9%
The market-cap breakdown shows exposure across the full spectrum: mega-cap, large-cap, mid-cap, small-cap, and even some micro-cap. That’s quite different from a typical market-cap-weighted index that heavily concentrates in mega and large companies. Smaller stocks tend to be more volatile and less predictable year to year, but historically have offered a return premium over long periods. Having meaningful small and micro-cap exposure can therefore raise both expected return and risk. The mix here suggests an intentional tilt toward the broader “economic engine,” not just household names. Over decades, that can be powerful, but it can also feel choppier in the short term.
True holdings
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NV NVIDIA Corporation 2.23%
Part of fund(s):- Avantis® U.S. Equity ETF
-
AA Apple Inc 2.21%
Part of fund(s):- Avantis® U.S. Equity ETF
-
MS Microsoft Corporation 1.59%
Part of fund(s):- Avantis® U.S. Equity ETF
-
AM Amazon.com Inc 1.46%
Part of fund(s):- Avantis® U.S. Equity ETF
-
GO Alphabet Inc Class A 1.07%
Part of fund(s):- Avantis® U.S. Equity ETF
-
ME Meta Platforms Inc. 1.00%
Part of fund(s):- Avantis® U.S. Equity ETF
-
GO Alphabet Inc Class C 0.86%
Part of fund(s):- Avantis® U.S. Equity ETF
-
JP JPMorgan Chase & Co 0.60%
Part of fund(s):- Avantis® U.S. Equity ETF
-
XO Exxon Mobil Corp 0.58%
Part of fund(s):- Avantis® U.S. Equity ETF
-
TS Taiwan Semiconductor Manufacturing 0.51%
Part of fund(s):- Avantis® Emerging Markets Equity ETF
- Top 10 total 12.10%
Looking through the ETFs, the top underlying positions include familiar mega-cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, plus banks, energy, and a major semiconductor producer. These giants together still make up only a modest slice of the total portfolio, reflecting broad diversification. Some of these companies appear in more than one ETF, which creates a bit of hidden concentration, but here the overlap is limited because the funds hold many stocks overall. Since the data covers only top-10 ETF holdings, true overlap is likely a bit higher than shown. Still, no single company dominates total exposure, which helps spread company-specific risk.
Factors
On factors, this portfolio has a clear tilt toward value and smaller companies: value exposure and size exposure both sit in the “high” range. Factor exposure is basically how much you lean into certain stock characteristics that research has linked to returns—like buying cheaper companies (value) or smaller ones (size). Historically, value and small caps have had stretches of outperformance and long frustrating droughts. The other factors—momentum, quality, yield, and low volatility—are roughly neutral, so they don’t dominate behavior. Expect this portfolio to do especially well when value and small-cap styles are in favor, and to lag broad market indexes when growth mega-caps lead.
Risk contribution
-
Avantis® U.S. Equity ETF
Weight: 45.00% 45.6% -
Avantis® International Equity ETF
Weight: 24.00% 21.1% -
Avantis® U.S. Small Cap Value ETF
Weight: 15.00% 19.5% -
Avantis® International Small Cap Value ETF
Weight: 8.00% 7.1% -
Avantis® Emerging Markets Equity ETF
Weight: 8.00% 6.7%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from its simple weight. The U.S. core equity ETF is 45% of the portfolio and contributes about 46% of total risk, so it’s roughly proportional. The U.S. small-cap value ETF is only 15% by weight but contributes almost 19.5% of risk, meaning it punches above its size in volatility. The international and emerging markets funds each add a bit less risk than their weights. Overall, the top three holdings make up over 86% of total risk. Rebalancing or trimming more volatile pieces is a common way to keep that risk profile intentional.
Redundant positions
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High correlationAvantis® International Small Cap Value ETFAvantis® International Equity ETF
Correlation measures how similarly assets move. When two holdings are highly correlated, they often rise and fall together, which limits diversification benefits. Here, the international equity ETF and the international small-cap value ETF are noted as moving almost identically. That makes sense—they tap into similar regions and can both react strongly to the same economic news. While this doesn’t make either fund “bad,” it does mean they’re not giving as much diversification relative to each other as their different labels might suggest. Instead, most diversification here comes from mixing U.S., international, emerging markets, and different company sizes and styles.
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 below the efficient frontier by about 1.02 percentage points at its risk level. The efficient frontier shows the best possible return for each level of risk using only these holdings but in different weightings. The Sharpe ratio—a measure of return per unit of risk—is 0.55 for the current mix versus 0.77 for the optimal mix and 0.63 for the minimum-variance version. This suggests the same five ETFs could be combined a bit more efficiently to improve risk-adjusted returns without adding new assets. Still, the current allocation is reasonably close, so it’s more “tune-up” than “major overhaul.”
Dividends
- Avantis® International Equity ETF 2.70%
- Avantis® International Small Cap Value ETF 3.00%
- Avantis® Emerging Markets Equity ETF 2.40%
- Avantis® U.S. Equity ETF 1.00%
- Avantis® U.S. Small Cap Value ETF 1.40%
- Weighted yield (per year) 1.74%
The overall dividend yield is about 1.74%, which is modest but not trivial for a growth-tilted equity portfolio. Yield is higher in the international and small-cap value funds and lower in the U.S. core and small-cap holdings. Dividends matter because they provide a steady component of total return, especially over long periods when reinvested. But in a portfolio like this, most of the expected payoff comes from capital growth rather than income. For someone not relying on current cash flow, that’s fine; the focus is on long-term appreciation. The yield level is broadly in line with a diversified global equity mix.
Ongoing product costs
- Avantis® International Equity ETF 0.23%
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® Emerging Markets Equity ETF 0.33%
- Avantis® U.S. Equity ETF 0.15%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Weighted costs total (per year) 0.22%
Total ongoing fund costs, measured by Total Expense Ratio (TER), are around 0.22%. TER is the annual fee taken by the fund provider, similar to a small management fee baked into performance. For an active, factor-tilted, globally diversified equity lineup, 0.22% is impressively low and a real strength of this setup. Lower costs mean more of the underlying return stays in your pocket year after year, which compounds over time. Compared with many actively managed or higher-fee factor funds, this structure is cost-efficient while still delivering a sophisticated exposure mix. That’s a strong foundation for long-term investing discipline.
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