Global equity portfolio with strong value tilt and efficient risk balance near the efficient frontier
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%
This portfolio is a straightforward global stocks mix built from four broad equity ETFs. Around 60% sits in a total world fund, which effectively acts as the core, while 20% leans into large US value companies, 10% into US small-cap value, and 10% into emerging markets. That structure layers specific tilts (value and small caps) on top of a diversified base. A setup like this often aims to keep world coverage while nudging the overall behavior toward certain characteristics. The result is mostly public equities with no bonds or cash, so the portfolio is geared toward growth and will naturally move with global stock markets rather than smoothing swings with defensive assets.
Growth
From mid-2020 to mid-2026, a hypothetical $1,000 in this mix grew to about $2,351, a compound annual growth rate (CAGR) of 30.64%. CAGR is like average speed on a road trip: it smooths out all the bumps into one yearly number. Over this period the portfolio slightly lagged the US market benchmark but modestly beat the broader global benchmark, showing that its tilts haven’t derailed global-like performance. The worst drop, or max drawdown, was about -22.8%, similar to broad equity markets, and took about 15 months to fully recover. That pattern is typical for a growth-oriented, stock-only portfolio that accepts meaningful ups and downs for higher long-run return potential.
Projection
The Monte Carlo projection looks at many possible futures using past behavior as a guide, then simulates 1,000 alternate paths. It doesn’t try to “predict” a single outcome; instead it shows a range of what could happen if returns and volatility behave roughly like history. Here, the median outcome after 15 years turns $1,000 into about $2,806, with a wide but plausible band from roughly $1,835 to $4,137 in the middle 50% of cases. The most optimistic and pessimistic 5% tails are much farther apart, highlighting uncertainty. As always, simulations are only models: real markets can be better or worse than any historical-based forecast.
Asset classes
- Stocks 90%
- No data 10%
On the asset class view, about 90% of the portfolio is clearly tagged as stocks, with the remaining 10% marked as “no data,” meaning the classification wasn’t available rather than indicating a different asset type. Functionally, this behaves as an all-equity portfolio, since all the listed holdings are equity ETFs. All-equity lineups typically maximize participation in global growth but also fully absorb equity market downturns, with no built-in buffer from bonds or cash. Compared with many blended stock–bond mixes, this structure leans firmly into growth risk. That’s consistent with the “growth” risk classification and a relatively high risk score on the provided scale.
Sectors
- Technology 23%
- Financials 16%
- Industrials 11%
- Consumer Discretionary 9%
- Health Care 8%
- Telecommunications 6%
- Energy 5%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector-wise, the portfolio is quite well spread out, with technology the largest at 23%, followed by financials at 16% and industrials at 11%. The remaining sectors are all in single digits, including consumer areas, health care, telecoms, energy, materials, utilities, and real estate. This looks broadly aligned with common global equity benchmarks where tech and financials are usually top-weighted but not overwhelmingly dominant. A structure like this avoids heavy bets on any single economic segment and can help smooth sector-specific shocks. Tech and financials can both be cyclical, so they may add to swings during rate changes or recessions, but diversification across many sectors supports resilience over time.
Regions
- North America 68%
- Europe Developed 8%
- Asia Developed 4%
- Japan 4%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 68% of the portfolio is in North America, with the rest spread across developed Europe and Asia, Japan, emerging Asia, and smaller allocations to Australasia, Latin America, and Africa/Middle East. This is a clear US/North America tilt, which is also common in global market-cap-weighted indices because US stocks make up a large share of global market value. Compared with a perfectly neutral “world” allocation, the portfolio is somewhat extra-dependent on one region’s economy, currency, and regulation, but still holds meaningful exposure to other regions. That balance lets it benefit when US markets lead while still participating in growth from the rest of the world.
Market capitalization
- Mega-cap 30%
- Large-cap 27%
- Mid-cap 17%
- Small-cap 9%
- Micro-cap 6%
The market cap breakdown shows a healthy spread: 30% mega-cap, 27% large-cap, 17% mid-cap, 9% small-cap, and 6% micro-cap. Mega and large caps still dominate, which is typical for index-based approaches, but the meaningful exposure to smaller companies stands out. Smaller firms tend to be more volatile and can be more sensitive to economic cycles, but over long periods have historically offered higher expected returns in many markets. The presence of both large and small companies across this spectrum adds another layer of diversification beyond geography and sector, and it aligns with the explicit small-cap value ETF inclusion.
True holdings
-
NV NVIDIA Corporation 2.41%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc. 2.29%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 2.07%
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 1.77%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.77%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
GO Alphabet Inc Class A 1.57%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
GO Alphabet Inc Class C 1.25%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
JP JPMorgan Chase & Co 0.97%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- iShares Russell 1000 Value ETF
-
AV Broadcom Inc 0.93%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.63%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 15.65%
Looking through ETF top holdings, the largest underlying positions include NVIDIA, Apple, TSMC, Microsoft, Amazon, Alphabet (both share classes), JPMorgan, Broadcom, and Meta. Each of these sits under about 2.5% of the overall portfolio, so no single company dominates. Some appear via multiple funds, which can create overlap, but current weights stay fairly modest at the total-portfolio level. Because only ETF top-10 lists are used, true overlap across all positions is likely higher than shown, yet still anchored by the diversified world fund. This suggests that while “big name” stocks do matter here, they’re not outsized bets relative to broad index norms.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows a strong tilt toward value and very low exposure to the size factor, meaning the portfolio leans away from smaller stocks in factor terms despite some small-cap holdings. It also has high momentum, quality, and low-volatility scores. Factors are like investing “ingredients” that help explain why returns behave a certain way over time. A value tilt often does better when cheaper, out-of-favor companies rebound, while high momentum tends to help in trending markets but can suffer when trends sharply reverse. High quality and low volatility exposures usually mean more resilient balance sheets and somewhat smoother rides than the market, even within an all-equity structure.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 60.00% 60.5% -
iShares Russell 1000 Value ETF
Weight: 20.00% 18.3% -
Avantis® U.S. Small Cap Value ETF
Weight: 10.00% 14.2% -
iShares Public Limited Company - iShares Core MSCI EM IMI UCITS ETF
Weight: 10.00% 7.0%
Risk contribution looks at how much each holding drives overall volatility, not just how big it is. The 60% world ETF contributes about 61% of total risk, which is roughly proportional to its size. The US large value ETF at 20% weight adds around 18% of risk, slightly less than its share by weight, while emerging markets at 10% add only about 7% of risk. The standout is the 10% small-cap value ETF, contributing over 14% of risk, meaning it punches above its weight in terms of swings. Altogether, the top three holdings account for about 93% of portfolio risk, which is normal for a concentrated four-ETF setup.
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 compares your current mix with two theoretical alternatives built from the same ingredients: the maximum Sharpe portfolio and the minimum-variance portfolio. The Sharpe ratio measures risk-adjusted return, or how much extra return you get per unit of volatility after accounting for a risk-free rate. Here, the current portfolio’s Sharpe is strong and very close to the optimal options, and it sits on or near the efficient frontier curve. That means, given these four ETFs, the existing weights already form an efficient balance between risk and return, and there isn’t a large “free” improvement available just by shuffling weights among them.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.20%
- iShares Russell 1000 Value ETF 1.40%
- Vanguard Total World Stock Index Fund ETF Shares 1.50%
- Weighted yield (per year) 1.30%
The portfolio’s total dividend yield is around 1.3%, with individual funds between about 1.2% and 1.5%. That’s a modest income level and suggests that most of the expected return is aimed at price growth rather than cash payouts. For growth-focused equity mixes, this is quite normal, since many companies reinvest profits instead of paying high dividends. Dividends can still be a useful cushion in flat or mildly negative markets and can be reinvested to compound over time, but in this portfolio they’re more of a supporting actor than the main driver of long-term returns.
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%
Total ongoing fund costs (TER) come in at about 0.10%, which is impressively low for a portfolio with global coverage and factor tilts. TER is like a small annual service fee charged by the funds, taken out before returns reach you. Lower costs mean less performance is lost to fees each year, and that small difference can compound into a meaningful gap over long periods. Here, the bulk of the weight sits in ultra-low-cost index exposure, with slightly higher fees only on the specialized small-cap value strategy. Overall, this cost structure is a real strength of the portfolio’s design.
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