Small cap value heavy portfolio with meaningful international and emerging markets exposure

Report created on Dec 13, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is concentrated in three value-oriented funds with 50% U.S. small cap value 30% international small cap value and 20% emerging markets value. This creates a clear small‑cap value tilt versus a typical global equity benchmark that would include larger cap and growth exposure. A concentrated fund-level structure simplifies monitoring but increases single-theme risk. Recommendation: maintain the value bias only if it matches the intended strategy; otherwise add broader-cap exposures or a low-cost total market sleeve to balance idiosyncratic small‑cap swings and reduce reliance on three funds for diversified return drivers.

Growth Info

Historic data show a compound annual growth rate (CAGR) of 11.69% where CAGR, or Compound Annual Growth Rate, measures average annualized growth like a steady speed over a long trip. The portfolio’s max drawdown was −48.94% demonstrating significant downside volatility during stress periods. Using a hypothetical $100,000 start this CAGR would have grown the portfolio substantially but large drawdowns mean long recovery times. Benchmarks with more large-cap allocation usually show smaller drawdowns. Recommendation: accept higher volatility for higher expected returns or introduce defensive allocations to limit drawdowns if the time horizon or risk tolerance is shorter.

Projection Info

The Monte Carlo analysis used 1,000 simulations to model a range of possible outcomes by randomly sampling returns based on historical patterns; Monte Carlo is a simulation method that shows many potential future paths instead of a single forecast. Results show a median simulated end value around 298.7% and a 5th percentile outcome of 14.3% indicating skewed upside but some downside risk. Annualized return across simulations was 12.05% with 971 simulations positive. Remember simulated outcomes rely on historical inputs and assumptions so they illustrate possibilities not guarantees. Recommendation: use these scenarios to assess risk capacity and plan portfolio stress tests.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

Asset class exposure is heavily equity tilted with 98% stocks and 2% cash, and effectively no bonds or alternatives. This drives higher expected returns but also more portfolio volatility. Benchmarks for growth profiles often include a material bond sleeve for risk dampening which is absent here. Recommendation: if the investor’s goal requires smoother short-term outcomes consider adding a fixed income allocation or diversifying into alternative strategies that historically have lower correlation with small-cap equities to reduce volatility and improve drawdown resilience without dramatically altering long‑term return potential.

Sectors Info

  • Financials
    30%
  • Industrials
    17%
  • Consumer Discretionary
    14%
  • Basic Materials
    11%
  • Energy
    8%
  • Technology
    7%
  • Consumer Staples
    4%
  • Health Care
    4%
  • Telecommunications
    3%
  • Real Estate
    2%
  • Utilities
    1%

Sector weights show meaningful concentration: Financials at 30% Industrials 17% Consumer Cyclical 14% and Basic Materials 11% with Energy and Technology smaller but notable. This differs from many broad-market benchmarks where Technology often dominates and Financials are smaller. Sector concentration matters because sector cycles can drive performance independent of broad markets; for example financials and materials are cyclical and sensitive to rates and commodity cycles. Recommendation: confirm the sector tilt is intentional for value exposure; if not consider gentle rebalancing toward benchmark-like sector balance or add funds that offset cyclical concentration.

Regions Info

  • North America
    52%
  • Europe Developed
    16%
  • Asia Emerging
    10%
  • Japan
    8%
  • Asia Developed
    7%
  • Africa/Middle East
    2%
  • Australasia
    2%
  • Latin America
    2%

Geographic exposure is skewed to North America at 52% with Europe Developed at 16% Asia Emerging 10% Japan 8% and smaller allocations elsewhere. Compared with a global market‑cap benchmark this is overweight the U.S. and small cap international value holdings create varied regional performance drivers. Geographic concentration affects political currency and economic risk. Recommendation: evaluate whether the current regional split matches diversification goals; consider modest increases to underrepresented regions or currency-hedged instruments if currency swings or regional policy risk are concerns.

Market capitalization Info

  • Small-cap
    40%
  • Micro-cap
    22%
  • Mid-cap
    21%
  • Mega-cap
    7%
  • Large-cap
    7%

Market-cap profile is heavily tilted to small (40%) and micro (22%) caps with limited mega (7%) and big (7%) cap exposure. Small and micro caps often offer higher long‑term returns but come with greater volatility lower liquidity and higher sensitivity to company‑specific risk. Benchmarks that blend all caps typically show much higher large-cap weights, which smooth returns. Recommendation: if downside protection or liquidity is important add some large-cap exposure or a total-market allocation to capture broad market stability while retaining a meaningful small‑cap value sleeve for potential outperformance.

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.

Efficient Frontier optimization finds portfolios that offer the highest expected return for a given level of risk where the Efficient Frontier is a set of optimal portfolios balancing risk and return using current assets and allocations. Optimization using only these three funds can show whether a different split would improve the risk‑return ratio but it cannot create assets that don’t exist in the lineup. Recommendation: run an optimization constrained to realistic allocation steps and consider adding distinct asset classes before optimizing if the goal is to materially shift risk profile or reduce drawdown potential.

Dividends Info

  • EMERGING MARKETS VALUE PORTFOLIO EMERGING MARKETS VALUE PORTFOLIO - INSTITUTIONAL CLASS 2.90%
  • U.S. SMALL CAP VALUE PORTFOLIO U.S. SMALL CAP VALUE PORTFOLIO - INSTITUTIONAL CLASS 1.10%
  • DFA INTERNATIONAL SMALL CAP VALUE PORTFOLIO DFA INTERNATIONAL SMALL CAP VALUE PORTFOLIO - INSTITUTIONAL CLASS 1.00%
  • Weighted yield (per year) 1.43%

The combined portfolio yield is 1.43% with the emerging markets fund contributing about 2.90% and the U.S. and international small cap funds near 1.10% and 1.00%. Dividends provide income and can cushion total returns particularly in volatile periods but this yield is modest reflecting the small‑cap value orientation which often retains earnings for growth or has lower payout ratios. Recommendation: if income generation is a priority consider a dividend‑focused sleeve or higher‑yield fixed income; if growth is the goal accept lower current yield in exchange for potential capital appreciation.

Ongoing product costs Info

  • EMERGING MARKETS VALUE PORTFOLIO EMERGING MARKETS VALUE PORTFOLIO - INSTITUTIONAL CLASS 0.44%
  • U.S. SMALL CAP VALUE PORTFOLIO U.S. SMALL CAP VALUE PORTFOLIO - INSTITUTIONAL CLASS 0.31%
  • DFA INTERNATIONAL SMALL CAP VALUE PORTFOLIO DFA INTERNATIONAL SMALL CAP VALUE PORTFOLIO - INSTITUTIONAL CLASS 0.43%
  • Weighted costs total (per year) 0.37%

The weighted total expense ratio (TER) is approximately 0.37% which is relatively low and supportive of long‑term net returns; TER measures the annual cost of running funds similar to a maintenance fee on a vehicle. Lower costs over decades compound into meaningful savings and are a clear positive alignment with best practices. Recommendation: keep monitoring fees and prefer tax‑efficient share classes or institutional pricing when available. Also review trading costs and tax drag in taxable accounts since turnover and capital gains can erode net returns beyond TER.

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