Global all equity portfolio with strong diversification and a tilt toward lower volatility stocks
Report created on Aug 13, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 80.00% -
AV Avantis ALL Equity Markets Value ETF
AVGV - US0250722164 20.00%
This portfolio is very simple in structure: two equity ETFs, with 80% in a total world index fund and 20% in an all‑equity value strategy. In practice, that means most of the portfolio behaves like the global stock market, with a deliberate tilt toward cheaper‑priced companies via the value ETF. A two‑fund setup is easy to understand and track, while still giving exposure to thousands of underlying stocks. The value sleeve adds a distinct style without overpowering the broad market core. This allocation is well-balanced and aligns closely with global standards for equity diversification, while still having a clear, intentional twist.
Growth
Over the recent period, a $1,000 investment grew to about $1,792, which implies a 20.74% compound annual growth rate (CAGR). CAGR is like averaging your speed on a road trip: it smooths out the ups and downs into one yearly growth number. The portfolio slightly lagged the US market benchmark but marginally beat the global market benchmark, while experiencing a shallower max drawdown than the US market. Max drawdown measures the largest peak‑to‑trough drop, which here was about -16.6% and recovered in roughly three months. That pattern suggests historically strong returns with reasonably controlled downside, though past performance cannot guarantee similar future results.
Projection
The Monte Carlo projection looks at many possible futures by randomly re‑mixing returns based on historical patterns. Think of it as running 1,000 different “what if” market paths and seeing where a $1,000 investment could end up after 15 years. The median outcome lands around $2,866, with a broad middle range from about $1,871 to $4,230. There is also a wide but plausible outer band from roughly breaking even to more than doubling that median. These ranges highlight the uncertainty built into markets: even with the same starting point and strategy, outcomes can vary a lot. Simulations are only models, not forecasts, and real‑world results can differ meaningfully.
Asset classes
- Stocks 100%
All of this portfolio is invested in stocks, with 100% equity exposure and no bonds or cash-like assets in the mix. Asset classes are broad buckets like stocks, bonds, and real estate, each with different risk and return patterns. A pure‑equity allocation typically offers higher growth potential over long periods, but it also tends to swing more during market stress because there’s no stabilizing bond component. Compared with blended stock‑bond portfolios, this structure leans more toward growth and volatility. The balanced risk score of 4/7 reflects that you’re not using fixed income to dampen equity moves, even though the underlying equity exposure itself is diversified across many companies and regions.
Sectors
- Technology 27%
- Financials 18%
- Industrials 13%
- Consumer Discretionary 10%
- Health Care 8%
- Telecommunications 7%
- Energy 5%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is spread across the economy, with technology the largest at 27%, followed by financials and industrials. This profile is broadly in line with modern global equity benchmarks, where technology and related industries naturally occupy a large share due to their market size. A portfolio with this kind of sector mix can benefit when innovation‑driven areas do well, but it may also feel sharper pullbacks during periods when growth and tech stocks fall out of favor, for example when interest rates rise quickly. The good news is that meaningful allocations to financials, industrials, consumer areas, and smaller sectors help avoid being overly reliant on a single part of the economy.
Regions
- North America 65%
- Europe Developed 14%
- Asia Developed 7%
- Japan 6%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 65% of the portfolio is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and emerging markets. This pattern closely resembles global market capitalization weights, where North America naturally dominates but other regions still have meaningful representation. Geographic spread matters because economic cycles, currencies, and policy environments differ by region. A portfolio tilted this way tends to be influenced strongly by North American markets but still participates in growth and recovery stories elsewhere. This alignment with broad global benchmarks is a strong indicator of healthy international diversification, rather than being tied to a single country or region.
Market capitalization
- Mega-cap 37%
- Large-cap 29%
- Mid-cap 21%
- Small-cap 8%
- Micro-cap 3%
By market capitalization, the portfolio leans toward larger companies: roughly two‑thirds in mega and large caps, with the rest across mid, small, and a small slice of micro caps. Market cap reflects a company’s size in the market, and larger firms often have more stable business models and easier access to financing. Including mid and small caps adds exposure to more niche and potentially faster‑growing businesses, which can boost long‑term return but also add some volatility. This mix gives a mostly “blue‑chip” feel but doesn’t ignore smaller names. It’s quite consistent with global equity norms, combining stability from giants with diversification into the broader corporate universe.
True holdings
-
NV NVIDIA Corporation 3.19%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc. 3.08%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 2.04%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.78%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.44%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.31%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 1.20%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.13%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MU Micron Technology Inc 1.10%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.05%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 17.32%
Looking through the ETFs, the top underlying exposures include familiar large companies like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and others. These names show up because they are big parts of global indices and may also appear in both ETFs, creating some overlap. Overlap means the same company is held in multiple funds, which can quietly increase concentration in those stocks even if only two ETFs are visible. Here, coverage of underlying holdings is limited to ETF top‑10 lists, so actual overlap is likely understated. Still, the current view suggests a meaningful but not extreme concentration in leading global firms, which is typical for broad market‑based portfolios.
Factors
Factor exposure is broadly market‑like across value, size, momentum, quality, and yield, with no pronounced tilts in those areas. Factors are like investing “flavors” — characteristics such as cheapness (value) or recent winners (momentum) that research links to returns. The one notable tilt here is toward low volatility, which measures a tendency to hold stocks that historically move less than the market. A higher low‑volatility exposure often means the portfolio may lose less in sharp downturns but might lag in roaring bull markets, especially when high‑beta growth stocks lead. Overall, the factor profile looks well‑balanced, with a gentle lean toward smoother price behavior.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 80.00% 80.3% -
Avantis ALL Equity Markets Value ETF
Weight: 20.00% 19.7%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the total world ETF is 80% of the portfolio and contributes about 80% of the risk, while the value ETF is 20% of the weight and contributes close to 20% of the risk. In other words, risk is distributed almost exactly in line with allocation. This suggests there is no hidden “hot spot” where a small position is dominating volatility. With only two holdings, the overall pattern is very transparent: portfolio behavior is mostly shaped by the broad global index ETF, with a consistent but smaller influence from the value tilt.
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 or very near the efficient frontier, meaning that given these two holdings, the existing mix offers an effective balance of risk and expected return. The efficient frontier represents the best tradeoffs you can get simply by changing weights between the same components. Sharpe ratio — return minus cash rate, divided by volatility — is a way to compare risk‑adjusted performance. The optimal and minimum‑variance portfolios have slightly higher Sharpe ratios, but the differences are small, reinforcing that this allocation is already efficient. That’s a positive sign: the portfolio seems to make good use of the ingredients it’s using.
Dividends
- Avantis ALL Equity Markets Value ETF 1.60%
- Vanguard Total World Stock Index Fund ETF Shares 1.50%
- Weighted yield (per year) 1.52%
The overall dividend yield of about 1.52% is modest, with both ETFs paying similar levels. Dividend yield is the annual income from holdings as a percentage of their price — like a paycheck from your investments. In a portfolio like this, dividends are a secondary feature; most of the total return historically has come from price changes rather than income. Still, even a moderate yield can contribute to overall growth, especially when reinvested, because it buys more shares over time. This yield level is in line with typical global equity markets, suggesting the portfolio isn’t overly tilted toward either high‑income or no‑income stocks.
Ongoing product costs
- Avantis ALL Equity Markets Value ETF 0.26%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.11%
Total annual costs, measured by the weighted average TER (Total Expense Ratio), come out to about 0.11%. TER is like a built‑in management fee charged by the funds each year, quietly deducted from performance. This level is impressively low for a globally diversified, actively tilted setup. Lower ongoing costs leave more of the portfolio’s gross return in your pocket, and even small differences can add up meaningfully over long periods due to compounding. The use of a broad, low‑fee index core paired with a moderately priced value ETF is an efficient way to keep overall expenses well‑contained while maintaining a distinct strategy.
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