Blended US large and small cap stocks with a mild value tilt and broad international diversification
Report created on Jun 29, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 60.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 20.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is a simple three‑ETF mix that is fully invested in stocks. Around 60% sits in a broad US large‑cap index, 20% in US small‑cap value, and 20% in a total international equity fund. That structure anchors most of the portfolio in the biggest US companies, adds a targeted slice of smaller value names, and rounds things out with non‑US markets. A setup like this is easy to understand and maintain because each fund covers a very wide universe. The combination means returns will mainly track global equity markets, but with a clear tilt toward the US and an extra dose of small‑cap risk and potential return.
Growth
From late 2019 to mid‑2026, $1,000 in this mix grew to about $2,577, a compound annual growth rate (CAGR) of 15.1%. CAGR is like your average speed on a road trip: it smooths the bumps into one yearly growth number. Over this period, the portfolio slightly trailed the US market index but beat the global market index, showing that its US tilt helped. The max drawdown of about -36% during early 2020 was deeper than the global benchmark but similar to US stocks. That kind of drop is normal equity risk. Past returns are helpful context, but they don’t guarantee anything about the next few years.
Projection
The Monte Carlo projection uses the portfolio’s historical behavior to simulate many possible 15‑year paths. Think of it as running 1,000 “what if” futures, each with different sequences of ups and downs based on past volatility. The median outcome grows $1,000 to about $2,704, with a middle “likely” range between roughly $1,839 and $4,288. There’s also a wide tail where outcomes could be much higher or barely above break‑even. The model shows a 75% chance of a positive return, but it’s still just a statistical view. It assumes the future will rhyme with the past, which can break down during regime shifts or rare crises.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with no bonds or cash included in the allocation. That’s why the risk classification lands in the “growth” range: stocks historically offer higher long‑term returns but also larger short‑term swings. Having 100% equities usually means bigger drawdowns during market crashes compared with blended stock‑and‑bond mixes, but also more participation in strong bull markets. Against common benchmarks, the asset‑class mix is more aggressive than a typical balanced portfolio but in line with many long‑term growth setups. The diversification work here happens within equities, not between different asset classes.
Sectors
- Technology 26%
- Financials 17%
- Consumer Discretionary 12%
- Industrials 11%
- Telecommunications 8%
- Health Care 8%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is fairly broad, with notable weight in technology at 26%, followed by financials, consumer discretionary, and industrials. This looks similar to many global equity indices, where tech and related industries have grown in importance. A tech‑heavy slice can boost returns in periods when innovation and growth stories lead markets, but it can also mean sharper drops when interest rates rise or sentiment turns against high‑growth names. The presence of energy, health care, staples, and utilities adds some balance, as these areas often react differently across cycles. Overall, the sector mix is diversified and aligns reasonably well with broad‑market norms.
Regions
- North America 81%
- Europe Developed 7%
- Asia Developed 3%
- Japan 3%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 81% of the portfolio is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and emerging regions. Compared with a world index, this is a clear US tilt, because the US typically sits closer to 60% of global market cap. A heavy US focus has been rewarding in recent years, especially with strong performance from large tech and consumer names. The flip side is that economic, policy, or currency shocks in the US would drive most of the portfolio’s behavior. The smaller, but still present, non‑US allocation does provide some diversification beyond a single market.
Market capitalization
- Mega-cap 37%
- Large-cap 27%
- Mid-cap 15%
- Small-cap 11%
- Micro-cap 10%
The market‑cap breakdown shows 37% in mega‑caps, 27% in large‑caps, and the remaining 36% spread across mid, small, and micro‑caps. That’s more exposure to smaller companies than a pure large‑cap index, which usually dominates with mega‑ and large‑caps. Smaller stocks can be more volatile, but they’ve historically had periods of stronger growth than giants. This mix means a meaningful part of performance will come from less mature, more locally focused businesses, not just global leaders. It also broadens diversification across company sizes, which can help when leadership rotates from big names to smaller ones or vice versa.
True holdings
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NV NVIDIA Corporation 4.73%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc. 4.23%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.08%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.44%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.05%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.96%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.63%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.28%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.13%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 1.01%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 23.54%
Looking through ETF top‑10 holdings, the biggest underlying names include NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Micron. Many of these appear via the S&P 500 fund, and some may also feature in the international fund where they have global operations, though overlap is only measured where top‑10 data is available. This concentration in large US tech‑related firms is typical of modern equity indices. It does mean that news around a small cluster of mega‑cap companies can noticeably sway portfolio returns. Hidden overlap beyond the top‑10 holdings likely exists but isn’t fully captured in these figures.
Factors
Factor exposure shows a high tilt toward value at 63%, while size, momentum, quality, yield, and low volatility are all in the neutral band around 50%. Factors are like underlying “ingredients” that help explain why a portfolio behaves the way it does. A value tilt means more weight in stocks trading at lower prices relative to fundamentals, often including more of the small‑cap value ETF component. Historically, value has had cycles of both underperformance and strong catch‑up phases. The largely neutral stance on the other factors suggests the portfolio behaves broadly like the overall market on those dimensions, with value being the main distinct tilt.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 60.00% 58.2% -
Avantis® U.S. Small Cap Value ETF
Weight: 20.00% 24.9% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 17.0%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from its weight. The S&P 500 ETF is 60% of the portfolio and contributes about 58% of total risk, so its risk impact is roughly proportional. The US small‑cap value ETF is 20% of the weight but about 25% of the risk, meaning it punches above its size because smaller value stocks are more volatile. The international ETF contributes slightly less risk than its 20% weight. This pattern is common: more volatile and less correlated segments, like small caps, can meaningfully shape the ride even from a smaller allocation.
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 efficient frontier analysis suggests this portfolio is already on or very close to the frontier, meaning it’s using its three holdings in a risk/return‑efficient way. The Sharpe ratio, which compares excess return to volatility (like payoff per unit of stress), is 0.61 for the current mix. The theoretical “optimal” mix of the same ETFs has a higher Sharpe of 0.79, but with only slightly higher expected return and similar risk. The minimum‑variance mix lowers risk but also reduces expected return while keeping a decent Sharpe. Overall, the current allocation looks broadly efficient, which is a positive signal for how the pieces fit together.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.20%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.60%
- Weighted yield (per year) 1.42%
The portfolio’s overall dividend yield is about 1.42%, with the international ETF offering the highest yield among the three at 2.6%. Dividends are the cash payouts companies make to shareholders, and they can be a meaningful part of total returns over long periods, especially when reinvested. In this case, the yield is relatively modest, which is typical for a growth‑oriented, US‑tilted equity mix where many firms reinvest earnings instead of paying high dividends. That means most of the return expectation here comes from price appreciation rather than income, aligning with the portfolio’s growth classification.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.08%
The weighted average ongoing cost (TER) of the portfolio is around 0.08% per year, thanks to very low‑fee Vanguard funds and a moderately priced small‑cap value ETF. TER is like a management fee that gets quietly deducted inside each fund, reducing returns a bit every year. Compared with many actively managed or higher‑cost products, 0.08% is impressively low and helps more of the portfolio’s gross return reach the investor. Over long horizons, even small fee differences compound, so keeping costs this low is a meaningful structural strength of this portfolio and supports better net outcomes over decades.
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