Factor tilted global equity portfolio with strong small cap value exposure and low underlying costs
Report created on Apr 15, 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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DF Dimensional U.S. Equity ETF
DFUS - US25434V4014 50.00% -
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% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 10.00%
The portfolio is a clean, all‑equity mix of four broad stock ETFs, with about 70% in U.S. funds and 30% abroad. Half sits in a diversified U.S. core equity ETF, while 30% targets small‑cap value stocks split between U.S. and international, and 20% goes to a broad international index. This structure is simple but intentional: one “core” anchor plus three “tilt” positions toward smaller, cheaper companies. That matters because smaller and value‑oriented stocks behave differently from the overall market. A setup like this suits someone who wants equity‑only growth, is okay with bumps along the way, and prefers getting diversification through funds instead of picking individual stocks.
Growth
From mid‑2021 to early 2026, $1,000 grew to about $1,635, a compound annual growth rate (CAGR) of 10.77%. CAGR is like your average “speed” over the full trip, smoothing out the ups and downs. The portfolio lagged the U.S. market slightly by just over 1% per year but beat the global market by a bit more than 1% annually, which is a solid outcome. The worst peak‑to‑trough drop was about ‑24%, similar to both benchmarks, and it took over a year to fully recover. This shows you’re taking real equity risk, but not meaningfully more than broad stock markets, which fits a “balanced” equity-heavy profile.
Projection
The Monte Carlo projection uses thousands of simulated future paths, based on historical return and volatility patterns, to estimate possible outcomes over 15 years. It’s like running the portfolio’s past behavior through a random “what if?” machine. The median scenario grows $1,000 to around $2,826, with a wide but realistic range roughly between $1,856 and $4,161 in the middle 50% of outcomes. About three‑quarters of simulations end positive, and the average annualized return across them is 8.15%. These numbers are not promises; they just show what could happen if markets behave somewhat like the past. The key takeaway: long‑term growth is likely, but the ride can be bumpy and outcomes vary a lot.
Asset classes
- Stocks 100%
All 100% of this portfolio is in stocks, with zero in bonds, cash, or alternatives. That’s important because asset classes behave differently: stocks drive growth but swing more, while bonds and cash tend to cushion falls. Being fully in equities maximizes your exposure to long‑term market returns but also to bear markets and multi‑year drawdowns. For someone in the “balanced” risk band, this is on the aggressive side from an asset‑class standpoint, even though it’s diversified within stocks. The upside is simple structure and strong growth potential; the trade‑off is that there’s no built‑in shock absorber if you need money during a downturn or if volatility bothers you emotionally.
Sectors
- Technology 21%
- Financials 18%
- Industrials 14%
- Consumer Discretionary 12%
- Energy 7%
- Health Care 7%
- Telecommunications 7%
- Basic Materials 6%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 1%
Sector exposure is quite well spread: technology around 21%, financials 18%, industrials 14%, and consumer discretionary 12%, with the rest split across energy, health care, communications, materials, staples, utilities, and real estate. Compared to many broad equity benchmarks, this looks reasonably balanced rather than extremely tech‑heavy. That’s helpful because concentration in one hot sector can backfire when conditions change, like tech during rising rates or energy during oil slumps. Here, multiple parts of the economy matter for returns. This alignment with broad market sector weights is a real plus: the portfolio’s factor tilts don’t come at the cost of big sector bets, which helps support more stable long‑term behavior.
Regions
- North America 72%
- Europe Developed 11%
- Japan 6%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Regionally, about 72% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, and small slices of other regions. Global indexes are usually a bit over half North America, so this is still U.S.-tilted but not overwhelmingly so. That U.S. bias has helped over the last decade but also ties a lot of your fate to one economy and currency. The international portion gives exposure to different growth drivers, policy regimes, and currency moves, which is healthy diversification. This mix is a nice middle ground: it respects global diversification while still leaning into the deep, liquid U.S. market that many investors are comfortable with.
Market capitalization
- Mega-cap 30%
- Large-cap 22%
- Mid-cap 18%
- Small-cap 18%
- Micro-cap 10%
Market‑cap exposure is nicely tiered: about 30% mega‑cap, 22% large‑cap, 18% mid‑cap, 18% small‑cap, and 10% micro‑cap. Most broad market portfolios are dominated by mega‑ and large‑caps, so having almost 30% in small and micro‑caps is a clear tilt. Smaller companies tend to be more volatile and sensitive to economic cycles, but historically they’ve sometimes offered higher long‑term returns. This structure means your portfolio’s behavior will differ from a simple S&P 500 tracker, especially during periods when smaller companies either strongly outperform or underperform. The spread across all size buckets is a strength: it diversifies company‑specific risk while still leaning into the small‑cap effect you appear to be targeting.
True holdings
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NV NVIDIA Corporation 3.37%
Part of fund(s):- Dimensional U.S. Equity ETF
-
AA Apple Inc 2.94%
Part of fund(s):- Dimensional U.S. Equity ETF
-
MS Microsoft Corporation 2.18%
Part of fund(s):- Dimensional U.S. Equity ETF
-
AM Amazon.com Inc 1.79%
Part of fund(s):- Dimensional U.S. Equity ETF
-
GO Alphabet Inc Class A 1.44%
Part of fund(s):- Dimensional U.S. Equity ETF
-
AV Broadcom Inc 1.30%
Part of fund(s):- Dimensional U.S. Equity ETF
-
GO Alphabet Inc Class C 1.20%
Part of fund(s):- Dimensional U.S. Equity ETF
-
ME Meta Platforms Inc. 1.08%
Part of fund(s):- Dimensional U.S. Equity ETF
-
TS Tesla Inc 0.86%
Part of fund(s):- Dimensional U.S. Equity ETF
- LS 1x Tesla Tracker ETP Securities GBP
-
BR Berkshire Hathaway Inc 0.71%
Part of fund(s):- Dimensional U.S. Equity ETF
- Top 10 total 16.86%
The look‑through data shows familiar mega‑caps like Nvidia, Apple, Microsoft, Amazon, and Alphabet as top indirect holdings, but each stays under about 3.5% of the overall portfolio. That means no single giant company dominates, even though broad U.S. and international funds inevitably hold them. There is some overlap across ETFs, but at these modest levels the concentration risk is limited relative to many U.S.-heavy portfolios. Since we only see the top 10 holdings of each ETF, hidden overlap further down the list is likely but not extreme given the factor tilts. Overall, the underlying holdings are diversified enough that your results won’t hinge on one or two headline stocks.
Factors
Factor exposure shows a high tilt to value (66%) and size (60%), with other factors sitting near neutral. Think of factors as the “personality traits” of your portfolio. A value tilt means you own more companies trading at lower prices relative to fundamentals, which can lag during growth‑stock booms but has historically paid off over very long periods. A high size score means more emphasis on smaller firms, which boosts risk and potential reward. Momentum, quality, yield, and low volatility sit close to market‑like levels, so they’re not driving outcomes. Overall, the portfolio deliberately leans into value and smaller stocks, so expect stretches where it diverges, sometimes sharply, from the broad market.
Risk contribution
-
Dimensional U.S. Equity ETF
Weight: 50.00% 49.6% -
Avantis® U.S. Small Cap Value ETF
Weight: 20.00% 24.4% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 17.1% -
Avantis® International Small Cap Value ETF
Weight: 10.00% 8.9%
Risk contribution shows how much each ETF drives the portfolio’s ups and downs, which can differ from simple weight. The core U.S. equity ETF is 50% of capital and contributes about 50% of risk, so it’s very much the anchor. The U.S. small‑cap value ETF is only 20% of assets but contributes over 24% of total risk, meaning it packs a bigger volatility punch per dollar. The international funds together contribute about 26% of risk on 30% of capital, slightly dampening overall swings. This is a healthy pattern: the “spice” (small‑cap value) is noticeable but not overwhelming. Rebalancing over time can keep that risk balance from drifting too far as markets move.
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 plots expected return versus risk and shows that, at its current risk level, the portfolio sits about 2.16 percentage points below the best achievable combination using the same four ETFs. The Sharpe ratio, which measures return per unit of risk above the risk‑free rate, is 0.47 for the current mix versus 0.77 for the optimal one. That means there’s room to tweak weights to get more expected return for roughly the same volatility, or similar return with a bit less risk. The good news: you don’t need new products to improve the trade‑off — just potential reweighting among what you already hold.
Dividends
- Avantis® International Small Cap Value ETF 2.80%
- Avantis® U.S. Small Cap Value ETF 1.30%
- Dimensional U.S. Equity ETF 0.90%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.55%
The blended dividend yield is about 1.55%, with the international small‑cap value and broad international ETFs around 2.8% and the U.S. funds paying less. Yield is simply the cash return from dividends relative to price. This level is modest but meaningful: it adds a bit of steady return on top of price gains without turning the portfolio into an income‑only strategy. For long‑term growth investors, dividends help in the background as they get reinvested and compound over time. The mix of higher‑yielding international holdings and lower‑yielding U.S. growth names creates a balanced profile that doesn’t overly sacrifice growth potential just to chase income.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Dimensional U.S. Equity ETF 0.09%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.14%
The total expense ratio (TER) across all holdings is very low at about 0.14% per year. TER is the annual fee the funds charge, expressed as a percentage of your investment. That’s impressively lean, especially considering you’re getting specialized small‑cap value exposure alongside broad U.S. and international markets. Keeping costs down matters a lot over decades: every 0.1% you don’t pay in fees is 0.1% that stays invested and compounds. Here, the cost structure is a genuine strength and clearly aligned with best practices. It provides a solid foundation for long‑term performance, letting your factor tilts and market exposure do the heavy lifting instead of fee drag.
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