Globally diversified all equity portfolio with efficient structure and strong risk adjusted performance
Report created on Apr 4, 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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VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 80.00% -
AV Avantis All Equity Markets ETF
AVGE - US0250722321 20.00%
The portfolio is extremely simple: two global equity ETFs, with 80% in a total world fund and 20% in a more factor-tilted all‑equity fund. That means 100% in stocks and zero in bonds or cash, so it’s firmly a growth-focused setup rather than income or capital‑preservation. Simplicity is a real strength here, making it easy to understand what actually drives returns and risk. A two‑fund structure also keeps rebalancing and maintenance straightforward. The main takeaway is that this is basically a one‑decision portfolio: you’re either comfortable with full equity exposure through broad funds, or you’d need to pair this with safer assets elsewhere to dial down overall volatility.
Growth
Over the period from late 2022 to early 2026, $1,000 grew to $1,882, giving a compound annual growth rate (CAGR) of 19.88%. CAGR is like your average speed on a road trip, smoothing out bumps along the way. This result tracked the US and global equity benchmarks very closely, underperforming by only 0.19% and 0.07% per year — effectively in line. The max drawdown of -16.63% was slightly milder than the US market and almost identical to global equities, which is a solid outcome for a 100% stock portfolio. This alignment with major benchmarks suggests the portfolio is behaving as a broad global equity engine, doing exactly what it’s designed to do.
Projection
The Monte Carlo projection uses historical patterns to simulate 1,000 different 15‑year paths for this portfolio, like running many possible “alternate futures” based on past behavior. The median outcome grows $1,000 to about $2,668, with a wide but reasonable range: roughly $1,805–$4,309 for the middle half of scenarios. There’s about a 74% chance of ending with a positive return, and the average simulated annual return is 8.01%. This sits above the assumed cash outcome, which is important for long‑term growth. Still, these are just models using past data; real markets can be better or worse. The key takeaway is that long horizons help make the odds of a positive result more favorable.
Asset classes
- Stocks 100%
Asset‑class wise, this is 100% in stocks, with no built‑in ballast from bonds, cash, or alternatives. That’s aggressive compared with many “balanced” approaches that might hold 40–60% in bonds. The upside is maximum exposure to long‑term equity growth, which historically has outpaced safer assets over decades. The trade‑off is sharper swings in bad markets and no internal cushion from fixed income. For someone who already has stable assets elsewhere (like cash reserves or retirement plans with bonds), this can be a focused growth sleeve. For someone without that buffer, it means being ready for significant temporary drops and staying the course when they happen.
Sectors
- Technology 24%
- Financials 17%
- Industrials 13%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Energy 5%
- Basic Materials 5%
- Real Estate 3%
- Utilities 3%
Sector exposure is broadly spread, with technology the largest at 24%, then financials, industrials, consumer discretionary, and health care following behind. This mix looks very similar to a typical global equity index, which is a positive sign of diversification. Having tech as the biggest slice is normal today because many of the world’s largest companies sit in that category. The implication is that the portfolio benefits when innovation and digital trends do well, but may feel more volatile when rates rise or growth stocks fall out of favor. Overall, though, the sector composition matches benchmark data closely, which is a strong indicator that risk isn’t overly tied to any single part of the economy.
Regions
- North America 65%
- Europe Developed 14%
- Japan 6%
- Asia Developed 6%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, roughly 65% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and a smaller slice in emerging markets plus Australasia, Africa, and Latin America. This is very much in line with global market weights, which are naturally dominated by the US. The benefit is strong diversification across many economies and currencies while still reflecting the reality that US markets are a big share of global equity value. The flip side is that results are still heavily influenced by US economic and policy cycles. As far as global spread goes, though, this allocation is well‑balanced and aligns closely with worldwide standards.
Market capitalization
- Mega-cap 40%
- Large-cap 30%
- Mid-cap 20%
- Small-cap 7%
- Micro-cap 2%
By market cap, about 40% sits in mega‑caps, 30% in large‑caps, 20% in mid‑caps, and roughly 9% combined in small and micro‑caps. That’s a classic market‑cap‑weighted global profile, where the giants naturally take up more space. Large and mega‑caps tend to be more stable and liquid, which can help reduce some of the bumpiness small companies bring. The smaller slice in mid/small/micro gives exposure to higher potential growth but with more volatility. This balance means you get the stability and global reach of household‑name companies while still tapping into the broader corporate universe, without leaning heavily into any one size segment.
True holdings
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NV NVIDIA Corporation 3.42%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis® U.S. Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 3.27%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis® U.S. Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 2.41%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis® U.S. Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 1.81%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis® U.S. Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.52%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis® U.S. Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.30%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis® U.S. Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.23%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis® U.S. Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.13%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis® Emerging Markets Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 1.06%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.82%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 17.98%
Looking through the ETFs, the biggest underlying exposures are familiar mega‑cap names: NVIDIA, Apple, Microsoft, Amazon, Alphabet (both share classes), Meta, TSMC, Broadcom, and Tesla. Together, these top positions only represent around a third of the portfolio because the funds are broadly diversified, but they do appear multiple times across both ETFs, which creates some hidden concentration. This kind of overlap is normal in global equity funds tracking similar universes. The main implication is that day‑to‑day performance will be meaningfully influenced by how these large global leaders do, especially in technology and related industries, even though no single stock dominates the portfolio on its own.
Factors
Factor exposure is mostly neutral across value, size, momentum, quality, and yield, meaning the portfolio behaves a lot like the broad equity market on those dimensions. Factors are like investing “ingredients” — characteristics that research shows can drive returns, such as cheapness (value) or recent winners (momentum). The one notable tilt here is a mild lean toward low volatility at 62%. That suggests a small preference for steadier companies, which can soften the impact of market swings a bit. The overall picture is a very well‑balanced factor profile: no big bets on any niche style, just a slight tilt toward smoother rides within a global equity framework.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 80.00% 80.0% -
Avantis All Equity Markets ETF
Weight: 20.00% 20.0%
Risk contribution — how much each holding drives overall ups and downs — is almost exactly proportional to weight. The Vanguard global ETF is 80% of the allocation and contributes about 80% of the risk; the Avantis fund is 20% weight and 20% of risk. This one‑to‑one relationship is a sign of a very clean, well‑structured portfolio with no stealth “risk hogs” hiding behind small weights. It also means that changing risk is straightforward: shifting the split between these two funds, or adding non‑equity assets, would directly change the overall volatility profile. For now, the risk is spread in line with the intended allocations, which is a good structural outcome.
Redundant positions
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High correlationAvantis All Equity Markets ETFVanguard Total World Stock Index Fund ETF Shares
The two ETFs are highly correlated, meaning they move almost identically most of the time. Correlation measures how often assets rise and fall together; when correlation is very high, they behave like variations of the same theme rather than independent diversifiers. Here, both funds cover broad global equities, so that similarity is expected. The upside is simplicity and consistent behavior: you don’t have wildly different pieces pulling in opposite directions. The downside is that during market downturns, they’re likely to fall together, so this pair alone does not offer much protection. True diversification against big market drops would need different asset classes, not just similar equity funds.
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 right on or extremely close to the efficient frontier, with a Sharpe ratio of 1.02 over this period. The Sharpe ratio is a way of judging return per unit of risk, after accounting for a risk‑free rate, like checking how much “extra” gain you’re getting for the bumps endured. The optimal and minimum‑variance portfolios using these same two funds both show higher Sharpe ratios (around 1.22), but with virtually identical risk and return, which suggests differences are tiny and likely within estimation noise. The big picture: for the chosen holdings and time frame, the allocation is already very efficient.
Dividends
- Avantis All Equity Markets ETF 1.80%
- Vanguard Total World Stock Index Fund ETF Shares 1.80%
- Weighted yield (per year) 1.80%
Both ETFs have an identical dividend yield around 1.8%, giving the overall portfolio a modest income stream alongside price gains. Dividend yield is the cash return from companies’ payouts relative to their share price, and for global equities this level is fairly typical today. For a growth‑oriented investor, dividends mainly act as a small kicker to total return rather than a primary income source. Payouts can help smooth the ride slightly during flat or choppy markets, but won’t materially change the risk profile of a 100% stock portfolio. The key takeaway is that this setup is focused on long‑term capital growth, with income as a secondary benefit.
Ongoing product costs
- Avantis All Equity Markets ETF 0.23%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.10%
The blended ongoing cost (TER) of around 0.10% is impressively low for a globally diversified equity portfolio. TER, or Total Expense Ratio, is the annual fee charged by funds, and even small differences compound over decades. Here, the heavy weight in the 0.07% Vanguard ETF pulls the average down, while the 0.23% Avantis slice adds a modest premium for its more active, factor‑aware approach. Keeping costs this tight means more of the portfolio’s return stays in your pocket each year. From a cost perspective, this is a clear strength and supports better long‑term performance compared with higher‑fee setups tracking similar universes.
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