Globally diversified value tilted stock portfolio with strong small cap exposure and efficient low costs
Report created on Mar 28, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 35.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 30.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 20.00% -
AV Avantis® Emerging Markets Value ETF
AVES - US0250723725 15.00%
This portfolio is a pure stock mix with four ETFs: a broad total world fund at 35% and three value-tilted funds focused on U.S., international, and emerging small caps making up the remaining 65%. So you’ve got a global core plus a pretty punchy “value and small” tilt layered on top. That structure matters because the broad core gives you market-like diversification, while the tilts aim to boost long‑term returns by leaning into specific characteristics. The key takeaway is that this is not a plain vanilla global index mix; it’s intentionally tilted toward small and value stocks, which can mean higher expected return but also bumpier rides.
Growth
From late 2021 to early 2026, $1,000 grew to about $1,532, giving a 10.01% compound annual growth rate (CAGR). CAGR is just the smooth “average speed” per year over the full journey. That slightly lagged the U.S. market at 10.64% but beat the global market at 8.82%, which is encouraging for a value‑ and small‑tilted approach. The worst drop, or max drawdown, was about -24.1%, similar to the benchmarks, showing you took normal equity‑level pain, not outsized crashes. Only 13 days made up 90% of returns, underscoring how missing a handful of strong days can drastically change outcomes and why staying invested is crucial.
Asset classes
- Stocks 100%
All of this portfolio sits in one asset class: stocks. That creates a very clear profile: high growth potential over the long run but meaningful ups and downs along the way. There’s no allocation to bonds or cash to cushion short‑term drops, which is why the volatility and drawdowns look similar to full‑equity benchmarks. The upside is simplicity and strong alignment with long‑term growth goals. The trade‑off is that anyone using this as a complete plan would need the right time horizon and temperament to ride out equity bear markets without panic selling, since there’s no built‑in stabilizer from safer asset classes.
Sectors
- Financials 20%
- Industrials 15%
- Technology 14%
- Consumer Discretionary 13%
- Energy 10%
- Basic Materials 9%
- Health Care 5%
- Telecommunications 5%
- Consumer Staples 4%
- Real Estate 2%
- Utilities 2%
Sector exposure is fairly balanced, with financials (20%), industrials (15%), and technology (14%) as the top weights, followed by consumer discretionary and energy. That’s less tech‑heavy than many broad market indexes, which often have technology as the single largest slice. A smaller tech weight and higher allocation to areas like financials and industrials fits with the value and small‑cap tilt, as those sectors often house more “cheap” stocks. The implication is that performance may lag during big tech‑led rallies but could hold up better when cyclical or economically sensitive areas shine. This sector mix is well spread out and aligns nicely with diversified equity principles.
Regions
- North America 54%
- Europe Developed 13%
- Japan 9%
- Asia Developed 9%
- Asia Emerging 8%
- Africa/Middle East 3%
- Australasia 2%
- Latin America 2%
- Europe Emerging 1%
Geographically, the portfolio is anchored in North America at 54%, with meaningful stakes in Europe developed, Japan, and other developed Asia, and a solid 8% slice in emerging Asia plus smaller allocations across other regions. Compared to many global benchmarks that sit around 60% in one major country, this looks slightly more balanced with a bit more weight in non‑U.S. markets, especially through the international and emerging value funds. That helps reduce dependence on any single region’s fortunes. This allocation is well‑balanced and aligns closely with global standards, supporting diversification across different economic cycles, policy regimes, and currency environments.
Market capitalization
- Small-cap 26%
- Mid-cap 22%
- Mega-cap 19%
- Large-cap 17%
- Micro-cap 15%
Market cap exposure is notably tilted away from pure large‑cap dominance. Small caps (26%), micro caps (15%), and mid caps (22%) together make up a majority, while mega and large caps are still substantial at 36%. That’s very different from a classic global index, which is overwhelmingly mega and large cap. Smaller companies typically offer higher long‑term expected returns but can be more volatile and more sensitive to economic shocks. The presence of the total world ETF keeps you anchored to the global market, while the Avantis funds deliberately amplify smaller‑company exposure. This blend suits someone willing to accept extra short‑term noise in exchange for higher growth potential.
True holdings
-
NV NVIDIA Corporation 1.31%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 1.22%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 0.92%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 0.64%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.57%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 0.48%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 0.47%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 0.47%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.45%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.36%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 6.88%
Looking through ETF top holdings, the biggest underlying names are large global tech and growth leaders like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, all via the total world ETF. Each individual exposure is small, roughly 0.4–1.3%, so single‑stock concentration risk at the mega‑cap level is modest. Because the three Avantis funds are more small‑cap and value focused, most of their holdings don’t show up in top‑10 look‑through data, so hidden overlap is more limited than a plain index‑on‑index stack. Still, remember coverage is only about 12%, so overlap could be a bit understated. Overall, this structure blends broad mega‑cap exposure with thousands of smaller, more diversified positions underneath.
Factors
The standout factor tilts are value at 75% and size at 72%, both clearly above the neutral 50% level. Factor exposure describes how much a portfolio leans into characteristics like value or momentum that research has linked to long‑term returns. A strong value tilt means heavier exposure to stocks priced cheaply relative to fundamentals; historically they’ve done well over long horizons but can lag for multi‑year stretches. The high size score indicates a consistent tilt toward smaller companies, which again can boost expected returns with added volatility. The other factors sit close to neutral, so this is mainly a “small and value” story layered on top of a broadly diversified global core.
Risk contribution
-
Avantis® U.S. Small Cap Value ETF
Weight: 30.00% 37.2% -
Vanguard Total World Stock Index Fund ETF Shares
Weight: 35.00% 32.2% -
Avantis® International Small Cap Value ETF
Weight: 20.00% 18.5% -
Avantis® Emerging Markets Value ETF
Weight: 15.00% 12.1%
Risk contribution shows how much each holding adds to overall volatility, which can differ from its simple weight. Here, the U.S. small cap value ETF is 30% of the portfolio but contributes about 37% of the risk, meaning it’s a louder “instrument” than its size alone suggests. The total world fund is 35% of the weight and 32% of the risk, while the international small cap and emerging value funds contribute slightly less risk than their weights. With the top three positions generating nearly 88% of portfolio risk, adjustments to their weights would have the biggest impact on smoothing or amplifying overall volatility, without changing which funds you own.
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 has a Sharpe ratio of 0.54 with expected return of 11.25% and volatility of 17.02%. The Sharpe ratio measures how much return you get per unit of risk—higher is better. The efficient frontier shows the best risk/return combinations possible using the same ETFs with different weights. Your current mix sits about 2.34 percentage points below that frontier at its risk level, while an optimized mix could reach a Sharpe of 0.75 with slightly higher return and similar risk. That suggests reweighting the existing funds—not adding new ones—could meaningfully improve risk‑adjusted outcomes while keeping the same building blocks.
Dividends
- Avantis® International Small Cap Value ETF 3.10%
- Avantis® Emerging Markets Value ETF 3.30%
- Avantis® U.S. Small Cap Value ETF 1.40%
- Vanguard Total World Stock Index Fund ETF Shares 1.80%
- Weighted yield (per year) 2.16%
The overall dividend yield around 2.16% is a healthy level for an equity‑only, small‑ and value‑tilted portfolio. Yield is higher in the international and emerging value funds (just above 3%) and lower in the U.S. small cap and global total market funds, which roughly matches how global markets behave. Dividends can provide a modest income stream and historically have been a significant part of total equity returns, especially over long periods. Still, for a growth‑oriented investor, the main engine here is capital appreciation, with dividends acting as a nice “extra.” Reinvesting those payouts can quietly boost compounding over decades.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® Emerging Markets Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.23%
The blended ongoing cost (TER) of about 0.23% is impressively low for a portfolio that mixes a broad global index with specialized factor and small‑cap strategies. Low costs matter because they reduce the permanent drag on returns—every fraction of a percent saved each year adds up significantly over long horizons. The total world ETF is extremely cheap at 0.07%, and even the more specialized Avantis funds are reasonably priced for their approach. Overall, these costs compare very favorably to many actively managed funds, which often charge 0.75–1% or more. The costs are impressively low, supporting better long‑term performance and leaving more of the returns in your pocket.
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