Strong small cap value tilted growth portfolio with efficient structure and global equity exposure
Report created on Apr 6, 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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AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 52.00% -
AV Avantis® U.S. Equity ETF
AVUS - US0250728856 18.00% -
AV Avantis® International Equity ETF
AVDE - US0250727031 16.00% -
AV Avantis® Emerging Markets Equity ETF
AVEM - US0250726041 8.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 6.00%
The portfolio is a pure equity mix, heavily tilted toward one holding: a US small cap value ETF at 52%. The rest is split across a broad US equity ETF, developed international, emerging markets, and a smaller slice of international small cap value. This structure makes it very growth‑oriented, with no bonds or cash buffers. A setup like this aims squarely at long‑term capital appreciation rather than short‑term stability or income. The big observation is that one fund dominates both the weight and the risk. Anyone using a structure like this usually wants to stay invested for many years and ride through large swings rather than trying to smooth them out.
Growth
From late 2019 to early 2026, $1,000 grew to about $2,348, a compound annual growth rate (CAGR) of 14.03%. CAGR is like your average speed on a long road trip, smoothing the bumps to show typical yearly growth. This slightly trailed the US market but beat the global market by a solid margin, which is a nice confirmation that the overall tilt has been effective internationally. The trade‑off is a much deeper max drawdown of -43%, compared with around -34% for the benchmarks. That shows this kind of strategy can deliver strong long‑term results but asks you to stomach bigger temporary losses along the way.
Projection
The Monte Carlo projection uses thousands of simulated paths based on historical behavior to estimate where $1,000 might land in 15 years. Think of it as running the market’s past “weather patterns” many times to see a range of future climates, not a precise forecast. The median outcome is about $2,673, with a wide typical range between roughly $1,762 and $4,018. There’s also a non‑trivial chance of barely breaking even over 15 years. The big message: expected returns around 8% a year come with significant uncertainty, and shortfalls are very possible. Past data is helpful, but it can’t capture future regime shifts or black‑swan events.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% allocated to bonds, cash, or alternatives. That makes the asset‑class picture very simple but also amplifies exposure to equity market cycles. Asset allocation is often the main driver of long‑term risk and return; mixing in lower‑volatility assets can blunt big drawdowns, but usually at the cost of lower expected returns. Here, the design deliberately leans into growth and volatility, which fits an aggressive or growth‑oriented profile. The key trade‑off is that there’s no built‑in stabilizer during severe market stress, so the investor needs to be comfortable with large swings in account value.
Sectors
- Financials 22%
- Industrials 15%
- Consumer Discretionary 15%
- Energy 14%
- Technology 11%
- Basic Materials 7%
- Health Care 5%
- Consumer Staples 4%
- Telecommunications 4%
- Utilities 2%
- Real Estate 1%
Sector exposure is quite spread out: financials lead at 22%, with industrials and consumer discretionary each at 15%, energy at 14%, and technology at 11%. This is more balanced than a typical market‑cap index that’s very tech‑heavy, which can be a plus if tech underperforms or interest rates stay higher. However, bigger stakes in financials, energy, and cyclicals can make returns more sensitive to economic growth, credit cycles, and commodity prices. The sector mix looks thoughtfully diversified and broadly in line with value and small‑cap tilts, which is a healthy sign that risk isn’t all tied to a single industry narrative.
Regions
- North America 71%
- Europe Developed 11%
- Japan 5%
- Asia Developed 4%
- Asia Emerging 3%
- Latin America 2%
- Australasia 2%
- Africa/Middle East 1%
Geographically, about 71% is in North America, with the rest spread across Europe, Japan, other developed Asia, emerging Asia, Latin America, and smaller regions. That North America weight is actually quite close to global equity benchmarks, which also lean heavily to the US. This alignment is a positive: it means the regional split isn’t making a big active bet on one part of the world. The added international and emerging markets exposure increases diversification across currencies, political systems, and economic cycles. That can help smooth outcomes somewhat when one region lags, though everything will still move broadly with global equities in major crises.
Market capitalization
- Small-cap 33%
- Micro-cap 24%
- Mega-cap 15%
- Mid-cap 15%
- Large-cap 13%
Market cap exposure is tilted clearly away from mega and large caps. About 33% is in small caps and another 24% in micro caps, with only 28% combined in large and mega caps. Smaller companies can offer higher long‑term expected returns because they’re riskier, less followed, and more sensitive to economic changes. But they also tend to be more volatile and can underperform for long stretches. The mix here creates a very intentional “small company bias,” rather than just mirroring the broad market. That’s a powerful but bumpy driver of returns, so patience through multi‑year small‑cap slumps is crucial for this style to pay off.
True holdings
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NV NVIDIA Corporation 0.90%
Part of fund(s):- Avantis® U.S. Equity ETF
-
AA Apple Inc 0.86%
Part of fund(s):- Avantis® U.S. Equity ETF
-
MS Microsoft Corporation 0.66%
Part of fund(s):- Avantis® U.S. Equity ETF
-
AM Amazon.com Inc 0.58%
Part of fund(s):- Avantis® U.S. Equity ETF
-
VS ViaSat Inc 0.56%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
SM SM Energy Co 0.53%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
FI Five Below Inc 0.52%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
TS Taiwan Semiconductor Manufacturing 0.50%
Part of fund(s):- Avantis® Emerging Markets Equity ETF
-
MA Matson Inc 0.48%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
GO Alphabet Inc Class A 0.45%
Part of fund(s):- Avantis® U.S. Equity ETF
- Top 10 total 6.06%
Looking through the ETFs, the top underlying names include NVIDIA, Apple, Microsoft, Amazon, and Alphabet, plus smaller stocks like ViaSat and SM Energy. Each single company is a small slice, under 1% of the total portfolio, which helps avoid classic stock‑picking concentration risk. There is some overlap in large US growth names across multiple ETFs, but overall exposure is still modest because the headline tilt is toward smaller and cheaper companies. Just remember that this overlap view is incomplete, since it only captures ETF top‑10 holdings; in reality, there are hundreds of smaller positions underneath that further spread stock‑specific risk.
Factors
Factor exposure is where this portfolio really stands out. Value exposure at 83% and size at 81% both show very high tilts. Factors are like underlying characteristics—cheapness, size, trend—that help explain why investments behave the way they do. A strong value tilt means the holdings are generally cheaper relative to fundamentals, which research links to higher long‑term returns but also long, painful periods of underperformance versus growth. The strong size tilt, toward smaller companies, adds both return potential and volatility. Together, this creates a classic “small value” profile: historically rewarded over decades, but emotionally tough during growth‑led bull markets where it can lag badly.
Risk contribution
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Avantis® U.S. Small Cap Value ETF
Weight: 52.00% 62.9% -
Avantis® U.S. Equity ETF
Weight: 18.00% 15.5% -
Avantis® International Equity ETF
Weight: 16.00% 11.7% -
Avantis® Emerging Markets Equity ETF
Weight: 8.00% 5.5% -
Avantis® International Small Cap Value ETF
Weight: 6.00% 4.5%
Risk contribution reveals how much each holding drives the portfolio’s overall ups and downs, which can be very different from its simple weight. The US small cap value ETF is 52% of the assets but contributes almost 63% of the total risk, meaning it dominates the ride. The next two holdings together bring the top three positions to about 90% of portfolio risk. That doesn’t mean it’s “wrong,” just that most of the experience—good or bad—comes from that one main sleeve. If the goal were to smooth volatility, one way (in general) would be to spread risk more evenly across funds, not just diversify by number of holdings.
Redundant positions
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High correlationAvantis® International Small Cap Value ETFAvantis® International Equity ETF
The international equity ETF and international small cap value ETF are highly correlated, meaning they tend to move very similarly day to day. Correlation is just a measure of how often things go up or down together; high correlation reduces diversification benefits during market stress. Here, the correlated pair is only a modest slice of the portfolio, and they still provide diversification against the US‑heavy holdings. The key is to understand that simply adding more line items doesn’t always add meaningful diversification if they behave almost identically. True diversification comes from mixing assets that occasionally zig when others zag, not just from holding more tickers.
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 risk‑return chart shows the current portfolio sitting right on or very close to the efficient frontier. The efficient frontier is just the best possible trade‑off between risk and return you can get by reweighting the existing holdings. The current Sharpe ratio of 0.53 is lower than the optimal portfolio’s 0.77, but that “optimal” mix would actually use slightly lower risk for a similar return. Because you’re already near the frontier, the structure is efficient for the chosen risk level. That’s encouraging: it means there’s no obvious free lunch left just from shuffling weights among these same funds.
Dividends
- Avantis® International Equity ETF 2.70%
- Avantis® International Small Cap Value ETF 3.00%
- Avantis® Emerging Markets Equity ETF 2.40%
- Avantis® U.S. Equity ETF 1.00%
- Avantis® U.S. Small Cap Value ETF 1.40%
- Weighted yield (per year) 1.71%
The overall dividend yield is about 1.71%, with the highest payouts coming from international small cap value and international developed equities. Yield is the cash income component of return, paid out as dividends, and it’s useful for investors who like a steady drip of cash. But with this structure, income clearly isn’t the primary focus; most of the expected return is from price appreciation, especially in small and value segments. That’s totally consistent with a growth‑oriented strategy. For someone not relying on portfolio cash flow today, a moderate yield like this is perfectly fine, as long as they understand most gains will be on paper until they sell.
Ongoing product costs
- Avantis® International Equity ETF 0.23%
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® Emerging Markets Equity ETF 0.33%
- Avantis® U.S. Equity ETF 0.15%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Weighted costs total (per year) 0.24%
Average total expense ratio (TER) is around 0.24%, which is very competitive for actively tilted, factor‑style ETFs. TER is the annual fee charged by funds, quietly deducted from returns, so keeping it low is like reducing friction in a machine. For a portfolio of this style and complexity, these costs are impressively low and support better long‑term compounding. Over decades, even a small difference in fees can add up to thousands of dollars. In this case, costs look like a genuine strength: you’re getting targeted factor exposure and global diversification without paying the kind of premium older active funds often charge.
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