Bold equity blend with strong value tilt and impressive recent growth outpacing major markets
Report created on Jun 1, 2024Risk profile
4/7
Diversification profile
3/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 14.32% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 14.28% -
DX WisdomTree Japan Hedged Equity Fund
DXJ - US97717W8516 14.28% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 14.28% -
SH Global X Defense Tech ETF
SHLD - US37960A5294 14.28% -
VH Vanguard Health Care Index Fund ETF Shares
VHT - US92204A5048 14.28% -
XM Invesco S&P MidCap Momentum ETF
XMMO - US46137V4648 14.28%
The portfolio is a seven‑ETF, 100% stock mix with almost perfectly even weights across all positions. That structure gives exposure to broad U.S. equities, small-cap value, mid-cap momentum, large-cap growth, health care, Japan (currency-hedged), and defense technology. Even weighting is notable because most investors end up dominated by a single “core” fund. This design deliberately spreads influence across distinct strategies and themes, which can create a smoother blend of growth, value, and regional exposures. The main takeaway is that this is a purposeful, multi‑sleeve equity portfolio, not just a generic market tracker, so its behavior will differ meaningfully from broad market indexes in both good and bad times.
Growth
Over the last roughly two and a half years, $1,000 grew to about $1,724, implying a 24.04% compound annual growth rate (CAGR). CAGR is the “average speed” of growth per year, smoothing out ups and downs. This handily beat both the U.S. market and global market, which returned around 16.4% annually. Max drawdown, the worst peak‑to‑trough drop, was about -14.7%, actually shallower than both benchmarks. That mix of higher return and slightly lower drawdown is very strong, but it’s based on a short, favorable window. Past performance doesn’t guarantee future results, so it’s wise to treat this as evidence of potential, not a promise that this outperformance will continue indefinitely.
Asset classes
- Stocks 100%
All capital is allocated to stocks, with no bonds, cash, or alternative assets in the mix. That pure‑equity stance is the main driver of higher expected long‑term returns, but it also means larger swings in account value, especially during market shocks. Typical “balanced” allocations often include 30–50% bonds or cash‑like assets to dampen volatility and provide dry powder in downturns. Here, the risk score still lands mid‑range because of diversification across size, style, and region, yet the absence of stabilizing assets is important to recognize. For investors who might need money within a few years, or who lose sleep in big drawdowns, adding a separate lower‑risk bucket outside this portfolio can be a useful complement.
Sectors
- Industrials 27%
- Health Care 19%
- Technology 17%
- Consumer Discretionary 9%
- Financials 9%
- Telecommunications 5%
- Energy 5%
- Basic Materials 3%
- Consumer Staples 2%
- Real Estate 1%
- Utilities 1%
Sector exposure is nicely spread, with notable weight in industrials, health care, and technology, plus meaningful allocations to consumer-oriented, financial, and cyclical areas. Industrials and defense tilt the mix toward more economically sensitive companies that can benefit from capital spending and government budgets, while health care adds a defensive element that often holds up relatively well in slower economies. Technology exposure is solid but not extreme, especially compared to some growth-heavy portfolios. This sector balance is well aligned with diversified equity practices and avoids overreliance on any single theme. The main implication is that returns will depend on a broad range of business conditions, rather than one dominant sector, which is a healthy structure for long‑term compounding.
Regions
- North America 78%
- Japan 14%
- Europe Developed 5%
- Asia Developed 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, most exposure is to North America, with a sizable dedicated slice to Japan through the hedged ETF, and smaller allocations to Europe and other regions. This U.S.-heavy stance is common among American investors and has been rewarded in recent years as U.S. markets outperformed many others. The additional Japan position, especially with currency hedging, adds a distinct return driver that is less tied to dollar moves, enhancing diversification. Compared with global benchmarks, there is some underweight to the rest of the world outside the U.S. and Japan. That’s not inherently bad; it simply means outcomes will be more influenced by North American and Japanese economic and policy trends than by developments in other regions.
Market capitalization
- Large-cap 29%
- Mega-cap 26%
- Mid-cap 20%
- Small-cap 17%
- Micro-cap 8%
Market cap exposure is spread across mega, large, mid, small, and even micro caps, with no single size bucket dominating. This stands out versus many portfolios that skew heavily to mega- and large-cap names. Smaller companies tend to be more volatile but can offer higher long‑term growth potential, while mega- and large‑caps often provide more stability and liquidity. This mix creates a healthy blend of growth opportunities and ballast. The presence of micro caps, though relatively modest, can introduce sharper short‑term swings but might also capture unique niche growth stories. Overall, this size distribution is well‑balanced and aligns closely with research suggesting that including smaller companies can improve long‑run return potential, albeit with a bumpier ride.
True holdings
-
NV NVIDIA Corporation 2.53%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 2.27%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
LL Eli Lilly and Company 2.20%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard Health Care Index Fund ETF Shares
-
MS Microsoft Corporation 1.73%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
LM Lockheed Martin Corporation 1.30%
Part of fund(s):- Global X Defense Tech ETF
-
JN Johnson & Johnson 1.25%
Part of fund(s):- Vanguard Health Care Index Fund ETF Shares
-
AM Amazon.com Inc 1.23%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
RT Raytheon Technologies Corp 1.12%
Part of fund(s):- Global X Defense Tech ETF
-
GO Alphabet Inc Class A 1.07%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GD General Dynamics Corporation 1.02%
Part of fund(s):- Global X Defense Tech ETF
- Top 10 total 15.71%
Looking through ETF top holdings, there is meaningful exposure to large, well-known companies like NVIDIA, Apple, Eli Lilly, Microsoft, and several major defense contractors. Some names appear via multiple ETFs, which creates “hidden” concentration even if no single stock is held directly. For example, NVIDIA and Apple together already represent nearly 5% of the portfolio using only partial look‑through data. Since only top‑10 ETF holdings are captured, real overlap is likely higher. The implication is that while the allocation looks diversified at the fund level, underlying stock bets are more focused, especially in big U.S. tech, health care, and defense. Being aware of this helps set realistic expectations for how the portfolio might move around earnings or sector-specific news.
Factors
Factor exposure shows a clear tilt toward value, with that score well above neutral, while size, momentum, quality, yield, and low volatility all sit in the neutral band. Factors are like underlying “personality traits” of stocks—value, for instance, seeks cheaper companies relative to fundamentals. A value tilt can shine when previously overlooked or out‑of‑favor businesses rebound, but it may lag in periods when expensive growth stocks dominate. The largely neutral readings elsewhere suggest the portfolio behaves broadly similar to the market along those dimensions, rather than making strong bets on high yield, ultra‑stable, or high‑momentum names. This combination—one intentional value lean plus otherwise balanced traits—is a sensible, evidence‑supported structure that still keeps overall behavior familiar.
Risk contribution
-
Invesco S&P MidCap Momentum ETF
Weight: 14.28% 17.3% -
Avantis® U.S. Small Cap Value ETF
Weight: 14.28% 17.1% -
Schwab U.S. Large-Cap Growth ETF
Weight: 14.28% 15.9% -
WisdomTree Japan Hedged Equity Fund
Weight: 14.28% 14.7% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 14.32% 14.0% - Top 5 risk contribution 79.0%
Risk contribution shows how much each ETF adds to overall portfolio volatility, which can differ from its percentage weight. Here, the small-cap value and mid-cap momentum funds contribute slightly more risk than their 14.3% allocations, each around 17% of total risk. That’s expected, since smaller and more momentum‑driven stocks tend to move more sharply. The broad total market and Japan equity ETFs contribute slightly less risk than their weights, acting as relative stabilizers. Top three positions account for just about half of total risk, which is very reasonable. If a smoother ride is desired, trimming exposure to the more volatile sleeves in favor of broader or defensive ones—while staying within the same ETF lineup—could bring risk contribution closer to equal.
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 below the efficient frontier, with a Sharpe ratio of 1.29 versus 2.13 for the optimal mix using the same ingredients. The Sharpe ratio compares excess return to volatility, so higher is better risk‑adjusted performance. Being about 9.6 percentage points below the frontier at the current risk level suggests there is room to improve the tradeoff just by changing weights, without adding new ETFs. For instance, optimization might slightly boost exposure to the most return‑efficient sleeves and trim those that add more risk than reward. The encouraging part: the current setup is already strong, but some thoughtful rebalancing could potentially lift expected returns or reduce volatility at the same overall risk.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.40%
- WisdomTree Japan Hedged Equity Fund 1.20%
- Schwab U.S. Large-Cap Growth ETF 0.30%
- Global X Defense Tech ETF 0.30%
- Vanguard Health Care Index Fund ETF Shares 1.80%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Invesco S&P MidCap Momentum ETF 0.70%
- Weighted yield (per year) 0.99%
The blended dividend yield is just under 1%, with higher contributions from health care and small‑cap value, and very low yields from growth and thematic funds. Dividends are cash payments companies distribute from profits, and while they’re a smaller part of total return here, they still provide a modest income stream and a sign of corporate health. This lower yield profile aligns with a growth‑ and value‑tilted equity strategy that prioritizes capital appreciation over current income. For long‑horizon investors focused on wealth building, reinvesting these modest dividends can quietly boost compounding over time. Anyone who needs significant cash flow, though, would typically pair this with separate income‑oriented holdings or a withdrawal plan based more on selling shares.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- WisdomTree Japan Hedged Equity Fund 0.48%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Global X Defense Tech ETF 0.50%
- Vanguard Health Care Index Fund ETF Shares 0.10%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Invesco S&P MidCap Momentum ETF 0.34%
- Weighted costs total (per year) 0.25%
The weighted average total expense ratio (TER) is about 0.25%, which is quite competitive for a lineup that includes factor, sector, and thematic ETFs. Low-cost index funds help anchor the overall fee level, while the more specialized Japan hedged and defense tech funds sit on the higher side but still within reasonable ranges for their categories. Costs matter because they come off returns every year, like a small but constant headwind. This portfolio’s fee profile is impressively low for its complexity and is a real strength supporting long‑term performance. Periodically checking whether any higher‑fee components still earn their place via diversification or return potential is a good ongoing habit.
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