A growth tilted global stock portfolio with strong small cap value exposure and low ongoing costs
Report created on Oct 2, 2024Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 60.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 20.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 20.00%
This portfolio is almost entirely stocks, built around a broad global fund with two focused small cap value funds. The core holding gives wide exposure, while the satellites tilt toward smaller, cheaper companies to seek higher long term returns. That mix explains both the “Growth” risk label and the strong diversification score, because thousands of companies are represented. Compared with a simple global stock benchmark, this setup is more aggressive due to the extra small/value tilt. If the risk feels appropriate, keeping this core plus satellite structure and rebalancing periodically can help maintain the intended mix as markets move and avoid drifting into an unintended risk level.
Growth
Historically, a 15% CAGR (Compound Annual Growth Rate) means something like $10,000 growing to about $40,000 over 10 years, on average. CAGR is like your average speed on a long road trip: it smooths out bumps and traffic jams. Against a typical global stock benchmark, that level of return is strong and reflects the added small cap value exposure during a favorable period. But the max drawdown of about –39% shows that big declines are very possible; this is normal for an all stock portfolio but can be emotionally tough. Since past performance never guarantees future results, using these numbers mainly as a rough guide to risk and return expectations is wise.
Projection
The Monte Carlo analysis uses many random simulations based on historical patterns to project a range of future outcomes. Think of it as running 1,000 “what if” market paths to see where the portfolio could end up. The median result around +554% suggests that in half the simulations, $10,000 grew to about $65,000, while the pessimistic 5th percentile of +67.9% is more like $10,000 becoming about $16,800. These are helpful for framing expectations, not promises, because future markets can behave very differently from the past. Using these ranges to stress test plans, like “What if I only get near the 5th percentile?” can keep expectations realistic.
Asset classes
- Stocks 99%
- Cash 1%
The allocation is 99% stocks and 1% cash, with no meaningful bonds or alternatives. That is very growth focused, which lines up with the profile and explains the higher risk score. Compared with more balanced portfolios that mix in bonds or other assets, this level of equity exposure will usually swing more in both directions. The high diversification score is earned within stocks, but diversification across asset classes is minimal. For someone with a long horizon and strong risk tolerance this can be appropriate, but anyone needing shorter term stability could consider gradually layering in some defensive assets to soften drawdowns without completely changing the growth objective.
Sectors
- Technology 19%
- Financials 18%
- Industrials 15%
- Consumer Discretionary 13%
- Energy 7%
- Basic Materials 7%
- Health Care 6%
- Telecommunications 6%
- Consumer Staples 4%
- Utilities 2%
- Real Estate 2%
Sector exposure looks well spread: technology, financials, and industrials lead, with meaningful slices in cyclicals, energy, materials, and others. This broadly matches global equity benchmarks, which is a strong indicator of healthy diversification. The tech weight is noticeable but not extreme, so it should benefit from innovation without being a pure “tech bet.” In periods of rising rates or economic stress, areas like small cap and cyclical sectors can be more volatile, which fits the growth profile. Keeping an eye on whether any single sector drifts far above typical global weights over time can help maintain balance and avoid unintended concentration risks.
Regions
- North America 61%
- Europe Developed 16%
- Japan 10%
- Asia Emerging 4%
- Asia Developed 3%
- Australasia 3%
- Africa/Middle East 2%
- Latin America 1%
Geographically, the portfolio leans toward North America at around 61%, similar to many global benchmarks, with solid exposure to Europe, Japan, and smaller allocations to emerging regions. This alignment with global market weights is a positive sign and supports broad economic diversification. The tilt is still somewhat US heavy, which has helped in recent years but might not always lead. Smaller allocations to emerging markets and other regions add some growth potential and diversification, but they remain modest. Periodically checking that regional weights still match your comfort with currency swings, political risks, and growth opportunities can keep the global balance intentional and not just benchmark driven.
Market capitalization
- Mega-cap 26%
- Mid-cap 22%
- Small-cap 20%
- Large-cap 19%
- Micro-cap 12%
The spread across company sizes is unusually broad: about a quarter in mega caps, and a large combined share in small and micro caps. That’s more small company exposure than a typical global index, where large and mega caps dominate. Smaller companies often have higher growth and value potential but can be bumpier and more sensitive to economic cycles. This structure fits a return seeking strategy that accepts bigger swings. To keep this from becoming too aggressive over time, watching how the small and micro allocations move relative to the larger caps and rebalancing back to target weights can help maintain a deliberate, not accidental, small cap tilt.
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 an Efficient Frontier chart, which shows the best risk return trade offs for a given set of assets, this portfolio likely sits on the higher risk, higher return side because of the all equity and small value tilt. “Efficient” here simply means getting the most expected return for a chosen level of volatility using only these three funds, not necessarily maximizing diversification across asset types. If desired, shifting a bit toward the broad global fund and away from the satellite tilts could move the point slightly down in risk while staying efficient. Any changes would be about fine tuning the balance, not fixing a broken structure, since the current setup already aligns well with a growth profile.
Dividends
- Avantis® International Small Cap Value ETF 3.30%
- Avantis® U.S. Small Cap Value ETF 1.60%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 2.00%
The overall dividend yield around 2% is reasonable for a global equity portfolio and reflects a mix of stable payers and growth oriented companies that reinvest earnings. Dividends are the cash payments companies distribute to shareholders and can provide a small, steady component of total return, especially useful if reinvested to buy more shares over time. The somewhat higher yield in international small cap value adds a bit more income, while still fitting a growth approach. While dividends alone shouldn’t drive decisions here, regularly reinvesting them and avoiding unnecessary cash drag can subtly boost long term compounding without changing the portfolio’s underlying risk profile.
Ongoing product costs
- Avantis® International Small Cap 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) 0.16%
Total ongoing costs of about 0.16% per year are impressively low for a portfolio with active tilts. Fees act like a small headwind every year, so keeping them modest leaves more of the market’s return in your pocket. The global core ETF is very cheap, and the Avantis funds are reasonably priced for their more specialized small cap value exposure. Compared with many actively managed stock portfolios, this structure is cost efficient while still being thoughtfully tilted. Keeping an eye on any future changes in fund expenses and avoiding unnecessary trading costs can help preserve this strong cost advantage over the long run.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey