Globally diversified all stock portfolio with balanced factor exposure and room for efficiency gains

Report created on Jun 6, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The structure is straightforward: 100% in stocks, split across six broad ETFs. Around 40% sits in a total world fund providing a core global base. Another 20% is tilted to a concentrated growth index, while the remaining 40% leans into value and small-cap strategies plus developed ex‑US exposure. This kind of core‑and‑satellite mix matters because the core sets your baseline behavior, and the satellites introduce tilts that can boost or dampen risk and return. Here the design balances broad diversification with a modest bias toward small and value. The key takeaway is that it behaves like a pure equity portfolio but with more nuance than a single global index fund.

Growth Info

From late 2020 to early 2026, $1,000 grew to about $1,983, a compound annual growth rate (CAGR) of 13.42%. CAGR is just the “average yearly speed” of growth, smoothing out ups and downs. This beat both the US market and the global market over the same stretch by 0.31 and 2.25 percentage points per year, respectively. The worst peak‑to‑trough drop was about ‑25.6%, very similar to broad markets, showing drawdowns in line with a full‑equity stance. Historical returns are encouraging but always backward‑looking; markets can behave very differently in the future. Still, this history suggests the mix has delivered strong equity‑like growth without noticeably higher downside than major benchmarks.

Asset classes Info

  • Stocks
    100%

All assets are in stocks, with no bonds or cash buffers. Asset classes are the broad buckets like stocks, bonds, and real assets that drive most of a portfolio’s risk and return. A 100% equity mix tends to grow faster over very long periods but can drop sharply during bear markets, sometimes for several years. Compared with typical “balanced” portfolios that blend stocks and bonds, this setup is more aggressive despite the 4/7 risk score. The implication is that someone using this structure should be comfortable riding out sizeable drawdowns without needing to sell for near‑term spending. If stability is ever a priority, introducing some fixed income would usually smooth the ride.

Sectors Info

  • Technology
    24%
  • Financials
    15%
  • Industrials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    6%
  • Basic Materials
    6%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is led by technology at 24%, followed by financials, industrials, and consumer‑oriented areas, with smaller slices in energy, materials, utilities, and real estate. This is quite close to modern global equity benchmarks, which are also tech‑heavy but broadly spread across the economy. The alignment with benchmark sector weights is a strong sign of diversification; no single area dominates excessively. Tech‑driven exposure does mean sensitivity to interest rates and innovation cycles, while the value and small‑cap funds provide ballast in more traditional industries. Overall, the sector mix should behave like a “normal” global equity market with a bit of extra growth flavor, rather than a narrow thematic bet.

Regions Info

  • North America
    67%
  • Europe Developed
    15%
  • Japan
    8%
  • Asia Developed
    4%
  • Asia Emerging
    2%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about two‑thirds is in North America, with most of the rest spread across developed Europe, Japan, and other developed Asia, plus small slices in emerging regions. This is fairly close to the global market’s natural weightings, which are also heavily tilted to the US. That alignment with world market norms is beneficial: it reduces the risk of betting too hard on or against any one region. The modest emerging exposure can slightly increase volatility but adds growth potential and diversification. For someone based in the US, this mix keeps a home‑country anchor while still tapping into international opportunities, helping avoid an extreme home bias or an overly exotic tilt.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    28%
  • Mid-cap
    20%
  • Small-cap
    11%
  • Micro-cap
    5%

The market cap breakdown shows 34% in mega‑caps and 28% in large‑caps, with a healthy 36% combined in mid, small, and micro‑caps. Market capitalization is just company size by stock value; small and mid‑caps often swing more but can offer higher long‑term growth. Global benchmarks are more dominated by mega and large‑caps, so this portfolio leans somewhat further down the size spectrum. That’s consistent with the dedicated small‑cap value funds and can be a useful long‑term tilt for return potential. The trade‑off is slightly bumpier performance, especially during market stress. The balance here still looks reasonable, blending big‑company stability with meaningful exposure to smaller, more cyclical firms.

True holdings Info

  • NVIDIA Corporation
    3.21%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Apple Inc
    2.87%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Microsoft Corporation
    2.19%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Amazon.com Inc
    1.63%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Alphabet Inc Class A
    1.36%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Meta Platforms Inc.
    1.23%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Alphabet Inc Class C
    1.18%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Tesla Inc
    1.17%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • LS 1x Tesla Tracker ETP Securities GBP
    • Vanguard Total World Stock Index Fund ETF Shares
  • Broadcom Inc
    1.14%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Walmart Inc. Common Stock
    0.87%
    Part of fund(s):
    • Invesco NASDAQ 100 ETF
    • Vanguard Value Index Fund ETF Shares
  • Top 10 total 16.87%

Looking through the ETFs, the biggest underlying exposures are familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. Each sits around 1–3% of the total portfolio via multiple funds, especially the global and NASDAQ‑focused ETFs. Overlap here creates hidden concentration: a company may appear in several ETFs even though it’s not a direct holding. Because only top‑10 ETF holdings are captured, real overlap is definitely higher than shown. This is not automatically bad; these firms have driven a lot of market returns. The useful takeaway is simply to be aware that big US tech and platform companies are a meaningful shared backbone across your different funds.

Factors Info

Value
Preference for undervalued stocks
Neutral
Data availability: 100%
Size
Exposure to smaller companies
Neutral
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Neutral
Data availability: 100%
Yield
Preference for dividend-paying stocks
Neutral
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
Neutral
Data availability: 100%

Factor exposures are broadly neutral across value, size, momentum, quality, yield, and low volatility, staying in the 40–60% “market‑like” band. Factors are characteristics, like “cheap vs. expensive” or “big vs. small,” that research has tied to long‑run performance patterns. A neutral profile means the portfolio behaves a lot like the broad market’s blend of traits, rather than strongly emphasizing any one style. That’s interesting, because some holdings explicitly target value and small caps, while others lean to growth and mega‑caps, and these seem to offset. The main takeaway is that performance should track broad markets reasonably closely over time, without extreme booms or busts tied to a single factor bet.

Risk contribution Info

  • Vanguard Total World Stock Index Fund ETF Shares
    Weight: 40.00%
    38.4%
  • Invesco NASDAQ 100 ETF
    Weight: 20.00%
    24.2%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 10.00%
    11.9%
  • Avantis® International Small Cap Value ETF
    Weight: 10.00%
    9.1%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares
    Weight: 10.00%
    9.0%
  • Top 5 risk contribution 92.5%

Risk contribution shows how much each ETF drives the overall portfolio’s ups and downs, which can differ from its simple weight. Think of it as which instruments in the band are actually the loudest. The world stock ETF at 40% weight contributes a similar 38% of risk, behaving like a steady core. The NASDAQ ETF, at 20% weight, contributes about 24% of risk, meaning it’s slightly “risk‑heavier” than its size. The US small‑cap value fund also pulls more than its weight. With the top three positions driving roughly three‑quarters of risk, the portfolio is still quite concentrated in a few broad exposures. Adjusting these weights would be the main lever to shift overall risk.

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 mix has a Sharpe ratio of 0.74, while the maximum‑Sharpe portfolio using the same ETFs reaches 1.01 with slightly higher return and lower risk. The efficient frontier shows the best achievable return for each risk level with different weightings of your existing holdings. Sitting about 3.1 percentage points below that frontier means the current allocation isn’t using these building blocks as efficiently as possible. Rebalancing toward the optimal or minimum‑variance mix could either improve expected return at similar risk or reduce risk while keeping expected return close. No new products are needed; it’s purely a question of fine‑tuning the weights periodically.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.10%
  • Avantis® U.S. Small Cap Value ETF 1.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 3.00%
  • Vanguard Total World Stock Index Fund ETF Shares 1.80%
  • Vanguard Value Index Fund ETF Shares 2.00%
  • Weighted yield (per year) 1.77%

The blended dividend yield sits around 1.77%, with higher payouts from international and value‑tilted funds and lower yields from the NASDAQ and global funds. Dividend yield is simply the annual cash payment relative to price, like rent on a property. This level is typical for a growth‑oriented global equity mix, where a good portion of return is expected from price appreciation rather than income. For investors not relying on current cash flow, this is perfectly fine and can even be tax‑efficient in some accounts. The important point is that most of the portfolio’s long‑term payoff will likely come from capital growth, with dividends providing a modest but steady return component.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.13%

The weighted total expense ratio of roughly 0.13% is impressively low for such a diversified, factor‑aware setup. TER is the annual fee charged by funds as a percentage of assets, and shaving even small amounts here compounds meaningfully over decades. You’ve blended ultra‑low‑cost core index funds with moderately priced specialized ETFs while keeping the overall bill very lean. That’s exactly what many evidence‑based investors aim for: pay slightly more only where it truly adds unique exposure. Lower costs don’t guarantee higher returns, but they remove a drag that you can fully control. This cost structure strongly supports better long‑term performance relative to higher‑fee alternatives.

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