Concentrated small cap value focus with strong factor tilts and efficient risk return balance
Report created on Jul 27, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 70.46% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 13.85% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 12.69% -
SP State Street® SPDR® Portfolio S&P 500® ETF
SPYM - US78464A8541 3.01%
This portfolio is highly concentrated in four stock ETFs, with almost three quarters in international small cap value and the rest split across US small cap value, a NASDAQ 100 tracker, and a small S&P 500 slice. That means it’s essentially a 100% equity mix, with no bonds or alternatives showing in the breakdown. A structure like this leans heavily on company shares for both growth and volatility. The big international small value position is the clear anchor, so its behavior will dominate returns over time. The NASDAQ ETF adds a growth tilt on top, creating a “value plus growth barbell” rather than a broad market blend.
Growth
From late 2020 to mid‑2026, $1,000 in this portfolio grew to about $2,602, a compound annual growth rate (CAGR) of 18.09%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. Over this period the portfolio beat both the US market and global market CAGRs by 2.43 and 4.53 percentage points respectively. The max drawdown of -26.75% shows it did fall hard at one point, roughly similar to global markets. It took about 15 months to recover, which is fairly typical for an all‑equity mix. As always, past performance doesn’t guarantee similar results in the future.
Projection
The Monte Carlo projection uses the portfolio’s historical risk and return patterns to simulate many possible 15‑year paths. Think of it as replaying the last few years’ ups and downs in thousands of slightly different ways to see a range of outcomes. The median result grows $1,000 to around $2,809, roughly an 8.31% annualized return across all simulations. The wide 5th–95th percentile band, from about $1,014 to $8,002, highlights just how uncertain long‑term equity investing can be. About three‑quarters of the simulations finish positive, but that still leaves a meaningful chance of low or flat results. These are models, not promises, and real markets can behave very differently from the past.
Asset classes
- Stocks 97%
- No data 3%
The asset class breakdown shows a near‑pure stock portfolio at 97%, with a small 3% labeled “No data.” Stocks represent ownership in companies and typically offer higher long‑run growth potential than bonds or cash, but with larger and more frequent swings in value. Having almost everything in equities means the portfolio’s returns will closely track global business cycles and market sentiment rather than interest rates or bond markets. This is consistent with the observed volatility and drawdowns. Because the allocation stays within equities, diversification comes mainly from different regions, sectors, and company sizes rather than from mixing in more defensive asset classes.
Sectors
- Industrials 18%
- Consumer Discretionary 15%
- Basic Materials 15%
- Technology 14%
- Financials 13%
- Energy 9%
- Consumer Staples 4%
- Telecommunications 4%
- Health Care 3%
- Utilities 1%
- Real Estate 1%
The sector mix is quite spread out, with noticeable weights in industrials, consumer discretionary, basic materials, technology, financials, and energy. No single sector dominates, and the mid‑teens allocations to industrials, consumer discretionary, and basic materials stand out versus typical large‑cap benchmarks that often lean heavier into technology and health care. This kind of spread can help reduce the impact of a downturn in any one part of the economy. At the same time, the relatively modest health care and utilities exposure means there is less of the traditionally “defensive” ballast some broad market portfolios have. Overall, this allocation is well‑balanced and aligns closely with global standards for sector diversification.
Regions
- North America 34%
- Europe Developed 27%
- Japan 23%
- Australasia 6%
- Africa/Middle East 4%
- Asia Developed 2%
Geographically, the portfolio is notably global: about one‑third in North America, over a quarter in developed Europe, and a sizable 23% in Japan, plus smaller slices in Australasia, Africa/Middle East, and other developed Asia. Compared with many US‑heavy portfolios, this shows a meaningful tilt away from a single‑country focus and toward a broader developed‑market mix. That kind of spread can reduce the impact of country‑specific economic or political events. It also means returns will reflect a blend of currencies and regional business cycles, rather than being tied mainly to the US. This allocation is well‑balanced and aligns closely with global standards for regional diversification.
Market capitalization
- Mid-cap 39%
- Small-cap 35%
- Micro-cap 10%
- Mega-cap 8%
- Large-cap 5%
The market cap profile is clearly tilted toward smaller companies, with mid caps and small caps making up about three quarters of the exposure, plus a noticeable micro‑cap slice. Only a small share sits in mega‑cap and large‑cap names. Smaller companies often have more room to grow but can be more volatile and sensitive to economic conditions than giant firms. This is quite different from mainstream indices, which are usually dominated by mega and large caps. The strong small and mid‑cap presence helps explain both the higher historical returns and the bumpier ride at times, and it means the portfolio’s behavior may diverge from headline market indices.
True holdings
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NV NVIDIA Corporation 1.34%
Part of fund(s):- Invesco NASDAQ 100 ETF
- State Street® SPDR® Portfolio S&P 500® ETF
-
AA Apple Inc. 1.27%
Part of fund(s):- Invesco NASDAQ 100 ETF
- State Street® SPDR® Portfolio S&P 500® ETF
-
AT AT & S Austria Technologie & Systemtechnik Aktiengesellschaft 1.22%
Part of fund(s):- Avantis® International Small Cap Value ETF
-
MS Microsoft Corporation 0.79%
Part of fund(s):- Invesco NASDAQ 100 ETF
- State Street® SPDR® Portfolio S&P 500® ETF
-
MU Micron Technology Inc 0.73%
Part of fund(s):- Invesco NASDAQ 100 ETF
- State Street® SPDR® Portfolio S&P 500® ETF
-
AM Amazon.com Inc 0.70%
Part of fund(s):- Invesco NASDAQ 100 ETF
- State Street® SPDR® Portfolio S&P 500® ETF
-
GO Alphabet Inc Class A 0.55%
Part of fund(s):- Invesco NASDAQ 100 ETF
- State Street® SPDR® Portfolio S&P 500® ETF
-
AM Advanced Micro Devices Inc 0.54%
Part of fund(s):- Invesco NASDAQ 100 ETF
-
GO Alphabet Inc Class C 0.50%
Part of fund(s):- Invesco NASDAQ 100 ETF
- State Street® SPDR® Portfolio S&P 500® ETF
-
ME Meta Platforms Inc. 0.48%
Part of fund(s):- Invesco NASDAQ 100 ETF
- State Street® SPDR® Portfolio S&P 500® ETF
- Top 10 total 8.12%
Looking through the ETFs’ top holdings, only about 13% of the portfolio is captured, so any overlap we see is just the visible tip. Within that slice, big familiar names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta show up, largely via the NASDAQ 100 and S&P 500 ETFs. These positions are each small at the total portfolio level, generally well under 2%. There isn’t obvious heavy concentration in any single company based on this data. However, because only top‑10 ETF holdings are used, overlap in the smaller positions inside the value funds may be understated, so real company‑level clustering is likely a bit higher than shown.
Factors
Factor exposure shows a strong tilt toward value at 71% and a higher‑than‑average tilt to low volatility at 63%, while size, momentum, quality, and yield are all near neutral. Factors are like underlying “traits” that help explain how investments behave over time. A value tilt means a focus on companies trading at lower prices relative to fundamentals, which can behave differently from growth‑heavy markets. The higher low‑volatility exposure suggests a preference for stocks that historically moved less than the overall market, even though the portfolio is all‑equity. Together, this points to a style that leans into cheaper stocks but with some built‑in dampening of extreme swings relative to a pure high‑growth tilt.
Risk contribution
-
Avantis® International Small Cap Value ETF
Weight: 70.45% 69.8% -
Avantis® U.S. Small Cap Value ETF
Weight: 12.69% 14.0% -
Invesco NASDAQ 100 ETF
Weight: 13.85% 13.8% -
State Street® SPDR® Portfolio S&P 500® ETF
Weight: 3.01% 2.5%
Risk contribution, which measures how much each holding drives the portfolio’s overall ups and downs, broadly matches the weights here. The international small cap value ETF is about 70% of the portfolio and contributes roughly 70% of the risk, making it the primary driver of performance. The US small cap value and NASDAQ 100 ETFs each contribute risk very close to their weights as well. The S&P 500 ETF adds relatively little risk at just under its 3% weight. This alignment means there aren’t hidden “small but very loud” positions; the main holding is both the largest slice and the biggest source of volatility, which makes the overall risk profile easier to understand.
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 sits on or very near the efficient frontier, meaning it’s using these four ETFs in a way that offers a strong tradeoff between expected return and volatility. The Sharpe ratio, which compares excess return to risk, is 0.84 for the current allocation versus 1.02 for the max‑Sharpe version and 1.0 for the minimum‑variance mix. All three points cluster fairly close together, so there is no glaring inefficiency. The message here is that, given these specific building blocks, the chosen weights already line up well with what modern portfolio theory would consider an effective balance at this risk level.
Dividends
- Avantis® International Small Cap Value ETF 2.80%
- Avantis® U.S. Small Cap Value ETF 1.30%
- Invesco NASDAQ 100 ETF 0.50%
- State Street® SPDR® Portfolio S&P 500® ETF 1.00%
- Weighted yield (per year) 2.24%
The total portfolio dividend yield comes in around 2.24%, driven mainly by the international small cap value ETF’s 2.80% payout, with lower yields from the US small value, S&P 500, and particularly the NASDAQ 100 ETF. Dividends are the cash payments companies make to shareholders, and over long periods they can be a significant part of total return, especially when reinvested. Here, the yield is moderate: higher than many pure growth portfolios, but not extremely income‑focused either. That fits with the blend of value‑oriented holdings and growth‑heavy NASDAQ exposure, where return potential is expected to come from both price changes and some ongoing cash distributions.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Invesco NASDAQ 100 ETF 0.15%
- Weighted costs total (per year) 0.31%
The weighted average fee (TER) of about 0.31% per year is quite low for an actively tilted, multi‑ETF equity portfolio. TER, or Total Expense Ratio, is the annual percentage fee charged by funds, taken silently in the background. Lower costs mean more of the portfolio’s gross return stays in your pocket and can compound over time. The slightly higher fees on the value‑focused ETFs are balanced by the very low‑cost NASDAQ and S&P 500 trackers. Overall, the costs are impressively low, supporting better long‑term performance, especially when compared with typical actively managed funds that often charge several times this level.
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