Global equity portfolio tilted toward small cap value with broad regional coverage and modest tech overweight
Report created on May 6, 2026Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 40.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 20.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 15.00% -
VE Vanguard FTSE Developed Markets Index Fund ETF Shares
VEA - US9219438580 15.00% -
VW Vanguard FTSE Emerging Markets Index Fund ETF Shares
VWO - US9220428588 10.00%
This portfolio is a fully invested global stock mix built from five broad equity ETFs. About 40% sits in a total US stock fund, with another 20% in a dedicated US small cap value fund. Developed markets outside the US get 15%, emerging markets 10%, and international small cap value 15%. So roughly half the portfolio is in traditional broad market funds and half in more niche small cap value strategies. This structure blends a market-like “core” with targeted “tilts” toward specific parts of the market. That kind of barbell approach can behave differently from a pure index portfolio, especially during cycles when smaller or cheaper companies move differently than the big, widely followed names.
Growth
From late 2019 to early 2026, $1,000 in this portfolio grew to about $2,417, which implies a compound annual growth rate (CAGR) of 14.35%. CAGR is like your average speed on a road trip, smoothing out the bumps along the way. Over the same period, the US market grew faster at 16.03% a year, while the global market returned 13.53%. So this mix lagged the US but outpaced the broader world, which is consistent with its global exposure. The max drawdown, or worst peak‑to‑trough drop, was about -38%, a bit steeper than the reference markets. It fell sharply in early 2020 but recovered within about eight months, showing resilience after a deep but brief decline.
Projection
The Monte Carlo projection looks at many possible futures by “re‑rolling the dice” on returns based on historical patterns. It ran 1,000 simulations over 15 years for a $1,000 starting amount. The median outcome lands around $2,654, which corresponds to an annualized return of about 8.02% across all simulations. The middle 50% of scenarios end between roughly $1,819 and $4,146, while the wider 5–95% band ranges from about $945 to $7,800. This spread shows how uncertain long‑term outcomes can be even with the same starting portfolio. Importantly, these are statistical projections, not promises — they rely on past data, and real markets can behave very differently over long periods.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with no bonds, cash, or alternative assets. Equities historically offer higher potential returns but can swing more in the short term. Being 100% in stocks means there is no built‑in buffer from more stable asset classes during market downturns. Compared with many broad global benchmarks that often mix in bonds, this is a more growth‑oriented setup. The benefit is direct participation in global corporate earnings and growth. The trade‑off is that portfolio value may move sharply up and down, especially during crises, because every holding is tied to stock market behavior rather than having a stabilizing fixed income component.
Sectors
- Technology 19%
- Financials 18%
- Industrials 14%
- Consumer Discretionary 12%
- Energy 8%
- Health Care 7%
- Basic Materials 7%
- Telecommunications 6%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
Sector-wise, the portfolio is fairly diversified, with technology at about 19% and financials close behind at 18%. Industrials, consumer discretionary, energy, health care, basic materials, telecoms, and consumer staples all have meaningful slices. Utilities and real estate are small at around 2% each. This pattern is broadly in line with global equity benchmarks but with a modest tilt toward economically sensitive sectors like financials and industrials. That can bring more cyclical behavior — these areas often do well when growth and risk appetite are strong but can be more volatile in slowdowns. The tech exposure is significant but not extreme, which helps avoid an overly concentrated bet on one growth-driven segment.
Regions
- North America 63%
- Europe Developed 13%
- Japan 8%
- Asia Emerging 5%
- Asia Developed 5%
- Australasia 2%
- Africa/Middle East 2%
- Latin America 1%
Geographically, about 63% of the portfolio is in North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, Latin America, and Africa/Middle East. This still leans toward the US and Canada, but less than a pure US allocation, and it lines up reasonably well with global market weights. Having around a third of assets outside North America adds currency and economic diversification, since different regions can lead or lag at different times. This spread helps reduce reliance on a single market or currency while still recognizing the large role North American companies play in global equity markets.
Market capitalization
- Mega-cap 28%
- Mid-cap 21%
- Large-cap 20%
- Small-cap 20%
- Micro-cap 11%
The portfolio holds a wide range of company sizes: about 28% in mega caps, 20% in large caps, 21% in mid caps, 20% in small caps, and 11% in micro caps. This is more tilted toward smaller companies than a typical global index, which tends to be dominated by mega and large caps. Company size matters because small and micro caps often have higher growth potential but more volatile and uneven performance. Larger firms usually move more slowly but can offer more stability. By spreading across the entire spectrum, this mix captures different business stages, from global giants to early‑stage or niche players that may behave differently over the cycle.
True holdings
-
NV NVIDIA Corporation 2.56%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 2.37%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 1.75%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.28%
Part of fund(s):- Vanguard FTSE Emerging Markets Index Fund ETF Shares
-
AM Amazon.com Inc 1.28%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.06%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 0.93%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 0.84%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.80%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.66%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 13.54%
Looking through the ETFs’ top holdings, the biggest individual exposures are well‑known large global companies like NVIDIA, Apple, Microsoft, TSMC, Amazon, Alphabet, Broadcom, Meta, and Tesla. No single company exceeds about 2.6% of the portfolio based on this partial view, and these names mostly appear through the broad index funds rather than the small cap value ETFs. That suggests overlap exists but isn’t extreme at the top‑holding level. However, the coverage of underlying holdings is only about 20%, so many smaller positions are not visible here. Hidden concentration could still occur deeper in the portfolios, especially in common themes, but headline single‑stock risk looks reasonably controlled.
Factors
The factor profile shows a strong tilt toward value (66%) and size (63%), both in the “High” range relative to a market average of 50%. Factor exposure is like looking at the ingredients behind returns — in this case, there’s an emphasis on cheaper stocks and smaller companies. Historically, value and small size have delivered higher returns at times but with longer dry spells and more volatility. Momentum, quality, yield, and low volatility all sit around neutral, meaning they broadly resemble the broader market on those dimensions. Overall, the portfolio’s behavior is likely to differ from a pure market index, especially during periods when value or small caps are significantly in or out of favor.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 40.00% 39.2% -
Avantis® U.S. Small Cap Value ETF
Weight: 20.00% 25.7% -
Vanguard FTSE Developed Markets Index Fund ETF Shares
Weight: 15.00% 13.5% -
Avantis® International Small Cap Value ETF
Weight: 15.00% 13.3% -
Vanguard FTSE Emerging Markets Index Fund ETF Shares
Weight: 10.00% 8.4%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which isn’t always the same as its weight. The total US stock fund is 40% of the portfolio and contributes about 39% of risk, almost one‑for‑one. The US small cap value ETF, at 20% weight, contributes over 25% of risk, with a risk‑to‑weight ratio of 1.28, meaning it punches above its size in volatility. The international funds contribute slightly less risk than their weights. The top three positions together generate about 78% of total portfolio risk, so most volatility stems from a handful of broad funds, particularly the small cap value component.
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 efficient frontier chart compares this portfolio’s risk and return to the best combinations possible using the same five funds. With an annualized return of about 15.73% and volatility around 20.16%, its Sharpe ratio — a measure of return per unit of risk above cash — is 0.58. The optimal mix of these holdings shows a higher Sharpe of 0.81 with slightly higher return and lower risk, while the minimum variance blend has the lowest risk and still a higher Sharpe than the current setup. The current portfolio sits about 1.06 percentage points below the efficient frontier at its risk level, meaning a different weighting of the same ETFs could theoretically improve the risk/return balance without adding new products.
Dividends
- Avantis® International Small Cap Value ETF 2.90%
- Avantis® U.S. Small Cap Value ETF 1.30%
- Vanguard FTSE Developed Markets Index Fund ETF Shares 2.80%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.50%
- Weighted yield (per year) 1.80%
The overall dividend yield of the portfolio is about 1.8%, coming from a mix of lower‑yielding US funds and higher‑yielding international and emerging markets ETFs. Dividend yield is the annual cash payment from holdings as a percentage of the investment value, a bit like rental income from property. Here, yield isn’t the main focus — growth and factor tilts play a bigger role — but payouts still add a steady component to total return. International small cap value and developed markets ex‑US provide the highest yields, while the broad US and US small cap value funds yield closer to typical US market levels, keeping the portfolio’s income moderate rather than high.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
- Weighted costs total (per year) 0.13%
The weighted average total expense ratio (TER) comes out to about 0.13% per year, which is quite low for an equity portfolio using both broad and factor-based funds. TER is the annual fee charged by the ETFs, taken inside the fund, a bit like a small service charge on the assets. Costs matter because even tiny percentages compound over long periods. Relative to many actively managed or higher‑fee strategies, this cost level supports better long‑term compounding of returns. The mix of ultra‑low‑cost Vanguard index funds with slightly higher‑fee Avantis factor funds produces a balance where you’re paying modestly more for the targeted tilts while keeping the overall fee footprint very lean.
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