Global equity portfolio with strong US core value tilt and efficient risk balance for growth
Report created on Jun 17, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 60.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 10.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00%
This portfolio is a simple four‑fund global stock mix, leaning heavily on broad index ETFs. Around 60% sits in a US large‑cap index, 20% in broad international equities, and 20% in small‑cap value funds split between US and international. So structurally it mixes a mainstream “core” with a more specialized “value and small‑cap” sleeve. That kind of core‑plus‑satellite setup is common when someone wants market‑wide exposure but also a deliberate tilt toward certain styles. The result is a portfolio that’s still easy to understand and manage, but not just a plain market index clone. Simplicity plus intentional tilts is a defining trait here.
Growth
One or more local-currency benchmark funds are unavailable for this report.
Over the period from late 2019 to mid‑2026, $1,000 in this portfolio grew to about $2,616. That translates to a compound annual growth rate (CAGR) of 15.43%, compared with 13.74% for the global market benchmark. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. The portfolio also went through a sharp drawdown of about ‑35.8% during early 2020, slightly deeper than the benchmark’s ‑33.5%, but it recovered in around five months. This shows a pattern: somewhat higher return, with slightly more downside at stress points. As always, past performance doesn’t guarantee anything about the future.
Projection
The Monte Carlo projection uses the portfolio’s historical behavior to simulate 1,000 different 15‑year futures. Monte Carlo is basically a “what if” engine: it shuffles returns in many random ways, based on past volatility and averages, to build a range of possible outcomes. Here, a $1,000 starting amount has a median outcome around $2,873, with a central “likely” band roughly between $1,931 and $4,350. There’s a wide possible span, from about $973 to $7,824, showing how uncertain long‑term markets can be. The average simulated annual return of 8.39% is lower than the past CAGR, underscoring that recent strength may not repeat.
Asset classes
- Stocks 100%
Every dollar in this portfolio is invested in stocks, with no bonds, cash, or alternatives in the mix. An all‑equity structure naturally pushes up both potential returns and short‑term swings, because there’s nothing more defensive to cushion market shocks. Asset class allocation is one of the biggest drivers of overall risk, and here it’s clearly tilted toward growth and volatility rather than capital stability. That matches the “Growth” risk classification and mid‑high risk score of 5/7. It also means the portfolio’s ups and downs will be closely tied to global equity markets rather than interest rates or credit markets.
Sectors
- Technology 26%
- Financials 15%
- Industrials 12%
- Consumer Discretionary 11%
- Telecommunications 8%
- Health Care 7%
- Energy 6%
- Basic Materials 5%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
Sector exposure is fairly broad, with technology the largest slice at 26%, followed by financials, industrials, and consumer discretionary. This pattern is similar to many global equity benchmarks where tech and finance are major components, so the portfolio’s sector mix lines up well with the broader market. A tech tilt can be helpful when innovation and digital businesses are driving returns, but also tends to increase sensitivity to changes in interest rates and sentiment around growth stocks. Having meaningful exposure to areas like health care, energy, and consumer sectors helps spread risk across different parts of the economy, supporting solid diversification.
Regions
- North America 72%
- Europe Developed 11%
- Japan 6%
- Asia Developed 4%
- Asia Emerging 3%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is clearly anchored in North America, at about 72% of exposure, with the rest spread across Europe, Japan, developed Asia, and smaller slices in emerging regions. This US and North America tilt is common, and it’s been rewarded over the last decade as US markets have outperformed many others. However, it also means portfolio outcomes are strongly linked to one main economy and currency. The remaining roughly 28% outside North America still adds meaningful diversification, since different regions can move to their own cycles. Compared to a purely domestic approach, this mix is more globally diversified and closer to global norms.
Market capitalization
- Mega-cap 37%
- Large-cap 27%
- Mid-cap 20%
- Small-cap 10%
- Micro-cap 5%
The market‑cap breakdown shows a strong base in mega‑ and large‑cap stocks (together about 64%), with a notable allocation to mid‑caps and smaller companies. That’s consistent with the blend of broad market funds plus small‑cap value ETFs. Large and mega‑caps often provide stability and liquidity, while mid and small caps can offer more growth potential but with choppier price moves. The presence of micro‑caps, at around 5%, adds an extra layer of volatility and idiosyncratic risk. Overall, this size distribution means the portfolio doesn’t just mirror a mega‑cap‑dominated index; it deliberately reaches further down the size spectrum.
True holdings
-
NV NVIDIA Corporation 4.73%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 4.23%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.08%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.44%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.05%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.96%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.63%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.28%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.13%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 1.01%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 23.54%
Looking through to the top holdings, the largest underlying positions are well‑known US growth names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, mainly via the S&P 500 ETF. These companies together make up meaningful single‑digit percentages of the overall portfolio, and many appear in multiple ETFs, which increases their effective exposure. Because only top‑10 ETF holdings are included, actual overlap is almost certainly higher than shown. This creates a subtle concentration in a handful of giant tech‑related firms, even though you only hold broad funds. It’s a classic example of “hidden” concentration that comes from using cap‑weighted index funds.
Factors
The standout factor tilt here is toward value, with a “High” exposure of 60%, driven by the dedicated small‑cap value funds. Factor exposure describes how much the portfolio leans into traits like cheapness (value), size, or momentum that research has linked to long‑term returns. A value tilt often means owning companies with lower prices relative to fundamentals, which can lag in hot growth markets but may hold up better when expensive stocks correct. The other factors—size, momentum, quality, yield, and low volatility—sit near neutral, suggesting they behave broadly like the market. So stylistically, this is really a “core plus value tilt” portfolio.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 60.00% 60.6% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 18.0% -
Avantis® U.S. Small Cap Value ETF
Weight: 10.00% 12.5% -
Avantis® International Small Cap Value ETF
Weight: 10.00% 8.9%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from its weight. Here, the S&P 500 ETF is 60% of the portfolio and contributes about 60.6% of total risk, almost a one‑for‑one relationship. The US small‑cap value ETF is just 10% by weight but adds roughly 12.5% of risk, punching above its size due to higher volatility. In contrast, the international broad and international small‑cap value funds contribute slightly less risk than their weights. With the top three holdings responsible for over 91% of total risk, most portfolio behavior is effectively driven by those positions.
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 analysis compares your current mix with an “optimal” combination of the same four holdings. The Sharpe ratio—a measure of return per unit of risk—sits at 0.64 for the current portfolio, while the maximum‑Sharpe version is 0.85 and the minimum‑risk version is 0.74. All three lie along the efficient frontier curve, and the note confirms your current allocation is on or very near that curve. That means, given these four ETFs, the portfolio is using them in a way that’s already quite efficient. Any improvements from reweighting alone would likely be incremental rather than transformational.
Dividends
- Avantis® International Small Cap Value ETF 4.10%
- Avantis® U.S. Small Cap Value ETF 1.60%
- Vanguard S&P 500 ETF 1.00%
- Vanguard Total International Stock Index Fund ETF Shares 2.60%
- Weighted yield (per year) 1.69%
The portfolio’s overall dividend yield is around 1.69%, combining lower yields from US large caps with higher payouts from international and small‑cap value funds. Dividends are the cash distributions companies pay out of earnings; they can be reinvested to buy more shares or taken as income. In an equity‑heavy, growth‑focused portfolio like this, returns are expected to come more from price changes than from income. Still, the mix of higher‑yielding value stocks and lower‑yielding growth names adds some balance. Over time, even a modest yield can meaningfully contribute to total return when those payments are consistently reinvested.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.09%
The total expense ratio (TER) across the four ETFs is about 0.09%, which is impressively low. TER is the annual fee charged by funds, expressed as a percentage of your investment—like a small ongoing service charge. Low costs matter because they come off returns every year and compound over decades. Here, the broad index funds are extremely cheap, and even the specialized small‑cap value ETFs are reasonably priced for their strategy. This keeps the overall fee drag minimal and supports better long‑term performance compared with higher‑cost approaches that deliver similar exposures. Cost efficiency is a real strength of this portfolio.
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