High conviction global small value tilt with strong factor exposure and moderate growth oriented risk
Report created on Mar 18, 2026Risk profile
5/7
Diversification profile
4/5
Positions
-
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 50.00% -
AV Avantis® Emerging Markets Value ETF
AVES - US0250723725 30.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 20.00%
This portfolio is very focused: three equity ETFs make up 100% of the allocation, all targeting small or value-tilted stocks. Roughly half is in U.S. small cap value, with the rest split between emerging markets and international small cap value. That creates a clean, high-conviction style tilt rather than a “kitchen sink” mix. Having so few building blocks makes the structure easy to monitor and rebalance, but it also means less room to fine-tune specific themes or add stabilizers like bonds. In practical terms, this kind of setup works best when the investor truly wants equity-driven growth and accepts meaningful ups and downs along the way.
Growth
Historically, the portfolio shows a strong compound annual growth rate (CAGR) of 11.75%, which is competitive with long-term equity returns. CAGR is the “per year on average” growth rate, smoothing the ride like average speed on a road trip. The max drawdown of -22.8% indicates sizable, but not extreme, declines during rough markets for risk assets. That’s consistent with a growth profile and small/value exposure. Only 13 days made up 90% of returns, which underlines how a few big days drive long-term results. Missing those days can hurt outcomes, so staying invested and avoiding panic moves is particularly important with this style.
Projection
The Monte Carlo analysis runs 1,000 simulated future paths using historical return and volatility patterns as a guide. Think of it as replaying markets many different ways to see a range of possible outcomes, not a single prediction. The median simulation shows growth of about 368%, while the 5th percentile still ends positive at around 40.8%, and most runs (982 out of 1,000) produce gains. The average annualized return across simulations is 13.28%, somewhat higher than historical CAGR, reflecting the model inputs. It’s important to remember simulations rely on past behavior and statistical assumptions, so they can’t capture regime shifts or rare shocks perfectly.
Asset classes
- Stocks 100%
All assets sit in stocks, with 0% in bonds, cash, or alternatives. That pure-equity stance is what drives the “Growth” risk profile and the portfolio risk score of 5 out of 7. Equity-only allocations historically deliver higher long-term returns but also deeper and more frequent drawdowns than mixed portfolios. Compared to broad benchmarks, which commonly blend stocks with bonds or cash for stability, this approach is intentionally aggressive. For someone wanting to dampen volatility, gradually adding a modest defensive sleeve outside this structure could help. But for investors fully committed to long-term equity growth, the single-asset-class focus creates a very clear, consistent exposure.
Sectors
- Financials 24%
- Industrials 16%
- Consumer Discretionary 15%
- Energy 13%
- Basic Materials 10%
- Technology 9%
- Consumer Staples 4%
- Telecommunications 3%
- Health Care 3%
- Real Estate 1%
- Utilities 1%
Sector exposure is meaningfully tilted away from the typical large-cap growth pattern and toward economically sensitive areas. Financial services (24%), industrials (16%), consumer cyclicals (15%), energy (13%), and basic materials (10%) dominate, while technology is a smaller piece at 9%. That’s quite different from broad indices, where mega-cap tech often leads. This tilt can shine when value, cyclicals, or commodity-linked businesses are in favor, but may lag during tech-led bull markets or when investors crowd into “safe” large caps. The sector composition is well spread across multiple areas, which reduces reliance on a single theme, but it makes the portfolio more tied to the real economy than to high-growth innovators.
Regions
- North America 51%
- Asia Emerging 13%
- Asia Developed 12%
- Europe Developed 8%
- Japan 7%
- Africa/Middle East 4%
- Latin America 3%
- Australasia 2%
- Europe Emerging 1%
Geographically, the portfolio is genuinely global. North America is just over half at 51%, with the rest spread across Asia emerging (13%), Asia developed (12%), Europe developed (8%), Japan (7%), Africa/Middle East (4%), Latin America (3%), Australasia (2%), and Europe emerging (1%). That’s a broader regional reach than many U.S.-centric portfolios and offers exposure to a wide set of economic cycles and currencies. Relative to common global benchmarks, the U.S. weight is lower and emerging/foreign small caps are higher. This alignment with global diversification principles is a real strength, reducing reliance on any one country’s policy or growth path over long horizons.
Market capitalization
- Small-cap 35%
- Micro-cap 24%
- Mid-cap 20%
- Large-cap 12%
- Mega-cap 8%
Market cap exposure is firmly tilted down the size spectrum. Small caps are 35%, micro caps 24%, and mid caps 20%, while big and mega caps together make up only about 20%. Smaller companies can offer higher long-term return potential, especially when combined with a value tilt, but they typically experience more volatility, sharper drawdowns, and longer recovery periods in bear markets. They can also be more sensitive to financing conditions and economic shocks. This size mix amplifies both the risk and the potential reward relative to a standard market-cap-weighted index that is dominated by large and mega-cap names. Patience and a long horizon are key for this kind of tilt.
True holdings
-
FI Five Below Inc 0.49%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
VS ViaSat Inc 0.49%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
SM SM Energy Co 0.45%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
GA GATX Corporation 0.44%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
MA Matson Inc 0.43%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
AR Archrock Inc 0.40%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
M Macy’s Inc 0.40%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
LE Lear Corporation 0.39%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
CR California Resources Corp 0.39%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
-
MG Magnolia Oil & Gas Corp 0.38%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
- Top 10 total 4.25%
Looking through the ETFs, the top 10 holdings cover about 31% of each fund, and only 30.6% of the total portfolio is represented in the combined top-10 list. No single underlying company is a big position; the largest look-through exposure is under 0.5%. That shows genuinely broad diversification inside each ETF, especially across many small names. Overlap appears modest from the top-10 data, which suggests hidden concentration at the single-stock level is limited, though overlap is likely understated because deeper holdings are not shown. The main takeaway: concentration risk here is not about one company blowing up but about the shared characteristics (small, value) that can move together.
Factors
Factor exposure is very pronounced. Value and size both sit at 85%, meaning a strong bias toward cheaper, smaller companies compared with a neutral market. Momentum, at 68%, suggests a decent tilt toward stocks with positive recent trends, while low volatility at 56% provides a modest cushion relative to the small/value focus. Factor investing targets traits research has linked to returns over decades—think of them as the “personality traits” of the portfolio. Dominant tilts like this can outperform over long spans but will likely endure painful stretches when growth, large caps, or expensive “story” stocks dominate. Sticking with it through those cycles is crucial to realizing the factor premium.
Risk contribution
-
Avantis® U.S. Small Cap Value ETF
Weight: 50.00% 60.6% -
Avantis® Emerging Markets Value ETF
Weight: 30.00% 22.6% -
Avantis® International Small Cap Value ETF
Weight: 20.00% 16.9%
Risk contribution shows how much each holding adds to overall portfolio ups and downs, which can be very different from its simple weight. The U.S. small cap value ETF is 50% of the portfolio yet contributes about 60.6% of total risk, a risk-to-weight ratio of 1.21, so it drives more volatility than its weight alone suggests. The emerging markets value ETF, at 30% weight, contributes only 22.6% of risk, while the international small cap value ETF contributes roughly in line with its weight. That means U.S. small value is the main “volatility engine” here. Slightly trimming that sleeve or boosting the less risky ones would be a straightforward way to balance risk, if desired, without changing the overall style.
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 below an achievable point on the efficient frontier, which is the curve showing the best expected return for each risk level using your existing holdings. The optimizer indicates that, at the same level of risk, a different weighting of the same three ETFs could boost expected return to about 15.03%. That means the current weighting isn’t fully efficient, even though the holdings themselves are well chosen. Reweighting closer to the optimal or same-risk efficient mix—without adding any new products—could improve the Sharpe ratio, or reward per unit of risk, while preserving the overall small-value, global character.
Dividends
- Avantis® International Small Cap Value ETF 3.00%
- Avantis® Emerging Markets Value ETF 3.10%
- Avantis® U.S. Small Cap Value ETF 1.80%
- Weighted yield (per year) 2.43%
The blended dividend yield of about 2.43% is a nice side benefit for a growth-oriented, small-value portfolio. The emerging markets and international small cap value funds yield around 3%, while the U.S. small cap value ETF pays closer to 1.8%. Dividends can provide a steady component of total return and may help psychologically during flat or choppy markets, since cash flow continues even when prices move sideways. That said, this setup is not primarily an income engine; it focuses more on total return through capital appreciation plus modest yield. For someone heavily reliant on portfolio income, a higher-yield, more mature-company tilt would typically be more suitable.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® Emerging Markets Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Weighted costs total (per year) 0.30%
The total expense ratio across the three ETFs comes in at a very reasonable 0.30%. That’s impressively low for specialized, factor-tilted global small and emerging markets exposure, which often carry higher fees. Costs matter because they compound just like returns: paying less each year means more of the portfolio’s growth stays in your hands. This alignment with cost-conscious best practices is a real positive. Given that fees are already lean, there’s limited room for meaningful improvement without sacrificing the specific factor and regional exposures you’re targeting, so the focus can remain on allocation and behavior rather than on squeezing a few extra basis points out of expenses.
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