Three global equity funds with strong quality tilt and moderate diversification over a short track record
Report created on Jul 30, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
AQ iShares MSCI Global Quality Factor ETF
AQLT 33.34% -
AV Avantis All Equity Markets ETF
AVGE - US0250722321 33.33% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 33.33%
This portfolio is made up of three broad global equity ETFs, each holding roughly one‑third of the total. There are no bonds, cash, or alternative assets, so everything here is tied to stock markets. Structurally, it mixes a total-world index fund, an all‑equity factor fund, and a dedicated quality factor ETF. That means you get both broad market exposure and an intentional tilt toward certain characteristics like quality. With only about 1.6 years of data, it is too early to draw firm conclusions about long‑term behavior, but the structure itself is simple and easy to understand. This kind of three‑fund approach tends to be straightforward to monitor and explain over time.
Growth
Over the limited 1.6‑year period, $1,000 in this portfolio grew to about $1,286, a compound annual growth rate (CAGR) of 16.9%. CAGR is like your average “speed” over the journey, smoothing out bumps along the way. Max drawdown was about ‑16.8%, slightly milder than the US market’s drop and very similar to the global market’s. The portfolio slightly beat the US market but lagged the global market over this short window, which can easily be driven by factor tilts or regional weights. Only eight days made up 90% of returns, showing how a handful of strong days did most of the work. With such a short sample, these outcomes should be seen as illustrative, not predictive.
Projection
The Monte Carlo projection uses the short historical record to simulate many possible 15‑year paths for this mix of funds. Monte Carlo is basically a “what if” engine: it shakes performance around randomly, based on past ups and downs, to show a range of future outcomes. Here, the median ending value for $1,000 is about $2,812, with a fairly wide range between weaker and stronger scenarios. The average simulated return is 8.25% per year, but this is math built on only 1.6 years of data. That makes the projections less reliable than if decades of history were available, so these numbers are best treated as a rough illustration of uncertainty rather than a precise forecast.
Asset classes
- Stocks 100%
All of this portfolio is invested in stocks, with 0% in bonds, cash, or other asset classes. That’s important because asset classes behave differently: stocks typically offer higher long‑term growth potential but can swing more in the short term, while bonds and cash usually dampen volatility. Being 100% in equities puts all the portfolio’s risk and return on the equity market’s shoulders. In calm or rising markets, this can look rewarding; in sharp downturns, the lack of stabilizing assets can make declines feel more intense. Over only 1.6 years, those trade‑offs have been modestly visible, but much more variability could show up across a full market cycle.
Sectors
- Technology 31%
- Financials 15%
- Industrials 12%
- Health Care 9%
- Consumer Discretionary 8%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 4%
- Real Estate 2%
- Utilities 2%
Sector exposure is fairly broad, with technology the largest slice at 31%, followed by financials, industrials, health care, and consumer areas. This tech‑tilt is common in global equity portfolios today because large, profitable tech firms dominate global indices. Tech‑heavy allocations can benefit when innovation and growth names are in favor, but they can also be more sensitive to changes in interest rates or shifts in market sentiment about growth companies. The remaining sectors are spread reasonably across the rest of the economy, which supports diversification across business models. Over a short window like 1.6 years, sector leadership can flip quickly, so it’s hard to call any pattern here a lasting trend.
Regions
- North America 69%
- Europe Developed 12%
- Asia Developed 7%
- Japan 4%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 69% of the portfolio lands in North America, with the rest spread across developed Europe, Asia, Japan, and smaller allocations to emerging regions. This US‑heavy tilt broadly lines up with global market capitalization, where North America currently dominates. That alignment is helpful because it means the regional mix is not making an extreme bet away from the global equity market. Exposure to Europe and Asia adds diversification across different economies and currencies, which can help when one region stumbles. However, with only 1.6 years of history, regional performance differences are heavily influenced by short‑term events, so they don’t reliably signal how these regions might behave over full cycles.
Market capitalization
- Mega-cap 40%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The portfolio leans strongly toward large and mega‑cap companies, which together make up over 70% of exposure, with the rest in mid, small, and a small slice of micro‑cap stocks. Larger companies tend to be more established and often less volatile than tiny firms, though they can still move sharply in global sell‑offs. The inclusion of mid and smaller caps adds some diversification because these companies can behave differently from giants, especially during economic recoveries or localized growth spurts. Overall this mix lines up reasonably well with global equity benchmarks, where big companies dominate index weights. Over 1.6 years, large‑cap leadership can be very cycle‑dependent, so observed behavior may not represent long‑run patterns.
True holdings
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AA Apple Inc. 3.91%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares MSCI Global Quality Factor ETF
-
NV NVIDIA Corporation 3.55%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares MSCI Global Quality Factor ETF
-
MS Microsoft Corporation 2.95%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares MSCI Global Quality Factor ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 2.30%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis® Emerging Markets Equity ETF
- Vanguard Total World Stock Index Fund ETF Shares
- iShares MSCI Global Quality Factor ETF
-
AV Broadcom Inc 2.24%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares MSCI Global Quality Factor ETF
-
ME Meta Platforms Inc. 2.18%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares MSCI Global Quality Factor ETF
-
GO Alphabet Inc Class A 1.72%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares MSCI Global Quality Factor ETF
-
AM Amazon.com Inc 1.29%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
-
LL Eli Lilly and Company 1.04%
Part of fund(s):- iShares MSCI Global Quality Factor ETF
-
AS ASML Holding NV ADR 0.85%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis® International Equity ETF
- iShares MSCI Global Quality Factor ETF
- Top 10 total 22.03%
Looking through the ETFs’ top holdings, several big names appear across multiple funds: Apple, NVIDIA, Microsoft, and other large global companies show up repeatedly. This creates “hidden” concentration, where a single company’s weight in the overall portfolio is higher than it looks from the ETF list alone. For instance, Apple and NVIDIA together already make up over 7% of the covered portion. Because we only see top‑10 holdings, actual overlap is likely understated. This kind of clustering is typical in global equity portfolios that track broad indices, where the same mega‑caps dominate. Over a short history, those few leading names can heavily influence returns, both on the upside and the downside.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows a very high tilt toward quality and a high tilt toward low volatility, with a high momentum tilt as well and very low size exposure. Factors are like investing “ingredients” such as cheapness (value), stability (quality), or trend‑following (momentum) that research links to returns. A strong quality tilt often means more profitable, financially healthy companies, which historically can hold up relatively better in stress, though not always. High low‑volatility exposure suggests a preference for stocks that have bounced around less, which can moderate swings at times. Very low size exposure indicates less emphasis on smaller companies. Over just 1.6 years, these factor tilts can drive noticeable differences, but it’s too early to know how they might behave across multiple full market cycles.
Risk contribution
-
iShares MSCI Global Quality Factor ETF
Weight: 33.34% 34.0% -
Vanguard Total World Stock Index Fund ETF Shares
Weight: 33.33% 33.6% -
Avantis All Equity Markets ETF
Weight: 33.33% 32.4%
Risk contribution is almost perfectly aligned with portfolio weights: each of the three ETFs is about one‑third of the allocation and contributes roughly one‑third of the overall volatility. Risk contribution measures how much each holding adds to the portfolio’s total ups and downs, which can differ from its weight if an asset is especially volatile or uncorrelated. Here, risk/weight ratios are very close to 1, meaning no single fund is pulling disproportionately on risk. This even spread is consistent with the use of broad, diversified equity funds that are all quite similar in behavior. Over a longer history, small differences might emerge, but with 1.6 years, the risk picture is very balanced across the three.
Redundant positions
-
High correlationiShares MSCI Global Quality Factor ETFAvantis All Equity Markets ETFVanguard Total World Stock Index Fund ETF Shares
The funds in this portfolio have moved very closely together over the short period, with some pairs described as almost identical in behavior. Correlation describes how similarly two investments move: a high correlation means they often rise and fall together. When correlations are high across the board, diversification benefits during market shocks can be more limited, because everything tends to move in the same direction. That’s common for global equity funds that all track broad stock markets, especially over short windows dominated by shared macro news. With only 1.6 years of data, correlations might look tighter than they would over a full cycle that includes different economic environments.
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 risk‑return chart shows this portfolio sitting below the efficient frontier built from its own three funds. The efficient frontier is the curve of best possible trade‑offs between risk (volatility) and return using different weightings of the same holdings. The current Sharpe ratio, a measure of return per unit of risk, is 0.8, while the optimal mix reaches about 1.11 with slightly higher return and slightly lower risk. That means, in theory, just reshuffling the same three ETFs could have produced better risk‑adjusted performance over this short backtest. Because the sample is only 1.6 years, this “inefficiency” might reflect noise rather than a persistent pattern.
Dividends
- Avantis All Equity Markets ETF 1.40%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- iShares MSCI Global Quality Factor ETF 0.50%
- Weighted yield (per year) 1.17%
The portfolio’s overall dividend yield is about 1.17%, combining a relatively low‑yield quality ETF with somewhat higher yields from the broad global funds. Dividend yield is the annual cash paid out as a percentage of the investment value, like interest on a savings account but not guaranteed. Here, income is a modest part of total return, with growth from price changes doing most of the heavy lifting over the 1.6‑year period. That’s typical for global equity portfolios tilted toward quality and growth. Over longer horizons, reinvested dividends can still play an important role in compounding, but with such a short track record, it’s hard to judge the stability or growth of these payouts over time.
Ongoing product costs
- Avantis All Equity Markets ETF 0.23%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.10%
Estimated total costs for this portfolio are very low, with a combined TER around 0.10% per year. TER, or total expense ratio, is the annual fee charged by funds, similar to a management fee on a service. This level of cost is impressively low and compares favorably with many actively managed strategies. Low ongoing fees mean more of the portfolio’s gross return stays in the investor’s pocket, and the benefit compounds over years. In a 1.6‑year window, the impact of low fees is modest in dollar terms, but over a decade or more the difference versus higher‑cost options can become significant. As a structural feature, this is a real strength of the portfolio.
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