Globally diversified equity portfolio with strong value and size tilts targeting long term capital growth

Report created on Apr 15, 2026

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

The portfolio is a pure equity mix built entirely from five broad Avantis ETFs, with no bonds or cash. Around a third is in a core U.S. equity fund, while the rest leans into international, small cap, value, and emerging markets funds. This structure clearly targets long-term growth rather than short-term stability. Having multiple building blocks gives diversification across regions and company sizes, but the 100% stock stance means larger swings in value are likely. For someone with many years ahead, this kind of equity-heavy setup can be appropriate, but it usually requires a strong stomach for volatility and a clear plan to ride out downturns.

Growth Info

Historically, $1,000 grew to about $2,429 over the period, which is a compound annual growth rate (CAGR) of 14.59%. CAGR is like average speed on a road trip: it smooths the journey into one yearly number. This return slightly lagged the U.S. market but beat the global market, suggesting the tilts away from plain-vanilla indexing have broadly added value versus the wider world. The max drawdown of about -40% during early 2020 was deeper than the benchmarks, showing higher downside when markets fell. This pattern fits a growth-focused, factor-tilted portfolio: strong long-run potential, but with sharper temporary drops that investors must be prepared to endure.

Projection Info

The Monte Carlo simulation projects many possible 15-year paths for a $1,000 investment by mixing historical returns and volatility in random sequences. Think of it as running 1,000 alternate futures to see a range of outcomes, not one precise forecast. The median result of about $2,862 implies a solid real growth potential, while the wide range ($1,010 to $8,111 at 5–95%) shows just how uncertain markets can be. Around three-quarters of simulations end with a positive return, which is encouraging but not guaranteed. These numbers are based on the past, and markets can behave differently, so they should be treated as rough weather maps, not promises.

Asset classes Info

  • Stocks
    100%

All of the portfolio sits in stocks, with 0% in bonds, cash, or alternative assets. That makes the asset class picture simple: it is entirely tied to the fortunes of global equity markets. This can be powerful for long-term compounding because equities historically have offered the highest returns, but it also means no built-in cushion from safer assets during major downturns. Many diversified reference portfolios might hold some bonds or cash to dampen volatility and support withdrawals. Here, the trade-off is clear: maximum equity exposure for growth in exchange for greater short-term risk and bigger swings in account value along the way.

Sectors Info

  • Financials
    18%
  • Technology
    16%
  • Industrials
    16%
  • Consumer Discretionary
    13%
  • Basic Materials
    10%
  • Energy
    9%
  • Telecommunications
    5%
  • Health Care
    5%
  • Consumer Staples
    4%
  • Utilities
    2%
  • Real Estate
    1%

Sector exposure is quite balanced, with meaningful allocations to financials, technology, industrials, consumer discretionary, and basic materials, plus smaller slices in energy, telecoms, healthcare, staples, utilities, and real estate. This broad spread looks similar to diversified global equity benchmarks, which is a strong sign that sector risk is well managed. No single sector dominates the picture, helping avoid being overly dependent on one part of the economy or a single trend. The tilt toward cyclical areas like financials and industrials can mean stronger performance in economic expansions but more sensitivity when growth slows. Still, the overall sector mix supports a healthy level of diversification.

Regions Info

  • North America
    54%
  • Europe Developed
    15%
  • Japan
    10%
  • Asia Developed
    7%
  • Asia Emerging
    6%
  • Australasia
    3%
  • Africa/Middle East
    3%
  • Latin America
    2%

Geographically, the portfolio is more global than many U.S.-centric investors, with about half in North America and the rest spread across Europe, Japan, developed Asia, emerging Asia, Australasia, and smaller exposures to Africa/Middle East and Latin America. This is closer to global market weights than portfolios that heavily overweight domestic equities. Such broad global exposure helps reduce the risk that any one country’s economy, politics, or currency drives outcomes alone. It also taps into growth from both developed and emerging markets. The result is a solid geographic diversification that aligns well with global standards and supports long-term resilience.

Market capitalization Info

  • Mid-cap
    28%
  • Small-cap
    22%
  • Mega-cap
    22%
  • Large-cap
    18%
  • Micro-cap
    9%

The portfolio strikes an interesting balance across company sizes: mid caps are the largest bucket, followed by small caps, mega caps, large caps, and a notable slice of micro caps. This is very different from cap-weighted benchmarks that are usually dominated by mega and large caps. Smaller companies often have higher long-term growth potential but more volatility and periods of underperformance. This size mix supports the growth and factor tilt objectives but can make returns bumpier than a plain global index, especially in risk-off markets. It’s a conscious tilt toward the “smaller end” of the market in pursuit of higher expected returns.

True holdings Info

  • NVIDIA Corporation
    1.75%
    Part of fund(s):
    • Avantis® U.S. Equity ETF
  • Apple Inc
    1.69%
    Part of fund(s):
    • Avantis® U.S. Equity ETF
  • Amazon.com Inc
    1.21%
    Part of fund(s):
    • Avantis® U.S. Equity ETF
  • Microsoft Corporation
    1.19%
    Part of fund(s):
    • Avantis® U.S. Equity ETF
  • Taiwan Semiconductor Manufacturing
    0.97%
    Part of fund(s):
    • Avantis® Emerging Markets Equity ETF
  • Alphabet Inc Class A
    0.86%
    Part of fund(s):
    • Avantis® U.S. Equity ETF
  • Meta Platforms Inc.
    0.81%
    Part of fund(s):
    • Avantis® U.S. Equity ETF
  • Alphabet Inc Class C
    0.69%
    Part of fund(s):
    • Avantis® U.S. Equity ETF
  • Samsung Electronics Co. Ltd
    0.62%
    Part of fund(s):
    • Avantis® Emerging Markets Equity ETF
  • SK Hynix Inc
    0.60%
    Part of fund(s):
    • Avantis® Emerging Markets Equity ETF
  • Top 10 total 10.40%

Looking through the ETFs, the largest underlying exposures include familiar mega-cap names like NVIDIA, Apple, Amazon, Microsoft, and major Asian technology manufacturers. None of these dominate the portfolio by themselves, but together they form a meaningful slice of risk linked to global tech and large innovative firms. Because the data only covers ETF top-10 holdings, true overlap is likely higher than shown. Hidden overlap matters because multiple funds owning the same giant companies can concentrate risk more than expected. Still, the presence of both developed and emerging market leaders suggests a broad economic footprint rather than a narrow bet on a single company or country.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 100%
Size
Exposure to smaller companies
High
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Neutral
Data availability: 100%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
Neutral
Data availability: 100%

Factor exposure shows strong tilts toward value, size, and yield, with other factors roughly neutral. Factors are like underlying “personality traits” of stocks that research links to long-term returns. A high value exposure means favoring cheaper companies relative to fundamentals, which can outperform over long cycles but lag during growth-driven or speculative phases. A high size factor tilt reflects the emphasis on smaller firms, amplifying both opportunity and volatility. The elevated yield exposure suggests a bias toward stocks paying higher dividends, adding an income component even in a growth portfolio. Together, these tilts can behave differently from the broad market, sometimes strongly ahead and sometimes clearly behind.

Risk contribution Info

  • Avantis® U.S. Equity ETF
    Weight: 35.00%
    35.3%
  • Avantis® International Small Cap Value ETF
    Weight: 25.00%
    23.0%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 15.00%
    19.5%
  • Avantis® Emerging Markets Equity ETF
    Weight: 15.00%
    13.2%
  • Avantis® International Equity ETF
    Weight: 10.00%
    9.0%

Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. The core U.S. equity ETF contributes risk almost in line with its weight, acting as a stable anchor. The U.S. small cap value ETF, though only 15% of assets, contributes almost 20% of total risk, meaning it punches above its weight in volatility. In contrast, the international and emerging markets funds contribute slightly less risk than their weights suggest. This pattern is normal for small-cap and value-focused funds. If the goal is to keep risk aligned with allocations, occasional rebalancing can help maintain the intended balance.

Redundant positions Info

  • Avantis® International Equity ETF
    Avantis® International Small Cap Value ETF
    High correlation

The correlation data highlights that the international equity and international small cap value ETFs have moved very similarly in the past. Correlation measures how often assets move together: a score near 1 means they usually go up and down in tandem. Highly correlated holdings can limit diversification benefits, because when one falls sharply, the other often does too. In practice, though, the rest of the portfolio is spread across different regions and sizes, so overall diversification remains strong. It’s just worth knowing that your developed international sleeve is more of a “cluster” than completely independent pieces, especially during global shocks.

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 portfolio sits on or very near the efficient frontier, meaning that for its volatility level, the expected return is hard to improve using these same ETFs. The Sharpe ratio of 0.6, which measures return per unit of risk above cash, is a bit below the optimal mix’s 0.8 but still solid. The optimal and minimum-variance portfolios only tweak weights slightly to shift the balance. This suggests the current allocation is already well tuned and efficient, especially for a growth investor profile. Any improvements would be incremental, not a fundamental overhaul of the existing building blocks.

Dividends Info

  • Avantis® International Equity ETF 2.50%
  • Avantis® International Small Cap Value ETF 2.80%
  • Avantis® Emerging Markets Equity ETF 2.20%
  • Avantis® U.S. Equity ETF 1.00%
  • Avantis® U.S. Small Cap Value ETF 1.30%
  • Weighted yield (per year) 1.82%

The overall dividend yield of about 1.82% is modest but not trivial, with higher yields coming from international and value-tilted funds and lower yields from broad U.S. equities. Dividend yield is the annual cash payout as a percentage of price and can act like a small “paycheck” while you hold the investment. In a growth-focused, equity-only portfolio, most of the expected return will still come from price appreciation rather than income. For someone reinvesting dividends, these payouts quietly boost compounding over time. For someone eventually drawing cash, the yield offers a starting point but likely wouldn’t cover significant living expenses on its own.

Ongoing product costs Info

  • Avantis® International Equity ETF 0.23%
  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Equity ETF 0.33%
  • Avantis® U.S. Equity ETF 0.15%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Weighted costs total (per year) 0.25%

The weighted total expense ratio (TER) of around 0.25% per year is impressively low for an actively tilted, factor-based global equity portfolio. TER is the annual fee charged by funds, taken out quietly in the background. Lower costs mean more of the portfolio’s returns stay in your pocket, and the savings compound year after year. While there are ultra-cheap plain index options, this fee level is very reasonable given the more advanced factor and size tilts. From a cost perspective, the structure is doing exactly what it should: providing a sophisticated strategy without letting fees become a drag on long-term performance.

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