Single global equity ETF with strong diversification by size and modest tilt toward low volatility stocks
Report created on May 31, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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DF Dimensional World Equity ETF
DFAW - US25434V6175 100.00%
This portfolio is as simple as it gets: one globally diversified equity ETF at 100% weight. That means every bit of performance, income, and risk comes from this single fund. Structurally, this is a “wrapper of many stocks,” so underlying diversification happens inside the ETF rather than across multiple funds. This kind of simplicity is easy to follow and avoids issues like rebalancing between several holdings. The trade-off is that any design choice of this ETF—like its regional or style tilts—drives the entire portfolio’s behavior. As a result, understanding how this one fund is built goes a long way toward understanding the overall portfolio.
Growth
Over the period shown, $1,000 grew to about $1,755, giving a compound annual growth rate (CAGR) of 23.56%. CAGR is like your average speed on a road trip: it smooths out all the bumps into one yearly number. This slightly lagged both the US market and global market benchmarks, which grew faster, but drawdowns were similar or a bit smaller than the US market. The worst drop was about -17%, with recovery in roughly two months after the bottom. That pattern shows strong recent growth but also clear equity-level volatility. As always, this is a short, hot period, and past performance doesn’t guarantee similar future results.
Projection
The Monte Carlo simulation projects many possible 15‑year paths using historical data as a guide, then summarizes them. Here, the median outcome turns $1,000 into about $2,850, implying an annualized return around 8.36% across all simulations. Monte Carlo is like running thousands of alternate histories to see a range rather than a single guess. The “likely range” runs from about $1,815 to $4,378, with a 74% chance of ending positive. These numbers are not promises; they assume markets behave somewhat like the past. Big structural changes, crises, or unusually strong booms could push actual results outside these bands.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, so there is no built‑in buffer from bonds or cash. An all‑equity mix typically offers higher long‑run growth potential but also deeper and more frequent swings in value. Compared with a blend that includes fixed income, this structure leans fully into economic and earnings cycles. Against broad global equity benchmarks, the asset class mix is very similar—pure equity exposure—so the portfolio behaves much like a world stock market investment rather than a balanced multi‑asset one. This makes the return pattern more straightforward: the main driver is how global companies and equity markets perform over time.
Sectors
- Technology 24%
- Financials 16%
- Industrials 14%
- Consumer Discretionary 10%
- Health Care 8%
- Telecommunications 7%
- Energy 6%
- Basic Materials 5%
- Consumer Staples 5%
- Real Estate 2%
- Utilities 2%
Sector exposure is broadly diversified, with technology at 24% and financials and industrials together making up another 30%. No single sector dominates, and even the smallest areas like real estate and utilities still have some representation. Relative to many global benchmarks, the tilt toward technology is noticeable but not extreme, and other cyclical and defensive sectors appear reasonably balanced. In practice, this means the portfolio can benefit when innovative and growth‑oriented businesses do well, while still having meaningful exposure to more traditional parts of the economy. Tech‑heavy allocations can swing more when interest rates or growth expectations change, but here that risk is softened by cross‑sector spread.
Regions
- North America 73%
- Europe Developed 11%
- Japan 5%
- Asia Developed 5%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 73% is in North America, with the rest spread across Europe, Japan, other developed Asia, and emerging regions. This is a clear tilt toward North America compared with some global indices, but it still includes a meaningful slice of the rest of the world. Concentration in one major region can amplify the impact of that region’s economy, currency, and policy decisions on the portfolio. At the same time, the exposure to Europe, Japan, and emerging markets introduces other growth drivers and different cycles. Overall, the regional mix is anchored in a large, developed market while still capturing a broad global footprint.
Market capitalization
- Mega-cap 31%
- Mid-cap 28%
- Large-cap 25%
- Small-cap 12%
- Micro-cap 4%
The market cap breakdown is nicely spread: about 31% in mega‑caps, 25% in large‑caps, 28% in mid‑caps, 12% in small‑caps, and a small 4% in micro‑caps. That’s broader than many standard world indices, which often emphasize the largest companies. Large and mega‑caps tend to be more established and often more stable, while mid and small‑caps can offer higher growth potential but bumpier rides. This blend means the portfolio doesn’t rely solely on giant global names, yet still leans on them for stability and liquidity. It’s a good example of size diversification, which can help performance come from more than just a handful of global giants.
True holdings
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NV NVIDIA Corporation 4.33%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
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AA Apple Inc 3.55%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
-
MS Microsoft Corporation 2.63%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
-
AM Amazon.com Inc 2.03%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
-
GO Alphabet Inc Class A 1.47%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
-
ME Meta Platforms Inc. 1.25%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
-
GO Alphabet Inc Class C 1.17%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
-
AV Broadcom Inc 0.77%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
-
JP JPMorgan Chase & Co 0.72%
Part of fund(s):- Dimensional U.S. Core Equity 2 ETF
- Dimensional US Core Equity 1 ETF
- Dimensional World Equity ETF
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23 Taiwan Semiconductor Manufacturing Co. Ltd. 0.65%
Part of fund(s):- Dimensional ETF Trust - Dimensional Emerging Markets Core Equity 2 ETF
- Dimensional World Equity ETF
- Top 10 total 18.59%
Looking through the ETF’s top holdings, the biggest single names are NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. Together, the top ten add up to only around 18% of the portfolio, which is relatively modest concentration at the company level for a global equity fund. Those holdings are familiar, often growth‑oriented businesses that have been major drivers of recent market returns. Importantly, there’s no double‑counting from multiple funds, so overlap is straightforward: each company’s weight is just its presence inside this ETF. While large, these positions are far from dominating the portfolio, leaving plenty of room for thousands of smaller holdings underneath.
Factors
Factor exposure shows notable tilts toward size and low volatility. “Size” here means increased weight in smaller companies relative to a pure large‑cap index, and that can add diversification since smaller firms often move differently from giants. The high low‑volatility score indicates a preference for stocks that historically have smaller price swings. Factor exposure is like checking which “traits” the portfolio favors. A low‑volatility tilt often softens drawdowns in rough markets but can lag when speculative, high‑beta stocks surge. The other factors—value, momentum, quality, and yield—are close to neutral, suggesting a generally balanced approach outside those two clear tilts.
Risk contribution
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Dimensional World Equity ETF
Weight: 100.00% 100.0%
Because there’s only one holding, this ETF contributes 100% of the portfolio’s risk, matching its 100% weight. Risk contribution measures how much each piece drives overall ups and downs; here, there’s no diversification across different funds to spread that out. All diversification happens inside the ETF, not between separate positions. That makes the fund’s own risk profile—its sector mix, factor tilts, and regional focus—especially important. On the positive side, this avoids hidden hot spots from mixing multiple overlapping funds. On the other hand, if this ETF’s specific strategy falls out of favor relative to other approaches, the entire portfolio reflects that.
Dividends
- Dimensional World Equity ETF 1.30%
- Weighted yield (per year) 1.30%
The ETF’s dividend yield is about 1.30%, which is a modest income stream typical of a broad global equity fund. Dividend yield is the annual cash payout as a percentage of the current price, separate from price gains or losses. In practice, this means most of the portfolio’s total return is likely to come from capital growth rather than income. For investors tracking total performance, dividends still matter because they can be reinvested to buy more shares, compounding over time. The yield level also reflects the portfolio’s mix of growth‑oriented and more mature, income‑paying companies across different regions.
Ongoing product costs
- Dimensional World Equity ETF 0.25%
- Weighted costs total (per year) 0.25%
The total expense ratio (TER) of 0.25% is relatively low for an actively designed global equity ETF and supports long‑term compounding. TER is the yearly fee charged by the fund, expressed as a percentage of assets, and it quietly reduces returns in the background. Even small differences in cost can add up over decades, so keeping this number moderate is helpful. Here, costs are well‑controlled while still providing a diversified, factor‑aware global strategy. That alignment between low fees and broad exposure is a structural strength of the portfolio and gives more room for underlying investments to drive outcomes rather than expenses.
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