Strong factor tilted growth portfolio focused on small value stocks with broad global diversification
Report created on Mar 27, 2026Risk 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
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AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 63.84% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 36.16%
The structure is refreshingly simple: two equity ETFs, one focused on international small-cap value and one broad total US market. Most of the weight sits in the international small-cap value fund, with the remainder in a diversified US core holding. This straightforward mix balances a very intentional “tilt” toward smaller, cheaper companies with a broad anchor across an entire major market. Keeping the lineup tight like this makes it easier to understand what is driving results and to maintain discipline. The main takeaway is that this is not a plain-vanilla market portfolio; it is a deliberate, high-conviction equity strategy using only two building blocks.
Growth
Historically, $1,000 grew to about $2,354 over the period, with a compound annual growth rate (CAGR) of 15.05%. CAGR is the “smooth” average yearly return, like your average speed on a long road trip. This comfortably beat both the US market and the global market, which is a strong outcome. The flip side is a max drawdown of about -39%, meaning at one point the portfolio was down that much from a peak. That level of drop is normal for a growth-oriented, all-stock mix. The results show that the higher risk profile has so far been rewarded, but future markets may not repeat this pattern.
Asset classes
- Stocks 100%
All assets are stocks, with 100% in equities and no allocation to bonds, cash, or alternatives. This pure-equity stance fits a higher-risk, growth-focused approach and maximizes exposure to long-term stock market returns. The trade-off is sharper swings in account value, especially during market downturns, since there is no built-in “shock absorber” like high-quality bonds. Compared with more balanced portfolios that blend stocks and bonds, this setup aims squarely for higher expected growth rather than capital stability. For investors who can ride out big drawdowns and keep adding regularly, this can work well; for those needing shorter-term stability, some non-equity exposure would usually be more comfortable.
Sectors
- Industrials 19%
- Technology 14%
- Basic Materials 14%
- Financials 14%
- Consumer Discretionary 13%
- Energy 8%
- Health Care 5%
- Telecommunications 5%
- Consumer Staples 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is nicely spread, with meaningful allocations across industrials, technology, basic materials, financials, consumer areas, energy, and more defensive segments. This is more balanced than a typical market that often leans heavily toward technology and a few other dominant sectors. The relatively higher share in economically sensitive sectors means returns will likely be tied to global growth cycles, which can be rewarding but bumpy. Tech exposure is solid but not overwhelming, which helps reduce dependence on a narrow group of high-flying names. Overall, the sector mix looks well-diversified and in line with thoughtful best practices, giving you exposure to many parts of the global economy instead of betting heavily on a single theme.
Regions
- North America 44%
- Europe Developed 23%
- Japan 21%
- Australasia 6%
- Africa/Middle East 4%
- Asia Developed 2%
Geographically, the allocation is genuinely global, with a significant portion in North America and a substantial share in developed regions like Europe and Japan, plus smaller slices in other areas. This is more internationally tilted than many US-centric portfolios and aligns well with the idea of spreading risk across multiple economies and currencies. Having a sizable position in developed markets outside North America introduces different growth drivers and policy environments, which can smooth long-term outcomes when regional markets move out of sync. This global stance is a real strength and shows up as a conscious design choice rather than an accidental drift, supporting resilience if any one region underperforms for a decade or more.
Market capitalization
- Mid-cap 43%
- Small-cap 26%
- Mega-cap 15%
- Large-cap 12%
- Micro-cap 3%
The market cap mix leans heavily into mid- and small-cap companies, with less in mega-caps than a typical broad index. Smaller and mid-sized firms tend to be more volatile but historically have offered higher expected returns over long horizons. The still-present exposure to mega and large caps provides ballast and ensures participation in major global leaders, while micro-caps remain a small, controlled slice. This blend can create a bumpier ride than a large-cap-dominated index but also adds meaningful diversification by including thousands of lesser-known businesses. The tilt toward mid and small caps pairs well with the value focus, stacking two distinct drivers of potential long-term outperformance in a deliberate way.
True holdings
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NV NVIDIA Corporation 2.23%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 2.13%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 1.59%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 1.10%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.99%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 0.82%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
57 Mitsui Mining and Smelting Co. 0.78%
Part of fund(s):- Avantis® International Small Cap Value ETF
-
GO Alphabet Inc Class C 0.78%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.77%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.62%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 11.83%
Looking through the ETFs’ top holdings, exposure to big US names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet comes mainly via the broad US fund. Their individual weights remain modest, each well under 3%, which avoids extreme single-stock dependence. You also have a distinctive position in less familiar international small companies, like Mitsui Mining and Smelting, that won’t appear in typical large-cap indexes. Because only top-10 holdings are captured, actual overlap between funds is likely lower than it looks, which is positive for diversification. Overall, there is some hidden concentration in mega-cap growth leaders, but at a very manageable level given the strong tilt toward smaller international value names.
Factors
Factor exposure is where this portfolio really stands out. Factor exposure means how much the holdings lean toward traits like value, size, or momentum that research links to long-term returns. Here, value and size exposures are both very strong, and momentum is also clearly positive. That means the holdings tend to be smaller, cheaper stocks, often with improving price trends. Quality, yield, and low volatility are more moderate, so this is not a defensive or income-focused setup. In environments that reward value and small caps, this positioning can shine; in growth-led or mega-cap-driven markets, it may lag. The strong, intentional tilts are a defining feature and reflect a clear underlying philosophy.
Risk contribution
-
Avantis® International Small Cap Value ETF
Weight: 63.84% 64.1% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 36.16% 35.9%
Risk contribution shows how much each ETF adds to total portfolio ups and downs, which can differ from its weight. Here, risk shares almost perfectly match the weights: the international small-cap value fund contributes roughly 64% of risk, and the total market ETF about 36%. That means there is no hidden “risk hog” unexpectedly dominating volatility. This symmetry is a positive sign that the portfolio is well-proportioned given only two holdings. If future adjustments were made, shifting weights would directly and predictably change the risk split, making it fairly easy to dial risk up or down by altering the balance between the more specialized and the broad market fund.
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 the portfolio essentially sitting on the efficient frontier, with almost identical risk and return numbers across the “current,” “optimal,” and “minimum variance” points. The efficient frontier is the curve that shows the best possible return for each risk level using the existing holdings in different weights. Sharpe ratios, which measure return per unit of risk, are very close, suggesting there is no major inefficiency to fix with reweighting. A same-risk optimized version offers only a tiny bump in return for a similar risk. This indicates the allocation between the two ETFs is already highly efficient given the chosen building blocks and the growth-oriented objective.
Dividends
- Avantis® International Small Cap Value ETF 3.10%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Weighted yield (per year) 2.41%
The blended dividend yield of about 2.41% is a healthy level for a growth-focused, factor-tilted equity portfolio. Dividends are the cash payments companies distribute to shareholders, and over long horizons they make up a meaningful share of total returns, especially when reinvested. The international small-cap value fund’s higher yield boosts the overall income profile, while the total US market ETF’s lower yield reflects its exposure to faster-growing companies that reinvest more profits. This mix provides a modest but steady income stream without sacrificing growth potential. For investors who reinvest dividends automatically, this yield quietly compounds in the background and can noticeably increase the ending portfolio value over decades.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.24%
The total expense ratio (TER) of about 0.24% is impressively low for a portfolio with a strong factor tilt and global reach. TER is the annual fee charged by the funds, similar to a small management cost taken from your investment each year. Keeping costs low is one of the few levers completely under investor control, and even tenths of a percent add up significantly over long periods. Compared with many actively managed or complex strategies, this cost level supports better net performance while still delivering targeted exposures. This is a clear strength; it means more of the portfolio’s returns stay in your pocket rather than being lost to fees over time.
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