Globally diversified stock portfolio with strong value tilt and room for efficiency improvements
Report created on Jun 1, 2024Risk profile
5/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 42.00% -
VE Vanguard FTSE Developed Markets Index Fund ETF Shares
VEA - US9219438580 24.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 14.00% -
VW Vanguard FTSE Emerging Markets Index Fund ETF Shares
VWO - US9220428588 12.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 8.00%
The structure is clean and intentional: 100% in stock ETFs, with a core of broad large‑cap funds and meaningful tilts to small‑cap value in both U.S. and international markets. The biggest slice sits in a broad U.S. index, followed by developed international and then emerging markets, while the two Avantis funds add targeted factor exposure. This kind of “core plus tilt” design is common among long‑term growth investors who want simple building blocks but a bit of extra return potential. The takeaway is that the building blocks are solid and diversified, while the dedicated small‑cap value allocation introduces extra risk and return potential beyond a plain market‑cap index mix.
Growth
Over the period from late 2019 to early 2026, $1,000 grew to about $2,146, a compound annual growth rate (CAGR) of 12.5%. CAGR is like an average yearly “cruising speed” for your money over the whole journey. This slightly lagged the U.S. market but beat the global market, which is a respectable outcome given the added small‑cap and value exposure. The maximum drawdown of about -36% was a bit steeper than the broad markets’ roughly -34%, reflecting that extra risk. The big lesson: you were paid with global outperformance versus “the world,” but tilting away from pure U.S. growth meant giving up some relative upside vs. the hot U.S. market.
Asset classes
- Stocks 100%
All capital is allocated to stocks, with no bonds, cash, or alternatives. That’s a clear, growth‑first stance and fits a high‑risk, long‑horizon mentality. Equities historically have delivered higher long‑term returns than bonds, but with sharper drawdowns and more emotional stress along the way. Compared with a typical “balanced” benchmark holding 40–60% in bonds, this setup will swing more both up and down. The upside is maximum exposure to global equity growth; the trade‑off is that there’s no built‑in cushion from defensive assets. For anyone with a shorter horizon or lower risk tolerance, even a modest bond or cash slice would noticeably smooth the ride.
Sectors
- Technology 21%
- Financials 18%
- Industrials 13%
- Consumer Discretionary 11%
- Health Care 7%
- Telecommunications 7%
- Energy 7%
- Basic Materials 6%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
Sector exposure is fairly broad, with technology the largest piece but not overwhelmingly so, and strong representation in financials, industrials, and consumer‑related sectors. Compared to common global benchmarks, tech is sizable yet not extreme, and defensive sectors like utilities and staples are smaller as is typical in growth‑oriented portfolios. This spread is helpful because different sectors lead at different times—financials might outperform when rates rise, while tech can shine during innovation booms but suffer when rates spike. The sector composition aligns well with global norms, which is a strong sign of diversification; the portfolio isn’t overly bet on a single theme or niche industry.
Regions
- North America 59%
- Europe Developed 15%
- Japan 8%
- Asia Emerging 6%
- Asia Developed 6%
- Australasia 2%
- Africa/Middle East 2%
- Latin America 1%
Geographically, there’s a clear home‑bias toward North America at 59%, but with substantial exposure to developed Europe, Japan, and a meaningful slice of emerging markets. Relative to a typical global equity benchmark, North America is somewhat overweight, while some smaller regions are underrepresented. This structure has historically benefited from U.S. market strength, but it does leave outcomes more tied to one economic and currency region. The good news is that holdings across Europe, Asia, and emerging economies still create a real global footprint. Over the long run, maintaining a broad regional mix can help cushion local shocks, like policy changes or recessions hitting one region harder than others.
Market capitalization
- Mega-cap 36%
- Large-cap 25%
- Mid-cap 18%
- Small-cap 12%
- Micro-cap 7%
The market cap breakdown shows a healthy mix: a strong foundation in mega‑ and large‑caps, plus notable allocations to mid‑, small‑, and even micro‑caps. That’s what you’d expect from blending broad indexes with dedicated small‑cap value funds. Large companies tend to be more stable and widely researched, while smaller companies can be more volatile but offer higher growth or value potential. This mix supports both stability and upside. Compared with a pure market‑cap index, there’s a slightly heavier lean into smaller companies, which can boost long‑term expected returns but also deepen drawdowns. It’s a classic “accept more bumps for more potential gain” trade‑off.
True holdings
-
NV NVIDIA Corporation 3.07%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 2.79%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.08%
Part of fund(s):- Vanguard S&P 500 ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.52%
Part of fund(s):- Vanguard FTSE Emerging Markets Index Fund ETF Shares
-
AM Amazon.com Inc 1.46%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.29%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.08%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.03%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.01%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 0.81%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Top 10 total 16.14%
Looking through the ETFs, the largest underlying exposures are the familiar mega‑cap names like NVIDIA, Apple, Microsoft, and other big tech‑adjacent firms, mostly via the S&P 500 and developed ex‑US funds. None of these appear as individual stocks; their presence comes from overlapping index holdings. Because only top‑10 ETF positions are visible, actual overlap is higher under the surface. This overlap means your performance is more tied to a handful of global giants than the fund list alone suggests. The positive side is alignment with dominant global businesses; the trade‑off is that short‑term results will still be influenced heavily by a small group of large companies.
Factors
Factor exposure stands out most clearly in value, where the score is high. Factor exposure describes how much the portfolio leans into traits like value or momentum that research links to long‑term returns. A strong value tilt means more weight in stocks that look cheaper relative to fundamentals, often including out‑of‑favor or cyclical names. The other factors (size, momentum, quality, yield, low volatility) sit near neutral, so there aren’t strong additional tilts beyond that value focus. Historically, value has gone through long hot and cold stretches; when it’s in favor, performance can shine, but when the market prefers expensive growth names, patience is required.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 42.00% 41.8% -
Vanguard FTSE Developed Markets Index Fund ETF Shares
Weight: 24.00% 22.4% -
Avantis® U.S. Small Cap Value ETF
Weight: 14.00% 18.0% -
Vanguard FTSE Emerging Markets Index Fund ETF Shares
Weight: 12.00% 10.6% -
Avantis® International Small Cap Value ETF
Weight: 8.00% 7.3%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from its simple weight. Here, the S&P 500 fund and developed markets fund contribute risk roughly in line with their sizes, which is very balanced. The Avantis U.S. Small Cap Value ETF is interesting: at 14% weight, it contributes about 18% of the risk, meaning each dollar there adds more volatility than a dollar in the broad funds. That’s normal for small‑cap value and consistent with its return potential. The key takeaway: most risk is sensibly tied to the core broad funds, with a deliberate “risk kicker” from the small‑cap value sleeve.
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 allocation sits below the efficient frontier. The efficient frontier represents the best possible return for each risk level using only the existing holdings but in different weightings. Your current Sharpe ratio (return per unit of risk) is 0.61, while the optimal mix of the same funds reaches 0.76 with slightly higher return and slightly lower risk. That means there’s room to improve by reweighting, not by adding new products. Even the minimum‑variance mix shows a better Sharpe than the current setup. The takeaway: a small tweak in weights could deliver a smoother ride or higher return at roughly the same risk.
Dividends
- Avantis® International Small Cap Value ETF 3.10%
- Avantis® U.S. Small Cap Value ETF 1.40%
- Vanguard FTSE Developed Markets Index Fund ETF Shares 3.00%
- Vanguard S&P 500 ETF 1.20%
- Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.99%
The overall dividend yield is around 1.99%, with higher income from international developed and international small‑cap value, and lower yields from U.S. large‑cap growthier names. Dividend yield is the cash paid out each year as a percentage of current price, and it can matter for investors who like steady income or who reinvest dividends to compound faster. For a growth‑oriented equity mix, a roughly 2% yield is quite reasonable and aligns well with global norms. The main performance driver here is still capital growth, not income, but the dividend stream adds a useful layer of return, especially when automatically reinvested over decades.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
- Vanguard S&P 500 ETF 0.03%
- Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
- Weighted costs total (per year) 0.10%
Costs are impressively low, with a total expense ratio (TER) around 0.10%. TER is the annual fee each fund charges, expressed as a percentage of your investment. Saving a few tenths of a percent per year might sound minor, but over 20–30 years it can add up to a substantial difference in ending wealth. The bulk of the allocation is in ultra‑low‑cost index ETFs, while the more specialized small‑cap value funds cost a bit more but remain reasonable for their niche. This cost structure is a real strength: it keeps more of the portfolio’s returns in your pocket rather than flowing out in fees year after year.
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