Three fund global equity portfolio with strong US tilt and small cap value satellite exposure
Report created on Apr 21, 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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VO Vanguard S&P 500 ETF
VOO - US9229083632 55.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00%
This portfolio is a straightforward three‑fund global equity mix. Around half sits in a broad US large‑cap index, about a third in non‑US stocks, and the remaining slice in a focused US small‑cap value strategy. Structurally, that means one core building block for the US, one for international markets, and one higher‑octane “satellite” tilt. A setup like this is easy to understand and maintain, which helps many investors stay consistent through market ups and downs. The mix creates a balance between broad market exposure and a deliberate tilt toward smaller, cheaper companies. That tilt adds potential for different performance patterns compared with a pure market index, especially over longer stretches.
Growth
Historically, a hypothetical $1,000 invested in this mix in late 2019 grew to about $2,402, a compound annual growth rate (CAGR) of 14.35%. CAGR is like your average speed on a road trip, smoothing out all the stops and traffic. Over this period, the portfolio slightly trailed the broad US market but modestly beat a global market benchmark. Its largest drawdown was about –36% during early 2020, a bit deeper than the benchmarks. The portfolio recovered from that drop in roughly five months, which is relatively quick. Only 20 days made up 90% of returns, showing that missing just a handful of strong days would have significantly changed the experience.
Projection
The Monte Carlo projection uses past returns and volatility to simulate 1,000 different 15‑year futures for this same mix. Think of it as rolling the dice many times to see a range of plausible outcomes, not a single forecast. The median path turns $1,000 into about $2,769, while the middle half of scenarios lands between roughly $1,818 and $4,126. Extreme outcomes range from just above capital preservation to several multiples of the starting value. About three‑quarters of simulations end with a positive return. These numbers illustrate how even an all‑stock portfolio can have a wide range of results, and that past patterns don’t guarantee what actually happens next.
Asset classes
- Stocks 100%
All of this portfolio is invested in stocks, with no bonds or cash included in the asset‑class breakdown. That’s a classic growth‑oriented structure: it maximizes exposure to the long‑term upside of businesses but also fully participates in equity market downturns. In comparison, many broad market “balanced” setups combine stocks with bonds, which tend to move differently in some environments. Here, any risk dampening must come from diversification within equities rather than across asset classes. This approach keeps things simple and transparent, but it also means the portfolio’s value will likely swing more sharply, both up and down, than a mix that also uses defensive assets.
Sectors
- Technology 24%
- Financials 17%
- Industrials 12%
- Consumer Discretionary 11%
- Health Care 8%
- Telecommunications 8%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is fairly broad, with technology the largest slice at about a quarter of the portfolio, followed by meaningful weights in financials and industrials. This pattern is broadly similar to many global indices where tech‑oriented and service‑based companies dominate market value. Smaller allocations in utilities, real estate, and basic materials mean less exposure to typically slower‑growing, more defensive areas. A tech‑leaning mix like this often benefits strongly when innovation and growth stocks are in favor but can feel more volatility if interest rates rise or investors rotate toward more traditional businesses. The presence of several other sizable sectors helps maintain balance despite the tech lead.
Regions
- North America 72%
- Europe Developed 11%
- Japan 5%
- Asia Developed 4%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, roughly 72% of the portfolio is in North America, with the rest spread across developed Europe, Japan, other parts of Asia, and smaller slices in emerging regions. This gives clear international diversification while still keeping a strong US anchor. Compared with a purely global market index, the US weighting here is on the high side, which has been beneficial in recent years as US stocks outperformed many regions. The non‑US exposure still adds currency diversification and access to companies driven by different local economies. That mix can smooth out some region‑specific shocks, though major global events will still be felt across the whole portfolio.
Market capitalization
- Mega-cap 39%
- Large-cap 28%
- Mid-cap 15%
- Small-cap 9%
- Micro-cap 7%
By market capitalization, the portfolio tilts toward larger companies, with mega‑ and large‑caps together making up about two‑thirds of the allocation. That reflects the broad index funds at the core. At the same time, there’s a meaningful allocation to mid‑, small‑, and even micro‑cap stocks, thanks largely to the dedicated small‑cap value ETF. Large companies tend to be more established and often less volatile, while smaller ones can be more sensitive to economic cycles but offer different growth and value dynamics. This blend creates a spectrum of company sizes, which can help diversify how the portfolio responds to changes in interest rates, growth expectations, and business conditions.
True holdings
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NV NVIDIA Corporation 4.17%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 3.66%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.71%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.00%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.64%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.44%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.32%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.23%
Part of fund(s):- Vanguard S&P 500 ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.04%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
TS Tesla Inc 1.03%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Top 10 total 20.24%
Looking through the top holdings of the ETFs, several big US technology and platform companies show up prominently, such as NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla. Each of these appears via the index funds, not as direct single‑stock positions. None individually dominates the total portfolio, but together they form a noticeable cluster in the top look‑through exposures. This sort of overlap is common when multiple broad funds hold similar large companies. It does mean that events affecting these big names can influence the portfolio more than the fund list alone might suggest. Because only ETF top‑10 holdings are captured, actual overlap is likely somewhat higher beneath the surface.
Factors
Factor exposure shows a notable tilt toward value, while size, momentum, quality, yield, and low volatility all sit around neutral levels. Factors are like underlying “personality traits” of the portfolio, such as favoring cheaper stocks (value) or stable ones (low volatility). A high value score suggests the mix leans more than the market toward companies trading at lower prices relative to fundamentals. Historically, value has gone through long cycles of both underperformance and outperformance. With other factors roughly market‑like, the portfolio’s distinctive characteristic is this value tilt, especially via the small‑cap value ETF, which may lead to return patterns that diverge at times from broad growth‑heavy indices.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 55.00% 54.7% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 26.4% -
Avantis® U.S. Small Cap Value ETF
Weight: 15.00% 18.9%
Risk contribution shows how much each fund drives the portfolio’s overall ups and downs, which can differ from its weight. The S&P 500 ETF is 55% of the allocation and contributes about 55% of the risk, so its influence is almost proportional. The international fund is 30% of the weight but only about 26% of risk, reflecting somewhat dampened volatility or diversification benefits. The small‑cap value ETF stands out: at 15% weight, it contributes nearly 19% of total risk, with a risk‑to‑weight ratio above 1. This indicates that, despite being the smallest slice, it punches above its weight in how much it moves the portfolio.
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‑vs‑return chart places this portfolio very close to the efficient frontier, which represents the best trade‑offs possible using the existing holdings in different weights. The Sharpe ratio, a measure of return per unit of risk, is 0.58 for the current mix, compared with 0.78 for the mathematically “optimal” blend and 0.65 for the minimum‑volatility blend. Being on or near the frontier means the overall allocation is already using these three funds in an efficient way for its risk level. Any potential improvements from pure reweighting would likely be incremental rather than dramatic, confirming that the current structure is generally well‑aligned.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.30%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.64%
The portfolio’s overall dividend yield is about 1.64%, coming from relatively low yields in the US funds and a higher yield in the international fund. Dividends are the cash payments companies distribute from profits, and they form one part of total return alongside price changes. In this portfolio, most of the historical growth has likely come from capital gains rather than income. A modest yield like this is common for broad equity indices today, especially those tilted toward growth and large technology names. Reinvesting dividends can quietly add to compounding over time, even if the income stream itself is not particularly high on its own.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.07%
Costs are a clear strength here. The weighted average total expense ratio (TER) is about 0.07%, thanks to very low‑fee index funds and a moderately priced small‑cap value ETF. TER is the annual fee charged by funds as a percentage of assets; it’s taken out behind the scenes but compounds over the years. This level is significantly below many actively managed or more complex strategies. Lower ongoing costs mean more of the portfolio’s gross returns stay in your pocket, which can add up meaningfully over decades. From a structural standpoint, the fee profile is impressively lean and fully consistent with a cost‑conscious indexing and factor‑tilt approach.
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