Strong factor tilted global equity mix with balanced size exposure and efficient low cost structure

Report created on Mar 27, 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 structure is a pure stock portfolio built from five broad and factor-tilted ETFs. Roughly a third sits in a total US market fund, just over a fifth in total international stocks, and the rest in targeted tilts toward small-cap value and US quality. Everything is long-only and fully invested, with no bonds, cash, or alternatives. That makes this a focused growth setup rather than a capital-preservation one. A design like this leans on the long-term equity premium and factor tilts for return, while accepting sharper swings along the way. The main takeaway is that risk is driven almost entirely by stock markets, so the ride can be bumpy but potentially rewarding over long horizons.

Growth Info

From late 2019 to early 2026, $1,000 grew to about $2,110, a compound annual growth rate (CAGR) of 13.5%. CAGR is like your average speed on a road trip, smoothing out bumps to show steady progress per year. Over this stretch, the portfolio slightly lagged the US market by 0.88% per year but beat the global market by 1.58% annually, which is a solid outcome relative to worldwide equities. The max drawdown of about -37% was deeper than both benchmarks, showing higher downside when markets fell. Just 17 days drove 90% of returns, underscoring that missing a few strong days can heavily impact results, and staying invested can be crucial.

Asset classes Info

  • Stocks
    100%

Asset allocation is straightforward: 100% stocks. There is no built-in ballast from bonds, cash, or other defensive assets. That simplicity is actually a strength for clarity—returns are driven almost entirely by corporate earnings growth and stock market valuations. Historically, stocks have offered higher long-run returns than bonds but with larger and more frequent drawdowns. This setup is well-suited to growth goals and long horizons where interim volatility is acceptable. The key implication is that drawdowns like the recent -37% are part of the package; anyone using a structure like this usually pairs it with a strong cash buffer or other conservative assets elsewhere in their overall finances.

Sectors Info

  • Technology
    20%
  • Financials
    16%
  • Industrials
    16%
  • Consumer Discretionary
    12%
  • Health Care
    9%
  • Basic Materials
    7%
  • Telecommunications
    5%
  • Consumer Staples
    5%
  • Energy
    5%
  • Real Estate
    3%
  • Utilities
    3%

Sector exposure is reasonably balanced, with technology around 20% and financials and industrials each at 16%. Consumer areas, health care, and basic materials round things out, with smaller slices in telecom, staples, energy, real estate, and utilities. This mix looks broadly similar to many global equity benchmarks, which is a strong indicator of solid diversification across the economic landscape. A tilt toward tech and cyclicals can mean stronger performance during growth and innovation cycles, but potentially sharper pullbacks when interest rates rise or the economy slows. The upside is that no single sector dominates excessively, helping avoid over-reliance on one industry narrative.

Regions Info

  • North America
    66%
  • Europe Developed
    14%
  • Japan
    8%
  • Asia Developed
    4%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, about two-thirds sits in North America, with the rest spread across Europe, Japan, developed Asia, emerging Asia, Australasia, and smaller slices in Africa/Middle East and Latin America. This pattern is close to free-float global equity benchmarks, which are also heavily tilted toward North America. Such alignment is beneficial because it reflects where global market value actually is, rather than making a big regional bet. The smaller but meaningful exposure to non-US regions offers diversification benefits when different economies move on their own cycles. The main implication: this is a globally aware equity allocation, with a natural home bias but not an extreme one.

Market capitalization Info

  • Mid-cap
    27%
  • Mega-cap
    25%
  • Large-cap
    21%
  • Small-cap
    20%
  • Micro-cap
    6%

The size mix blends mega, large, mid, small, and even micro caps: roughly a quarter in mega caps, around a fifth in large caps, and almost half across mid, small, and micro. That’s a notable tilt toward smaller companies relative to many standard benchmarks, which tend to be dominated by the biggest firms. Smaller stocks historically have offered higher expected returns over very long horizons, but with more volatility and larger drawdowns. The inclusion of micro caps adds an extra layer of risk and potential upside. This construction supports growth and factor exposure, while still retaining meaningful ballast from established large and mega-cap names.

True holdings Info

  • Apple Inc
    2.27%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
    • Vanguard U.S. Quality Factor
  • NVIDIA Corporation
    2.16%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Microsoft Corporation
    1.54%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Amazon.com Inc
    1.07%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class A
    0.96%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Broadcom Inc
    0.80%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class C
    0.76%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    0.75%
    Part of fund(s):
    • Vanguard Total International Stock Index Fund ETF Shares
  • Meta Platforms Inc.
    0.75%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Tesla Inc
    0.60%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Top 10 total 11.66%

Looking through ETF top holdings, exposure is naturally tilted to the biggest global companies: Apple, NVIDIA, Microsoft, Amazon, Alphabet, and others. These appear via multiple ETFs, so even without owning them directly, their combined weights add up to meaningful stakes. Hidden concentration like this is common in index-based portfolios because major benchmarks hold the same giants. While overlap data is incomplete beyond top-10 positions, it still shows that a slice of performance and risk will be tied to large technology and communication names. A key takeaway is to be aware that “diversified across funds” can still mean concentrated in a relatively small group of mega-cap leaders.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 30%
Size
Exposure to smaller companies
Very high
Data availability: 78%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Very high
Data availability: 13%
Yield
Preference for dividend-paying stocks
No data
Data availability: 0%
Low Volatility
Preference for stable, lower-risk stocks
Neutral
Data availability: 100%

Factor exposure is a standout feature. Value, size, and quality all show strong tilts (around 85% exposure each), while momentum and low volatility sit near moderate levels. Factors are like underlying “traits” of stocks—cheap vs. expensive (value), small vs. big (size), strong vs. weak balance sheets (quality). Academic research suggests these traits have driven differences in returns over decades. A portfolio tilted toward smaller, cheaper, and higher-quality companies may outperform in some environments but can lag when mega-cap growth or speculative themes dominate. The balanced presence of quality alongside value and size is a positive; it helps avoid drifting too far into low-quality “deep value” territory.

Risk contribution Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Weight: 35.00%
    35.3%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 22.00%
    19.6%
  • Vanguard Small-Cap Value Index Fund ETF Shares
    Weight: 15.00%
    17.7%
  • Vanguard U.S. Quality Factor
    Weight: 13.00%
    14.0%
  • Avantis® International Small Cap Value ETF
    Weight: 15.00%
    13.5%

Risk contribution shows how much each ETF adds to overall portfolio ups and downs, which can differ from simple weights. The total US market ETF is 35% of the portfolio and contributes about 35% of risk, very much in line. The total international ETF is slightly underweight in risk contribution, while small-cap value and quality tilt funds contribute a bit more risk than their weights due to higher volatility. The top three holdings together drive over 72% of risk, which is typical given their size but still worth noting. If smoother behavior is desired, adjusting the mix of these top positions can meaningfully change volatility without altering the product lineup.

Redundant positions Info

  • Vanguard Small-Cap Value Index Fund ETF Shares
    Vanguard U.S. Quality Factor
    High correlation

The correlation data highlights that the small-cap value ETF and the US quality factor ETF are highly correlated, meaning they often move in the same direction at the same time. Correlation, in simple terms, measures how similarly two investments behave; high correlation can reduce diversification benefits. Even though these funds target different characteristics—value versus quality—their shared US equity exposure makes them respond similarly to big market moves. This doesn’t make either fund “bad,” but it does mean holding both won’t cut risk as much as holding more distinct assets would. Understanding these relationships helps set realistic expectations for how much diversification can actually smooth the ride.

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 has an expected return of 13.65% with volatility near 19.81%, giving a Sharpe ratio of 0.59. The optimal allocation, using only the existing holdings, shows a higher Sharpe of 0.75 with slightly lower risk and higher return. A same-risk optimized mix boosts expected return to about 15.30% at nearly the same volatility. Because the current point sits below the efficient frontier, there’s room to improve the tradeoff just by reweighting what’s already in place. No new funds are required—simply a different blend of the five ETFs could deliver better risk-adjusted outcomes if that aligns with the investor’s preferences.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.10%
  • Vanguard Small-Cap Value Index Fund ETF Shares 1.90%
  • Vanguard U.S. Quality Factor 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.99%

The overall dividend yield of about 1.99% is moderate for a growth-focused equity mix. Individual ETFs vary, with higher yields in the international and small-cap value segments and lower yields in the US quality and total market funds. Dividends contribute a steady portion of total return, especially over decades when reinvested, but here they’re clearly secondary to capital appreciation and factor exposure. For investors not relying on current income, this is a sensible balance: some income to reinvest and cushion returns, but not at the cost of tilting heavily into high-yield, slower-growth areas. It aligns with a strategy that prioritizes long-term wealth building over immediate cash flow.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard U.S. Quality Factor 0.13%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.10%

Costs are impressively low, with a blended total expense ratio (TER) of about 0.10%. TER is the annual fee charged by funds, taken directly from returns, so every bit saved compounds over time. Using broad Vanguard ETFs and a single higher-cost but still reasonable Avantis fund keeps average costs firmly in low-fee territory. This is a real strength of the portfolio: keeping fees minimal makes it easier for market and factor returns to flow through to the investor. Over 20–30 years, shaving even a few tenths of a percent off fees can translate into thousands of extra dollars, so this cost structure strongly supports long-term performance.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey