Three fund US tilted global equity portfolio with strong small cap value and low cost focus
Report created on Apr 27, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 30.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is a simple three‑fund mix that is fully invested in stocks. Half sits in a broad US large‑cap index, about a third is in a targeted US small‑cap value fund, and the rest is in a global ex‑US fund. This structure keeps things easy to understand while still covering a wide slice of the stock market. A concentrated lineup like this removes complexity and trading decisions but does mean each fund meaningfully shapes returns and risk. The blend leans clearly toward growth assets, which fits its growth risk score. Overall, the allocation is straightforward, equity‑only, and intentionally focused on the US market with a meaningful tilt toward smaller, cheaper companies.
Growth
Over the period since late 2019, a hypothetical $1,000 in this portfolio grew to about $2,505. That works out to a compound annual growth rate (CAGR) of 15.03%, which is slightly below the US market benchmark but ahead of the global market index. CAGR is like average speed on a road trip, smoothing out bumps along the way. The portfolio’s worst peak‑to‑trough fall was roughly ‑38%, a bit deeper than the benchmarks’ drawdowns near ‑34%. It then recovered within about seven months, showing resilience after a sharp shock. This mix has delivered strong growth historically, with risk and drawdowns consistent with an equity‑heavy, growth‑oriented profile.
Projection
The Monte Carlo projection uses many simulated paths, based on historical patterns, to estimate a range of future outcomes. For a $1,000 starting amount over 15 years, the median outcome lands around $2,719, implying a moderate growth path. The “likely” middle range runs from about $1,776 to $4,178, while more extreme but still plausible results span roughly $953 to $7,164. This shows how wide equity outcomes can be, even with the same starting point. Around 74% of simulations end positive, and the average simulated annual return is 7.9%. These are model‑based numbers, not promises; they simply illustrate that stock‑only portfolios can deliver solid long‑term growth but with a broad spectrum of possible results.
Asset classes
- Stocks 100%
All of this portfolio is allocated to stocks, with 0% in bonds or cash‑like assets. That makes it very clear what’s driving behavior: equity markets. Stocks historically offer higher expected returns than safer assets but also larger, more frequent swings in value. Without bonds to cushion falls, short‑term ups and downs are more visible, especially during market stress. The diversification here comes from holding different types of stocks across size, style, and region, rather than blending in other asset classes. This approach aligns closely with a growth‑oriented risk profile, where the trade‑off is accepting deeper drawdowns in exchange for potentially stronger long‑run return prospects.
Sectors
- Technology 22%
- Financials 18%
- Consumer Discretionary 12%
- Industrials 12%
- Energy 8%
- Health Care 8%
- Telecommunications 7%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is reasonably balanced and broadly resembles a diversified stock index. Technology is the largest slice at about 22%, followed by financials around 18%, and then consumer and industrial areas each near 12%. Smaller allocations to energy, health care, telecom, staples, materials, utilities, and real estate round out the picture. This spread means the portfolio isn’t overly tied to a single type of business, even though tech and financials together form a substantial anchor. Sector balance matters because different parts of the economy lead or lag at different times. Here, the mix looks well in line with broad market norms, which is a strong indicator of healthy diversification across industries.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 3%
- Australasia 1%
- Latin America 1%
- Africa/Middle East 1%
Geographically, roughly 81% of the portfolio is in North America, with the remainder spread across Europe, Japan, other developed Asia, emerging Asia, and smaller slices in Australasia, Latin America, and Africa/Middle East. That’s a clear US and North American tilt compared to a typical global market index, where non‑US markets make up a larger share. This tilt has historically been beneficial in periods when US stocks outperformed the rest of the world. At the same time, it ties a lot of the outcome to one main region’s economy, currency, and policy environment. The international allocation still adds meaningful diversification, but the center of gravity clearly sits in North America.
Market capitalization
- Mega-cap 32%
- Large-cap 24%
- Small-cap 17%
- Micro-cap 14%
- Mid-cap 13%
The portfolio spans the full spectrum of company sizes, from mega‑caps down to micro‑caps. About 32% is in mega‑cap firms and 24% in large caps, giving it a solid core in established giants. At the same time, roughly 17% is in small caps, 13% in mid caps, and 14% in micro caps, reflecting a noticeable tilt toward smaller companies. Company size matters because smaller stocks often move more sharply, both up and down, than mega‑caps. This broader spread by size can increase diversification within equities but usually raises volatility somewhat. Overall, the mix combines stability from big names with more dynamic behavior from smaller, less mature businesses.
True holdings
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NV NVIDIA Corporation 3.79%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 3.33%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.46%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.82%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.50%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.31%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.20%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.12%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 0.94%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 0.79%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 18.25%
Looking through ETF top holdings shows that a handful of large US names appear in multiple funds. NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Berkshire Hathaway together make up a meaningful slice of the covered portion. Because only top‑10 positions are included, actual overlap may be somewhat larger in reality. This overlap creates a quiet concentration in a few mega‑cap leaders, even though the portfolio uses broad funds. It’s not necessarily a problem—these companies are big parts of the global market—but it does mean a chunk of returns is linked to how these specific names perform. That’s important context when thinking about headline‑driven moves in major stocks.
Factors
Factor exposure shows notable tilts toward value and size. “Factors” are characteristics like value or momentum that help explain why some stocks behave differently from others, a bit like ingredients in a recipe. Here, value exposure is high at 68%, and size exposure is high at 61%, indicating a meaningful lean toward cheaper, smaller companies versus the overall market. The other factors—momentum, quality, yield, and low volatility—are all near neutral, so they’re broadly market‑like. Historically, value and smaller size have sometimes rewarded investors but have also gone through long stretches of underperformance. This combination suggests the portfolio may behave differently from a plain large‑cap growth‑tilted index at various points in the cycle.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 50.00% 46.2% -
Avantis® U.S. Small Cap Value ETF
Weight: 30.00% 37.7% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 20.00% 16.2%
Risk contribution looks at how much each holding drives the portfolio’s overall ups and downs, which can differ from its simple weight. The S&P 500 ETF is half the portfolio and contributes about 46% of total risk, so its risk share aligns closely with its size. The small‑cap value ETF is 30% of assets but contributes nearly 38% of risk, showing it is a bit more volatile than its weight alone suggests. The international ETF, at 20% weight, adds only about 16% of total risk, slightly dampening volatility. This pattern is common: smaller‑cap and value‑tilted funds often punch above their weight in terms of risk contribution.
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 efficient frontier chart compares this portfolio’s risk/return balance with the best combinations achievable using the same three funds. The current mix has a Sharpe ratio of 0.6, which is a measure of return per unit of risk above the risk‑free rate. The maximum‑Sharpe mix comes in at 0.79, with slightly higher return and a bit lower risk, and the minimum‑variance mix has the lowest risk with a middling Sharpe of 0.65. The current portfolio sits on or very near the efficient frontier, meaning it is already using these holdings in a way that’s broadly efficient for its risk level. Any improvement from reweighting alone would be incremental rather than dramatic.
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) 1.50%
The portfolio’s overall dividend yield is about 1.5%, combining roughly 1.1% from the S&P 500 ETF, 1.3% from the small‑cap value ETF, and 2.8% from the international ETF. Dividends are the cash payments companies make from profits, and they can be an important part of total return, especially over long periods when reinvested. Here, yield is modest, which aligns with a growth‑leaning equity mix that emphasizes capital appreciation over income. The higher yield from the international sleeve adds a small income boost and some diversification in payout patterns. Overall, dividends contribute, but most of the long‑term return expectation for this portfolio comes from price growth rather than cash distributions.
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) 0.10%
Total ongoing costs are very low at around 0.10% per year, thanks to the heavy use of broad Vanguard index ETFs and a reasonably priced factor fund. This “TER” (total expense ratio) is the percentage skimmed annually by fund providers to cover management and operations. Low costs matter because they’re one of the few things investors can control, and even small differences compound significantly over decades. Compared to many actively managed or specialized products, this fee level is impressively low and supports better long‑term net returns. The cost structure is a real strength of this portfolio, letting the underlying markets do most of the work without much drag from fees.
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