Three fund portfolio that looks diversified until you actually read the small cap label
Report created on Aug 3, 2026Risk profile
5/7
Diversification profile
3/5
Positions
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VE Vanguard FTSE All-World ex-US Index Fund ETF Shares
VEU - US9220427754 34.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 33.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 33.00%
This portfolio is the classic “I diversified” starter kit: one US large-cap fund one foreign fund and one spicy small-cap value fund all at roughly one-third each. On the surface it screams simple and diversified; under the hood it’s basically a barbell of plain-vanilla global markets with a big slab of noisy small junk bolted on. The structure is clean but also kind of lazy: every slice gets the same love regardless of risk or role. That equal-weight habit turns the small-cap value piece from “interesting tilt” into “main character” which is a bold move for the rowdiest asset in the trio.
Growth
Historically this thing has done the “good but slightly awkward” routine: turning $1,000 into $2,519 is solid yet it still trails the US market by a noticeable 1.63% a year. So you took more drama than the broad US index — a -38% max drawdown versus around -34% — and didn’t even get bragging rights over it. You did beat the global market though which is like winning bronze in a two-and-a-half person race. This is the classic outcome of adding a factor tilt that looks smart on paper but behaves like a slightly drunk sidekick in real markets.
Projection
The Monte Carlo projection basically says “this could work out fine or mildly disappoint you.” A Monte Carlo simulation is just a fancy way of rolling the dice on thousands of alternate futures using past volatility as a guide — helpful but hardly a crystal ball. Median outcome of $2,696 after 15 years isn’t exactly fireworks and the downside scenarios flirt uncomfortably close to just beating cash. The huge spread between $1,052 and $7,753 shows how much this setup depends on markets treating small value decently; if they don’t this turns from “smart tilt” into “why did I overcomplicate the index.”
Asset classes
- Stocks 100%
Asset classes: 100% stocks 0% anything else. This is not a portfolio; it’s an opinion about how irrelevant bonds and cash are. The risk label says “growth” but the implementation is “all gas no brake pedal installed.” In real life different asset classes are like ingredients in a recipe — this is three types of chili pepper and no rice. It will absolutely move with the equity market and then some. The upside can be strong but pretending this is meaningfully diversified across asset classes is like calling three brands of whiskey a well-balanced drink.
Sectors
- Technology 21%
- Financials 21%
- Industrials 12%
- Consumer Discretionary 12%
- Energy 7%
- Health Care 7%
- Telecommunications 6%
- Consumer Staples 5%
- Basic Materials 5%
- Utilities 2%
- Real Estate 2%
Sector-wise this thing is weirdly middle-of-the-road but still leaning into the usual suspects. Tech and financials tying for first place at 21% each means two very cyclical engines are steering a supposedly diversified ship. Industrials and consumer discretionary stacking another chunky slice just adds to the “economy better keep humming” bet. Defensive stuff like utilities and staples are basically background extras. It’s not an outrageous tilt but it clearly prefers growthy and economically sensitive areas over boring stability. You didn’t overdo tech mania but you also didn’t build something that loves recessions.
Regions
- North America 68%
- Europe Developed 13%
- Asia Developed 5%
- Japan 5%
- Asia Emerging 5%
- Australasia 2%
- Latin America 1%
- Africa/Middle East 1%
Geographically this screams “I know other countries exist but I still sleep with a US flag blanket.” About 68% in North America with everything else scattered like guilt across Europe and bits of Asia. It looks worldly thanks to the fund names but the reality is still a heavy home bias. The rest of the world gets treated like an add-on pack rather than a core part of the game. It’s better than pure US-chasing but nowhere near a truly global balance. Calling this “moderately diversified” geographically is generous; it’s more “US plus some postcards.”
Market capitalization
- Mega-cap 32%
- Large-cap 22%
- Micro-cap 17%
- Small-cap 16%
- Mid-cap 11%
The market cap mix is where the portfolio’s polite mask slips. Sure there’s 32% mega-cap and 22% large-cap to look respectable but then you’ve quietly loaded up 33% in small and micro caps combined. That’s a lot of tiny companies pretending they deserve as much space as the global giants. It’s like putting a third of your concert lineup on unknown garage bands and another third on world-famous headliners. The ride will not be smooth. This size tilt isn’t subtle; it’s a deliberate bet that the scrappiest players will eventually pay for the extra drama.
True holdings
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NV NVIDIA Corporation 2.48%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc. 2.17%
Part of fund(s):- Vanguard S&P 500 ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.47%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
-
MS Microsoft Corporation 1.42%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.19%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.07%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 0.91%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 0.85%
Part of fund(s):- Vanguard S&P 500 ETF
-
SS Samsung Electronics Co Ltd 0.81%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
-
00 SK Hynix Inc 0.69%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
- Top 10 total 13.08%
Look-through holdings show the usual celebrity cast: NVIDIA Apple Microsoft Amazon Alphabet all lurking inside multiple funds. So even though you only see three tickers you’re still secretly worshipping the same mega-cap tech demigods as everyone else. Overlap seems low only because the data stops at each ETF’s top 10 — the real duplication deeper down is almost certainly higher. The result is a portfolio that pretends to be factor-smart and small-cap tilted while still bowing to the mega-cap tech monarchy in the background. It’s rebellion with a loyalty card.
Factors
Factor exposure is loudly shouting “value and small” at the same time. High value tilt and high size tilt means you’ve basically stapled a classic deep-value small cap bet onto a mainstream global core. That’s fine when markets reward cheap and scrappy; when they don’t you just look stubborn. Momentum quality yield and low volatility all hover near neutral so the portfolio isn’t trying to smooth the ride or chase recent winners — it’s just doubling down on the underdog theme. This setup will either feel brilliantly contrarian or painfully early depending on the decade.
Risk contribution
-
Avantis® U.S. Small Cap Value ETF
Weight: 33.00% 41.6% -
Vanguard S&P 500 ETF
Weight: 33.00% 29.8% -
Vanguard FTSE All-World ex-US Index Fund ETF Shares
Weight: 34.00% 28.6%
Risk contribution exposes who’s really running the show: the Avantis small cap value fund. It’s 33% of the weight but over 41% of the risk which means it’s not just along for the ride; it’s grabbing the wheel and yanking. The two diversified Vanguard funds are actually under-pulling their weight in risk terms like the sensible adults in the room. When one slice dominates the volatility like this the portfolio’s mood swings start to track that one holding more than the others. On paper it’s three equal funds; in practice it’s “small cap value and friends.”
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 efficient frontier the portfolio is basically the kid sitting noticeably below the class average despite having all the same textbooks. Same ingredients different recipe: at this risk level you’re about 1.4 percentage points below what could be achieved just by reshuffling the three existing funds. The Sharpe ratio of 0.58 versus 0.8 for the optimal mix says you are getting less return per unit of pain than necessary. No new holdings required — just a smarter proportion. Right now it’s like paying for a gym membership and then only using the treadmill on slow speed.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.20%
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 2.60%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.64%
Yield at 1.64% is in the “fine but nothing to write home about” zone. For a portfolio leaning into value and small caps you might expect more income; instead you’ve built something that talks like a value investor but pays out like a growth index. The higher yield from the international slice is doing most of the income work while the US and small cap value pieces aren’t exactly a dividend party. This setup clearly isn’t about cash flow; it’s almost all about price movement. Dividends are here but mostly as an afterthought garnish.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.12%
Costs are almost annoyingly reasonable. A total TER of 0.12% for an actively tilted global equity setup is basically a discount rack price. The Avantis fund is the expensive diva at 0.25% but the two Vanguard funds are so cheap they drag the average back down to “respectable.” There’s nothing outrageous to roast here except that you managed to build a slightly inefficient portfolio while still not wasting much on fees. You didn’t overpay the chefs; you just ordered a slightly odd combination off the menu.
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