Two fund wonder that accidentally nails efficiency while worshipping at the altar of US stocks
Report created on May 4, 2026Risk profile
5/7
Diversification profile
3/5
Positions
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AV Avantis® U.S. Equity ETF
AVUS - US0250728856 70.00% -
VE Vanguard FTSE All-World ex-US Index Fund ETF Shares
VEU - US9220427754 30.00%
This “portfolio” is really a duet: one big US factor fund doing the heavy lifting and one world ex-US index tagging along. It’s basically a 70/30 coin toss between “America” and “everywhere else, but less.” The structure is so simple it’s almost suspicious — like you skipped the menu and just ordered the house special. Simplicity itself is not a crime, but it does mean every quirk of those two funds fully defines the ride. There’s no nuance from bonds, cash, or alternatives; when stocks swing, this whole thing swings in sync. Elegant? Yes. Overconfident? Also yes.
Growth
Historically, this mix turned $1,000 into $2,418, which is a very respectable glow-up, just not best-in-class. CAGR at 14.38% looks solid until you notice the US market alone did 15.88%, quietly lapping it. Against the global market’s 13.28%, this portfolio does look like it knows what it’s doing, though. Max drawdown of -35.9% reminds us this is still a full-risk roller coaster, not a gentle river cruise. And 90% of returns coming from just 21 days is your periodic reminder that timing the market is a fantasy. Past data is useful, but it’s still history, not prophecy.
Projection
The Monte Carlo projections basically say, “Yeah, this could go great or it could just kind of exist.” A $1,000 stake most likely wanders up to around $2,708 over 15 years, but the possible range runs from “barely above water” at $1,017 to “nice story for dinner parties” at $7,562. Monte Carlo is just a thousand alternate histories rolled with dice based on past volatility and returns — like stress-testing the portfolio in a bunch of what-if worlds. The median 8.07% annualized across simulations is decent growth, but the spread is wide enough to remind you that stock-only portfolios don’t come with seatbelts.
Asset classes
- Stocks 100%
Asset class breakdown: 100% stocks, 0% everything else. This portfolio is basically screaming, “Bonds are for other people.” No cash buffer, no defensive ballast, no diversifiers — just pure equity beta with a bit of factor spice. That’s fine if the goal is maximum participation in market drama, but it does mean every downturn gets experienced in full HD. Asset allocation is usually the knob that controls how violent the ride feels; here, the knob is snapped off at “equities only.” The trade-off is simple: more long-term growth potential, but every correction hits like a full-contact sport.
Sectors
- Technology 24%
- Financials 18%
- Industrials 13%
- Consumer Discretionary 11%
- Telecommunications 8%
- Health Care 7%
- Energy 7%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 3%
- Real Estate 1%
Sector-wise, this thing is very much an “own the modern economy” setup, but not exactly subtle about its preferences. Technology at 24% dominates the room without being as extreme as some growth-chasing setups, while financials at 18% and industrials at 13% bring a more old-school flavor. Consumer discretionary at 11% adds some cyclical mood swings, and the rest is sprinkled around like garnish. It’s diversified enough that one single sector face-plant probably won’t ruin everything, but a broad economic slowdown will clearly hit almost all your key players at once. This is still a pro-cyclical, “we like growth and business cycles” sector mix.
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, the portfolio is yelling “USA number one” with 72% in North America and letting the rest of the world split the leftovers. Europe, Japan, and the rest of the developed and emerging markets are basically there so this doesn’t look like a patriotic stock market shrine. Calling this “global” is generous; it’s more like “US core with a world sampler on the side.” The upside: the portfolio is aligned with the world’s largest and most influential market. The downside: if the US stumbles or just has a meh decade, this portfolio is heavily chained to that story.
Market capitalization
- Mega-cap 39%
- Large-cap 30%
- Mid-cap 21%
- Small-cap 7%
- Micro-cap 2%
Market cap exposure is mostly big league: 39% mega-cap and 30% large-cap means the behemoths run the show. Mid-caps at 21% and small/micro at a combined 9% provide some token scrappiness but not enough to change the portfolio’s personality. This is a “blue chips with seasoning” setup, not a genuine size-diversified approach. The dominance of giants means returns are heavily driven by the mood swings of a few huge names and broad market narratives rather than niche opportunities. It’s stable-ish in normal times, but when the titans wobble, the whole thing wobbles right along with them.
True holdings
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NV NVIDIA Corporation 3.86%
Part of fund(s):- Avantis® U.S. Equity ETF
-
AA Apple Inc 3.38%
Part of fund(s):- Avantis® U.S. Equity ETF
-
AM Amazon.com Inc 2.63%
Part of fund(s):- Avantis® U.S. Equity ETF
-
MS Microsoft Corporation 2.62%
Part of fund(s):- Avantis® U.S. Equity ETF
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GO Alphabet Inc Class A 1.77%
Part of fund(s):- Avantis® U.S. Equity ETF
-
ME Meta Platforms Inc. 1.68%
Part of fund(s):- Avantis® U.S. Equity ETF
-
GO Alphabet Inc Class C 1.41%
Part of fund(s):- Avantis® U.S. Equity ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.13%
Part of fund(s):- Vanguard FTSE All-World ex-US Index Fund ETF Shares
-
JP JPMorgan Chase & Co 0.90%
Part of fund(s):- Avantis® U.S. Equity ETF
-
MU Micron Technology Inc 0.90%
Part of fund(s):- Avantis® U.S. Equity ETF
- Top 10 total 20.28%
Look-through holdings show the usual celebrity lineup: NVIDIA, Apple, Amazon, Microsoft, Alphabet, Meta — basically the entire Magnificent Whatever-We-Call-Them-Now squad. You’re not holding them directly, but they’re running the backstage through both funds. NVIDIA alone at nearly 4% exposure and Apple over 3% are doing a lot of heavy narrative lifting. And that’s just from top-10 data; overlap deeper in the portfolios is almost certainly higher. The hidden message here: this isn’t just “diversified equities,” it’s “US mega-cap tech plus friends” packaged to look broader. Diversification by wrapper doesn’t always mean diversification by business risk.
Factors
Factor profile: high value (65%) and high size (61%), with everything else basically hugging neutral. In plain English, this leans toward cheaper stocks and smaller names compared to the market, while still being dominated by big companies at the surface. Factor exposure is like checking the recipe under the label — and here the recipe says, “We’re trying not to overpay and we’re sprinkling in some smaller companies.” That combo can behave very differently from a pure growth or pure mega-cap portfolio, especially when market leadership rotates. The slightly contrarian tilt could shine when expensive darlings cool off and less-loved names finally get noticed.
Risk contribution
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Avantis® U.S. Equity ETF
Weight: 70.00% 73.4% -
Vanguard FTSE All-World ex-US Index Fund ETF Shares
Weight: 30.00% 26.6%
Risk contribution is almost insultingly straightforward: the 70% US equity ETF contributes about 73% of total risk. So yes, it’s doing exactly what its weight suggests — no sneaky wild child hiding in the corner. The ex-US ETF contributes 27% of risk on a 30% weight, behaving slightly more politely than its size. Risk contribution is just a fancy way of asking, “Who’s actually causing the portfolio’s mood swings?” Here, the answer is: the US fund, very obviously. The upside is transparency; the downside is that one position’s behavior dominates the overall emotional tone of 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.
On the efficient frontier, this portfolio is annoyingly competent. With a Sharpe ratio of 0.57 versus 0.76 for the optimal mix, it’s not perfect, but the chart basically says, “You’re close enough that changing weights could help, not transform.” Being on or near the frontier means that, for the level of risk you’re taking, you’re not leaving a lot of return on the table given these two ingredients. Risk vs. return here is more “solid B+” than disaster. The only real roast is that better risk-adjusted outcomes are mathematically possible using the exact same two funds — the knobs just aren’t set to max efficiency.
Dividends
- Avantis® U.S. Equity ETF 0.90%
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.44%
Dividend yield at 1.44% tells you this is more about price growth than cashflow. The ex-US fund is doing the heavy lifting at 2.70%, while the US factor fund barely bothers at 0.90%. This isn’t some lush income garden; it’s more like a growth-focused plot with a few dividend weeds accidentally popping up. Relying on dividends here would be like trying to live off the free snacks at a conference. The story of this portfolio is capital appreciation, not regular payouts — anyone pretending otherwise is just rebranding.
Ongoing product costs
- Avantis® U.S. Equity ETF 0.15%
- Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.13%
Costs at a total TER of 0.13% are suspiciously sane. For once, there’s no hidden “management genius” fee tax skimming off the top. The US factor ETF at 0.15% and the global ex-US index at 0.07% put this clearly in the low-cost camp. That means when performance disappoints, there’s no convenient excuse like “yeah, but the strategy is expensive and clever.” You’re basically getting straightforward equity exposure with a mild factor tilt for couch-cushion money. Fees aren’t what’s holding this portfolio back — if anything goes wrong, it’ll be the markets, not the price tag.
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