Four fund US focused growth portfolio with strong value and small cap tilts and low costs overall
Report created on Apr 24, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 25.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 25.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 25.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 25.00%
This portfolio is built from four equity ETFs, each at an even 25% weight, which keeps the structure simple and easy to understand. Three funds focus on the US market across large-cap growth, dividend payers, and small-cap value, while one fund provides broad international equity exposure. Because everything here is in stocks, the portfolio is fully tied to equity market ups and downs without any built‑in stabilizers like bonds or cash. The even split means no single ETF dominates by weight, but the mix of styles (growth, value, dividends, small caps, and international) creates variety within that simple structure, which helps spread risk across different parts of the equity universe.
Growth
From late 2019 to April 2026, $1,000 in this portfolio grew to about $2,479, a compound annual growth rate (CAGR) of 14.85%. CAGR is like average speed on a road trip, smoothing out all the bumps along the way. Over this period the portfolio slightly lagged the US broad market by about 1 percentage point per year, but beat the global market by around 1.5 percentage points annually. The maximum drawdown, a measure of the biggest peak‑to‑trough loss, was about -36%, a bit deeper than the benchmarks. This combination shows strong growth overall with somewhat sharper downside during the COVID shock compared with broad indices.
Projection
The Monte Carlo projection uses historical return and volatility patterns to simulate 1,000 alternate futures for the next 15 years. Think of it as rolling the dice many times based on past behavior to see a range of possible outcomes, not a prediction of any specific path. In these simulations, a $1,000 starting amount ended with a median value around $2,764, with most outcomes (middle 50%) between roughly $1,858 and $4,096. The annualized return across all simulations was about 8.2%. These ranges illustrate that long‑term results can vary widely even for the same portfolio, and they highlight that historical patterns may not repeat, especially if market conditions change meaningfully.
Asset classes
- Stocks 100%
All of this portfolio is invested in stocks, with 0% in bonds, cash, or alternatives. That makes it a pure equity portfolio, which historically has offered higher long‑term growth potential but also larger swings in value than multi‑asset mixes. Because there are no defensive asset classes, any market-wide equity downturn will likely show up fully in the portfolio’s value without much cushioning. The benefit of this structure is exposure to global companies and risk premiums like the equity and size premiums. The trade‑off is that risk management needs to come from diversification within equities and the investor’s time horizon, not from asset class mixing.
Sectors
- Technology 21%
- Financials 16%
- Consumer Discretionary 12%
- Industrials 11%
- Health Care 10%
- Energy 10%
- Consumer Staples 8%
- Telecommunications 8%
- Basic Materials 4%
- Real Estate 1%
- Utilities 1%
Sector exposure is quite broad, with meaningful allocations to technology, financials, consumer sectors, industrials, health care, and energy. Technology at 21% is a major but not dominant slice, smaller than in many US‑only growth-heavy portfolios, which often lean more heavily into tech. Energy, financials, and industrials also have notable weights, partly reflecting the value and dividend focus of two funds. This balanced sector mix is a positive sign for diversification, as it reduces dependence on any single industry cycle. For example, if interest‑rate changes hurt growth and tech stocks, more cyclical or income‑oriented sectors in the portfolio can behave differently, helping smooth the overall ride.
Regions
- North America 77%
- Europe Developed 9%
- Japan 4%
- Asia Developed 4%
- Asia Emerging 4%
- Australasia 1%
- Latin America 1%
- Africa/Middle East 1%
Geographically, the portfolio is clearly US‑tilted, with about 77% in North America and the remainder spread across developed and emerging markets. Exposure to Europe, Japan, and other Asian regions is modest but present, reflecting the role of the international fund. Compared with a market‑cap‑weighted global index, which has closer to 60% in the US, this portfolio leans more heavily on the US economy and dollar. That can be helpful when US markets lead, but it also means portfolio behavior is strongly tied to US corporate earnings and policy. The non‑US slice still provides some diversification if other regions outperform or currencies move differently.
Market capitalization
- Large-cap 32%
- Mega-cap 27%
- Small-cap 15%
- Mid-cap 12%
- Micro-cap 12%
The portfolio’s market cap mix is fairly diversified, with meaningful stakes in mega‑cap and large‑cap stocks plus substantial exposure to mid, small, and even micro caps. About 59% of the portfolio is in large and mega caps, which are typically more established companies, while around 39% is in mid, small, and micro caps, partly due to the dedicated small-cap value fund. Smaller companies tend to be more volatile but historically have offered higher expected returns over long periods. This size spread means the portfolio can capture potential growth from smaller firms while still being anchored by large global leaders, though it also increases day‑to‑day and cycle‑to‑cycle variability.
True holdings
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NV NVIDIA Corporation 3.02%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AA Apple Inc 2.47%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 1.91%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 1.49%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
UN UnitedHealth Group Incorporated 1.21%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
GO Alphabet Inc Class A 1.21%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
TX Texas Instruments Incorporated 1.18%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AV Broadcom Inc 1.17%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
CV Chevron Corp 1.02%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
KO The Coca-Cola Company 0.98%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 15.66%
Looking through to the top holdings in the ETFs, several familiar large US companies show up, such as NVIDIA, Apple, Microsoft, Amazon, Alphabet, and major names in health care, energy, and consumer staples. These positions each sit around 1–3% of the overall portfolio when aggregated. Some overlap exists where the same company appears in multiple ETFs, especially across the large‑cap growth and dividend funds. Because the data only covers top‑10 ETF holdings, this likely understates total overlap, but it still indicates that a handful of mega‑cap firms drive a noticeable portion of results. This is typical for modern equity portfolios given how dominant large US companies have become in global indices.
Factors
Factor exposure shows clear tilts toward value and size, with both around 62–64%, which is above the neutral 50% “market-like” level. In practice, that means more emphasis on cheaper stocks and smaller companies compared with a broad market index. Research on factor investing suggests these characteristics have driven a meaningful part of long‑term equity returns, though they can go through long stretches of underperformance. Other factors such as momentum, quality, yield, and low volatility sit in the neutral range, so there is no strong lean there. These tilts help explain why the portfolio can behave differently from pure market benchmarks, especially during value or small‑cap‑driven phases.
Risk contribution
-
Avantis® U.S. Small Cap Value ETF
Weight: 25.00% 32.0% -
Schwab U.S. Large-Cap Growth ETF
Weight: 25.00% 26.1% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 25.00% 21.0% -
Schwab U.S. Dividend Equity ETF
Weight: 25.00% 21.0%
Risk contribution looks at how much each ETF adds to overall portfolio volatility, which can differ from its simple weight. The small‑cap value ETF stands out: it is 25% of the portfolio but contributes about 32% of total risk, a risk‑to‑weight ratio of 1.28. In contrast, the dividend and international funds each contribute around 21% of risk with the same 25% allocation, indicating they are relatively less volatile or more diversifying. The large‑cap growth ETF’s risk share (about 26%) is close to its weight. This pattern shows that, while the portfolio is evenly split by dollars, the small‑cap value sleeve is the main driver of overall ups and downs.
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‑return chart shows the current portfolio sits below the efficient frontier by about 1.44 percentage points at its current risk level. The efficient frontier represents the best expected return available for each risk level using only these four holdings in different weights. The Sharpe ratio, which measures return per unit of risk above the risk‑free rate, is 0.6 for the current mix, versus 0.81 for the optimal combination and 0.66 for the minimum variance mix. This suggests that reweighting these existing funds—without adding anything new—could potentially improve risk‑adjusted returns, either by increasing expected return for similar risk or lowering risk for a similar expected return.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.30%
- Schwab U.S. Dividend Equity ETF 3.40%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.98%
The portfolio’s overall dividend yield is about 1.98%, combining a higher‑yielding dividend ETF, a moderate‑yield international fund, and lower‑yielding growth and small‑cap exposures. Dividends represent cash paid out by companies as part of total return, alongside price changes. Here, the dedicated dividend ETF at around 3.4% yield does much of the heavy lifting on income, while the growth fund contributes relatively little yield but more focus on capital appreciation. This blend creates a moderate income stream rather than a pure dividend strategy, so most long‑term return is still expected to come from price growth, with dividends providing a steady but secondary contribution.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.10%
The weighted average ongoing fee (TER) across the four ETFs is around 0.10% per year, which is impressively low by industry standards and supports better long‑term compounding. Costs work like friction: even small differences can add up over decades. Here, the slightly more expensive small‑cap value fund at 0.25% is balanced by very low‑fee large‑cap, dividend, and international ETFs in the 0.04–0.06% range. This keeps the overall drag on returns minimal. With such low costs and broad diversification, more of the portfolio’s gross market return can flow through to you as net performance, which is a structural strength of this setup.
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