Factor tilted global equity portfolio with strong small value bias and solid cost efficiency

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

This portfolio is a 100% stock mix built entirely from five diversified ETFs, with no bonds or cash buffer. Roughly half of the allocation sits in small‑cap value funds, a meaningful chunk is in broad total‑market trackers, and a smaller sleeve is in a U.S. quality factor ETF. This structure leans away from a plain market-cap index toward more targeted factor tilts. For a growth‑oriented setup, that focus on equities is intentional: stocks historically offer higher returns but bumpier rides. The main takeaway is that this is an equity‑only, factor‑tilted design aimed at boosting long‑term growth, so it suits someone comfortable with larger ups and downs along the way.

Growth Info

From late 2019 to early 2026, $1,000 in this mix grew to about $2,098, a compound annual growth rate (CAGR) of 13.44%. CAGR is the “average yearly speed” of growth over the full period. That slightly lagged the U.S. market proxy (14.38%) but beat the global market proxy (11.92%), which is a strong sign that the overall design is robust. Maximum drawdown, the worst peak‑to‑trough drop, reached about ‑39%, noticeably deeper than the benchmarks’ roughly ‑34%. That shows the higher‑octane nature of the tilts. As always, past performance does not guarantee future results, but this track record broadly supports the growth‑focused, equity‑heavy approach.

Asset classes Info

  • Stocks
    100%

All assets here are stocks, with 0% in bonds, cash, or alternatives. That is fully aligned with a growth‑investor profile but offers no built‑in ballast when markets fall. In contrast, many long‑term allocations mix in some bonds or cash to soften drawdowns and reduce volatility. Sticking to 100% equities makes the portfolio simple and return‑focused but places the entire outcome at the mercy of equity cycles. The upside is maximum exposure to global business growth; the trade‑off is steeper interim losses. Anyone using this kind of mix usually relies on a long horizon, external emergency cash, and the ability to tolerate big swings without reacting emotionally.

Sectors Info

  • Industrials
    17%
  • Financials
    17%
  • Technology
    16%
  • Consumer Discretionary
    12%
  • Basic Materials
    9%
  • Health Care
    8%
  • Energy
    5%
  • Consumer Staples
    5%
  • Telecommunications
    4%
  • Real Estate
    4%
  • Utilities
    3%

Sector exposure is well spread across the economy, with industrials and financials together around one‑third, technology at 16%, and meaningful slices in consumer, materials, health care, and energy. This looks more balanced than a tech‑dominated market‑cap index, which is a positive sign for diversification. A more even sector spread can reduce reliance on any single theme or regulatory backdrop. On the flip side, if high‑growth tech continues to dominate returns, a more balanced sector mix may lag pure tech‑heavy benchmarks. Overall, the sector composition matches diversified‑equity best practices, giving a nice middle ground between concentration risk and broad economic participation.

Regions Info

  • North America
    60%
  • Europe Developed
    16%
  • Japan
    11%
  • Asia Developed
    4%
  • Australasia
    3%
  • Asia Emerging
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, about 60% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and a modest slice in emerging regions. This is fairly close to global equity benchmarks but with a healthy international component rather than a pure home‑country tilt. That alignment is beneficial: it reduces dependence on one economy, currency, or political system. Exposure to multiple regions means different growth drivers and policy cycles can offset each other over time. The trade‑off is sometimes underperforming a single hot market, but the overall risk is less tied to any one country’s fortunes, which supports long‑run resilience.

Market capitalization Info

  • Mid-cap
    31%
  • Small-cap
    26%
  • Mega-cap
    19%
  • Large-cap
    16%
  • Micro-cap
    6%

Market‑cap exposure is distinctly tilted toward smaller companies, with mid‑caps and small‑caps over half of the portfolio, and micro‑caps adding another 6%. Mega‑ and large‑caps together sit around one‑third, well below a pure market‑cap index. Smaller firms historically have offered higher long‑term returns but with more volatility and deeper drawdowns. They can be more sensitive to economic cycles, financing conditions, and sentiment. This size tilt aligns with the goal of seeking extra return (“size premium”) but demands patience through rough patches when small caps fall harder than big blue‑chip names. That combination of sizeable small‑cap exposure and global spread is a defining characteristic here.

True holdings Info

  • Apple Inc
    1.46%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
    • Vanguard U.S. Quality Factor
  • NVIDIA Corporation
    1.36%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Microsoft Corporation
    0.97%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    0.68%
    Part of fund(s):
    • Vanguard Total International Stock Index Fund ETF Shares
  • Amazon.com Inc
    0.67%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class A
    0.60%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Broadcom Inc
    0.50%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class C
    0.48%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Meta Platforms Inc.
    0.47%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Tesla Inc
    0.38%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Top 10 total 7.57%

Looking through ETF top holdings, exposure is naturally tilted toward major global companies like Apple, NVIDIA, Microsoft, and Taiwan Semiconductor, but each name still represents well under 2% of total value. Some overlap appears because these giants sit inside multiple broad funds, but it’s not extreme concentration at the single‑stock level. The coverage only includes ETF top 10s, so actual overlap is somewhat understated. Hidden concentration is more about factor style than about any one company dominating. The practical takeaway: stock‑specific risk looks well spread out, while “hidden” risk mainly comes from the shared small‑value and quality tilts across different ETFs.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 48%
Size
Exposure to smaller companies
Very high
Data availability: 80%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Very high
Data availability: 10%
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 where this portfolio really stands out. Value, size, and quality all show very strong tilts. Factors are like underlying “personality traits” of stocks—value favors cheaper companies, size favors smaller firms, and quality favors financially sound businesses. This combo aims to capture well‑researched return drivers while avoiding the weakest balance sheets. Momentum and low‑volatility exposures are moderate, so the portfolio will not behave like a low‑risk, trend‑following strategy. In practice, this mix can shine over long periods but may underperform during growth or mega‑cap led surges. The strong factor alignment is intentional and quite sophisticated, stacking the odds toward long‑term risk‑adjusted strength.

Risk contribution Info

  • Vanguard Small-Cap Value Index Fund ETF Shares
    Weight: 24.00%
    28.4%
  • Avantis® International Small Cap Value ETF
    Weight: 24.00%
    21.9%
  • Vanguard Total Stock Market Index Fund ETF Shares
    Weight: 22.00%
    21.5%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 20.00%
    17.7%
  • Vanguard U.S. Quality Factor
    Weight: 10.00%
    10.6%

Risk contribution shows how much each ETF adds to total ups and downs, which can differ from simple weights. For example, the Vanguard Small‑Cap Value ETF is 24% of assets but contributes over 28% of portfolio risk, reflecting its relatively higher volatility. The top three holdings together drive about 72% of total risk, even though they’re only 70% of the weight. That’s still reasonably proportional, with no single fund overwhelmingly dominating. The main insight is that risk is concentrated in the small‑cap value sleeve rather than the broad or quality funds. Periodic rebalancing can help keep these risk shares aligned with your intended tilt over time.

Redundant positions Info

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

Correlation measures how often investments move in the same direction at the same time. Highly correlated assets offer less diversification benefit because they tend to rise and fall together, especially in stressful markets. Here, the U.S. Small‑Cap Value ETF and the U.S. Quality Factor ETF are noted as closely correlated, which makes sense since both are U.S. equity styles. That correlation slightly limits diversification within the U.S. bucket, even though their factor tilts differ. The broader mix across regions, sizes, and value vs. quality still adds diversification, but it’s worth remembering that in big global sell‑offs, most stock funds will move down together regardless of style labels.

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 about 13.63% with 19.99% volatility, yielding a Sharpe ratio of 0.58. The Sharpe ratio measures return per unit of risk—higher is better. The optimal mix of these same holdings shows a Sharpe of 0.75 with slightly lower risk, and a same‑risk optimized version could push expected return to 15.30%. Because the current point sits below the efficient frontier, reweighting the existing ETFs (without adding anything new) could improve the trade‑off between risk and return. The good news: the ingredients are excellent; it’s mostly about fine‑tuning the proportions.

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) 2.18%

The overall dividend yield sits around 2.18%, with the international and international small‑value sleeves providing the highest payouts and quality and total‑market funds yielding less. Dividends are the cash distributions companies pay out of profits, and they can be a meaningful share of long‑term equity returns, especially when reinvested. This level of yield is typical for a growth‑tilted equity mix—enough to add some income, but not designed as an income‑maximizing setup. The sensible takeaway is to view dividends here as a steady contributor to total return rather than the main objective, fitting nicely with a long‑horizon growth strategy.

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) 0.13%

The weighted average expense ratio around 0.13% is impressively low for such a factor‑rich portfolio. Expense ratios are like an annual membership fee charged by funds; lower fees mean more of the underlying return stays in your pocket. Over decades, even small differences in costs can compound into large dollar gaps. Using primarily Vanguard and Avantis ETFs keeps costs lean while still accessing targeted tilts, which is a big structural plus. From a cost perspective, this setup is already close to best‑in‑class. There’s little to be gained from trying to shave a few extra basis points at the expense of strategy clarity or implementation quality.

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