Single fund small cap value portfolio with aggressive risk and strong factor tilts
Report created on Apr 18, 2026Risk 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
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AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 100.00%
This portfolio is built entirely around a single ETF, so 100% of the money is in one fund tracking U.S. small cap value stocks. That makes the structure extremely simple: there are no bonds, no cash, and no other funds in the mix. Simplicity like this makes it easy to understand what you own and how it behaves because everything follows the same strategy. The flip side is low diversification across asset types and managers, which is reflected in the low diversification score. In practice, the whole portfolio’s ups and downs are driven by one specific slice of the stock market rather than being spread across different strategies.
Growth
Over the period from late 2019 to April 2026, $1,000 in this portfolio grew to about $2,561, giving a compound annual growth rate (CAGR) of 15.48%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. The portfolio slightly lagged the broad U.S. market but beat the global market. However, its maximum drawdown, or worst peak‑to‑trough drop, was nearly -49%, much deeper than the benchmarks. That shows you’re getting equity‑like long‑term returns, but with sharper swings, especially in stress periods such as early 2020. As always, past performance is not a promise of future results.
Projection
The forward projection uses a Monte Carlo simulation, which means the system takes past return patterns and volatility, scrambles them into many random paths, and sees how often different outcomes appear. Here, a $1,000 starting amount ends at a median of about $2,720 after 15 years, with a wide range from roughly $911 to $8,411 in the 5–95% band. That 8.30% annualized projection is lower than the historical CAGR, reflecting uncertainty and stress scenarios. Monte Carlo output isn’t a forecast; it’s more like a weather probability chart, showing possible paths if the future rhymes with the past, not a guarantee that any specific number will occur.
Asset classes
- Stocks 100%
The portfolio is 100% in stocks, with no allocation to bonds, cash, or alternative assets. From an education standpoint, this means it’s fully exposed to equity market risk: share prices can move quickly, both up and down, especially over shorter periods. Many broad benchmarks blend stocks and bonds to smooth volatility; this portfolio instead leans entirely into growth potential and price swings. Being all‑equity is consistent with the “Aggressive” risk tag and the high risk score. The absence of other asset classes means you’re not getting the typical cushioning that fixed income or cash can provide during equity sell‑offs, so overall experience will track stock market cycles quite closely.
Sectors
- Financials 26%
- Consumer Discretionary 18%
- Energy 18%
- Industrials 14%
- Technology 7%
- Basic Materials 5%
- Consumer Staples 5%
- Health Care 4%
- Telecommunications 3%
- Real Estate 1%
Sector exposure is spread across several areas, but with clear tilts. Financials are the largest slice at 26%, followed by consumer discretionary and energy at 18% each, and then industrials at 14%. Technology, which dominates many broad benchmarks, is only 7% here. This pattern is typical for a small cap value strategy: it often holds more economically sensitive, less glamorous businesses rather than large tech leaders. Sector tilts matter because different sectors react differently to interest rates, inflation, and growth conditions. Portfolios with more cyclical sectors like financials, energy, and discretionary can see bigger swings around economic booms and slowdowns compared with more defensive or tech‑heavy mixes.
Regions
- North America 97%
- Latin America 2%
- Europe Developed 1%
Geographically, the portfolio is overwhelmingly concentrated in North America at 97%, with only tiny exposures to Latin America and developed Europe. So while the fund may technically hold some foreign listings, it behaves essentially like a U.S.‑centric equity portfolio. In many “global” benchmarks, the U.S. is large but not this dominant, and other regions contribute meaningfully to diversification. When almost everything comes from one region and one currency, portfolio outcomes are tightly linked to that economy’s performance, policy choices, and market cycles. This alignment can be helpful if you want returns to track the domestic market, but it reduces diversification across different economic environments.
Market capitalization
- Small-cap 52%
- Micro-cap 45%
- Mid-cap 2%
Market capitalization exposure is heavily tilted toward smaller companies: about 52% in small caps and 45% in micro caps, with just 2% in mid caps and virtually nothing in large caps. Small and micro cap stocks are shares of comparatively smaller businesses, which can be more sensitive to credit conditions, economic surprises, and investor sentiment. They often have more room to grow but can also be more volatile and less liquid than large, established firms. This size profile explains a lot of the portfolio’s aggressive risk rating. Returns can diverge notably from large‑cap benchmarks, both positively and negatively, depending on where we are in the economic and market cycle.
True holdings
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VS ViaSat Inc 1.11%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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MA Matson Inc 0.92%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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FI Five Below Inc 0.90%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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SM SM Energy Co 0.88%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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GA GATX Corporation 0.86%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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AV Avnet Inc 0.81%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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M Macy’s Inc 0.80%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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LE Lear Corporation 0.79%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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SN Stonex Group Inc 0.78%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
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DA Dana Inc 0.76%
Part of fund(s):- Avantis® U.S. Small Cap Value ETF
- Top 10 total 8.61%
Looking through the ETF’s top ten holdings, each individual company accounts for around 0.8–1.1% of the overall portfolio. There is no single stock dominating the list, which suggests the fund itself is diversified across many names. Because only about 9% of the ETF’s holdings are captured in this top‑ten snapshot, most of the underlying positions are not shown, and any overlap analysis is incomplete. Still, it’s clear that hidden single‑stock concentration is low within this fund. The main concentration risk comes from the chosen strategy—U.S. small cap value as a whole—rather than from any particular company holding an outsized weight inside the portfolio.
Factors
Factor exposure is where this portfolio really stands out. It shows a “very high” tilt to value and size, meaning it emphasizes cheaper stocks and smaller companies relative to the broad market. Think of factors as the ingredients behind returns; here, the recipe uses a lot of small and value flavors. Historically, such tilts have gone through long cycles of outperformance and underperformance versus the overall market. Neutral readings for momentum, yield, and low volatility suggest the fund doesn’t strongly lean into recent winners, high dividend payers, or especially stable stocks. In practical terms, performance will likely diverge noticeably from mainstream indices when value and small caps are either strongly in or out of favor.
Risk contribution
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Avantis® U.S. Small Cap Value ETF
Weight: 100.00% 100.0%
Risk contribution shows how much each holding adds to total portfolio volatility, which is the pattern of ups and downs over time. In this case, the single ETF has a 100% weight and contributes 100% of the risk—so the picture is very straightforward. In multi‑fund portfolios, a small position in a volatile asset can drive more risk than its weight suggests, but here there’s no such contrast. The main takeaway is that all risk is concentrated in one strategy: if U.S. small cap value experiences a rough period, there’s nothing else in the portfolio to offset that behavior, which ties directly to the aggressive risk classification.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.30%
- Weighted yield (per year) 1.30%
The ETF’s dividend yield of about 1.30% is modest, especially for a value‑oriented strategy, where investors often expect higher income. Dividend yield is the annual cash payout as a percentage of the share price and can be an important part of total return, alongside price changes. In this portfolio, income plays a smaller role and most of the historical growth has come from capital appreciation. That’s consistent with an aggressive, growth‑leaning equity allocation. For someone tracking cash flows, it means periodic payouts may be relatively low and more uneven, while long‑term results depend heavily on how small cap value stocks are repriced by the market over time.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Weighted costs total (per year) 0.25%
The total expense ratio (TER) of 0.25% for the ETF is reasonably low, especially given it follows an actively tilted small cap value strategy rather than a plain broad market index. TER is the annual fee charged by the fund, taken directly from its assets, similar to a small service charge that slightly trims returns each year. Over long periods, even modest differences in costs can add up noticeably due to compounding, so keeping fees contained is helpful. In this case, the costs are not a major drag relative to typical funds in the same style segment, which provides a solid base for any long‑term compounding the portfolio may achieve.
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