Strong small cap value tilt with global diversification and moderate volatility for long term growth
Report created on May 4, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VB Vanguard Small-Cap Value Index Fund ETF Shares
VBR - US9229086114 60.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 25.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 15.00%
This portfolio is made up of three broad stock index ETFs, all from the same provider, with a big tilt toward small‑cap value. About 60% is in a US small‑cap value fund, 15% in a total US market fund, and 25% in a total international stock fund. So it’s 100% in equities with no bonds or cash included in the mix. A structure like this focuses on long‑term growth rather than short‑term stability. The heavy reliance on one style (small‑cap value) means the portfolio’s behavior will often differ from standard broad‑market indexes, which can be useful if that’s what someone wants, but it also means performance can stray more sharply from the usual market experience.
Growth
From 2016 to 2026, a hypothetical $1,000 in this portfolio grew to about $2,881, which is an 11.2% compound annual growth rate (CAGR). CAGR is like your average speed on a long road trip, smoothing out all the bumps along the way. Over the same period, the US market grew faster at 15.25% and the global market at 12.66%, so the portfolio lagged both. The worst peak‑to‑trough drop was about ‑40.7%, sharper than the roughly ‑34% drawdowns of the benchmarks. That steeper fall reflects the portfolio’s strong small‑cap value tilt, which tends to be more volatile, even though long‑term returns have still been solid in absolute terms.
Projection
The forward projection uses a Monte Carlo simulation, which basically reruns many possible futures based on patterns from the past. Here, 1,000 different 15‑year paths were simulated for a $1,000 investment. The median outcome ends near $2,849, implying an overall average return of about 8.4% per year across all simulations. The “likely” middle range runs from about $1,866 to $4,360, with more extreme but still plausible paths from $1,077 to $8,277. This illustrates that outcomes fan out a lot over time, even with the same starting point. It’s important to remember these are statistical scenarios, not predictions; real‑world results can land outside this range.
Asset classes
- Stocks 100%
The entire portfolio is in stocks, with 0% in bonds, cash, or alternatives. That’s a very growth‑oriented setup: historically, stocks have offered higher long‑run returns but with larger and more frequent swings. Compared with blended portfolios that mix in bonds, this structure will usually move more sharply in both up and down markets. Being fully in equities can work as a focused way to capture global business growth, but it also means there’s no built‑in “shock absorber” from less volatile asset classes. The diversification here comes from spreading across different kinds of stocks, not across different types of assets.
Sectors
- Financials 18%
- Industrials 16%
- Technology 15%
- Consumer Discretionary 11%
- Health Care 9%
- Real Estate 7%
- Basic Materials 6%
- Energy 5%
- Consumer Staples 5%
- Telecommunications 4%
- Utilities 4%
Sector exposure is broadly spread, with financials (18%), industrials (16%), and technology (15%) as the largest slices, followed by consumer discretionary, health care, real estate, materials, energy, staples, telecom, and utilities. This looks reasonably balanced compared with typical global benchmarks where technology often dominates more heavily. A more even spread like this can help avoid being overly tied to one part of the economy. For example, if high‑growth tech names go through a rough patch, strength in sectors like financials or industrials can offset some of that. This alignment with diversified sector weights is a solid sign of structural diversification.
Regions
- North America 76%
- Europe Developed 9%
- Japan 4%
- Asia Developed 4%
- Asia Emerging 3%
- Latin America 1%
- Australasia 1%
- Africa/Middle East 1%
Geographically, about 76% of the portfolio is in North America, with the rest spread across Europe, Japan, other developed Asia, emerging Asia, Latin America, Australasia, and Africa/Middle East. That’s a notable tilt toward North America compared with global indexes, where the US is large but not typically three‑quarters of the total. The positive side is clear exposure to a deep, liquid market that’s historically performed well. The trade‑off is that returns are strongly tied to one region’s economy, currency, and policy environment. The international slice does add meaningful global diversification, but the overall experience will still feel predominantly US‑driven.
Market capitalization
- Small-cap 36%
- Mid-cap 25%
- Mega-cap 17%
- Large-cap 13%
- Micro-cap 7%
By market capitalization, the portfolio leans heavily into smaller companies: about 36% in small‑cap, 25% in mid‑cap, 7% in micro‑cap, and only 30% in large and mega‑cap combined. That’s very different from standard market‑weighted indexes, which are dominated by mega‑ and large‑caps. Smaller companies historically have had higher return potential but also more volatility and bigger swings during stresses. This tilt can make the portfolio behave differently than headline indexes: it may lag in periods where mega‑cap giants lead, but can shine when smaller firms have a strong run. The micro‑cap slice adds extra spice, as these stocks tend to be especially jumpy.
True holdings
-
NV NVIDIA Corporation 0.96%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 0.89%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 0.86%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
MS Microsoft Corporation 0.66%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 0.48%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
NR NRG Energy Inc. 0.45%
Part of fund(s):- Vanguard Small-Cap Value Index Fund ETF Shares
-
AT Atmos Energy Corporation 0.44%
Part of fund(s):- Vanguard Small-Cap Value Index Fund ETF Shares
-
TP Tapestry Inc 0.41%
Part of fund(s):- Vanguard Small-Cap Value Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.40%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
JB Jabil Circuit Inc 0.38%
Part of fund(s):- Vanguard Small-Cap Value Index Fund ETF Shares
- Top 10 total 5.94%
Looking through the ETFs’ top‑10 holdings, no single company dominates the portfolio. The largest underlying exposures like NVIDIA, Apple, and Taiwan Semiconductor each sit below 1% of total value, and the combined coverage from disclosed top‑10s is only about 11.3% of the portfolio. That suggests stock‑level concentration risk is low, with diversification spread across many names. There is some overlap where mega‑cap tech and chip companies appear in multiple funds, but the resulting weights are still modest. Since only top‑10 holdings are visible, some overlap is hidden, yet the numbers we do see point to a structure where broad index exposure, not single‑stock bets, drives behavior.
Factors
Factor exposure shows very strong tilts toward size (80%, very high) and value (73%, high). Factors are like “traits” of stocks—such as being cheap (value) or small (size)—that research has linked to long‑term return patterns. A strong size tilt means the portfolio leans into smaller companies more than the broad market, while the high value score means it’s tilted toward cheaper‑priced stocks relative to fundamentals. Momentum, quality, yield, and low volatility are all near neutral, suggesting no large bets there. This configuration often leads to bumpier rides and periods of underperformance versus standard indexes, but it also creates a distinct style profile that can behave differently across market cycles.
Risk contribution
-
Vanguard Small-Cap Value Index Fund ETF Shares
Weight: 60.00% 66.8% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 25.00% 19.8% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 15.00% 13.4%
Risk contribution reveals how much each ETF drives the portfolio’s overall ups and downs, which can differ from simple weights. The small‑cap value fund, at 60% of assets, contributes about 67% of total risk, so it slightly “punches above its weight.” The total international fund is 25% of assets but only about 20% of risk, while the total US market fund is 15% of assets and around 13% of risk. This pattern shows that the portfolio’s volatility is largely controlled by the small‑cap value slice. In practice, if that one fund experiences a strong rally or a sharp drop, the entire portfolio will feel it most strongly.
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 efficient frontier analysis compares risk and return trade‑offs using just the existing three funds. The current portfolio has a Sharpe ratio of 0.45, which measures return earned per unit of risk after accounting for a 4% risk‑free rate. The “optimal” mix of these same funds, by contrast, has a Sharpe of 0.8 with slightly higher return and even a bit lower volatility. The minimum‑variance mix also offers a better Sharpe of 0.65 at lower risk. Since the current allocation sits about 3 percentage points below the frontier at its risk level, the data suggests a different weighting of the same ETFs could potentially improve risk‑adjusted returns without adding new products.
Dividends
- Vanguard Small-Cap Value Index Fund ETF Shares 1.80%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.94%
The portfolio’s overall dividend yield is about 1.94%, combining roughly 1.8% from the small‑cap value ETF, 1.1% from the total US market ETF, and 2.8% from the international ETF. Dividend yield is the annual cash payout as a percentage of price, like a “rent” you earn while holding shares. This level is moderate: not extremely income‑focused, but meaningful enough to be a noticeable part of total return over time, especially when reinvested. The higher yield from international stocks reflects different payout norms outside the US. While capital gains still drive the majority of expected growth here, the dividend stream adds a steady, smaller component to overall performance.
Ongoing product costs
- Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
- 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) 0.06%
Costs are impressively low. The total expense ratio (TER) for the portfolio is about 0.06% per year, with individual funds ranging from 0.03% to 0.07%. TER is the ongoing annual fee charged by the ETFs, taken directly out of the fund’s assets. On a $10,000 portfolio, 0.06% is only about $6 per year, which is very cheap by industry standards. Lower costs mean more of the underlying market return stays in the investor’s pocket each year, and that difference compounds over time. This cost structure is very well‑aligned with best practices for long‑term index investing and forms a strong foundation for efficient compounding.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey