Concentrated US equity portfolio blending value and quality growth with strong recent results and moderate income
Report created on Aug 29, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
AV American Century ETF Trust - Avantis U.S. Large Cap Value ETF
AVLV - US0250723493 50.00% -
GA iShares MSCI USA Quality GARP ETF
GARP - US46436E4035 50.00%
This portfolio is extremely simple: two US-focused stock ETFs, each at 50%, and nothing else. That means 100% is in equities, with no bonds, cash, or alternatives in the mix. Structurally, this creates a barbell between a value-tilted large-cap fund and a quality-focused growth-at-a-reasonable-price fund. A two-holding setup is easy to follow and track, and it keeps decision-making straightforward. At the same time, the diversification score of 2/5 reflects that diversification is limited by both the small number of funds and their shared US equity focus. The design concentrates the portfolio’s behavior in stock market movements rather than spreading risk across different asset types.
Growth
Over the period from late 2021 to late 2026, $1,000 grew to about $2,145, a compound annual growth rate (CAGR) of 16.81%. CAGR is like your average speed on a road trip, smoothing out the bumps along the way. This compares favorably with both the US market (13.36%) and global market (11.43%), so the mix of value and quality growth has historically added return. The max drawdown of -23.16% was similar to the benchmarks, showing that the portfolio did not avoid major dips but bounced back strongly. Only 23 days made up 90% of returns, underlining how a small number of strong days can heavily influence long-term results. As always, past performance doesn’t guarantee future outcomes.
Projection
The Monte Carlo simulation projects a wide range of possible 15-year outcomes using historical return and volatility patterns. Monte Carlo is basically a “what if” engine that runs many random scenarios based on past behavior, then summarizes the distribution. Here, the median result grows $1,000 to about $2,700, with a central band (25th–75th percentile) between roughly $1,770 and $4,148. The annualized return across simulations is 8.06%, and about 73.5% of simulations end positive. There’s still a meaningful chance of flat or negative outcomes, with the 5th percentile near the starting value. These projections are not forecasts; they’re statistical illustrations based on history, which may or may not repeat.
Asset classes
- Stocks 100%
All of this portfolio sits in one asset class: stocks. That’s straightforward and matches its “growth” risk classification. Being 100% in equities typically means higher long-term return potential but more pronounced ups and downs than a mix including bonds or cash. There is no built-in ballast from fixed income, so short-term value swings will mainly follow equity markets. Compared with broad multi-asset benchmarks, this structure intentionally leans into growth and risk rather than smoothing. The upside is clear exposure to stock market performance; the trade-off is relying entirely on one engine for both growth and volatility, which is reflected in the risk score of 5/7.
Sectors
- Technology 34%
- Financials 15%
- Consumer Discretionary 12%
- Industrials 10%
- Telecommunications 9%
- Energy 9%
- Health Care 6%
- Consumer Staples 3%
- Basic Materials 1%
- Utilities 1%
Sector-wise, the portfolio leans heavily into Technology at 34%, followed by Financials (15%), Consumer Discretionary (12%), and Industrials (10%). Smaller slices appear in Telecommunications, Energy, Health Care, and a handful of defensive areas like Consumer Staples and Utilities. This profile looks more growth-oriented than a classic market-wide mix because of the larger tech and cyclical exposure. Sector concentration matters because different segments react differently to interest rates, economic cycles, and sentiment shifts. Tech-heavy allocations, for example, can shine in innovation-driven bull markets but tend to be more sensitive when rates rise or when investors rotate into more defensive or income-focused sectors.
Regions
- North America 98%
- Latin America 1%
- Europe Developed 1%
Geographically, the portfolio is overwhelmingly tied to North America at 98%, with only tiny exposure to Latin America and Developed Europe. That aligns closely with the US focus of both ETFs and tracks reasonably well with many US-based benchmarks, though global indices typically allocate more outside the US. High US concentration means results are strongly linked to the US economy, corporate earnings, and the dollar. This can be beneficial when US markets lead global performance, as they have for much of the past decade. The flip side is limited diversification benefit from other regions that might behave differently during country-specific slowdowns or policy changes.
Market capitalization
- Large-cap 34%
- Mega-cap 30%
- Mid-cap 28%
- Small-cap 7%
By market capitalization, the portfolio is dominated by larger companies: 34% in large-cap, 30% in mega-cap, 28% in mid-cap, and 7% in small-cap. This creates a clear tilt toward established firms with sizeable market footprints, which often means more stable business models and better liquidity compared with small, more speculative names. The mid-cap exposure adds some growth potential and diversification within the equity bucket, without fully venturing into very small or micro-cap territory. Relative to a typical broad US equity index, this mix still appears large-cap–heavy but not exclusively so, offering a blend of stability from giants and some dynamism from mid-sized companies.
True holdings
-
MU Micron Technology Inc 4.02%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- iShares MSCI USA Quality GARP ETF
-
AA Apple Inc. 3.90%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- iShares MSCI USA Quality GARP ETF
-
MS Microsoft Corporation 3.78%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- iShares MSCI USA Quality GARP ETF
-
ME Meta Platforms Inc. 3.04%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- iShares MSCI USA Quality GARP ETF
-
KL KLA Corporation 2.44%
Part of fund(s):- iShares MSCI USA Quality GARP ETF
-
NV NVIDIA Corporation 2.19%
Part of fund(s):- iShares MSCI USA Quality GARP ETF
-
AV Broadcom Inc 2.10%
Part of fund(s):- iShares MSCI USA Quality GARP ETF
-
LL Eli Lilly and Company 1.95%
Part of fund(s):- iShares MSCI USA Quality GARP ETF
-
V Visa Inc. Class A 1.94%
Part of fund(s):- iShares MSCI USA Quality GARP ETF
-
FT Fortinet Inc 1.66%
Part of fund(s):- iShares MSCI USA Quality GARP ETF
- Top 10 total 27.01%
Looking through to the top holdings across both ETFs, a handful of big names like Micron, Apple, Microsoft, Meta, KLA, NVIDIA, and Broadcom stand out. Many of these appear via both funds, which creates overlap and increases effective concentration in a small group of major companies. Look-through coverage is about one-third of the portfolio, so actual overlap is likely higher than shown, since only top-10 ETF holdings are captured. This overlap can amplify the impact of these companies on portfolio performance, especially during tech-driven rallies or pullbacks. It also means that diversification at the fund level is somewhat reduced once underlying holdings are combined.
Factors
Factor exposure is fairly balanced across value, size, momentum, quality, and low volatility, all sitting in the neutral band. Factors are like the underlying “personality traits” of stocks—such as being cheap (value) or stable (low volatility)—that research links to long-term returns. Here, no strong tilt jumps out, which suggests the blend of a value ETF and a quality growth ETF ends up close to the broader market profile. Yield exposure stands out as low at 40%, indicating a mild tilt away from high-dividend stocks. That’s consistent with a growth and quality emphasis rather than an income-focused approach, and can mean more of the return comes from price changes than from cash payouts.
Risk contribution
-
iShares MSCI USA Quality GARP ETF
Weight: 50.00% 57.5% -
American Century ETF Trust - Avantis U.S. Large Cap Value ETF
Weight: 50.00% 42.5%
Risk contribution shows how much each ETF drives overall volatility, not just how big each position is. Even though both ETFs have equal 50% weights, the quality GARP ETF contributes about 57.53% of total risk, while the value ETF contributes 42.47%. That means the quality fund is a bit more “loud” in the portfolio’s ups and downs, likely due to its growth tilt and sector mix. Risk/weight ratios highlight this: 1.15 for the quality ETF versus 0.85 for the value ETF. This illustrates how two equally sized positions can have different impacts on risk, depending on their underlying volatility and correlation with the rest 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 risk vs. return chart, the current mix sits on or very close to the efficient frontier. The efficient frontier represents the best possible return for each level of risk using only the existing holdings in different weightings. A Sharpe ratio of 0.71 for the current portfolio compares well with 0.87 for the optimal and 0.84 for the minimum-variance mix. The differences in expected return and risk between these three points are relatively small, which supports the idea that the current allocation is already quite efficient. In practical terms, the portfolio is using its two holdings effectively, balancing them in a way that makes good use of their combined characteristics.
Dividends
- American Century ETF Trust - Avantis U.S. Large Cap Value ETF 1.00%
- iShares MSCI USA Quality GARP ETF 0.30%
- Weighted yield (per year) 0.65%
The total dividend yield of about 0.65% is modest, with the value ETF contributing more income (around 1.00%) and the quality GARP ETF offering a lower yield (0.30%). Dividend yield is the annual cash payout as a percentage of price, and it can act like a “paycheck” component of returns. Here, most of the historical and projected return is likely to come from price appreciation rather than from dividends. This lines up with the portfolio’s growth orientation and its tilt away from high-yield stocks. For investors mainly focused on capital growth, a lower yield is not inherently negative; it just means income plays a smaller role in the total return mix.
Ongoing product costs
- American Century ETF Trust - Avantis U.S. Large Cap Value ETF 0.15%
- Weighted costs total (per year) 0.08%
Costs are notably low, with a total expense ratio (TER) of about 0.08% across the portfolio and 0.15% for the value ETF specifically. TER is the annual fee charged by funds, taken out of returns behind the scenes. Low costs are a quiet but powerful advantage because small differences compound over long periods. Here, the fee level is well below many actively managed products and broadly in line with cost-efficient ETF options. That leaves more of the gross return in the investor’s hands each year. From a structural perspective, the fee profile is a clear strength of this portfolio and supports its growth-oriented, long-term approach.
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!
Compare your holdings
How much do the funds you hold actually overlap with the ones people weigh them against?
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