Globally diversified equity portfolio with strong small cap value tilt and efficient low cost structure
Report created on Apr 3, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
MX Invesco MSCI USA UCITS ETF
MXUS - IE00B60SX170 54.40% -
EX Xtrackers MSCI World ex USA UCITS ETF 1C USD EUR
EXUS - IE0006WW1TQ4 21.25% -
AV Avantis Global Small Cap Value UCITS ETF USD Acc EUR
AVWS - IE0003R87OG3 15.00% -
IS iShares Core MSCI Emerging Markets IMI UCITS
IS3N - IE00BKM4GZ66 9.35%
The portfolio is made up of four broad equity ETFs, with around half in a US fund and the rest split across developed markets outside the US, global small caps with a value tilt, and emerging markets. This means all the risk and return comes from stocks rather than cash or bonds. That’s powerful for long‑term growth but can be bumpy along the way. With only about 1.5 years of live data, any patterns seen so far are very preliminary. Overall, the structure is simple, globally spread, and fully growth‑oriented, which suits investors who can handle fluctuations and don’t need the money in the near term.
Growth
Over the limited 1.5‑year period, €1,000 grew to about €1,164, implying a compound annual growth rate (CAGR) of 10.8%. CAGR is like the average yearly speed of a car on a road trip, smoothing out bumps along the way. The portfolio beat both the US and global benchmarks over this span and had a smaller maximum drawdown than each, falling about 18.7% at worst. That said, 1.5 years is far too short to call this a stable pattern; markets go through full cycles over decades, not months. Past returns here are more a snapshot than a long‑term report card.
Projection
The Monte Carlo projection uses the short return history to simulate thousands of possible 15‑year paths, like rolling loaded dice based on recent behavior. It shows a median outcome of around €2,729 from €1,000, with a wide “likely” range and about 84% of simulations ending positive. Monte Carlo helps visualize uncertainty rather than predict a single outcome. But because the input history is only about 1.5 years, the simulations lean heavily on a tiny and possibly unrepresentative sample. They’re best seen as rough what‑ifs, not promises, and real markets can deliver outcomes outside even the 5–95% range.
Asset classes
- Stocks 100%
All of the portfolio is in stocks, with no bonds, cash, or alternative assets. Asset classes are broad buckets like equities, bonds, and real estate that behave differently in various environments. A 100% equity allocation typically offers higher expected long‑term returns but also sharper drawdowns, especially during recessions or crises. Relative to a typical “balanced” mix that includes bonds, this setup is more growth‑oriented and more volatile. That can work well for long horizons and steady nerves, but for shorter‑term goals it usually makes sense to think about how to handle large temporary losses without being forced to sell.
Sectors
- Technology 24%
- Financials 17%
- Industrials 12%
- Consumer Discretionary 11%
- Health Care 8%
- Telecommunications 8%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 5%
- Utilities 2%
- Real Estate 2%
Sector exposure is spread across technology, financials, industrials, consumer areas, health care, and more, with no single sector dominating excessively. Technology is the largest slice but not overwhelmingly so, which is common in global equity indices today. Sector diversification matters because different parts of the economy lead or lag at different times: for example, rate hikes can pressure tech and real estate while helping some financials. This sector mix looks broadly similar to global benchmarks, which is a positive sign that the portfolio isn’t taking big, hidden sector bets. That alignment helps keep risk tied to overall markets rather than a single theme.
Regions
- North America 68%
- Europe Developed 14%
- Japan 6%
- Asia Developed 4%
- Asia Emerging 4%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about two‑thirds of exposure is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and a modest slice in emerging regions. This is roughly in line with global stock market weights, where the US has grown dominant over recent decades. Geographic diversification matters because economies, currencies, and political environments differ; a shock in one region may not hit others as hard. Having meaningful exposure outside North America adds resilience if US markets underperform for a spell. This allocation is well‑balanced and aligns closely with global standards, which is a strong anchor for long‑term investing.
Market capitalization
- Mega-cap 41%
- Large-cap 29%
- Mid-cap 16%
- Small-cap 8%
- Micro-cap 5%
The portfolio spans the full market‑cap spectrum, with a core in mega and large companies and meaningful allocations down into mid, small, and micro caps. Market capitalization measures a company’s size by share price times shares outstanding. Larger firms tend to be more stable and widely followed; smaller ones are usually more volatile but can grow faster. The roughly one‑third exposure outside mega/large caps, helped by the dedicated global small cap value ETF, adds both diversification and extra risk. This mix can boost returns over time if smaller companies do well but also amplifies swings during downturns compared with a pure large‑cap portfolio.
True holdings
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23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.09%
Part of fund(s):- iShares Core MSCI Emerging Markets IMI UCITS
-
00 Samsung Electronics Co Ltd 0.49%
Part of fund(s):- iShares Core MSCI Emerging Markets IMI UCITS
-
AS ASML Holding N.V. 0.47%
Part of fund(s):- Xtrackers MSCI World ex USA UCITS ETF 1C USD EUR
-
07 Tencent Holdings Ltd 0.29%
Part of fund(s):- iShares Core MSCI Emerging Markets IMI UCITS
-
RO Rogers Corporation 0.28%
Part of fund(s):- Xtrackers MSCI World ex USA UCITS ETF 1C USD EUR
-
00 SK Hynix Inc 0.28%
Part of fund(s):- iShares Core MSCI Emerging Markets IMI UCITS
-
AZ AstraZeneca PLC 0.27%
Part of fund(s):- Xtrackers MSCI World ex USA UCITS ETF 1C USD EUR
-
NO Novartis AG 0.27%
Part of fund(s):- Xtrackers MSCI World ex USA UCITS ETF 1C USD EUR
-
HS HSBC Holdings PLC 0.27%
Part of fund(s):- Xtrackers MSCI World ex USA UCITS ETF 1C USD EUR
-
NE Nestle S.A. 0.23%
Part of fund(s):- Xtrackers MSCI World ex USA UCITS ETF 1C USD EUR
- Top 10 total 3.93%
The look‑through view covers only about 6% of the portfolio, so it’s just a small window into the underlying holdings. Within that slice, there’s some overlap in well‑known global names like Taiwan Semiconductor, ASML, and Nestlé showing up via multiple ETFs. Overlap means a few companies can have a bigger impact than the ETF list suggests, a bit like hearing the same song from several playlists. Because only top‑10 ETF holdings are included, true overlap is almost certainly higher. The takeaway: diversification is good, but big global giants still quietly drive part of the behavior.
Risk contribution
-
Invesco MSCI USA UCITS ETF
Weight: 54.40% 56.8% -
Xtrackers MSCI World ex USA UCITS ETF 1C USD EUR
Weight: 21.25% 18.0% -
Avantis Global Small Cap Value UCITS ETF USD Acc EUR
Weight: 15.00% 16.7% -
iShares Core MSCI Emerging Markets IMI UCITS
Weight: 9.35% 8.5%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from its weight. Here, the US fund is 54% of assets but about 57% of risk, and the small cap value ETF is 15% of assets yet nearly 17% of risk. That’s like a smaller but louder instrument standing out in an orchestra. The top three positions together account for over 90% of total risk, so their behavior dominates the journey. Re‑checking whether that risk concentration matches the intended comfort level can be useful, especially given the fully equity and small‑cap‑tilted profile.
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 sits below the efficient frontier. The efficient frontier shows the best possible trade‑off between risk (volatility) and expected return using the existing holdings at different weights. The current Sharpe ratio of 0.63 trails both the maximum Sharpe portfolio (0.83) and even the minimum‑variance mix (0.73). Sharpe ratio measures return per unit of risk, like how many kilometers you get per liter of fuel. Being about 1.3 percentage points below the frontier at the current risk level suggests that simply reweighting these same four ETFs could deliver a smoother or more rewarding ride without adding new products.
Ongoing product costs
- iShares Core MSCI Emerging Markets IMI UCITS 0.18%
- Invesco MSCI USA UCITS ETF 0.05%
- Weighted costs total (per year) 0.04%
The portfolio’s cost structure is impressively low. Ongoing fund charges (TERs) are around 0.05% for the main US ETF and 0.18% for the emerging markets ETF, driving an overall portfolio TER of roughly 0.04%. TER, or Total Expense Ratio, is the annual fee charged by the fund, quietly deducted from returns. Low costs matter because they are one of the few things investors can control, and even tiny percentages compound meaningfully over decades. Compared with typical active funds that might charge 1% or more, this low‑fee setup keeps more of the market’s return in the investor’s pocket and supports better long‑term outcomes.
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