Globally diversified equity portfolio with strong value and size tilts plus efficient risk positioning

Report created on Mar 26, 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 pure equity mix with 99% in stocks and a small 1% in cash, anchored by a broad global fund at 55%. The rest is split evenly across focused value and momentum ETFs, with a modest 5% tilt to emerging markets. A structure like this behaves more like an aggressive growth portfolio than a traditional “balanced” one because there are no bonds to dampen volatility. That’s important for expectations: big swings up and down are normal. The main takeaway is that this setup targets long-term growth through global diversification plus deliberate factor tilts rather than seeking stability or income.

Growth Info

From late 2021 to early 2026, the portfolio turned $1,000 into about $1,616, a 12.11% compound annual growth rate (CAGR). CAGR is the “smooth” average yearly growth rate, like measuring average speed over a long trip. This comfortably beat the global market benchmark (9.70% CAGR) and slightly outpaced the US market (11.55% CAGR), with a similar max drawdown around -25%. Only 16 days drove 90% of returns, showing how a few big days matter a lot. The key point: the mix of diversification and factor tilts has been rewarded so far, but future performance can differ and past returns aren’t a guarantee.

Projection Info

The Monte Carlo simulation projects many possible 10‑year paths for $1,000 based on the portfolio’s historical return and volatility. Monte Carlo basically “replays” thousands of random sequences of returns to show a range of outcomes rather than a single forecast. Here, the median outcome is about +449%, with 993 out of 1,000 simulations ending positive and a 5th percentile outcome of +66.3%. That spread highlights both upside potential and downside risk. The average simulated annual return of 14.47% looks strong, but it relies on past patterns; markets can change, so these scenarios are guides for risk awareness, not promises.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Asset class exposure is highly concentrated in equities, with essentially no allocation to bonds, real assets, or alternatives. Compared with many “balanced” benchmarks that might hold 30–60% bonds, this is clearly tilted toward growth and volatility. Equity-only setups tend to experience deeper drawdowns during market stress but usually offer higher long-run return potential. The small cash slice barely affects risk or return. For someone comfortable with ups and downs, this alignment with an equity growth focus is coherent and intentional. For anyone needing short-term liquidity or capital preservation, separate lower-risk buckets outside this portfolio would usually be wise.

Sectors Info

  • Technology
    21%
  • Financials
    20%
  • Industrials
    15%
  • Consumer Discretionary
    10%
  • Health Care
    7%
  • Telecommunications
    6%
  • Energy
    6%
  • Basic Materials
    6%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is broadly spread, with notable weights in technology (21%), financial services (20%), and industrials (15%), followed by consumer cyclicals and healthcare. That’s a healthy, diversified mix, and the distribution looks broadly in line with many global equity benchmarks, which is a strong sign of balance. Still, the combination of tech and communication names in the top holdings means growth-oriented areas are influential. Tech-heavy segments can be more sensitive to interest rate moves and sentiment swings. The takeaway: the sector mix is well-diversified overall, which supports resilience, even though certain growth and cyclical areas will still drive performance.

Regions Info

  • North America
    58%
  • Europe Developed
    18%
  • Japan
    7%
  • Asia Developed
    6%
  • Asia Emerging
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, about 58% is in North America, with sizable allocations to developed Europe, Japan, and other developed Asia, plus around 8% total in emerging regions. This is pretty close to global market-cap weights and is a strong indicator of thoughtful global diversification. Many home-biased portfolios lean far more into a single country; matching global weights helps reduce single-country political or regulatory risk. The modest emerging exposure adds growth potential and diversification, but without dominating the risk profile. Overall, this geographic balance is a real positive, helping the portfolio draw from multiple economic engines rather than betting heavily on one region.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    28%
  • Mid-cap
    19%
  • Small-cap
    12%
  • Micro-cap
    5%

The market cap mix leans toward larger companies, with 35% in mega caps and 28% in big caps, but also includes a meaningful 36% combined in mid, small, and micro caps. This is where the value and small-cap ETFs really show up. Larger companies tend to be more stable and liquid, while smaller ones can offer higher return potential with bumpier rides. Having both creates a blend of stability and growth optionality. The sizable small-cap slice will likely make the portfolio more volatile than a pure mega-cap index but also more diversified across business sizes and return drivers.

True holdings Info

  • NVIDIA Corporation
    2.98%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Apple Inc
    1.91%
    Part of fund(s):
    • Vanguard Total World Stock Index Fund ETF Shares
  • Microsoft Corporation
    1.45%
    Part of fund(s):
    • Vanguard Total World Stock Index Fund ETF Shares
  • Broadcom Inc
    1.44%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Alphabet Inc Class A
    1.38%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Alphabet Inc Class C
    1.11%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Amazon.com Inc
    1.00%
    Part of fund(s):
    • Vanguard Total World Stock Index Fund ETF Shares
  • Johnson & Johnson
    0.82%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Micron Technology Inc
    0.80%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    0.75%
    Part of fund(s):
    • Vanguard Total World Stock Index Fund ETF Shares
    • iShares Asia 50 ETF
  • Top 10 total 13.66%

Looking through the ETFs, the largest underlying exposures are familiar mega-cap names like NVIDIA, Apple, Microsoft, Broadcom, Alphabet, and Amazon. NVIDIA stands out at almost 3%, with several other big tech-related names between 1–2%. Because some companies appear in multiple ETFs, there’s hidden concentration in these leaders even though you only own funds. Overlap is likely understated since only top-10s are captured. This concentration can boost returns when these firms lead but raises vulnerability if sentiment reverses on mega-cap growth and tech-like names. Periodically checking whether this tilt still matches your comfort with single-company influence is useful.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 25%
Size
Exposure to smaller companies
Very high
Data availability: 20%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
No data
Data availability: 0%
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 a standout feature. The portfolio has strong tilts to value and size (both at 85% exposure) plus a clear momentum tilt (57.6%), with moderate low-volatility exposure. Factors are like underlying “traits” — value favors cheaper stocks, size favors smaller companies, momentum favors recent winners. This combination often behaves differently from a plain market index: it can outperform over long periods but may lag when expensive growth or mega-caps dominate. Coverage is partial, so the numbers are approximations, but the direction is clear. The main implication: you’re intentionally embracing factor-driven strategies, which need patience through inevitable cycles.

Risk contribution Info

  • Vanguard Total World Stock Index Fund ETF Shares
    Weight: 55.00%
    54.4%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 10.00%
    12.0%
  • Invesco S&P 500® Momentum ETF
    Weight: 10.00%
    10.3%
  • Invesco S&P International Developed Momentum ETF
    Weight: 10.00%
    9.7%
  • Avantis® International Small Cap Value ETF
    Weight: 10.00%
    9.5%
  • Top 5 risk contribution 95.9%

Risk contribution shows how much each holding adds to overall portfolio ups and downs, which can differ from just its weight. The global ETF at 55% weight contributes about 54.4% of total risk, almost exactly proportional. The US small value ETF is 10% of the portfolio but contributes 12.02% of risk, reflecting its extra volatility, while other 10% sleeves are closer to their weights. The top three positions together drive about 76.7% of total risk, which is expected given the core-plus-satellite design. If desired, nudging the most volatile sleeve slightly down or balancing across factors can fine-tune how risk is shared.

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 portfolio sits on the efficient frontier, meaning for its current mix of holdings, the weights are already efficient — you’re not leaving easy risk–return improvements on the table. However, it’s not at the frontier’s highest Sharpe ratio point. The Sharpe ratio compares return to volatility; a higher number means better reward per unit of risk. The optimal portfolio here has higher expected return and a meaningfully better Sharpe, with only a small increase in risk. That implies reweighting among these same ETFs — not adding new ones — could potentially raise long-run efficiency if desired.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.00%
  • Avantis® Emerging Markets Value ETF 3.20%
  • Avantis® U.S. Small Cap Value ETF 1.40%
  • Invesco S&P International Developed Momentum ETF 3.30%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total World Stock Index Fund ETF Shares 1.80%
  • Weighted yield (per year) 1.98%

The overall dividend yield of about 1.98% is modest but meaningful, coming mostly from the value and international sleeves, which have yields around 3% or higher. Yield is lower in the momentum and US large-cap segments, reflecting a focus on growth and price appreciation instead of income. Dividends can be a nice “slow drip” of return, especially when automatically reinvested, but in this setup they’re clearly a secondary feature, not the main driver. This is well-aligned with a growth-oriented equity strategy where total return — price gains plus dividends — matters more than maximizing cash payouts.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.16%

With a total expense ratio around 0.16%, costs are impressively low for a portfolio using specialized factor ETFs plus a global core. TER (Total Expense Ratio) is the annual fee charged by funds, quietly deducted from performance, so keeping it low is like reducing friction over a long drive. Many active or factor-based portfolios run at much higher cost levels, which can noticeably erode long-term results. Here, the blending of an ultra-low-cost global ETF with reasonably priced factor funds is a real strength and supports better compounding over decades, especially when compared with high-fee alternatives.

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