Concentrated US equity blend with strong value tilt and efficient risk adjusted performance profile
Report created on Jun 15, 2026Risk profile
4/7
Diversification profile
2/5
Positions
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AV American Century ETF Trust - Avantis U.S. Large Cap Value ETF
AVLV - US0250723493 50.00% -
AV Avantis® U.S. Equity ETF
AVUS - US0250728856 50.00%
This portfolio is very simple: two US stock ETFs each at 50%, both focused on broadly diversified US equities. One fund leans into large cap value, while the other holds a wider mix across sizes and styles. That makes the overall structure concentrated by provider and region but still spread across hundreds of underlying companies. A two‑holding setup is easy to follow and monitor, which many people like. The trade‑off is that diversification across different strategies and regions is limited. The balanced 50/50 split also means neither fund dominates; the portfolio behaves like a blend of broad US equities with an added value tilt from the large cap value ETF.
Growth
One or more local-currency benchmark funds are unavailable for this report.
Over the period from late 2021 to mid‑2026, $1,000 grew to about $1,857, which is a compound annual growth rate (CAGR) of 14.07%. CAGR is like checking your average speed over a whole road trip, smoothing out bumps along the way. This beat the global equity benchmark by just over 3 percentage points per year, a notable outperformance over several years. The worst peak‑to‑trough loss, or max drawdown, was about −20%, smaller than the global market’s −26%. The portfolio also needed only 19 days to generate 90% of returns, showing that a relatively small number of strong days drove much of the growth.
Projection
The Monte Carlo simulation projects many possible future paths by remixing historical return and volatility patterns. Think of it as running 1,000 alternate timelines using the same style of ups and downs seen in the past. After 15 years, the “most likely” (median) outcome turns $1,000 into around $2,736, with a broad middle range from about $1,725 to $4,233. There are also more extreme but less likely scenarios on both the downside and upside. Across all simulations, the average annual return is 7.88%. These numbers are not predictions; they just show what could happen if future markets behave in ways that roughly rhyme with history, which is never guaranteed.
Asset classes
- Stocks 100%
All of the portfolio is invested in stocks, with 0% in bonds, cash, or alternatives. That makes the asset class mix very straightforward but also means there is no built‑in buffer from typically steadier assets. Stocks historically have offered higher long‑term growth than bonds or cash but with more frequent and deeper swings along the way. Compared with a more mixed stock‑bond allocation, this 100% equity setup will usually move more sharply in both directions. The “Balanced” risk label here reflects the specific behavior of these funds, but in asset‑class terms this is clearly an equity‑only portfolio rather than a multi‑asset blend.
Sectors
- Technology 24%
- Financials 16%
- Industrials 13%
- Consumer Discretionary 13%
- Energy 10%
- Telecommunications 8%
- Health Care 6%
- Consumer Staples 5%
- Basic Materials 2%
- Utilities 1%
Sector exposure is spread across technology (24%), financials (16%), industrials (13%), consumer discretionary (13%), energy (10%), and several smaller areas. This is fairly broad, but there is still a noticeable skew toward economically sensitive sectors like tech, financials, and cyclicals. Compared with a typical global index, the tech share looks meaningful yet not extreme, while energy and financials are also well‑represented. Sector balance like this helps reduce the impact of any single industry shock. However, because the whole portfolio is equity‑only, it will still react strongly to broad economic news, even if individual sector surprises are partly offset by strength in others.
Regions
- North America 98%
- Latin America 1%
- Europe Developed 1%
Geographically, the portfolio is overwhelmingly focused on North America at 98%, with tiny allocations to Latin America and developed Europe. That means most exposure is tied to one region’s economy, currency, and regulatory environment. Many global benchmarks have a large US share, but not usually this close to 100%. The upside is that it tracks US corporate fortunes quite closely, which has historically been rewarding in some periods. The downside is limited participation in potential growth from other regions. Currency risk is also concentrated in the dollar, which simplifies things for US‑based investors but reduces the natural hedge that foreign earnings sometimes provide.
Market capitalization
- Large-cap 30%
- Mid-cap 30%
- Mega-cap 27%
- Small-cap 11%
- Micro-cap 2%
By market cap, there is a healthy spread: roughly 27% in mega caps, 30% in large caps, 30% in mid caps, 11% in small caps, and a small slice in micro caps. This mix tilts slightly more toward mid and smaller companies than a classic large‑cap‑dominated index. Market capitalization describes company size; smaller firms often have more growth potential but bumpier rides, while mega caps tend to be steadier but slower‑growing. This blend supports diversification across business stages and risk profiles. It can also make the portfolio behave somewhat differently from a pure large‑cap index, especially during periods when smaller companies outperform or lag significantly.
True holdings
-
AA Apple Inc 4.22%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis® U.S. Equity ETF
-
AM Amazon.com Inc 3.29%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis® U.S. Equity ETF
-
MU Micron Technology Inc 3.17%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis® U.S. Equity ETF
-
NV NVIDIA Corporation 2.80%
Part of fund(s):- Avantis® U.S. Equity ETF
-
ME Meta Platforms Inc. 2.40%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis® U.S. Equity ETF
-
XO Exxon Mobil Corp 1.87%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis® U.S. Equity ETF
-
MS Microsoft Corporation 1.80%
Part of fund(s):- Avantis® U.S. Equity ETF
-
JP JPMorgan Chase & Co 1.50%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis® U.S. Equity ETF
-
CA Caterpillar Inc 1.29%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
-
LR Lam Research Corp 1.26%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Top 10 total 23.61%
Looking through to top holdings, Apple, Amazon, Micron, NVIDIA, Meta, Exxon, Microsoft, JPMorgan, Caterpillar, and Lam Research together account for visible overlap. For example, Apple at 4.22% and Amazon at 3.29% are meaningful single‑company exposures given that this is a two‑ETF portfolio. Because only top‑10 ETF holdings are included, actual overlap across all positions is likely higher. This “hidden concentration” matters: when the same big names appear in multiple funds, the portfolio can be more sensitive to their performance than the ETF count suggests. Still, the set of top holdings spans different industries, which helps avoid single‑theme clustering at the company level.
Factors
Factor exposure shows a strong tilt toward value (75%) and a high tilt toward size (62%), with momentum, quality, and low volatility all close to neutral and yield slightly below average. Factors are like the underlying “flavors” that explain how a portfolio behaves: value stocks tend to be cheaper relative to fundamentals, and smaller companies add a different return pattern than mega caps. A value tilt often shines when cheaper stocks rebound relative to the broader market but can lag during growth‑driven rallies. The above‑average size tilt means more exposure to smaller names, which can add both upside potential and extra volatility compared with a pure large‑cap focus.
Risk contribution
-
Avantis® U.S. Equity ETF
Weight: 50.00% 50.4% -
American Century ETF Trust - Avantis U.S. Large Cap Value ETF
Weight: 50.00% 49.7%
Risk contribution is almost perfectly split: each ETF is 50% of the weight and contributes around half of total portfolio volatility. Risk contribution measures how much each holding drives overall ups and downs, which can differ from simple weights if one position is much more volatile. Here, both funds behave similarly enough that risk roughly matches allocation. That’s straightforward and easy to understand. The flip side is that there is no holding acting as a natural stabilizer for the other; both move in broadly similar ways. This structure keeps the portfolio simple but also means risk is concentrated in a single style family: US equity with a value and smaller‑size tilt.
Redundant positions
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High correlationAmerican Century ETF Trust - Avantis U.S. Large Cap Value ETFAvantis® U.S. Equity ETF
The two ETFs are shown as “almost identically” correlated. Correlation describes how often assets move together: a correlation close to 1 means they tend to rise and fall at the same time, while lower or negative values mean they offset each other more. High correlation reduces the diversification benefit you get from holding multiple positions. In this case, despite owning two funds, the portfolio behaves much like one integrated US equity strategy. That is not inherently bad, particularly if the chosen style is intentional, but it does limit cushioning during marketwide equity selloffs because there are no low‑correlation assets to soften broad declines.
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 suggests the current portfolio is on or very close to the frontier, meaning it delivers near‑optimal expected return for its level of risk using these two holdings. The Sharpe ratio, which compares excess return over a risk‑free rate to volatility, is 0.62 for the current mix versus 0.84 at the theoretical optimum. However, the “optimal” and “minimum variance” portfolios here have almost the same risk and higher Sharpe ratios, indicating that slightly different weightings of the same funds could marginally improve risk‑adjusted returns. Still, being effectively on the frontier is a positive sign that the current allocation is already quite efficient.
Dividends
- American Century ETF Trust - Avantis U.S. Large Cap Value ETF 1.40%
- Avantis® U.S. Equity ETF 1.20%
- Weighted yield (per year) 1.30%
The combined dividend yield is about 1.3%, with the value ETF at 1.4% and the broader US equity ETF at 1.2%. Dividend yield is the cash income paid out each year as a percentage of the investment value. This level is modest and suggests that most of the portfolio’s total return will likely come from price changes rather than payouts. That’s common for strategies emphasizing broad US equities, especially when they include many companies that reinvest earnings back into growth. Dividends still contribute a steady component to overall return, but this portfolio is better described as growth‑tilted with some income, rather than focused on high dividend payments.
Ongoing product costs
- American Century ETF Trust - Avantis U.S. Large Cap Value ETF 0.15%
- Avantis® U.S. Equity ETF 0.15%
- Weighted costs total (per year) 0.15%
Total ongoing costs are low at about 0.15% per year across the portfolio. This annual fee, often called the Total Expense Ratio (TER), is the share of assets used to run the funds. Costs compound over time just like returns, so keeping them modest is generally helpful for long‑term performance. Here, fees are impressively low relative to many active or specialized strategies, and they align well with what you’d expect from cost‑conscious, rules‑based equity ETFs. With such small drag from expenses, most of the portfolio’s performance will reflect the underlying market exposure and factor tilts rather than being eroded by high management charges.
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