A portfolio that's all in on small caps like it's collecting rare coins
Report created on Dec 4, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 50.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 30.00% -
AV Avantis® Emerging Markets Value ETF
AVES - US0250723725 20.00%
This portfolio is like a tricycle trying to compete in the Tour de France. With 50% in U.S. small cap value ETFs, 30% in international small cap value ETFs, and 20% in emerging markets value ETFs, it's as if diversification was understood but only in the context of small cap value stocks. It's like deciding to diversify your diet by eating different flavors of the same brand of ice cream.
Growth
Historically, this portfolio has shown the resilience of a cockroach with an 11.67% CAGR, despite a max drawdown that could give investors a heart attack at -23.13%. It’s like riding a roller coaster in the dark; thrilling returns when you’re up, but the drops are downright terrifying. The days contributing to 90% of returns are so few, it's like winning the lottery—exciting but not a strategy to bank on.
Projection
Monte Carlo simulations suggest this portfolio has the potential to either be a golden goose or a lame duck, with a median projection of 279.1% growth. However, relying on simulations is like predicting the weather with a magic 8-ball; it's an educated guess at best. The wide range of outcomes underscores the volatility and uncertainty inherent in heavily leaning on small cap value stocks.
Asset classes
- Stocks 100%
Putting 100% into stocks is like going all-in on red at the roulette table—exciting when it works, but there's no safety net if it doesn’t. The absence of bonds or other asset classes eliminates any buffer against market volatility, making this portfolio a thrill ride without seat belts.
Sectors
- Financials 24%
- Industrials 18%
- Consumer Discretionary 17%
- Energy 12%
- Basic Materials 11%
- Technology 7%
- Consumer Staples 4%
- Health Care 3%
- Telecommunications 3%
- Real Estate 1%
- Utilities 1%
The sector allocation has a heavy tilt toward financial services, industrials, and consumer cyclicals, making it look like a portfolio that’s preparing for an economic boom in the 1950s. While having a thematic focus can be rewarding, this approach risks missing out on growth in sectors like technology and healthcare, which are the actual engines of modern economic growth.
Regions
- North America 52%
- Japan 11%
- Europe Developed 11%
- Asia Emerging 10%
- Asia Developed 8%
- Australasia 3%
- Africa/Middle East 3%
- Latin America 2%
- Europe Emerging 1%
The geographic allocation has a strong home bias with over half in North America, sprinkled with a dash of developed and emerging markets for flavor. It’s like saying you're adventurous for adding pepper to your mashed potatoes. While it’s broadly diversified across regions, the heavy U.S. concentration may limit exposure to global growth opportunities.
Market capitalization
- Small-cap 34%
- Micro-cap 28%
- Mid-cap 22%
- Large-cap 9%
- Mega-cap 4%
This portfolio's fascination with small and micro caps is like betting on underdogs in every race. Sure, the potential for growth is tantalizing, but the volatility and risk are like riding a unicycle on a tightrope. The minimal allocation to big and mega caps misses out on the stability and steady growth these companies can offer.
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.
This portfolio’s risk-return profile is like juggling with knives. Sure, it's impressive when it works, but one slip and it's all tears. The heavy tilt towards small cap value stocks across the board is a high-risk, high-reward play that lacks the balance of a well-optimized portfolio, which ideally blends growth potential with risk management.
Dividends
- Avantis® International Small Cap Value ETF 3.30%
- Avantis® Emerging Markets Value ETF 3.70%
- Avantis® U.S. Small Cap Value ETF 1.60%
- Weighted yield (per year) 2.53%
The dividend yields are a silver lining, providing some income. However, relying on dividends from small cap value stocks is like expecting a steady paycheck from freelance gigs. It's a nice supplement but hardly a reliable income stream, especially in turbulent markets.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® Emerging Markets Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Weighted costs total (per year) 0.30%
With total expenses averaging 0.30%, at least the portfolio isn’t bleeding money in fees. It's like finding a decently priced meal at a tourist trap; you're still not getting the best value, but it could have been worse. Kudos for keeping costs under control amidst the chaos.
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