Focused three fund equity portfolio with strong US tilt and value factor exposure
Report created on Apr 12, 2026Risk 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
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VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 70.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 15.00%
This is a very clean three-fund setup: roughly 70% in a broad US total market fund, 15% in a dedicated US small-cap value ETF, and 15% in a broad international stock fund. So it’s 100% in equities with no bonds or cash buffers. That makes the structure easy to understand and simple to maintain, which is a big plus. The flip side is that portfolio ups and downs will closely track global stock markets. For someone wanting growth and willing to accept volatility, this kind of straightforward all‑equity mix can be a solid core building block.
Growth
From late 2019 to early 2026, $1,000 grew to about $2,380, which is a compound annual growth rate (CAGR) of 14.23%. CAGR is basically the “average yearly speed” of growth over the whole period. That slightly lagged the US market but beat the global market, which is a nice outcome for a simple structure. The worst drop was about -36% in early 2020, with recovery in roughly five months. That kind of drawdown is normal for all‑equity portfolios but can feel rough in real time, so it’s important to be comfortable sitting through similar swings.
Projection
The Monte Carlo projection uses past return and volatility patterns to simulate many possible 15‑year paths, like running thousands of “what if” futures. The median outcome turns $1,000 into about $2,655, with a wide but reasonable range around that. About 74% of simulations end positive, and the average simulated annual return is 8.16%. This gives a sense of potential outcomes, not a promise. Monte Carlo is limited by the fact that it relies on historical behavior and can’t foresee new regimes or extreme events. It’s best viewed as a planning tool to frame expectations, not a forecast to rely on.
Asset classes
- Stocks 100%
All of the portfolio is in stocks, with no allocation to bonds, cash, or alternative assets. That’s very much in line with a “growth investor” profile, especially for longer horizons, because equities historically have higher returns but bigger drawdowns. Compared with a typical balanced portfolio, this is clearly on the aggressive side in terms of risk. The upside is strong long‑term growth potential if markets cooperate; the downside is larger swings and slower recoveries in bear markets. For someone needing near‑term withdrawals or with low risk tolerance, this level of concentration in one asset class could feel uncomfortable.
Sectors
- Technology 25%
- Financials 16%
- Industrials 12%
- Consumer Discretionary 11%
- Health Care 9%
- Telecommunications 8%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 3%
- Real Estate 2%
- Utilities 2%
Sector exposure is led by technology at 25%, with financials, industrials, consumer discretionary, and health care all meaningfully represented. No single sector dominates the way pure tech‑heavy portfolios do, which is a positive sign for diversification. Compared to broad market benchmarks, the sector mix looks reasonably balanced and aligns well with global norms. That helps smooth the ride when specific sectors fall out of favor. Still, a quarter in tech means results will be sensitive to interest rates and innovation cycles. The overall impression is that sector risk is well spread, supporting a solid core‑equity structure.
Regions
- North America 86%
- Europe Developed 6%
- Japan 2%
- Asia Developed 2%
- Asia Emerging 2%
- Australasia 1%
- Latin America 1%
- Africa/Middle East 1%
Geographically, about 86% of the equity exposure is in North America, with the rest spread across Europe, Japan, developed Asia, emerging Asia, and smaller allocations to other regions. That’s more US‑tilted than global market weights, which is common for US‑based investors. This tilt has been rewarded recently, as US stocks outperformed much of the world. The trade‑off is higher dependence on one economy and currency. If US markets underperform, the portfolio won’t get as much benefit from strong periods elsewhere. Adding more non‑US exposure would generally broaden diversification, but the current setup is still reasonably global.
Market capitalization
- Mega-cap 35%
- Large-cap 26%
- Mid-cap 16%
- Small-cap 13%
- Micro-cap 8%
The market‑cap mix is spread across mega‑cap (35%), large‑cap (26%), mid‑cap (16%), small‑cap (13%), and micro‑cap (8%). That’s nicely diversified across company sizes and more tilted to smaller companies than a pure market‑cap index, thanks to the 15% small‑cap value position. Smaller companies tend to be more volatile but can offer higher long‑term return potential, while mega‑caps provide stability and liquidity. This blend gives participation in both the big global leaders and the more niche, domestically focused firms. It’s a good example of using size exposure intentionally without letting small or micro‑caps dominate the risk profile.
True holdings
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NV NVIDIA Corporation 4.33%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 4.12%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 3.09%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 2.14%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.92%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.60%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.51%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.49%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 1.20%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
BR Berkshire Hathaway Inc 0.96%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 22.35%
Looking through the ETFs, the largest underlying exposures are the familiar US mega‑caps: NVIDIA, Apple, Microsoft, Amazon, Alphabet, and so on. Together, the top ten names already make up a meaningful slice of the equity exposure, and many appear in more than one fund. That overlap means performance is more tied to a handful of big companies than the fund count suggests. Because only ETF top‑10 holdings are used, this concentration is likely understated. The key takeaway is that while the portfolio owns thousands of stocks on paper, the short‑term results will still lean heavily on a small group of US giants.
Factors
Factor exposure shows a notable tilt toward value at 60%, while size, momentum, quality, yield, and low volatility all sit in a neutral range. Factors are like underlying “traits” of stocks that research links to returns, and a mild value tilt means more emphasis on cheaper‑priced companies relative to fundamentals. That can help during periods when growth stocks lag, but it can also mean underperformance when expensive growth names are in favor. The neutral readings elsewhere suggest the portfolio behaves broadly like the overall market on those dimensions, which keeps the factor profile balanced instead of being pulled in many directions at once.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 70.00% 69.3% -
Avantis® U.S. Small Cap Value ETF
Weight: 15.00% 18.4% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 15.00% 12.3%
Risk contribution shows how much each holding adds to overall ups and downs, which can differ from its weight. The US total market fund is 70% of the portfolio and contributes about 69% of the risk, so its impact is very proportional. The small‑cap value ETF is 15% by weight but about 18% of risk, reflecting its higher volatility. The international fund is 15% of weight but only 12% of risk, partly because foreign markets don’t move in perfect lockstep with the US. For fine‑tuning, adjusting the small‑cap value slice would have the biggest marginal effect on overall risk, despite being a minority position.
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 mix sits right on or very close to the efficient frontier, which is the curve of best possible returns for each risk level using these same funds. The Sharpe ratio of 0.56 is a bit below the maximum Sharpe of 0.72, but the difference isn’t huge, and both risk and return are in a similar ballpark. That means the allocation is already using these holdings in an efficient way for its chosen risk level. Any tweaks would be about small trade‑offs between slightly higher expected return and slightly different volatility, not fixing a broken structure.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.30%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.38%
The overall dividend yield is about 1.38%, with the international fund paying the most and the small‑cap value fund also contributing. Dividends are the cash payouts companies make to shareholders, and over decades they can be a meaningful piece of total return, especially when reinvested. In this setup, the income stream is modest but consistent with a growth‑oriented equity mix where more of the return is expected from price appreciation. For someone focused on long‑term compounding rather than current income, a lower yield is not a concern as long as total return remains strong.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.07%
Total ongoing costs are very low at around 0.07% per year, driven by the ultra‑cheap Vanguard funds and a reasonably priced Avantis ETF. This expense ratio is well below what many investors pay for similar exposures, and that’s a real advantage. Fees come off returns every single year, so even small differences compound into big gaps over time. Here, the cost structure is a clear strength and fully in line with best practices for long‑term investing. Keeping this kind of low‑fee foundation is one of the most reliable ways to support better outcomes without taking extra risk.
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