Strong factor tilted equity portfolio with balanced risk level and global diversification focus

Report created on Apr 10, 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 spread across six ETFs, with a strong core–satellite structure. About half sits in a broad US core fund, roughly one-third in international and emerging equities, and the rest in small-cap value and a focused semiconductor slice. This layout matters because the core funds provide broad market exposure, while the satellites tilt toward specific styles and themes that can drive long-term outperformance but add some lumpiness. A practical takeaway is that the structure is already thoughtfully designed: broad, diversified anchors plus targeted tilts. Anyone adjusting this kind of setup would usually think in terms of fine-tuning weights, not rebuilding from scratch.

Growth Info

Over the period from mid-2021 to early 2026, $1,000 grew to about $1,702, a compound annual growth rate (CAGR) of 11.69%. CAGR is like your average yearly “speed” on a long road trip, smoothing out bumps. That return slightly lagged the US market by 0.19% a year but beat the global market by over 2% a year, which is a solid outcome. The max drawdown of about -24.6% was similar to both benchmarks, meaning downside pain was broadly in line with the wider market. This shows the portfolio is behaving like a balanced equity strategy: strong growth potential with volatility similar to broad equity indices.

Projection Info

The Monte Carlo projection runs 1,000 simulated futures based on how similar portfolios have behaved historically. Think of it as shuffling and replaying past returns in many different sequences to see a range of possible outcomes. The median scenario turns $1,000 into about $2,875 over 15 years, roughly an 8.3% annualized return across all simulations. But outcomes vary widely, from roughly flat to very strong growth. This reinforces a key point: even with a solid expected return, actual results can swing a lot. The 74% chance of a positive outcome is encouraging, but it still leaves real room for disappointing paths, especially over shorter horizons.

Asset classes Info

  • Stocks
    100%

All of the capital is invested in stocks, with no bonds, cash-like assets, or alternatives. That’s why the portfolio is classified as “Balanced” rather than “Conservative” or “Aggressive” based on asset class mix alone; the balance comes from factor, size, and geographic diversification inside equities, not from adding safer assets. This full-equity stance is powerful for long-term growth but can feel rough in deep downturns when there’s no built-in shock absorber. A typical takeaway is that this setup is best aligned with investors who can ride out big swings without needing to draw heavily on the portfolio during bad markets.

Sectors Info

  • Technology
    24%
  • Financials
    16%
  • Industrials
    13%
  • Consumer Discretionary
    11%
  • Energy
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Basic Materials
    6%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Real Estate
    1%

Sector exposure is nicely spread, with technology the largest at 24%, followed by meaningful stakes in financials, industrials, consumer discretionary, and energy. Tech does modestly lead the pack, and the dedicated semiconductor ETF adds an extra growth-tilted layer there. This matters because tech-heavy allocations can shine in innovation-driven booms but may be more sensitive when rates rise or when markets rotate into more defensive areas. The good news is that the rest of the portfolio is well diversified across cyclical and defensive sectors, so the sector mix overall looks broadly balanced and in line with common diversified equity benchmarks.

Regions Info

  • North America
    73%
  • Europe Developed
    13%
  • Japan
    7%
  • Asia Developed
    2%
  • Australasia
    2%
  • Asia Emerging
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 73% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, Australasia, and small slices of emerging regions. This is somewhat US-leaning but still meaningfully international, which is close to how many global equity benchmarks look today. Geographic spread matters because different economies, currencies, and political environments can drive very different return patterns over time. Having both domestic and overseas exposure reduces the risk that a single region’s slump dictates total performance. The allocation is well-balanced and aligns closely with global standards, offering a solid base of geographic diversification.

Market capitalization Info

  • Mega-cap
    29%
  • Large-cap
    23%
  • Mid-cap
    21%
  • Small-cap
    17%
  • Micro-cap
    9%

The portfolio spans the full market-cap spectrum: roughly 52% in mega and large caps, 21% in mid caps, and a hefty 26% in small and micro caps. That’s a clear tilt toward smaller companies compared with a typical market-cap-weighted index, which usually leans much more heavily on mega/large caps. Smaller stocks can offer higher long-term return potential but tend to be more volatile and more sensitive to economic cycles. This size mix helps explain why the risk score is mid-range: it behaves more energetically than a pure large-cap index but still has a stabilizing core in bigger, established companies.

True holdings Info

  • NVIDIA Corporation
    3.85%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
    • Invesco PHLX Semiconductor ETF
  • Apple Inc
    2.90%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
  • Microsoft Corporation
    2.26%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
  • Amazon.com Inc
    1.55%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
  • Broadcom Inc
    1.54%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
    • Invesco PHLX Semiconductor ETF
  • Alphabet Inc Class A
    1.27%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
  • Alphabet Inc Class C
    1.04%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
  • Meta Platforms Inc.
    1.02%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
  • Tesla Inc
    0.78%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
    • LS 1x Tesla Tracker ETP Securities GBP
  • JPMorgan Chase & Co
    0.60%
    Part of fund(s):
    • Dimensional US Core Equity Market ETF
  • Top 10 total 16.81%

Looking through the ETFs, the biggest underlying exposures are familiar large US names like NVIDIA, Apple, Microsoft, Amazon, Broadcom, Alphabet, Meta, Tesla, and JPMorgan, each still a relatively small slice individually. The presence of these companies across multiple funds creates some hidden concentration, because the same stock can show up several times even if you only see fund names. That said, no single company dominates the portfolio, which is healthy. Since the look-through data only covers ETF top-10 holdings, actual overlaps are probably higher, but still comfortably diversified for an equity-only portfolio.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 100%
Size
Exposure to smaller companies
High
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Neutral
Data availability: 100%
Yield
Preference for dividend-paying stocks
Neutral
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
Neutral
Data availability: 100%

Factor exposure shows strong tilts toward value (64%) and size (62%), with all other factors roughly neutral. Factors are like return “ingredients” such as cheapness (value) or company size that research links to long-term performance. A high value tilt means more exposure to stocks trading at lower prices relative to fundamentals, which historically have done well over very long horizons but can lag in growth-driven markets. The size tilt pushes toward smaller companies, boosting both upside potential and volatility. Neutral readings in momentum, quality, yield, and low volatility suggest a balanced profile there, without heavy dependence on any single style.

Risk contribution Info

  • Dimensional US Core Equity Market ETF
    Weight: 49.00%
    47.3%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 17.00%
    20.0%
  • Dimensional International Core Equity Market ETF
    Weight: 16.00%
    13.2%
  • Avantis® International Small Cap Value ETF
    Weight: 10.00%
    8.6%
  • Invesco PHLX Semiconductor ETF
    Weight: 5.00%
    8.6%
  • Top 5 risk contribution 97.6%

Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from its weight. The US core ETF is 49% of the portfolio and contributes about 47% of the risk, so it behaves proportionally. The US small-cap value fund is 17% of the weight but adds 20% of the risk, reflecting its higher volatility. The semiconductor ETF stands out: at just 5% weight, it contributes 8.6% of total risk, a risk/weight ratio of 1.71. That’s the “loud instrument in the orchestra.” It’s a focused return driver but also a notable source of extra bumpiness.

Redundant positions Info

  • Dimensional International Core Equity Market ETF
    Avantis® International Small Cap Value ETF
    High correlation

The correlation data shows that the international small-cap value ETF moves very similarly to the international core ETF. Correlation measures how often assets move together; high correlation means they tend to rise and fall in sync. When two holdings are highly correlated, combining them doesn’t add as much diversification benefit as it might appear from the number of line items. Here, the pair still adds useful style and size tilts, but their risk patterns overlap. The main diversification levers in this portfolio come more from mixing US vs. international, large vs. small, and value vs. broad market than from within-international fund differences.

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 has a Sharpe ratio of 0.5, below both the optimal portfolio (0.83) and even the minimum-variance mix (0.61). The Sharpe ratio measures return per unit of risk above the risk-free rate, like how efficiently each “unit” of volatility is being used. The current portfolio sits about 2.2 percentage points below the efficient frontier at its risk level, meaning there’s room to improve without adding new holdings, just by reweighting what’s already here. This doesn’t mean the portfolio is bad; it’s already decent, but it’s not squeezing the maximum risk-adjusted benefit from its components.

Dividends Info

  • Avantis® International Small Cap Value ETF 2.80%
  • Avantis® Emerging Markets Equity ETF 2.30%
  • Avantis® U.S. Small Cap Value ETF 1.30%
  • Dimensional International Core Equity Market ETF 2.30%
  • Dimensional US Core Equity Market ETF 1.00%
  • Invesco PHLX Semiconductor ETF 0.40%
  • Weighted yield (per year) 1.45%

The overall dividend yield sits around 1.45%, with higher payouts from the international and emerging funds and lower yields from the US core and semiconductor exposure. Dividend yield is simply the annual cash payment as a percentage of price, and it can help smooth returns, especially when markets are flat. In this portfolio, dividends play a supportive but not dominant role; it’s clearly built for total return rather than income. For someone not relying on current cash flow, a modest yield like this is perfectly fine and often reflects a tilt toward companies reinvesting earnings for growth.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Equity ETF 0.33%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Dimensional International Core Equity Market ETF 0.18%
  • Dimensional US Core Equity Market ETF 0.12%
  • Invesco PHLX Semiconductor ETF 0.19%
  • Weighted costs total (per year) 0.19%

The weighted average total expense ratio (TER) is about 0.19%, which is impressively low for an actively tilted, factor- and small-cap-heavy lineup. TER is the annual fee charged by funds, like a small haircut taken each year, and keeping it low leaves more of the return in your pocket. Several of the underlying funds are competitively priced, especially given their more advanced strategies. Over decades, even small fee differences compound meaningfully, so a sub-0.20% all-in cost is a genuine strength. The costs are impressively low, supporting better long-term performance and giving the portfolio a structural advantage.

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