A value tilted global equity portfolio with solid diversification and strong historical growth characteristics
Report created on Mar 14, 2026Risk profile
5/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 40.00% -
VY Vanguard International High Dividend Yield Index Fund ETF Shares
VYMI - US9219467944 30.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 20.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 10.00%
This portfolio is a pure equity mix built from four ETFs, with 40% in a broad large cap index, 30% in international dividend payers, and 30% in small cap value across US and international markets. Compared with a typical global equity benchmark, it leans more into smaller and higher yielding companies while still anchoring to a major large cap index. This structure is clearly growth oriented, with little built in capital preservation. For someone wanting to smooth the ride, gradually introducing a modest allocation to defensive assets like high quality bonds or cash-like instruments could help temper large drawdowns while keeping most of the growth profile intact over long horizons.
Growth
Using a simple example, a 10,000 dollar investment growing at the historical CAGR of 14.98% would have increased roughly fivefold over 10 years, which is a very strong result relative to broad equity benchmarks. However, that growth came with a maximum drawdown of about –38%, meaning at one point the portfolio value may have fallen from 100,000 to around 62,000 before recovering. This pattern is typical of growth-focused equity allocations. It’s useful to accept that such declines are normal. Building a written plan for how to behave during large drops, such as preset rebalancing rules or cash buffers, can help avoid panic selling at the worst times.
Projection
Monte Carlo analysis runs many randomized simulations using historical return and volatility patterns to estimate a range of future outcomes. Here, 1,000 simulations show an annualized return around 16.6%, with the median path turning 100 dollars into about 651 dollars over the period, while the 5th percentile ends near 159 dollars. This wide spread highlights both upside potential and downside risk. Because Monte Carlo relies on past data and assumptions that markets behave similarly in the future, its outputs are not promises. Treat the projections as rough weather maps, not precise forecasts, and use them to sanity check whether current risk levels match your comfort with potential bad-case scenarios.
Asset classes
- Stocks 99%
The allocation is 99% stocks and effectively 0% cash or other asset classes, which is very aggressive compared with many balanced portfolios that include bonds or cash buffers. This stock-heavy stance is great for long-term growth but can be emotionally and financially challenging during deep market downturns. It’s closely aligned with growth benchmarks and is well-suited to investors who can tolerate significant volatility. For anyone with shorter-term spending needs or lower risk tolerance, carving out even 10–20% into more stable assets could meaningfully reduce swings without completely sacrificing growth, especially if that portion is earmarked for near-term goals or emergency liquidity.
Sectors
- Financials 24%
- Technology 16%
- Consumer Discretionary 12%
- Industrials 11%
- Energy 8%
- Health Care 6%
- Telecommunications 6%
- Basic Materials 6%
- Consumer Staples 5%
- Utilities 3%
- Real Estate 1%
Sector exposure is broad: financials (24%), technology (16%), consumer cyclicals and industrials together over 20%, with energy, healthcare, communication services, materials, defensive, utilities, and a bit of real estate rounding things out. This broad spread is very much in line with diversified global equity standards and indicates there is no extreme dependence on a single theme like tech or energy. During interest rate changes or economic cycles, certain sectors may lag, but others typically offset some of the impact. Keeping this balanced, benchmark-like sector mix is a strength. Periodically checking that no single sector drifts excessively above, say, 25–30% can help maintain this healthy balance.
Regions
- North America 63%
- Europe Developed 17%
- Japan 8%
- Asia Developed 3%
- Australasia 3%
- Asia Emerging 3%
- Africa/Middle East 2%
- Latin America 1%
Geographically, the portfolio holds about 63% in North America, 17% in developed Europe, and the rest across Japan, other developed Asia, emerging Asia, Latin America, and Africa/Middle East. This is slightly more international than a typical US investor who often holds 70–80% domestic, which is a positive sign for diversification. Global exposure helps reduce reliance on any single country’s economy or currency. On the flip side, international markets can lag the US for long stretches, which may feel frustrating. Sticking with this global mix supports long-term resilience. If desired, adjusting the US versus international share over time can help align with personal beliefs about future regional growth.
Market capitalization
- Mega-cap 34%
- Large-cap 24%
- Mid-cap 17%
- Small-cap 15%
- Micro-cap 10%
The market cap mix—34% mega, 24% big, 17% medium, 15% small, and 10% micro—shows a clear tilt toward smaller companies compared with a typical large cap dominated index. This is intentional given the dedicated small cap value funds. Smaller companies historically have offered higher potential returns but also greater volatility and deeper drawdowns. This structure is well-suited to someone willing to endure short-term bumps for potential long-term benefit. To keep the small and micro exposure from becoming uncomfortably large after strong runs, setting simple guardrails—for example, keeping combined small and micro within a target band—can help control risk while still benefiting from the size tilt.
True holdings
-
NV NVIDIA Corporation 3.14%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 2.59%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.16%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.57%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.33%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.06%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.06%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.05%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 0.82%
Part of fund(s):- Vanguard S&P 500 ETF
-
BR Berkshire Hathaway Inc 0.60%
Part of fund(s):- Vanguard S&P 500 ETF
- Top 10 total 15.37%
Looking through to the top underlying holdings, a meaningful portion of exposure sits in mega-cap US names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla, mostly via the large cap index fund. These stocks dominate global benchmarks, so this alignment indicates the portfolio is not missing key market drivers. Still, the look-through only covers about 22% of ETF holdings, so true overlap and concentration are likely more diversified than they appear. It helps to view these big names as core engines of growth while remembering that the value and small cap ETFs add thousands of smaller positions in the background, reducing the risk of overreliance on any single company.
Factors
Factor exposure strongly favors value, size, and yield, with moderate momentum and low volatility and no clear quality data. Factor investing targets characteristics like value (cheaper stocks), size (smaller companies), and yield (higher dividends) that research has linked to long-run returns. This portfolio is clearly designed around these ingredients rather than just mirroring the overall market. In roaring growth-led markets, this tilt can lag flashy high-priced names, but in cycles where cheaper and smaller companies come back into favor, it can outperform. Understanding that factor cycles can last years is key. Staying consistent through underperformance phases usually matters more than trying to time shifts between factors.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 40.00% 38.6% -
Avantis® U.S. Small Cap Value ETF
Weight: 20.00% 26.4% -
Vanguard International High Dividend Yield Index Fund ETF Shares
Weight: 30.00% 26.1% -
Avantis® International Small Cap Value ETF
Weight: 10.00% 9.0%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from its simple weight. Here, the large cap index at 40% weight contributes about 39% of risk, the US small cap value fund at 20% weight adds over 26% of risk, and the international dividend fund at 30% carries about 26% of risk. The small cap value fund clearly punches above its weight, reflecting higher volatility. This setup is still broadly reasonable for a growth profile. If future swings from small caps feel too intense, trimming that slice slightly and adding to the more diversified large cap or dividend-focused holdings could rebalance the risk without changing the overall philosophy.
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.
Risk versus return can be framed using the Efficient Frontier, which is the set of allocations between these existing ETFs that would give the best possible trade-off between volatility and expected return. Efficiency here doesn’t mean “safest” or “most diversified,” just the best ratio of return per unit of risk given these four building blocks. With such strong small cap value and international tilts, a slightly higher weight in the large cap index could, in theory, move the portfolio closer to that frontier by reducing volatility more than it reduces expected return. Any shifts should be guided by comfort with drawdowns and time horizon rather than chasing a mathematically perfect mix.
Dividends
- Avantis® International Small Cap Value ETF 3.00%
- Avantis® U.S. Small Cap Value ETF 1.80%
- Vanguard S&P 500 ETF 1.20%
- Vanguard International High Dividend Yield Index Fund ETF Shares 3.50%
- Weighted yield (per year) 2.19%
The overall dividend yield of about 2.19% comes mainly from the international high dividend fund (3.5%) and the international small cap value fund (3.0%), with modest income from US components. This is a nice middle ground: higher income than a pure growth portfolio but still oriented toward long-term appreciation rather than maximum yield. Dividends can provide a helpful psychological anchor, as cash payments keep arriving even when prices are down. They can also be reinvested to buy cheaper shares during downturns. If dependable income is a key goal, gradually adding more to the higher-yielding sleeves over time could raise the overall payout, while keeping in mind that chasing yield alone can sometimes increase risk.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard S&P 500 ETF 0.03%
- Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
- Weighted costs total (per year) 0.16%
Total costs around 0.16% per year are impressively low for an actively tilted factor-style portfolio. The large cap index fund is extremely cheap at 0.03%, and even the more specialized small cap value and international dividend funds are reasonably priced. Low fees matter because they come out every year regardless of performance, and even small differences compound significantly over decades. This cost structure is a real strength and aligns well with best practices for long-term investing. Continuing to favor broadly diversified, low-cost funds when making any future changes will help preserve more of the portfolio’s returns for you instead of giving them up to expenses.
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