Strong small value tilt with diversified global equity exposure and efficient low cost implementation
Report created on Mar 29, 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.
What type of investor this portfolio is suitable for
Growth Investors
An investor well‑matched to this setup is comfortable with meaningful ups and downs in pursuit of higher long‑term growth, and can tolerate drawdowns of 30–40% without panicking. Goals might include building substantial wealth over decades, funding retirement that’s still many years away, or growing capital for long‑term family objectives. The investment horizon is typically 10 years or more, with no need to tap this money for near‑term spending. This kind of investor usually has stable income, separate emergency savings, and a temperament that can stick with a disciplined strategy even when small‑value or international stocks underperform popular large‑cap growth names for extended stretches.
Positions
-
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 25.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 25.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 25.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 25.00%
The structure is simple and very intentional: four equity ETFs at 25% each, split between domestic and international, and between broad-market and small-cap value tilts. That symmetry makes the portfolio easy to understand and maintain. Everything is in stocks, so short‑term ups and downs can be significant, but the mix blends broad index exposure with more aggressive factor-tilted sleeves. A setup like this usually aims to capture long‑term equity growth while adding an extra return “kick” from small and value premiums. The key takeaway is that this is a focused, all‑equity growth portfolio where risk comes from stocks only, not from bonds or alternatives.
Growth
From late 2019 to March 2026, $1,000 grew to about $2,204, a compound annual growth rate (CAGR) of 12.96%. CAGR is the “average speed” of growth per year, smoothing the ride. That’s slightly behind the U.S. market but ahead of the global market, which fits a design that mixes U.S. and international exposure with factor tilts. The max drawdown around -39.7% shows how deep the worst peak‑to‑trough drop was—meaning big temporary losses are part of the ride here. This level of volatility is typical for an aggressive all‑equity approach. For someone focused on long‑term growth, the result is broadly consistent with expectations, but it does demand emotional resilience during market stress.
Asset classes
- Stocks 100%
Asset allocation is straightforward: 100% in stocks, with no bonds, cash, or alternatives. That keeps the expected return higher over long horizons but also maximizes sensitivity to equity bear markets. There’s no built‑in “shock absorber” from safer assets, so portfolio value will move closely with global stock sentiment. For someone in an accumulation phase with a long time horizon, this kind of equity‑only structure can be appropriate, provided there’s separate emergency cash and stable assets for near‑term needs. As retirement or large spending goals approach, many investors gradually blend in bonds or cash‑like holdings to smooth volatility and reduce the risk of having to sell during a downturn.
Sectors
- Financials 19%
- Industrials 16%
- Technology 15%
- Consumer Discretionary 13%
- Energy 10%
- Basic Materials 9%
- Health Care 6%
- Telecommunications 5%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
Sector exposure is quite balanced: financials, industrials, and technology are all meaningful, with consumer, energy, materials, and others well represented. No single sector dominates, and this aligns quite closely with broad global equity patterns, just with a bit more weight naturally flowing to areas where smaller and cheaper companies cluster. This balance helps reduce the risk that one sector’s cycle derails overall performance. For example, if technology has a rough patch, financials or industrials may offset some of that weakness. This sector composition matching benchmark‑like diversification is a real strength, combining factor tilts with broad economic coverage rather than a narrow thematic bet.
Regions
- North America 54%
- Europe Developed 18%
- Japan 12%
- Asia Developed 4%
- Asia Emerging 4%
- Australasia 3%
- Africa/Middle East 2%
- Latin America 1%
Geographically, around 54% sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, and smaller allocations to Australasia, Latin America, and Africa/Middle East. That’s reasonably close to global market weights and provides genuine international diversification. Having almost half the portfolio outside North America can help if U.S. stocks underperform for a stretch, while still keeping a solid anchor in the world’s largest market. Currency movements and regional economic cycles will influence returns, so shorter‑term swings can differ from a purely U.S. portfolio. Overall, this global spread is well‑balanced and aligns closely with widely used world equity benchmarks.
Market capitalization
- Small-cap 25%
- Mid-cap 23%
- Mega-cap 22%
- Large-cap 15%
- Micro-cap 13%
The market cap mix is notably diversified: about 25% small‑cap, 23% mid‑cap, 13% micro‑cap, and the rest in large and mega‑caps. That’s a much bigger tilt toward smaller companies than a standard market‑cap index, which is dominated by large and mega names. Smaller firms tend to be more volatile and cyclical but historically have offered higher expected returns over long periods. The presence of mega and large‑caps still provides stability and liquidity, acting as an anchor. This blend creates a “barbell” across sizes, where the big holdings stabilize the portfolio while the smaller companies are the growth engine—with the tradeoff of bumpier performance year to year.
True holdings
-
NV NVIDIA Corporation 1.55%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 1.47%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 1.10%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 0.86%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
AM Amazon.com Inc 0.76%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.69%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 0.57%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 0.54%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.53%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.43%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 8.49%
Looking through the ETFs, the largest underlying exposures include familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, but each only around 0.5–1.5% of the total. That means there’s no single‑stock dominance, and the big tech names are present without overwhelming the small‑value theme. Because only ETF top‑10 holdings are shown, overlap is likely understated, yet even within this lens, concentration risk in any one company appears modest. This mix balances exposure to market leaders with a wide base of smaller companies underneath. The practical takeaway is that idiosyncratic risk from a single headline‑driven stock is limited, while broad market movements will still drive overall results.
Factors
Factor exposure is where this portfolio really stands out. Value at 71% and Size at 67% both show clear tilts toward cheaper and smaller companies. Low Volatility at 61% also leans mildly toward steadier names relative to the market. Factor investing targets traits—like value, size, or quality—that research links to long‑run return differences. A strong value and size tilt can outperform over decades but may lag badly during long pro‑growth, mega‑cap‑driven rallies, as seen recently. The higher low‑volatility exposure can soften some of that ride but won’t erase it. This is a deliberate, evidence‑based tilt that requires patience through inevitable stretches where growth or large caps dominate headlines.
Risk contribution
-
Avantis® U.S. Small Cap Value ETF
Weight: 25.00% 32.4% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 25.00% 23.6% -
Avantis® International Small Cap Value ETF
Weight: 25.00% 22.4% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 25.00% 21.6%
Risk contribution shows how much each holding drives total volatility, which can differ from its weight—like a small but loud instrument dominating an orchestra. The U.S. small‑cap value ETF is 25% of the portfolio yet contributes about 32% of the risk, reflecting its higher volatility. The other three funds each contribute slightly less risk than their weights. This means overall risk is somewhat concentrated in one sleeve, even though dollar allocation is equal. If the goal is to moderate swings, trimming that higher‑risk piece and boosting the more diversified broad funds could bring risk contribution closer to weights, without changing the overall building blocks.
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 portfolio has a Sharpe ratio of 0.62, below the optimal 0.74 achievable with the same set of funds but different weights. The Sharpe ratio measures return per unit of volatility—higher means better risk‑adjusted results. Being about 1.1 percentage points below the efficient frontier at the same risk level suggests there’s room to improve by reweighting, not by adding new products. Shifting slightly away from the highest‑risk sleeve toward the combination that defines the optimal point could raise expected return or lower risk for the same return. The good news: the building blocks are sound; it’s mainly a fine‑tuning question, not a structural problem.
Dividends
- Avantis® International Small Cap Value ETF 3.10%
- Avantis® U.S. Small Cap Value ETF 1.40%
- Vanguard Total Stock Market Index Fund ETF Shares 0.90%
- Vanguard Total International Stock Index Fund ETF Shares 3.00%
- Weighted yield (per year) 2.10%
The blended dividend yield is about 2.1%, with the international and international small value funds contributing higher yields, and the U.S. broad market and U.S. small value offering lower payouts. Dividends are the cash distributions companies pay out of profits—steady income that can be reinvested to compound returns. In an all‑equity, growth‑oriented setup like this, dividends are a nice secondary benefit rather than the main objective. Over time, reinvested dividends can add a meaningful chunk to total return, especially in value and international segments, but year‑to‑year income will fluctuate. For someone not relying on current income, automatically reinvesting dividends supports long‑term compounding.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- 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) 0.17%
The weighted average cost (TER) is about 0.17%, which is impressively low for a portfolio using specialized factor ETFs plus broad index funds. TER, or total expense ratio, is the annual fee the fund charges—like a small toll taken each year. Lower costs mean more of the gross return stays in your pocket, and the advantage compounds over decades. The use of ultra‑low‑cost Vanguard core funds combined with reasonably priced Avantis factor funds is a strong cost‑efficiency choice. There isn’t much room to reduce fees further without sacrificing the specific small‑value tilts, so from an expenses standpoint, this setup is already very well optimized.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey