Balanced factor tilted mix with strong diversification and efficient risk and return tradeoff
Report created on Jun 29, 2026Risk profile
4/7
Diversification profile
5/5
Positions
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SP State Street® SPDR® Portfolio S&P 500® ETF
SPYM - US78464A8541 50.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 20.00% -
AV Avantis International Large Cap
AVIV - US0250723642 10.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00% -
VT Vanguard Tax-Exempt Bond Index Fund ETF Shares
VTEB - US9229077469 10.00%
This portfolio is built around a core US large‑cap index fund at 50%, complemented by 40% in factor‑tilted small and large caps and 10% in tax‑exempt bonds. The structure mixes broad market exposure with more specialized value and smaller‑company strategies, plus a modest bond cushion. That combination lines up well with a “balanced” risk profile: most of the engine comes from stocks, while bonds play a smaller stabilizing role. The high diversification score reflects the spread across different fund providers, styles, and company sizes. Overall, the design leans toward growth and equity risk, but with enough variety that no single satellite fund, aside from the S&P 500 core, dominates the picture.
Growth
From late 2021 to mid‑2026, $1,000 grew to about $1,749, for a compound annual growth rate (CAGR) of 12.58%. CAGR is like your average speed on a road trip, smoothing out the ups and downs along the way. Over this period, the portfolio slightly trailed the US market by 0.98% a year but outpaced the global market by 0.83% a year. The maximum drawdown of about -23% was a bit milder than the US and global benchmarks, and the recovery took 15 months after a 9‑month slide. Most returns came from just 20 days, underscoring how missing a few strong days can heavily affect outcomes. Past performance is helpful context, but it doesn’t guarantee future results.
Projection
The Monte Carlo simulation runs 1,000 alternate futures based on historical behavior to show a range of possible 15‑year outcomes. It suggests a median result of roughly $2,684 from a $1,000 starting point, with a central “likely” band between about $1,762 and $3,992. Monte Carlo is like rolling loaded dice many times using past data to estimate how often different paths might occur. The average simulated annual return of 7.74% includes both good and bad markets. There is a 73.3% chance of ending with more than you started, but outcomes range from roughly flat to very strong. These numbers are model‑based estimates, not promises, and they rely on the future behaving broadly like the past.
Asset classes
- No data 50%
- Stocks 40%
- Bonds 10%
The asset‑class view shows 40% in stocks, 10% in bonds, and 50% marked as “no data,” where the system lacks asset‑class labels. That “no data” bucket almost certainly contains meaningful holdings, but it can’t be classified here, so it’s best treated as unknown rather than assumed to be stock or bond exposure. The clearly identifiable 10% bond slice provides a modest ballast against equity swings; bonds often move differently from stocks, which can soften portfolio volatility. Compared with many broad equity benchmarks that are nearly 100% stock, this mix has a small, stabilizing fixed‑income element. The presence of a tax‑exempt bond fund also hints at a focus on after‑tax income within that slice.
Sectors
- Financials 8%
- Industrials 8%
- Consumer Discretionary 6%
- Basic Materials 6%
- Energy 5%
- Technology 2%
- Consumer Staples 2%
- Health Care 1%
- Telecommunications 1%
This breakdown covers the equity portion of your portfolio only.
Sector data captures only part of the portfolio, but within that slice, exposure is spread across financials, industrials, consumer discretionary, materials, energy, technology, staples, health care, and telecom, with financials and industrials on top at 8% each. Tech shows as only 2% in this view, likely because much of the big‑tech exposure sits elsewhere in funds not fully captured by this sector breakdown. Having several sectors represented helps reduce the risk that one industry’s cycle dominates overall results. At the same time, value‑tilted strategies often lean more toward economically sensitive areas like financials and industrials, which can make the portfolio respond more strongly to the business cycle than a pure market‑cap index alone.
Regions
- North America 14%
- Europe Developed 13%
- Japan 9%
- Australasia 2%
- Africa/Middle East 1%
- Asia Developed 1%
This breakdown covers the equity portion of your portfolio only.
Geography data shows meaningful diversification beyond North America, with Europe Developed at 13%, Japan at 9%, and smaller slices in Australasia, Africa/Middle East, and other developed Asia. That pattern is in line with the presence of international large and small‑cap funds and helps spread economic and currency exposure across multiple regions. Compared with a purely US‑focused approach, this global mix can reduce the impact of any single country’s policy shifts or economic slowdown. It also means returns may differ from the US market at times, both positively and negatively. The geographic spread is a key reason the diversification score is high and matches common global allocation principles.
Market capitalization
- Mid-cap 14%
- Small-cap 13%
- Micro-cap 6%
- Large-cap 4%
- Mega-cap 4%
This breakdown covers the equity portion of your portfolio only.
By market capitalization, the portfolio leans meaningfully into mid‑caps, small‑caps, and even micro‑caps, with less weight in large and mega‑caps in the portion where data is available. Market cap describes company size by stock market value; smaller companies tend to be more volatile but can offer different growth and value characteristics than giants. This size mix makes the portfolio’s behavior likely to differ from a classic large‑cap‑dominated index, sometimes outperforming when smaller companies are in favor and lagging when mega‑caps lead. The blend of sizes adds another layer of diversification, because company size is an independent driver of returns alongside sector and geography.
True holdings
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NV NVIDIA Corporation 3.95%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
-
AA Apple Inc. 3.52%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
-
MS Microsoft Corporation 2.57%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
-
AM Amazon.com Inc 2.03%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
-
GO Alphabet Inc Class A 1.70%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
-
AV Broadcom Inc 1.63%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
-
GO Alphabet Inc Class C 1.35%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
-
ME Meta Platforms Inc. 1.06%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
-
TS Tesla Inc 0.94%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- State Street® SPDR® Portfolio S&P 500® ETF
-
MU Micron Technology Inc 0.84%
Part of fund(s):- State Street® SPDR® Portfolio S&P 500® ETF
- Top 10 total 19.60%
This breakdown covers the equity portion of your portfolio only.
Looking through ETF top‑10 holdings, familiar big names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Micron appear, mostly via the S&P 500 fund. These positions add a growth and technology flavor on top of the explicit value tilts elsewhere. Because only about 23% of the portfolio is captured at this level and overlap is based on ETF top‑10s, hidden concentration is likely understated. Still, seeing the same company across multiple funds indicates some stacking of exposure. In practice, large index‑constituent overlap is normal and often intentional, but it does mean that headline events around a few mega‑cap firms can noticeably sway overall portfolio performance.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
The factor view shows a notable tilt toward value at 66%, while size, momentum, quality, yield, and low volatility are all in the neutral range around 50–59%. Factors are like investing “ingredients” that help explain why some stocks behave differently over time. A value tilt means the portfolio leans toward companies trading at lower prices relative to fundamentals, which historically has sometimes delivered extra return but also stretches of underperformance versus growth‑oriented stocks. Neutral readings in other factors suggest the portfolio behaves broadly like the market on those dimensions, rather than strongly targeting them. This combination creates a fairly focused style bet on value, layered on top of an otherwise balanced factor profile.
Risk contribution
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State Street® SPDR® Portfolio S&P 500® ETF
Weight: 50.00% 55.3% -
Avantis® International Small Cap Value ETF
Weight: 20.00% 20.9% -
Avantis® U.S. Small Cap Value ETF
Weight: 10.00% 13.0% -
Avantis International Large Cap
Weight: 10.00% 10.1% -
Vanguard Tax-Exempt Bond Index Fund ETF Shares
Weight: 10.00% 0.7%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. The 50% S&P 500 fund contributes about 55% of total risk, roughly in line with its size. The US small‑cap value ETF, at just 10% weight, contributes about 13% of risk, showing that smaller, value‑tilted stocks are more volatile per dollar invested. In contrast, the 10% tax‑exempt bond fund adds less than 1% of total risk, acting as a stabilizer. The top three positions account for about 89% of portfolio risk, which means most day‑to‑day movement comes from the equity sleeve, while bonds minimally affect volatility despite their meaningful role in income and capital preservation.
Redundant positions
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High correlationAvantis® International Small Cap Value ETFAvantis International Large Cap
The correlation data flags that the international small‑cap value ETF and the international large‑cap ETF have moved almost identically historically. Correlation measures how assets move together: a value of 1 means they tend to rise and fall in lockstep, while 0 would mean they move independently. High correlation between these two funds suggests that, despite targeting different company sizes, they are exposed to similar regional and style drivers. This doesn’t remove diversification benefits versus US holdings, but it does mean that within the international slice, the two funds may respond similarly during global shocks or broad value‑driven market moves, rather than providing dramatically different behavior.
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 sits on or very near the efficient frontier, meaning it uses its existing holdings in a way that’s already quite efficient. The efficient frontier is the curve showing the best expected return achievable for each risk level using only these funds at different weights. The portfolio’s Sharpe ratio of 0.61 (a measure of return per unit of risk above the risk‑free rate) is lower than the optimal Sharpe of 0.84 but much higher than the minimum‑variance mix. This indicates there is a more aggressive combination with better risk‑adjusted return, but the current mix still represents a thoughtful balance between volatility and expected return without obvious inefficiencies.
Dividends
- Avantis® International Small Cap Value ETF 2.80%
- Avantis International Large Cap 2.60%
- Avantis® U.S. Small Cap Value ETF 1.20%
- Vanguard Tax-Exempt Bond Index Fund ETF Shares 3.30%
- State Street® SPDR® Portfolio S&P 500® ETF 1.10%
- Weighted yield (per year) 1.82%
The overall dividend yield of about 1.82% reflects a mix of modest equity income and a relatively higher yield from the tax‑exempt bond ETF at 3.30%. Dividend yield is the annual cash payout as a percentage of price; it can be a meaningful part of total return over time, especially when reinvested. The international small and large value funds offer higher yields than the S&P 500 and US small‑cap value ETF, which is typical for value‑oriented strategies holding more mature, cash‑generative companies. This income profile means the portfolio’s long‑term growth likely leans more on price appreciation than on dividends alone, but there is still a steady baseline of cash distributions, particularly from the bond allocation.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis International Large Cap 0.25%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard Tax-Exempt Bond Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.13%
The weighted ongoing cost (TER) of about 0.13% per year is impressively low for an actively tilted and globally diversified mix. TER, or Total Expense Ratio, is like a small automatic service fee charged by the funds; lower fees generally leave more of any gross return in your pocket. Here, the cheapest piece is the Vanguard tax‑exempt bond ETF at 0.05%, while the more specialized Avantis funds sit between 0.25% and 0.36%. For the overall structure and factor tilts you’re getting, this blended cost is very competitive relative to many multi‑fund portfolios, which supports stronger net performance over long horizons as compounding magnifies even small fee differences.
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