Broad global equity mix with a strong small value tilt and efficient low cost structure
Report created on May 31, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 20.00%
This portfolio is a simple three‑fund mix, fully invested in stocks. About half is in a broad US total market fund, around a third in a broad international stock fund, and the remaining slice in a US small‑cap value ETF. So there’s a core of diversified global equities with an extra tilt toward smaller, cheaper US companies. This structure is easy to understand and manage because there are only a few moving parts. It lines up well with a “growth” risk profile since there are no bonds or cash buffers. The dedicated small value sleeve is what gives the portfolio its more distinctive character compared with a plain two‑fund global blend.
Growth
From late 2019 to May 2026, $1,000 grew to about $2,496, which is a compound annual growth rate (CAGR) of 14.73%. CAGR is like average speed on a road trip: it smooths the ride into one yearly number. Over the same period, the US market did better at 16.70% a year, while the global market was slightly lower at 14.11%. The portfolio’s max drawdown, or worst peak‑to‑trough fall, was about -37%, a bit steeper than the benchmarks’ roughly -34%. That shows strong growth with meaningful equity‑style volatility, and performance roughly tracking global stocks but lagging a pure US tilt.
Projection
The Monte Carlo projection uses past returns and volatility to simulate many possible 15‑year paths for $1,000, like rolling loaded dice thousands of times. The median outcome lands around $2,845, with a wide “middle band” from roughly $1,832 to $4,307. There’s about a three‑in‑four chance of ending positive and an average simulated annual return of 8.24%. This illustrates how even a single portfolio can lead to a range of future results. It’s important to remember simulations are based on history and assumptions; they can’t predict shocks or regime changes, so real‑world outcomes could be better or worse than the bands shown.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% in bonds, cash, or alternatives. An all‑equity mix usually means higher expected long‑term returns, but also larger ups and downs along the way. There’s no built‑in buffer from safer assets during market stress, so the full volatility of stocks shows up in account values. Compared with a more balanced stock‑bond split, this structure leans firmly into growth potential over stability. On the flip side, having 100% in equities keeps things straightforward and avoids the complexity of managing multiple asset types with different interest‑rate and credit sensitivities.
Sectors
- Technology 24%
- Financials 18%
- Industrials 12%
- Consumer Discretionary 11%
- Health Care 8%
- Telecommunications 7%
- Energy 7%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is spread across the economy, with technology around a quarter of the portfolio and financials, industrials, and consumer discretionary also significant. Health care, telecom, and energy form a middle layer, while staples, materials, utilities, and real estate are smaller. This pattern looks broadly similar to common global equity benchmarks, which is helpful for diversification because no single sector dominates excessively. Tech‑heavy allocations can be more sensitive to interest rates and innovation cycles, while financials and industrials respond more to economic growth. Overall, the sector mix is well‑balanced and aligns closely with global standards, supporting broad economic coverage.
Regions
- North America 72%
- Europe Developed 11%
- Asia Developed 5%
- Japan 5%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 72% is in North America, with the rest spread across Europe, developed Asia, Japan, and smaller slices in emerging regions. This lines up closely with global market weights, where the US and Canada together dominate equity market value. That US tilt has historically boosted returns over the last decade but also ties a lot of the outcome to a single region’s economy, policy, and currency. The international fund layer adds meaningful diversification, giving exposure to different growth drivers and monetary regimes. Relative to many home‑biased portfolios, this one is impressively globally diversified and matches common benchmark patterns well.
Market capitalization
- Mega-cap 34%
- Large-cap 24%
- Mid-cap 15%
- Small-cap 15%
- Micro-cap 10%
By market cap, the portfolio spans the full spectrum: roughly a third in mega‑caps, a quarter in large‑caps, and the rest in mid, small, and even micro‑caps. This is broader than many portfolios that concentrate heavily in very large companies. Smaller and micro‑cap stocks often have higher growth potential but also higher volatility and more company‑specific risk. The dedicated small‑cap value ETF is a major driver of that exposure. This spread across sizes can add diversification because big and small companies don’t always move together, though it can also make returns a bit bumpier than a pure large‑cap index.
True holdings
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NV NVIDIA Corporation 3.32%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 2.87%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.18%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 1.85%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.62%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.43%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.27%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.15%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.97%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.78%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 17.41%
Looking through the ETFs’ top holdings, the largest underlying names are familiar global giants like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, plus big semiconductor and platform companies. Together, the top ten underlying exposures add up to around 15% of the portfolio, so no single company is overwhelmingly dominant. There is overlap, since these giants appear in multiple funds, which slightly increases concentration in them. However, because this view only covers ETF top tens, true overlap is probably somewhat higher. Even so, the structure still looks broadly diversified at the company level, with most risk spread across thousands of smaller holdings.
Factors
Factor exposure shows clear tilts toward value and size, both in the “high” range relative to a market‑neutral 50% baseline. Value exposure means a leaning toward stocks trading at lower prices relative to fundamentals, which can behave differently from fast‑growing “expensive” companies. Size exposure reflects greater weighting in smaller companies versus the largest blue chips. Research suggests these factors can drive long‑term return differences but also go through long stretches of underperformance. Other factors like momentum, quality, yield, and low volatility are near neutral, so they’re not strongly shaping behavior. Overall, the standout characteristic is the deliberate small‑value tilt layered on a core index.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 50.00% 49.1% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 25.7% -
Avantis® U.S. Small Cap Value ETF
Weight: 20.00% 25.2%
Risk contribution looks at how much each holding drives overall ups and downs, which can differ from weight. The US total market fund is 50% of the portfolio and contributes about 49% of total risk, almost exactly proportional. The international fund is 30% of weight but only about 26% of risk, so it slightly dampens volatility relative to its size. The small‑cap value ETF is 20% of weight yet contributes over 25% of risk, showing it’s more volatile than the others. That means this smaller slice has an outsized influence on how bumpy the ride feels compared with its share of dollars invested.
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.
The risk vs. return chart shows the portfolio almost exactly on the efficient frontier, meaning its current mix is very efficient given the three holdings. The Sharpe ratio, which measures return per unit of risk above cash, is 0.59 for the current allocation, versus 0.79 for the mathematically “optimal” mix and 0.66 for the minimum‑volatility version. The optimal point offers slightly higher return with similar risk using the same funds but different weights. The key takeaway is that the existing structure is already doing a good job of converting volatility into return, with only modest theoretical improvements available through reweighting.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.30%
- Vanguard Total Stock Market Index Fund ETF Shares 1.00%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.57%
The portfolio’s overall dividend yield is about 1.57%, combining a roughly 1% payout from the US total market, 2.7% from international stocks, and 1.3% from the small‑cap value ETF. Dividends are the cash distributions companies pay from profits, and they can be a meaningful part of long‑term stock returns, especially when reinvested. This yield level is typical for a growth‑oriented global equity mix, where return expectations lean more heavily on price changes than income. The stronger yield from international stocks adds a small income boost, while the rest of the portfolio keeps the focus on capital growth rather than high current payouts.
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) 0.08%
Total expense ratio (TER) for the portfolio is around 0.08% per year, driven mainly by the slightly higher‑cost small‑cap value fund, while both Vanguard index funds are extremely low at 0.03% and 0.05%. TER is the annual fee charged by the funds, taken directly out of returns. Over long periods, lower costs mean more of the market’s performance stays in the account. Compared with typical active or themed funds, this blended cost is impressively low and firmly in the “index” territory. It’s a strong foundation because cost is one of the few variables investors can reliably control over decades.
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