Globally diversified equity portfolio with strong value tilts and room to improve risk efficiency
Report created on Mar 23, 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
Balanced Investors
This kind of portfolio suits an investor who accepts meaningful ups and downs in pursuit of long-term growth, with an investment horizon of at least 10–15 years. They’re comfortable owning only stocks and can tolerate deep temporary losses without panicking. Clear goals might include building retirement wealth, growing a family nest egg, or compounding capital over decades rather than funding near-term spending. They like simple, rules-based strategies and appreciate low costs and diversification, but they’re also open to adding factor tilts to seek slightly higher returns. Short-term price noise is less important than steadily increasing purchasing power over time.
Positions
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Vanguard FTSE All-World UCITS ETF USD Accumulation
VWCE - IE00BK5BQT80 60.00% -
Avantis Global Small Cap Value UCITS ETF USD Acc EUR
AVWS - IE0003R87OG3 30.00% -
Avantis Emerging Markets Equity UCITS ETF
AVEM - IE000K975W13 10.00%
The portfolio is a simple three-ETF structure holding 100% global stocks: 60% broad world equities, 30% global small-cap value, and 10% emerging markets. That mix combines a “core” global holding with two more focused building blocks that tilt toward smaller and cheaper companies. Structurally this is clean and easy to maintain, which helps many investors stay the course. Because there are no bonds or cash, the ride will feel more like a full-equity portfolio than a “balanced” mix, despite the risk score of 4/7. Anyone using this setup should treat it as a growth-oriented equity allocation rather than a capital-preservation tool.
Historical data is limited for this portfolio, which reduces the confidence in the calculated values.
Growth
Over the measured period, €1,000 grew to €1,080, giving a Compound Annual Growth Rate (CAGR) of 7.29%. CAGR is like your average speed on a road trip, smoothing out bumps along the way. The global market benchmark returned 3.80%, so the portfolio outpaced the broad world index, but it lagged the US market’s strong 19.93% run. Max drawdown, the worst peak-to-trough fall, was -21.32%, similar to the global market and much deeper than the US market. The fact that 90% of returns came in just 3 days shows how lumpy equity returns are, reinforcing why timing the market is extremely hard and staying invested usually matters more.
Due to limited historical data, this may show extreme values that are not realistic.
Projection
The Monte Carlo simulation projects how €1,000 might grow over 10 years by running 1,000 random “what if” paths based on the portfolio’s past ups and downs. Think of it as replaying history with the order of good and bad days shuffled. The median outcome (50th percentile) suggests roughly 290% total growth, while even the pessimistic 5th percentile still shows a positive 32.5% gain. The average simulated annual return is 11.42%. However, the history used is less than two years, which is a short window and can easily mislead. These numbers are best treated as a rough range of possibilities, not a forecast to rely on.
Asset classes
- Stocks 100%
All assets are in stocks, with no allocation to bonds, cash, or alternatives. An all-equity setup maximizes long-term growth potential but also maximizes exposure to market swings, especially during bear markets or recessions. Many broad benchmarks considered “balanced” will hold a substantial slice of bonds to dampen volatility and shorten recovery times. Here, the “balanced” label refers more to diversification within equities than across asset classes. The clear strength is simplicity and long-term growth focus; the trade-off is that anyone needing shorter-term stability or spending flexibility might want a separate safety bucket outside this portfolio.
Sectors
- Technology 21%
- Financials 19%
- Industrials 12%
- Consumer Discretionary 12%
- Energy 8%
- Telecommunications 7%
- Health Care 7%
- Basic Materials 6%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
Sector exposure is quite balanced for an equity-only portfolio: technology at 21%, financial services 19%, industrials and consumer cyclicals at 12% each, with meaningful allocations to energy, communication services, healthcare, and materials. This spread aligns fairly well with global equity benchmarks, which is a strong indicator of solid diversification. Tech is significant but not overwhelmingly dominant, which can help if interest rates rise or investor sentiment shifts away from growth stories. A diversified sector mix tends to smooth out portfolio behavior as different industries respond differently to economic cycles, regulation changes, and innovation trends.
Regions
- North America 60%
- Europe Developed 12%
- Asia Emerging 7%
- Asia Developed 7%
- Japan 6%
- Africa/Middle East 2%
- Australasia 2%
- Latin America 2%
Geographically, around 60% sits in North America, with the rest spread across developed Europe, Asia, Japan, and smaller allocations to emerging regions like Africa/Middle East and Latin America. This is close to the actual global market weightings, where the US naturally dominates due to company size. Being aligned with global market caps is a healthy sign: it avoids big regional bets and lets the world’s capital markets decide the mix. The emerging markets slice is meaningful but not overwhelming, adding growth potential and diversification while keeping risk in check compared with a very aggressive emerging-heavy equity allocation.
Market capitalization
- Mega-cap 33%
- Large-cap 24%
- Mid-cap 17%
- Small-cap 15%
- Micro-cap 10%
The portfolio spans the full company-size spectrum: about one-third in mega caps, then sizable chunks in big and medium companies, plus 15% small caps and 10% micro caps. This is more tilted toward smaller firms than a typical world index, largely thanks to the dedicated global small-cap value ETF. Smaller companies tend to be more volatile and sensitive to economic conditions but historically have offered higher return potential over long horizons. Combining them with large, stable global leaders creates a nice “barbell,” where large caps provide ballast and small caps add growth and diversification, especially across different economic environments.
True holdings
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NVIDIA Corporation 2.53%Part of fund(s):
- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
Apple Inc 2.35%Part of fund(s):
- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
Microsoft Corporation 1.78%Part of fund(s):
- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
Amazon.com Inc 1.23%Part of fund(s):
- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
Taiwan Semiconductor Manufacturing Co. Ltd. 1.23%Part of fund(s):
- Avantis Emerging Markets Equity UCITS ETF
- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
Alphabet Inc Class A 1.11%Part of fund(s):
- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
Broadcom Inc 0.90%Part of fund(s):
- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
Alphabet Inc Class C 0.90%Part of fund(s):
- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
Meta Platforms Inc. 0.86%Part of fund(s):
- Vanguard FTSE All-World UCITS ETF USD Accumulation
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Tesla Inc 0.69%Part of fund(s):
- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard FTSE All-World UCITS ETF USD Accumulation
- Top 10 total 13.58%
Looking through the ETFs’ top holdings, the largest underlying exposures are big global names like NVIDIA, Apple, Microsoft, Amazon, and Taiwan Semiconductor, each under roughly 2.6% of the total portfolio. These show up mainly via the broad global ETF, with some duplication across funds, but there’s no single company that dominates. Overlap might be higher in reality because only top‑10 positions are captured, yet the current data still points to well-spread company risk. The takeaway: you’re getting broad exposure to major global leaders without excessive single-stock concentration, while the factor ETFs quietly push more weight into smaller and cheaper stocks in the background.
Factors
Factor exposure shows strong tilts toward value (85%), momentum (60.5%), and smaller size (41.7%): in plain terms, the portfolio leans toward cheaper stocks, recent winners, and smaller companies. Factor investing targets such characteristics because decades of research link them to long-term return drivers. A value tilt often helps when expensive high-growth names stumble, while momentum can shine in strong, trending markets. Size exposure means more sensitivity to economic cycles and sentiment. Some data coverage is limited, so these numbers are approximate, but the pattern is clear: this is not a neutral market-weighted portfolio, it’s deliberately “spiced” with factor tilts.
Risk contribution
-
Vanguard FTSE All-World UCITS ETF USD Accumulation
Weight: 60.00% 57.6% -
Avantis Global Small Cap Value UCITS ETF USD Acc EUR
Weight: 30.00% 33.7% -
Avantis Emerging Markets Equity UCITS ETF
Weight: 10.00% 8.8%
Risk contribution measures how much each holding adds to overall volatility, which can differ from its weight. Here, the 60% global ETF contributes about 57.6% of risk, the 30% small-cap value ETF adds 33.7%, and the 10% emerging markets fund adds 8.8%. The small-cap value ETF slightly “punches above its weight,” contributing more risk than its size because smaller, cheaper stocks are typically choppier. This distribution is still quite proportional, suggesting no single fund is wildly dominating portfolio risk. If someone wanted a smoother ride, nudging down the higher-risk component and increasing the broader core could better align volatility with comfort levels.
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.
On the risk–return chart, the current portfolio sits below the efficient frontier. The efficient frontier represents the best achievable return for each risk level using only the existing holdings with different weights. The current setup has expected return 7.39% with risk of 15.77% and a Sharpe ratio of 0.34, while the optimal mix (highest Sharpe) shows a much higher Sharpe of 0.98. This means the same three funds could be combined in a smarter way to get more expected return for similar or even lower risk. No new products are required; it’s purely a question of rebalancing the weights.
Ongoing product costs
- Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
- Weighted costs total (per year) 0.11%
Costs look impressively low. The headline expense ratio on the main ETF is 0.19%, and the overall portfolio TER sits around 0.11%, which is very competitive versus many active funds or more complex strategies. Lower ongoing charges mean more of the underlying return stays in your pocket every single year. Over decades, even a 0.3–0.5% cost difference compounds into a big gap in final wealth. This cost profile aligns nicely with best practices in long-term investing and supports strong performance, especially when combined with broad diversification and a simple structure that doesn’t require frequent, fee-generating trading.
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