Broad global stock portfolio with a clear value tilt and efficient risk and return tradeoff
Report created on Jul 13, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 55.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00%
This portfolio is made up of three stock ETFs, with no bonds or alternatives. About 55% sits in a broad U.S. total market fund, 30% in a broad international stock fund, and 15% in a U.S. small-cap value ETF. So the core is simple, with one domestic anchor, one global ex-US anchor, and a satellite tilt to smaller, cheaper U.S. companies. A structure like this is easy to track and understand because each ETF has a clear role. The simplicity also means the portfolio’s ups and downs are tightly linked to global stock markets, without the dampening effect that bonds or cash usually provide.
Growth
From late 2019 to mid-2026, $1,000 invested in this mix grew to about $2,508, a compound annual growth rate (CAGR) of 14.56%. CAGR is like your average speed on a road trip, smoothing out the bumps along the way. The maximum drawdown was about -36% during early 2020, reflecting sharp but relatively quick COVID-driven losses and recovery. Compared with the U.S. market benchmark, the portfolio slightly underperformed, but it outpaced the global market benchmark. That pattern is consistent with having a strong U.S. core plus international exposure and a value tilt, which can help or hurt relative returns depending on the period.
Projection
The Monte Carlo projection uses historical return and volatility patterns to simulate many possible 15‑year paths for the portfolio. Think of it as rolling the dice 1,000 times using the same “odds” implied by past data, then seeing the range of outcomes. The median outcome shows $1,000 growing to around $2,821, with a fairly wide middle band from about $1,872 to $4,204. There’s also a small chance of much higher or lower results. This highlights that even with the same starting point and strategy, future paths can vary a lot. As always, simulations are models based on history, not promises about what will actually happen.
Asset classes
- Stocks 100%
All of the portfolio is invested in stocks, so it is fully exposed to equity market risk and return. There is no allocation to bonds, cash, or alternative assets, which means no built‑in cushion from more stable asset classes during market downturns. Compared with a multi‑asset benchmark that blends stocks and bonds, this is a more growth‑oriented structure by design. The upside is strong participation when equity markets do well, while the trade‑off is larger short‑term swings and deeper drawdowns. This also means diversification happens within equities rather than across different asset types, so results will closely track the global stock cycle.
Sectors
- Technology 25%
- Financials 17%
- Industrials 12%
- Consumer Discretionary 11%
- Health Care 8%
- Telecommunications 7%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is broadly spread, with technology the largest slice at about 25%, followed by meaningful allocations to financials, industrials, and consumer‑oriented areas. This looks similar to many global equity benchmarks where technology naturally dominates because of large index weights. A tech‑heavy allocation often benefits from innovation and growth themes but can be more sensitive when interest rates rise or when high‑growth names fall out of favor. The presence of sectors like financials, energy, and utilities provides some balance, as they can behave differently across economic cycles. Overall, the sector mix is wide‑ranging and broadly aligned with diversified global stock indices.
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% of the portfolio is tied to North America, with the rest spread across developed Europe, Japan, other developed Asia, and a small share in emerging regions. This creates a clear home bias toward the U.S. and neighboring markets, though there is still meaningful exposure beyond North America. Compared with a global market‑cap index, the North American slice is slightly higher, and emerging markets are smaller. This means portfolio results will lean heavily on the health of the U.S. economy and dollar, while still capturing some diversification benefits from other regions with different growth drivers, currencies, and policy environments.
Market capitalization
- Mega-cap 36%
- Large-cap 26%
- Mid-cap 16%
- Small-cap 12%
- Micro-cap 9%
By market capitalization, the portfolio tilts toward larger companies, with about 36% in mega‑caps and 26% in large‑caps, but it also meaningfully includes mid‑caps, small‑caps, and even micro‑caps. This broad spread helps capture the full equity universe, from established giants to smaller, more nimble businesses. The dedicated small‑cap value ETF is what pushes exposure into the smaller size bands. Larger companies tend to bring stability and liquidity, while smaller firms can be more volatile but also more sensitive to economic growth. Having all size categories represented provides diversification across different business models and stages.
True holdings
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NV NVIDIA Corporation 3.69%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc. 3.47%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 2.53%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 1.98%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.68%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 1.60%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.31%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.19%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 1.05%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 0.93%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 19.41%
Looking through the ETFs’ top holdings, there is notable concentration in a handful of large global companies like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and others. These names appear through the broad market funds, which naturally overweight the biggest companies. Because the same companies show up in multiple ETFs, their combined exposure in the portfolio is higher than any single fund suggests. This is a common form of “hidden” overlap when using cap‑weighted index funds. The overlap here is measured only using ETF top‑10 lists, so actual overlap is likely somewhat higher across the full portfolio.
Factors
Factor exposure shows a high tilt toward value, with other factors like size, momentum, quality, low volatility, and yield all close to neutral. In factor terms, “value” means a bias toward stocks that look cheaper relative to fundamentals such as earnings or book value. This tilt mainly comes from the dedicated small‑cap value ETF. Historically, value stocks have gone through long stretches of under‑ and out‑performance relative to the broad market. A high value tilt can behave differently from mainstream cap‑weighted indices: it may lag when expensive growth names lead the market and may shine when investors rediscover cheaper segments.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 55.00% 55.0% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 26.3% -
Avantis® U.S. Small Cap Value ETF
Weight: 15.00% 18.7%
Risk contribution measures how much each holding adds to the portfolio’s overall volatility, which can differ from its simple weight. Here, the U.S. total market ETF accounts for about 55% of the weight and essentially the same share of risk, reflecting its central role. The international ETF contributes slightly less risk than its 30% weight, suggesting it brings some diversification benefit. The small‑cap value ETF is 15% of the portfolio but contributes nearly 19% of total risk, showing that it punches above its weight in driving ups and downs. This is typical for smaller, more volatile stocks, which amplify overall movement despite being a minority allocation.
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 efficient frontier analysis suggests this portfolio sits on or very close to the efficient frontier, meaning that for its current holdings and overall risk level, the mix is using them effectively. The Sharpe ratio, which measures return per unit of risk above a cash rate, is 0.59 for the current allocation. The model shows a slightly higher ratio of 0.78 is theoretically possible with different weights, and a minimum‑volatility mix with lower risk. But being on the frontier tells us the current structure is already broadly efficient, without obvious evidence of taking unnecessary risk for the return achieved, based on historical data and assumptions used in the model.
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 2.60%
- Weighted yield (per year) 1.52%
The portfolio’s overall dividend yield is about 1.52%, with the international ETF providing the highest yield among the three and the U.S. total market ETF the lowest. Dividend yield is the annual cash payout as a percentage of the investment value, similar to interest on a savings account but not guaranteed. In this case, dividends are a modest portion of the expected total return, with most of the growth historically coming from price appreciation. For an all‑equity, growth‑oriented mix, this level of income is typical. Dividends can still help smooth returns over time, even if they are not the dominant driver.
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) 0.07%
The average total expense ratio (TER) for the portfolio is very low at around 0.07% per year. TER is the annual fee charged by funds, expressed as a percentage of assets, and it quietly subtracts from returns over time. Here, the two Vanguard ETFs are extremely inexpensive, and even the higher‑fee small‑cap value ETF is modestly priced for an active, factor‑tilted strategy. Low costs are a clear strength of this portfolio. Keeping fees down is one of the few levers investors fully control, and over long periods small percentage differences can compound into meaningful dollar amounts staying in the portfolio instead of going to fund providers.
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