Globally diversified value tilted stock portfolio with efficient risk profile and balanced factor exposures

Report created on Mar 23, 2026

Risk 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.

Positions

This is an almost pure equity portfolio, with about 99% in stocks and only 1% in cash. Roughly half sits in a broad global index fund, while the rest is in value-tilted funds across U.S., international, small caps, and emerging markets. That mix creates both a “core” holding and targeted satellite positions that lean into specific styles. A structure like this is relevant because it combines broad diversification with intentional tilts that can drive different behavior than the market. Overall, this setup suits someone comfortable with stock-market ups and downs who wants long-term growth rather than capital stability or income.

Growth Info

From late 2021 to March 2026, a hypothetical $1,000 in this portfolio grew to about $1,563, translating to a 11.43% compound annual growth rate (CAGR). CAGR is the smooth, average yearly growth rate, like the average speed of a car over a whole trip. This slightly trails the U.S. market but beats the global market benchmark, with a max drawdown of -23.81%, which is somewhat smaller than the global market’s worst drop. Only 14 days made up 90% of returns, reminding you that missing a few strong days can seriously hurt outcomes. Past performance is no guarantee, but historically this mix has delivered solid growth for the risk taken.

Projection Info

The Monte Carlo projection simulates 1,000 possible 10-year paths for the portfolio using its historical return and volatility profile. Think of it as re-scrambling past ups and downs in many combinations to see a range of futures, not a single forecast. The median outcome shows roughly a 390% total gain over 10 years, while even the 5th percentile still shows a positive, though much lower, result around 44%. About 979 of 1,000 simulations end positive, and the average simulated annual return is 13.15%. These numbers are encouraging, but they rely on history behaving similarly to the future, which is never guaranteed, especially over a full decade.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Asset-class allocation is extremely straightforward: about 99% stocks and 1% cash. There are no explicit bonds or alternative assets here, which places the portfolio firmly in the growth camp. Compared with many “balanced” allocations that mix stocks and bonds, this setup is more aggressive, with higher expected returns but deeper potential drawdowns. This can be perfectly appropriate if the time horizon is long and the investor can handle volatility without panic-selling. The key takeaway is that protection from market falls mainly has to come from time horizon, cash buffer outside the portfolio, or behavior, not from built-in bond exposure.

Sectors Info

  • Financials
    19%
  • Technology
    16%
  • Industrials
    15%
  • Consumer Discretionary
    13%
  • Energy
    10%
  • Basic Materials
    7%
  • Health Care
    6%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Real Estate
    2%
  • Utilities
    2%

Sector exposure is nicely spread across financials, technology, industrials, consumer cyclicals, energy, materials, healthcare, communication services, consumer defensive, real estate, and utilities. No single sector dominates, which is a strong sign of diversification: the largest sector, financials, is still under a quarter of the portfolio. This broad mix helps avoid overreliance on any one area of the economy. For example, if economically sensitive sectors face headwinds, more defensive areas like healthcare or consumer staples can help soften the blow. The sector composition looks well-balanced and broadly aligned with diversified equity benchmarks, which is a positive foundation for long-term resilience.

Regions Info

  • North America
    60%
  • Europe Developed
    14%
  • Japan
    7%
  • Asia Developed
    6%
  • Asia Emerging
    6%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, the portfolio leans about 60% toward North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, Australasia, Africa/Middle East, and Latin America. That 60% in North America is somewhat higher than a perfectly market-cap-weighted global allocation but still very much in line with common global portfolios. This tilt has historically been favorable because North American markets, especially the U.S., have led performance in recent years. The sizable allocations outside North America also bring diversification, reducing dependence on a single region’s economy, currencies, and political backdrop.

Market capitalization Info

  • Mega-cap
    27%
  • Large-cap
    23%
  • Mid-cap
    21%
  • Small-cap
    18%
  • Micro-cap
    10%

Market-cap breakdown shows 27% in mega caps, 23% in large caps, 21% in mid caps, 18% in small caps, and 10% in micro caps. That’s a meaningful tilt down the size spectrum compared with a typical global index, which is far more dominated by mega and large caps. Smaller companies tend to be more volatile but have historically offered higher expected returns over very long periods. Combining them with larger companies can smooth some of the extremes while still capturing the potential size premium. This allocation gives a nice blend of stability from big names and growth potential from smaller firms.

True holdings Info

  • Apple Inc
    1.85%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • NVIDIA Corporation
    1.69%
    Part of fund(s):
    • Vanguard Total World Stock Index Fund ETF Shares
  • Microsoft Corporation
    1.31%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Amazon.com Inc
    1.09%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Meta Platforms Inc.
    0.87%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Alphabet Inc Class A
    0.82%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Alphabet Inc Class C
    0.66%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    0.62%
    Part of fund(s):
    • Vanguard Total World Stock Index Fund ETF Shares
    • iShares Asia 50 ETF
  • Exxon Mobil Corp
    0.61%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    • Vanguard Total World Stock Index Fund ETF Shares
  • Broadcom Inc
    0.60%
    Part of fund(s):
    • Vanguard Total World Stock Index Fund ETF Shares
  • Top 10 total 10.10%

Looking through the ETFs, the largest underlying exposures are big global names like Apple, NVIDIA, Microsoft, Amazon, Meta, Alphabet, and Taiwan Semiconductor, each still under 2% of the total portfolio. That shows good diversification at the single-company level, with no stock dominating your risk. There is some overlap, because these mega-cap leaders appear inside multiple funds, especially the broad global ETF, but it doesn’t create extreme concentration. Note that overlap is likely understated because only top-10 ETF holdings are captured. Even so, the data suggests a healthy spread across many companies, with the biggest positions still relatively modest.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 55%
Size
Exposure to smaller companies
High
Data availability: 47%
Momentum
Exposure to recently outperforming stocks
High
Data availability: 100%
Quality
Preference for financially healthy companies
No data
Data availability: 0%
Yield
Preference for dividend-paying stocks
No data
Data availability: 0%
Low Volatility
Preference for stable, lower-risk stocks
Neutral
Data availability: 100%

Factor exposure is strongly tilted toward value (85%), with sizeable exposure to smaller size (61.5%) and momentum (62.3%), while low volatility sits near a modestly positive level. Factors are like the underlying “traits” of stocks—such as being cheap (value) or having strong recent performance (momentum)—that research has linked to returns. Here, the dominant trio is value, smaller size, and momentum. This means the portfolio may outperform during periods when cheap, smaller, and trending stocks do well, but it can lag when growth or mega-cap glamour stocks lead. This intentional tilt is a clear design choice and aligns with evidence-based factor investing.

Risk contribution Info

  • Vanguard Total World Stock Index Fund ETF Shares
    Weight: 45.00%
    42.9%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 20.00%
    25.1%
  • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    Weight: 10.00%
    10.0%
  • Avantis® International Small Cap Value ETF
    Weight: 10.00%
    9.3%
  • Avantis® Emerging Markets Value ETF
    Weight: 8.00%
    6.4%
  • Top 5 risk contribution 93.6%

Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which isn’t always the same as its weight. The broad global ETF is 45% of the portfolio and contributes about 43% of the risk, so it’s very proportional. The U.S. small-cap value ETF stands out: at 20% weight, it contributes roughly 25% of total risk, reflecting its higher volatility. The top three funds together drive about 78% of total volatility. That’s still reasonable but worth being aware of. If there were a desire to make the ride smoother, trimming the more volatile satellites or increasing the core share could help.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Avantis International Large Cap
    High correlation

Correlation measures how investments move relative to each other. Highly correlated assets tend to go up and down together, which can reduce diversification benefits during stressful markets. In this portfolio, international small-cap value and international large-cap are very tightly correlated, which makes sense because they fish in similar regions and styles. That correlation means they behave more like one big block rather than two independent diversifiers. Overall, the portfolio still gains diversification through global and size/factor spreads, but the high correlations within some style buckets slightly limit how much risk reduction diversification can provide during broad market selloffs.

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 portfolio sits on the efficient frontier, which means that for its mix of holdings, weights are already broadly efficient. The Sharpe ratio—return per unit of risk—is 0.58, while the minimum-variance mix offers 0.64 and the optimal mix hits 0.8. That suggests reweighting the same funds could improve risk-adjusted returns, even though the current setup is already well constructed. A same-risk optimized blend could raise expected return from about 11.62% to around 14.35% at similar volatility. The good news: efficiency is high already; any future tweaks are more about fine-tuning than fixing big structural issues.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.10%
  • Avantis® Emerging Markets Value ETF 3.30%
  • Avantis International Large Cap 3.10%
  • American Century ETF Trust - Avantis U.S. Large Cap Value ETF 1.50%
  • Avantis® U.S. Small Cap Value ETF 1.80%
  • Vanguard Total World Stock Index Fund ETF Shares 1.60%
  • Weighted yield (per year) 2.02%

The overall dividend yield sits around 2.02%, with higher yields in the international and emerging markets value funds and lower yields in the U.S.-focused funds and the total world ETF. Dividends are cash payments from companies and can form a steady part of total return, especially for value-oriented strategies. Here, dividends are a nice supplement to growth rather than the main focus. For someone reinvesting payouts, this yield compounds over time and can meaningfully boost long-term wealth. For someone eventually drawing income, it offers a reasonable starting yield without steering the portfolio into ultra high-yield, higher-risk territory.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis International Large Cap 0.25%
  • American Century ETF Trust - Avantis U.S. Large Cap Value ETF 0.15%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.18%

Average costs are impressively low, with a total expense ratio around 0.18% across the whole portfolio. The global index ETF is particularly cheap, and even the more specialized Avantis funds are reasonably priced for active factor exposure. Costs matter because they come off returns every single year, and saving a few tenths of a percent can add up to thousands of dollars over decades. This fee level compares favorably with typical active funds and even many blended portfolios. Keeping costs this low is a real strength and supports better net performance without taking on extra risk.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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