Three fund global equity portfolio with low costs strong diversification and balanced risk profile
Report created on Jul 27, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00% -
AV Avantis ALL Equity Markets Value ETF
AVGV - US0250722164 20.00%
This portfolio is a simple three‑fund, 100% equity mix with a clear structure. About half is in a broad US large‑cap index, roughly a third in international stocks, and the remaining slice in a global value‑tilted equity fund. That setup combines a core of mainstream index exposure with a more active, factor‑driven piece. Structurally, this is a classic “core and satellite” approach: broad low‑cost building blocks plus a targeted tilt. The result is easy to understand and straightforward to manage. Because there are no bonds or alternatives, the portfolio’s ups and downs are entirely tied to global stock markets rather than being cushioned by other asset types.
Growth
Over the last three years, a hypothetical $1,000 grew to $1,725, giving a compound annual growth rate (CAGR) of 19.53%. CAGR is like the average speed on a long road trip, smoothing out bumps along the way. This result slightly lagged the US market by 0.59% a year but edged out the global market by 0.37% a year, which is a positive sign for a diversified mix. The maximum drawdown, or worst peak‑to‑trough drop, was -16.34%, a bit smaller than the US benchmark’s. That shows the portfolio kept up with strong markets while softening the deepest dips somewhat. As always, past performance only describes history and doesn’t guarantee anything going forward.
Projection
The Monte Carlo projection uses historical return and risk patterns to simulate 1,000 possible 15‑year paths for this portfolio. Think of it as running many alternate futures based on what similar investments have done before, while recognizing reality will differ. The median outcome turns $1,000 into about $2,859, implying an annualized return near 8.18% across all simulations. The “likely range” of roughly $1,867 to $4,305 shows how wide outcomes can reasonably be, and the extreme 5%–95% range is much wider still. About three‑quarters of simulations end positive, but a sizeable minority don’t, highlighting that long‑term investing reduces uncertainty but never removes it.
Asset classes
- Stocks 100%
Asset‑class wise, this portfolio is 100% stocks with no bonds, cash, or alternatives. That means it seeks growth rather than built‑in stability from safer assets. In mixed portfolios, bonds often act as a shock absorber when stocks fall; here, that role isn’t present, so overall volatility is driven purely by equity markets. Compared with many “balanced” mixes that blend stocks and bonds, this is clearly on the growthy side in asset‑class terms. The upside is full participation in equity market gains when they occur. The trade‑off is that market downturns will flow through more directly, without other asset classes to offset them.
Sectors
- Technology 28%
- Financials 17%
- Industrials 12%
- Consumer Discretionary 10%
- Health Care 7%
- Telecommunications 7%
- Energy 5%
- Consumer Staples 5%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is broad, with every major area represented, but technology stands out at 28% of equities. Financials, industrials, consumer discretionary, and health care together form a solid middle layer, while more defensive areas like consumer staples, utilities, and real estate have smaller slices. This pattern looks similar to many global equity benchmarks today, where tech has grown significantly. A tech‑heavier allocation often benefits when innovation and growth stocks lead the market, but can experience sharper moves when interest rates rise or sentiment shifts away from growth. The presence of value‑tilted exposure helps balance pure growth dominance, supporting a more rounded sector mix overall.
Regions
- North America 65%
- Europe Developed 13%
- Asia Developed 7%
- Japan 6%
- Asia Emerging 4%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 65% of the portfolio is in North America, with the rest spread across Europe, developed Asia, Japan, and smaller allocations to emerging regions. This is broadly consistent with global stock market weights, where US and Canadian companies make up a large share by value. The benefit of this structure is that it gives meaningful exposure to multiple economic regions rather than concentrating everything in one place. While North America still dominates, the combined non‑North‑American allocation is substantial enough to diversify currency, policy, and growth drivers. This alignment with global standards is a strong indicator of healthy geographic diversification.
Market capitalization
- Mega-cap 39%
- Large-cap 31%
- Mid-cap 20%
- Small-cap 6%
- Micro-cap 2%
By market capitalization, the portfolio leans toward larger companies: roughly 70% in mega‑ and large‑caps, with the rest in mid‑, small‑, and a small slice of micro‑caps. Market cap just means the total value of a company’s stock; bigger firms tend to have more stable earnings and easier trading, while smaller firms can be more volatile but sometimes offer higher growth potential. This mix mirrors many broad global indices that are naturally dominated by the largest companies. The notable piece here is the meaningful 20% mid‑cap plus 8% small/micro‑cap exposure, which adds diversification and can behave differently from the mega‑cap giants that headline most benchmarks.
True holdings
-
NV NVIDIA Corporation 3.76%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc. 3.52%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.29%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.01%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.63%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.39%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.30%
Part of fund(s):- Vanguard S&P 500 ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.27%
Part of fund(s):- Vanguard Total International Stock Index Fund ETF Shares
-
MU Micron Technology Inc 1.22%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.16%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard S&P 500 ETF
- Top 10 total 19.53%
Looking through ETF top‑10 holdings, the largest underlying names include NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, TSMC, Micron, and Meta. Several of these appear across multiple funds, creating overlap that boosts their combined weight: for instance, NVIDIA and Apple each sit above 3% of the portfolio based on covered data. Because only top‑10 positions are counted, true overlap is likely a bit higher than shown. Hidden concentration like this means a handful of large companies have an outsized impact on returns, even though you only hold three ETFs. This is normal for market‑cap‑weighted funds today, but it’s useful to recognize where performance really comes from.
Factors
Factor exposure is fairly balanced across value, size, momentum, quality, and yield, all sitting near the “neutral” band around 50%. Factor investing focuses on characteristics that research has linked to long‑term returns, like cheapness (value) or trend following (momentum). Here, no strong tilt stands out in those categories. The one notable exception is low volatility at 63%, a mild tilt toward stocks that historically move less than the market. That can sometimes reduce drawdowns relative to a pure market‑cap portfolio, especially in choppy periods, though it may lag during very strong, speculative rallies. Overall, this factor profile is well‑rounded with a modest bias toward a smoother ride.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 50.00% 50.3% -
Vanguard Total International Stock Index Fund ETF Shares
Weight: 30.00% 29.8% -
Avantis ALL Equity Markets Value ETF
Weight: 20.00% 19.9%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from its simple weight. In this case, the three ETFs each contribute risk almost exactly in line with their allocation: the 50% US fund supplies about 50% of volatility, the 30% international fund about 30%, and the 20% value fund about 20%. That 1:1 relationship suggests no single ETF is dramatically more volatile than the others or highly leveraged to a unique risk. Instead, all three move broadly in step with equity markets. This alignment makes it easier to understand which slice is driving overall risk at any time.
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‑return optimization chart shows this portfolio sitting right on or very close to the efficient frontier. The efficient frontier represents the best possible return for each risk level using only your existing holdings in different weightings. The current Sharpe ratio of 1.06 is slightly below the maximum Sharpe of 1.32 and the minimum‑variance Sharpe of 1.27, but all three points cluster tightly. A higher Sharpe means better return per unit of risk. The key takeaway is that, given these three ETFs, the present mix is already quite efficient for its risk level. There’s no sign of a glaringly “wasteful” allocation here.
Dividends
- Avantis ALL Equity Markets Value ETF 1.60%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.60%
- Weighted yield (per year) 1.65%
The combined dividend yield is about 1.65%, with the international fund contributing the highest yield and the US index the lowest. Dividend yield measures the cash income from holdings relative to their price, paid out as distributions. For a 100% equity portfolio, this is a modest but meaningful income stream that can either be taken as cash or reinvested to buy more shares. The value‑tilted fund adds a small boost to overall yield compared with a pure growth mix. While dividends are only one part of total return, they can help smooth the experience over time and may be especially noticeable during periods when price gains slow.
Ongoing product costs
- Avantis ALL Equity Markets Value ETF 0.26%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.08%
Costs are impressively low, with a blended total expense ratio (TER) of about 0.08% per year. TER is the annual fee charged by funds to cover management and operating expenses, taken directly from fund assets. In practice, lower TERs mean more of the portfolio’s gross return stays in your pocket. Compared with many actively managed or niche products, this level of cost is highly competitive and strongly supports long‑term compounding. Over many years, even small fee differences can add up significantly, so starting from such a low base is a real structural strength of this portfolio and aligns well with broad index‑investing best practices.
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