Strongly factor tilted global equity portfolio with broad diversification and efficient low cost structure

Report created on Mar 27, 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

The structure is very straightforward: 100% in equities, entirely via low-cost ETFs, with a strong tilt toward small‑cap value and a solid core of total market and quality exposure. Two funds focus on small‑cap value, one on total US equities, one on total international equities, and one on US quality stocks. This design pushes growth potential higher than a typical blended stock‑bond mix but also raises short‑term volatility. Having multiple “core plus tilts” like this is a common way to aim for above‑market returns while staying diversified. The key takeaway is that this is an equity‑only, factor‑focused setup built for long horizons, not short‑term stability.

Growth Info

From late 2019 to early 2026, $1,000 grew to about $2,098, a compound annual growth rate (CAGR) of 13.44%. CAGR is like averaging your speed on a long drive: it smooths out bumps to show typical yearly progress. The portfolio slightly lagged the US market by 0.94% per year but beat the global market by 1.52% per year, which is strong relative performance versus a worldwide baseline. The max drawdown of about -39% was deeper than the benchmarks’ roughly -34%, reflecting the extra equity and small/value risk. This pattern—near‑US‑like returns with more global flavor and slightly higher drawdowns—fits a growth‑oriented, factor‑tilted equity strategy.

Asset classes Info

  • Stocks
    100%

All assets are in stocks, with 0% in bonds, cash, or alternatives. That’s a clear signal: the priority is long‑term growth over short‑term stability. A 100% equity mix typically experiences sharper drawdowns during market stress but has historically delivered higher returns over decades than portfolios blended with bonds. This aligns well with a “growth investor” label and the 5/7 risk score. For someone with a long horizon and strong stomach for volatility, a pure‑equity allocation can be appropriate. For shorter horizons or lower risk tolerance, most people would usually mix in stabilizers like bonds or cash to soften the ride, even if it reduces return potential.

Sectors Info

  • Industrials
    17%
  • Financials
    17%
  • Technology
    16%
  • Consumer Discretionary
    12%
  • Basic Materials
    9%
  • Health Care
    8%
  • Energy
    5%
  • Consumer Staples
    5%
  • Telecommunications
    4%
  • Real Estate
    4%
  • Utilities
    3%

Sector allocation is quite balanced: industrials and financials lead at 17% each, technology is 16%, and consumer areas plus materials, health care, and energy are all meaningfully represented. This looks closer to a diversified, broad‑market sector mix than a narrow bet on any one theme. Tech is important but not overwhelmingly dominant, which helps avoid the boom‑bust pattern of very tech‑heavy portfolios during interest‑rate or sentiment swings. This alignment with broad sector patterns is a strong indicator of healthy diversification: returns are likely to be driven more by overall market and factor behavior than by the fate of a single hot sector.

Regions Info

  • North America
    60%
  • Europe Developed
    16%
  • Japan
    11%
  • Asia Developed
    4%
  • Australasia
    3%
  • Asia Emerging
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, about 60% is in North America with the rest evenly spread across developed Europe, Japan, other developed Asia, and smaller slices of emerging regions. That is relatively close to global equity benchmarks, which also tend to be North America‑heavy, though the exact percentages differ. Having meaningful allocations across multiple regions reduces dependence on any single economy or currency, spreading geopolitical and policy risk. This allocation is well‑balanced and aligns closely with global standards, which is a plus. It means long‑run outcomes will reflect the global economy’s broad progress rather than hinging primarily on one country or region.

Market capitalization Info

  • Mid-cap
    31%
  • Small-cap
    26%
  • Mega-cap
    19%
  • Large-cap
    16%
  • Micro-cap
    6%

Market capitalization exposure is notably tilted away from pure mega‑caps: mid‑caps are the largest bucket at 31%, small‑caps at 26%, with mega‑caps and large‑caps together forming 35%, plus a 6% micro‑cap slice. This is a strong size tilt compared with typical market‑cap‑weighted benchmarks that are dominated by mega and large companies. Smaller companies tend to be more volatile but historically have offered higher expected returns over very long periods. That fits the growth‑oriented, higher‑risk profile. The key implication is more sensitivity to economic cycles and liquidity swings; in deep downturns, small and micro‑caps can fall harder and recover unevenly.

True holdings Info

  • Apple Inc
    1.46%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
    • Vanguard U.S. Quality Factor
  • NVIDIA Corporation
    1.36%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Microsoft Corporation
    0.97%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    0.68%
    Part of fund(s):
    • Vanguard Total International Stock Index Fund ETF Shares
  • Amazon.com Inc
    0.67%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class A
    0.60%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Broadcom Inc
    0.50%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class C
    0.48%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Meta Platforms Inc.
    0.47%
    Part of fund(s):
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Tesla Inc
    0.38%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Top 10 total 7.57%

Looking through ETF top holdings, the biggest underlying positions are familiar mega‑cap names like Apple, NVIDIA, Microsoft, TSMC, Amazon, Alphabet, Meta, and Tesla. None of these exceed about 1.5% of the total portfolio, so single‑stock concentration is low despite their presence in multiple funds. Because only ETF top‑10 positions are captured, overlap is actually understated, but even so, there’s no sign of a hidden “whale” position dominating risk. This is a nice positive: you benefit from large, liquid global leaders without over‑relying on any single company. The main concentration story here is factor tilts, not individual stock bets.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 48%
Size
Exposure to smaller companies
Very high
Data availability: 80%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Very high
Data availability: 10%
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 where this portfolio really stands out. Value, size, and quality all show very strong tilts (around 85% exposure each), with moderate momentum and low‑volatility exposure. Factors are like the underlying “ingredients” that drive returns: value leans toward cheaper stocks, size toward smaller companies, quality toward financially robust businesses. Decades of research suggest these traits can earn a long‑term premium, though not every year. A portfolio with this profile may outperform during periods when value and smaller, higher‑quality stocks are favored but can lag when markets chase expensive growth or mega‑cap narratives. The design deliberately accepts that tradeoff to pursue factor‑driven excess return.

Risk contribution Info

  • Vanguard Small-Cap Value Index Fund ETF Shares
    Weight: 24.00%
    28.4%
  • Avantis® International Small Cap Value ETF
    Weight: 24.00%
    21.9%
  • Vanguard Total Stock Market Index Fund ETF Shares
    Weight: 22.00%
    21.5%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 20.00%
    17.7%
  • Vanguard U.S. Quality Factor
    Weight: 10.00%
    10.6%

Risk contribution shows how much each holding actually drives overall ups and downs, which can differ from its raw weight. Here, the three biggest positions by weight contribute about 72% of total risk, with the small‑cap value ETF slightly “punching above its weight” at 28.36% risk vs 24% allocation. That suggests it’s the spiciest ingredient in the mix. This isn’t necessarily a problem; it just means a lot of the ride depends on how that segment behaves. If desired, aligning risk contributions more closely with weights can be done by trimming higher‑risk slices and boosting relatively steadier holdings to smooth volatility.

Redundant positions Info

  • Vanguard Small-Cap Value Index Fund ETF Shares
    Vanguard U.S. Quality Factor
    High correlation

Correlation measures how often investments move together. Highly correlated assets tend to rise and fall in sync, reducing diversification benefits when it matters most. In this portfolio, the small‑cap value ETF and the US quality factor ETF are flagged as highly correlated, which makes sense because both target US equities and have some overlapping drivers. When correlations are high across major pieces, market downturns can hit everything at once, making drawdowns feel intense. Still, factor tilts, regional spread, and market‑cap diversity add independent sources of return. The main point is that diversification is good but not magic—big global shocks will still move most of this portfolio in the same direction.

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 current portfolio has an expected return of 13.63% with 19.99% volatility, yielding a Sharpe ratio of 0.58. The Sharpe ratio measures return per unit of risk, like miles per gallon for your portfolio. The optimal mix of the same holdings reaches a Sharpe of 0.75, and even the minimum‑variance version is at 0.60. Since the current point sits below the efficient frontier, the same ingredients could be rearranged to get either higher expected return for similar risk (about 15.30% at similar volatility) or similar return for lower risk. That means there is room to improve risk‑adjusted efficiency by reweighting, without changing ETFs.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.10%
  • Vanguard Small-Cap Value Index Fund ETF Shares 1.90%
  • Vanguard U.S. Quality Factor 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 2.18%

The overall dividend yield is about 2.18%, coming from a mix of roughly 3% yields on the international funds and lower yields on US funds, especially the quality and total market ETFs. Dividends are the cash payments companies distribute from profits; they can be a meaningful portion of total return over long horizons. Here, the yield is moderate—enough to add some steady income but clearly not an “income‑focused” setup. For growth‑minded investors, reinvesting these dividends can significantly boost compounding over time. The key role of dividends in this case is as a quiet tailwind, not the main objective.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard U.S. Quality Factor 0.13%
  • 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) 0.13%

The total expense ratio (TER) of around 0.13% is impressively low for an actively tilted, globally diversified equity portfolio. TER is the annual fund fee, expressed as a percentage of assets—like a small service charge you pay every year. Because costs compound just like returns, keeping them low is one of the most reliable ways to improve long‑term outcomes. Here, you’re getting factor exposure, international diversification, and multiple ETFs at a fee level comparable to many broad index funds. That cost efficiency strongly supports long‑run performance and leaves more of the portfolio’s returns in your pocket rather than going to fund providers.

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