Growth focused US tilted equity portfolio with factor diversification and room for efficiency gains
Report created on Mar 18, 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
An investor who fits this kind of portfolio is comfortable with meaningful market swings in pursuit of strong long‑term growth. They likely have a multi‑decade horizon, such as saving for retirement or building generational wealth, and do not need to draw significant income from the portfolio in the near term. A moderate‑to‑high risk tolerance and a willingness to ride out drawdowns of 25% or more are important traits. They probably appreciate evidence‑based investing, like factor tilts and low costs, and are okay with a strong home bias toward the US as long as some global diversification is present. Discipline and a steady contribution plan would complement this approach.
Positions
-
Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
Invesco NASDAQ 100 ETF
QQQM - US46138G6492 20.00% -
Avantis® International Small Cap Value ETF
AVDV - US0250728021 10.00% -
Avantis® Emerging Markets Value ETF
AVES - US0250723725 10.00% -
Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00%
The portfolio is a pure equity mix with five ETFs and no bonds or cash drag. Roughly half sits in a broad US large‑cap index, one‑fifth in a growth‑heavy US index, and the remaining third in small‑cap and value‑tilted strategies across the US, international, and emerging markets. This structure mixes core market exposure with more targeted “satellite” tilts. A 100% stock allocation usually means higher long‑term growth potential but also deeper and faster swings in value. For someone comfortable with volatility, this kind of setup can be a solid engine for long‑term wealth building, as long as the lack of stabilizing assets like bonds is intentional and fits overall finances.
Growth
Historically, the portfolio shows a strong compound annual growth rate (CAGR) of 12.93%. CAGR is like the average speed of a road trip, smoothing out bumps to show how fast wealth grew each year on average. A max drawdown of about -25.7% indicates the biggest peak‑to‑trough loss in the backtest, which is meaningful but not extreme for an all‑equity approach. The fact that 90% of returns came from just 15 days underlines how missing a handful of strong days can materially hurt results. While these numbers look attractive, they’re still based on past conditions, so they should be treated as a guide, not a promise of similar future performance.
Projection
The Monte Carlo simulation ran 1,000 scenarios based on historical behavior, generating a range of possible future outcomes. Monte Carlo is like rolling the dice many times using past volatility and returns to see how often good, bad, and average paths show up. Here, the median outcome of roughly 402.7% growth suggests strong potential, while the 5th percentile at about 55.9% shows that tough stretches are very possible. An average simulated annual return near 14% is encouraging but not guaranteed. These simulations are built on the assumption that markets behave somewhat like they did historically, so they help frame expectations and risk, but they can’t account for all future surprises or regime shifts.
Asset classes
- Stocks 100%
All investable assets are in stocks, with 0% in bonds, cash, or alternatives. This is consistent with a growth‑oriented mindset and is common for long‑horizon investors focused on wealth accumulation rather than income or capital preservation. Compared with many broad benchmark mixes that include bonds or other stabilizing assets, this leans more aggressive. The benefit is a cleaner exposure to global equity risk premiums, which historically have rewarded patience. The trade‑off is that during market downturns, there is no built‑in cushion from safer assets. Anyone using a structure like this usually benefits from keeping a separate emergency fund and ensuring short‑term spending needs are covered outside this portfolio.
Sectors
- Technology 30%
- Financials 13%
- Consumer Discretionary 12%
- Telecommunications 10%
- Industrials 10%
- Health Care 7%
- Consumer Staples 5%
- Energy 5%
- Basic Materials 5%
- Utilities 2%
- Real Estate 1%
Sector exposure is tilted toward technology at 30%, followed by financial services, consumer cyclicals, communication services, industrials, and smaller allocations to healthcare, defensive areas, energy, materials, utilities, and real estate. This pattern lines up reasonably well with modern equity benchmarks, where tech and tech‑adjacent sectors dominate market value. The upside is strong participation in innovation‑driven growth; the downside is higher sensitivity to interest rates, regulatory shifts, and sentiment around growth names. The presence of value and small‑cap strategies helps keep exposure to more cyclical and traditional sectors, which adds balance. Overall, this sector mix is fairly aligned with global standards while still leaning into growth engines.
Regions
- North America 80%
- Asia Emerging 5%
- Europe Developed 4%
- Asia Developed 4%
- Japan 3%
- Africa/Middle East 1%
- Latin America 1%
- Australasia 1%
Geographically, the portfolio is strongly tilted to North America at 80%, with modest allocations to developed Europe and Asia, Japan, and smaller slices in emerging regions across Asia, Latin America, Africa/Middle East, and Australasia. Many global benchmarks also have a large US share, but this is still a pronounced home bias. The upside: strong alignment with one of the most innovative and historically resilient markets. The trade‑off: portfolio outcomes become closely tied to North American economic and policy conditions. The dedicated emerging and international small‑cap value exposures help diversify away from this, adding return sources that may behave differently over long cycles, especially if leadership rotates away from US mega‑caps someday.
Market capitalization
- Mega-cap 36%
- Large-cap 28%
- Mid-cap 20%
- Small-cap 10%
- Micro-cap 5%
By market capitalization, the portfolio spans the spectrum: 36% in mega caps, 28% in big caps, 20% in mid caps, 10% in small caps, and 5% in micro caps. This is broader than a pure large‑cap index and indicates a healthy tilt toward smaller companies via the Avantis strategies. Smaller stocks can be more volatile and sometimes harder to trade, but research suggests they may offer higher long‑term expected returns as compensation. Having meaningful small and micro exposure adds diversification because these companies often respond differently to economic news than mega‑caps. This size mix is a positive differentiator and aligns well with factor‑based equity philosophies.
True holdings
-
NVIDIA Corporation 5.40%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
Apple Inc 4.79%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
Microsoft Corporation 3.65%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
Amazon.com Inc 2.62%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
Alphabet Inc Class A 2.24%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
Meta Platforms Inc. 1.92%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
Broadcom Inc 1.89%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
Alphabet Inc Class C 1.88%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
Tesla Inc 1.74%Part of fund(s):
- Invesco NASDAQ 100 ETF
- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
-
Walmart Inc. Common Stock 1.15%Part of fund(s):
- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
- Top 10 total 27.29%
Looking through the ETFs, there is heavy exposure to a handful of mega‑cap growth names: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, Broadcom, Tesla, and Walmart all appear via multiple funds. These overlaps create hidden concentration because the same companies are owned repeatedly inside different ETFs, especially the S&P 500 and NASDAQ 100 exposures. That can boost returns when these leaders do well but also ties portfolio outcomes closely to their fortunes. Because only top‑10 holdings are captured, actual overlap is likely even higher. It’s worth deciding whether this strong tilt toward a small group of giants is deliberate, or whether slightly reducing overlapping US large‑cap growth might better reflect desired diversification.
Factors
Factor exposure is clearly tilted toward size, value, and low volatility, with solid momentum as well. Factor investing targets characteristics like cheapness (value), smaller company size (size), recent winners (momentum), and smoother price paths (low volatility) that have historically driven returns. Here, size and low volatility stand out as dominant, supported by the small‑cap value allocations and more defensive characteristics relative to a pure growth index. That blend can help during choppier periods by avoiding extremes, while still benefiting from long‑term equity growth. Signal coverage is about 45%, so these readings are indicative but not perfect. Still, the factor mix looks thoughtfully diversified, not one‑dimensional.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 50.00% 49.0% -
Invesco NASDAQ 100 ETF
Weight: 20.00% 25.0% -
Avantis® U.S. Small Cap Value ETF
Weight: 10.00% 11.0% -
Avantis® International Small Cap Value ETF
Weight: 10.00% 8.0% -
Avantis® Emerging Markets Value ETF
Weight: 10.00% 7.1%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from its weight. The S&P 500 ETF is half the portfolio and contributes about 49% of risk, roughly proportional. The NASDAQ 100 ETF is 20% by weight but contributes 25% of risk, meaning each dollar there adds more volatility than average. The three largest positions together drive almost 85% of total risk, which is meaningful concentration. The international and emerging value funds contribute less risk than their weights. If the goal is to spread risk more evenly, trimming the more volatile or overlapping holdings and boosting the diversifying ones can help rebalance the risk footprint.
Redundant positions
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High correlationVanguard S&P 500 ETFInvesco NASDAQ 100 ETF
Correlation measures how often assets move together. The S&P 500 and NASDAQ 100 ETFs are highly correlated, which makes sense because both are dominated by large US growth companies and share many of the same top holdings. High correlation limits diversification benefits, especially during market stress when these funds are likely to fall at the same time. The small‑cap value and emerging markets exposures likely have lower correlation to US mega‑cap growth, which is where genuine diversification comes from. One practical takeaway is that simply adding more funds isn’t helpful if they behave almost identically; what matters more is combining assets that zig and zag differently across market environments.
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 implied by the existing holdings. The efficient frontier represents the best expected return for each risk level using different weight mixes of the same funds. Being below it means that, without adding new products, a reweighting could potentially increase expected return for the same volatility, or reduce volatility for the same expected return, improving the Sharpe ratio (return per unit of risk). The high correlation and large risk share from the S&P 500 and NASDAQ 100 suggest where that inefficiency comes from. Tweaking weights toward the more diversifying and factor‑oriented funds could push the portfolio closer to that efficient curve.
Dividends
- Avantis® International Small Cap Value ETF 3.00%
- Avantis® Emerging Markets Value ETF 3.10%
- Avantis® U.S. Small Cap Value ETF 1.80%
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.44%
The overall dividend yield of about 1.44% is modest, with the highest yields coming from the international and emerging markets value ETFs around 3%, and lower yields from the US growth‑heavy funds. Dividends can provide a small but steady component of total return, especially when reinvested, but this portfolio is clearly geared more toward capital growth than income. That aligns well with a long‑term accumulation focus rather than near‑term cash flow needs. If income needs were to increase in the future, shifting more weight toward higher‑yielding strategies or adding dedicated income assets could be a way to adjust without abandoning the broader equity growth orientation.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® Emerging Markets Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Invesco NASDAQ 100 ETF 0.15%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.14%
Total estimated TER around 0.14% is impressively low for a portfolio combining broad index and specialized factor ETFs. Costs matter because they’re guaranteed; every dollar spent in fees is a dollar that can’t compound. Being near the lower end of the fee spectrum supports better long‑term outcomes and leaves more room for the factor tilts and asset allocation to drive results. The blend of ultra‑cheap core indexing with slightly higher‑cost but still reasonable value and small‑cap funds is efficient and modern. From a cost perspective, this setup is very much on the right track, and there’s no obvious drag that needs urgent attention.
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