A globally diversified all stock portfolio tilted to small value with impressively strong historic performance
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.
What type of investor this portfolio is suitable for
Balanced Investors
This setup fits someone comfortable with meaningful market swings who’s focused on long‑term growth over short‑term stability. A typical fit would be an investor with at least a 10‑ to 20‑year horizon, such as building retirement savings or growing a legacy portfolio. Risk tolerance would be moderate‑to‑high: downturns are expected and acceptable as long as the overall long‑run trajectory looks strong. This kind of personality values simplicity, low costs, and evidence‑based strategies like broad diversification and factor tilts, rather than frequent trading. They’re usually more interested in staying the course through market cycles than trying to time entries and exits or chase the latest hot theme.
Positions
-
American Century ETF Trust
AVLC - US0250721588 50.00% -
Avantis® International Equity ETF
AVDE - US0250727031 40.00% -
Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00%
This portfolio is a three‑fund, all‑stock setup with roughly half in a broad US fund, 40% in international stocks, and 10% in US small‑cap value. That mix lands in a “balanced risk” band despite being 100% in stocks because the holdings are broadly diversified and rules‑based. Compared with a typical global equity benchmark, this is pretty close in structure but with an intentional tilt toward smaller, cheaper companies. That’s a solid foundation. If this risk level feels right, keeping the simple three‑fund structure and just rebalancing periodically can work very well; if volatility ever feels too intense, adding a small allocation to safer assets could smooth the ride.
Growth
Historically, the portfolio shows an extremely strong compound annual growth rate (CAGR) of 23.57%, with a max drawdown of about ‑16.6%. CAGR is just the “average speed” your money grew each year, like tracking a car’s average mph over a long trip. A hypothetical $10,000 growing at 23.57% over 10 years would have exploded to well over $80,000, easily beating typical stock benchmarks. The relatively modest historical drawdown suggests past declines were shallower than many all‑equity portfolios. Still, past returns can be misleadingly rosy, especially when measured over strong market periods, so it’s smart to treat these numbers as a pleasant surprise, not a baseline promise.
Projection
The Monte Carlo results show a wide but favorable range of possible futures, with all 1,000 simulations ending positive and a median outcome around 1,973% total growth. Monte Carlo simulation basically re‑mixes past returns and volatility thousands of times to show many plausible paths, a bit like running 1,000 “what if” timelines. The 5th percentile result (around 604%) still implies very strong long‑term growth, but the big spread to the 67th percentile highlights real uncertainty. These simulations assume the future behaves somewhat like the past, which may not hold during regime shifts, so they should be viewed as rough weather maps rather than precise forecasts when setting expectations.
Asset classes
- Stocks 100%
- Other 0%
- Cash 0%
All 100% of this portfolio is in stocks, with no explicit bonds or cash allocation. That full‑equity stance is a big driver of both high historical returns and the potential for sharper drops. Compared with “balanced” portfolios that mix stocks and safer assets, this one is more aggressive but still broadly diversified within equities. For long horizons, being all‑stock can be powerful, but it does rely on the investor being able to sit through big market swings. If preserving capital over shorter periods ever becomes more important than maximizing growth, introducing even a modest slice of lower‑volatility assets could make the experience much more comfortable without completely sacrificing return potential.
Sectors
- Financials 19%
- Technology 17%
- Industrials 15%
- Consumer Discretionary 12%
- Health Care 7%
- Energy 7%
- Telecommunications 7%
- Basic Materials 6%
- Consumer Staples 5%
- Utilities 3%
- Real Estate 1%
Sector exposure is nicely spread out: financials, technology, and industrials lead, with meaningful weights in consumer, healthcare, energy, and others. This sector mix is broadly in line with global equity benchmarks, which is a strong sign of healthy diversification. The absence of an outsized bet on any single area helps reduce the risk that one sector’s downturn derails overall performance. For example, tech‑heavy lineups can swing wildly when interest rates move; this spread is more balanced. Over time, sectors rotate in and out of favor, so keeping this benchmark‑like pattern and avoiding big sector bets can help smooth returns and lower the chance of nasty surprises from any one industry.
Regions
- North America 65%
- Europe Developed 22%
- Japan 9%
- Australasia 3%
- Asia Developed 1%
- Africa/Middle East 1%
- Latin America 0%
- Asia Emerging 0%
- Europe Emerging 0%
Geographically, about 65% is in North America with the rest primarily in developed Europe and Japan, and small slices in other regions. That’s close to global market weights and aligns well with common world equity benchmarks, which is a big positive for diversification. The relatively modest exposure outside developed markets means less direct participation in emerging‑market growth, but also less exposure to their sometimes brutal volatility. Currency moves will influence returns from non‑US holdings, which can help or hurt in the short term but often smooth out over decades. Keeping this broadly global stance is a solid way to avoid over‑reliance on any single country or economic system.
Market capitalization
- Mega-cap 29%
- Large-cap 29%
- Mid-cap 25%
- Small-cap 12%
- Micro-cap 5%
The market‑cap exposure is well layered: roughly 58% in mega and big companies, 25% in mid caps, and a solid 17% in small and micro caps. This is more tilted toward smaller companies than many broad benchmarks, which typically lean heavier into mega caps. Smaller and “value” companies have historically had higher average returns but also bumpier rides, so this tilt explains some of the strong performance and potential future volatility. This structure is actually a textbook example of factor‑tilted diversification. Sticking with that tilt requires emotional resilience during periods when large, glamorous companies dominate headlines and returns, because small and value stocks can trail for years before catching up.
Dividends
- Avantis® International Equity ETF 2.40%
- American Century ETF Trust 0.90%
- Avantis® U.S. Small Cap Value ETF 1.40%
- Weighted yield (per year) 1.55%
The overall dividend yield sits around 1.55%, with the international fund providing a higher yield than the US broad and small‑value pieces. Dividends are the cash payments companies make to shareholders, like a periodic “thank you” for owning the stock. This yield is modest but quite normal for a growth‑oriented, globally diversified equity allocation. Most of the expected return here comes from price appreciation rather than income. For long‑term compounding, automatically reinvesting dividends back into the funds can quietly boost growth over time. If future priorities shift toward generating regular cash flow, shifting a portion toward higher‑yielding strategies or combining with income‑oriented assets could better match that goal.
Ongoing product costs
- Avantis® International Equity ETF 0.23%
- American Century ETF Trust 0.15%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Weighted costs total (per year) 0.19%
The weighted total expense ratio (TER) of about 0.19% is impressively low for a rules‑based, diversified setup. TER is the annual fee charged by the funds, similar to a small “membership cost” for being invested. Lower costs mean more of the return stays in your pocket, and over decades, even a 0.3–0.5% difference can translate to a large gap in ending wealth. This cost level compares very favorably with many actively managed alternatives and aligns closely with best practices for long‑term investing. Keeping expenses this low is a major structural advantage; the main ongoing task is just to monitor that any future changes don’t quietly push costs higher over 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.
Efficient Frontier analysis suggests there is a more “efficient” mix of these same three ETFs that delivers a higher expected return of about 24.58% at roughly the same risk, with an optimal point at that return and a risk level near 13.98%. The Efficient Frontier is just a curve of the best possible risk‑return trade‑offs for a given set of assets. Here, efficiency means getting the most expected return per unit of risk, not necessarily maximizing diversification or minimizing drawdowns. This is encouraging: it implies that, by fine‑tuning the percentages among these existing holdings, the overall risk‑return ratio could be nudged closer to that optimal zone without adding new products or complexity.
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