Strong value tilted global equity blend with balanced risk and low cost structure
Report created on Mar 22, 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
This setup best fits an investor who is comfortable with meaningful equity volatility in pursuit of stronger long-term growth. A multi-decade horizon, such as saving for retirement or generational wealth, lines up well with the heavy stock allocation and modest dividend yield. This person likely appreciates evidence-based strategies, is open to factor tilts like value and small size, and doesn’t need to tap the portfolio for income in the near term. Risk tolerance is moderate-to-high: drawdowns are acceptable as long as the long-run odds remain favorable. Patience, discipline, and a willingness to stay invested through market cycles are key personality traits for making the most of this kind of structure.
Positions
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Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 75.00% -
Avantis® International Small Cap Value ETF
AVDV - US0250728021 20.00% -
Select STOXX Europe Aerospace & Defense ETF
EUAD - US84858T7726 5.00%
The structure is very clean: roughly three-quarters in a broad total US stock ETF, one-fifth in international small-cap value, and a small satellite sleeve in European aerospace and defense. Around 97% of the portfolio sits in stocks with a 3% cash buffer. This is effectively an equity-focused, core-satellite setup where one low-cost core fund does most of the heavy lifting, and two satellite funds introduce specific tilts. That kind of simplicity makes it easier to monitor and maintain. The main takeaway is that the mix leans clearly toward growth-focused wealth building rather than capital preservation, while still leaving room for targeted tilts in overseas small caps and a niche industry theme.
Historical data is limited for this portfolio, which reduces the confidence in the calculated values.
Growth
Over the observed period, a hypothetical $1,000 grew to $1,226, beating both the US and global market benchmarks. The portfolio’s compound annual growth rate (CAGR) of 15.88% outpaced the US at 9.24% and global at 11.77%. CAGR is like the “average speed” of your money over the journey. Max drawdown, the worst peak-to-trough fall, was -16.18%, slightly milder than the US market’s -18.76%. That combination of higher return with comparable or lower drawdown is encouraging, but it’s based on less than two years of data. Short windows can be heavily influenced by recent winners, so this outperformance shouldn’t be assumed to persist unchanged.
Due to limited historical data, this may show extreme values that are not realistic.
Projection
The Monte Carlo simulation looks at many possible 10-year paths by re-mixing past daily returns to estimate a range of future outcomes. It shows very strong median and upper-percentile results, with a 50th percentile cumulative return above 3,000% and all scenarios ending positive. That implies an annualized simulated return over 30%, which is likely overstated given the short, strong backtest period. Monte Carlo is helpful for framing uncertainty, but when you only have ~1.5 years of data, the model is essentially extrapolating a hot streak. The healthy skepticism takeaway: use these numbers as a rough illustration of volatility and dispersion, not as a forecast for what will actually happen.
Asset classes
- Stocks 97%
- Cash 3%
The portfolio is overwhelmingly allocated to equities at 97%, with only 3% in cash and no meaningful bond exposure. That’s a clear tilt toward growth and higher volatility, typical of investors with longer time horizons who can ride through market swings. Compared with more traditional “balanced” mixes that might hold 40–60% bonds, this is much more aggressive in risk terms. The benefit is higher expected long-term returns, while the trade-off is deeper drawdowns during bear markets. The structure is simple and aligned with an equity-first approach, but anyone needing shorter-term stability or withdrawals would usually blend in more defensive assets to smooth the ride.
Sectors
- Technology 24%
- Industrials 17%
- Financials 12%
- Consumer Discretionary 11%
- Health Care 8%
- Telecommunications 8%
- Basic Materials 6%
- Energy 5%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
Sector exposure is broad: technology leads at 24%, followed by industrials, financials, and consumer cyclicals, with all 11 major sectors represented. Tech and communication services together still form a sizable growth engine, but the presence of sectors like healthcare, energy, utilities, and consumer defensive helps balance out more cyclical areas. Compared with global norms, this looks reasonably diversified rather than narrowly focused on a single theme. One unique feature is the aerospace and defense sleeve that slightly amplifies industrial and defense-related exposure. Broad sector coverage is a plus because it spreads risk across different economic drivers, reducing the odds that one weak area will dominate overall results.
Regions
- North America 77%
- Europe Developed 12%
- Japan 7%
- Australasia 2%
- Africa/Middle East 1%
- Asia Developed 1%
Geographically, about 77% is in North America, 12% in developed Europe, with Japan, Australasia, and smaller slices in other regions making up the rest. That’s a clear US-led portfolio, though not purely domestic-only, thanks to the international small-cap and European allocations. Compared with a typical global market-cap benchmark, which usually has a bit less US weight, this setup slightly overweights the home market. That has worked very well over the last decade as US stocks have led, but it does mean results are heavily tied to US economic and market conditions. The additional international small-cap value exposure adds a distinct diversifier that behaves differently from large US growth stocks.
Market capitalization
- Mega-cap 31%
- Mid-cap 26%
- Large-cap 24%
- Small-cap 12%
- Micro-cap 2%
Market cap exposure is nicely spread: roughly one-third in mega caps, with solid representation in big and mid caps, and a meaningful 12% in small caps plus a small micro slice. That’s broader than many portfolios that lean almost entirely on large companies. Smaller stocks tend to be more volatile but can offer higher long-term return potential and different cycles compared with mega caps. The dedicated international small-cap value fund is clearly driving that small-cap tilt. This size mix is a strength for diversification: it helps avoid overreliance on a narrow group of giants while still keeping plenty of exposure to the stability and liquidity of large, established companies.
True holdings
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NVIDIA Corporation 4.64%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
-
Apple Inc 4.42%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
-
Microsoft Corporation 3.31%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
-
Amazon.com Inc 2.29%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
-
Alphabet Inc Class A 2.06%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
-
Broadcom Inc 1.71%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
-
Alphabet Inc Class C 1.62%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
-
Meta Platforms Inc. 1.60%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
-
Tesla Inc 1.29%Part of fund(s):
- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
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Berkshire Hathaway Inc 1.03%Part of fund(s):
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 23.95%
Looking through the ETFs, there is meaningful exposure to the largest US growth names: Nvidia, Apple, Microsoft, Amazon, both Alphabet share classes, Meta, Tesla, and Berkshire. These positions all come through the total stock market ETF, so they’re diversified within a broad basket rather than held directly. Still, having the same companies appear in multiple index-based funds can create hidden concentration, even when each ETF seems diversified. Here, overlap is mostly in that single large US fund, so duplication is limited but the “Magnificent” style exposure is real. Because only top-10 ETF holdings are captured, true overlap is likely somewhat higher, so it’s worth recognizing how much portfolio behavior may track large US growth stocks.
Factors
Factor exposure shows strong tilts to value, size, and low volatility, with moderate momentum. Factors are like “personality traits” of stocks: value favors cheaper names, size leans toward smaller companies, momentum tilts toward recent winners, and low volatility prefers steadier stocks. Here, high value and size exposure indicates a clear preference for smaller and cheaper companies, while the low-volatility tilt suggests some bias toward steadier names within that universe. Coverage for value signals is only 20%, so those numbers are less precise than for size and momentum, but the overall tilt is still clear. Historically, such factor tilts have paid off over long spans but can lag the broad market for extended stretches.
Risk contribution
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Vanguard Total Stock Market Index Fund ETF Shares
Weight: 75.00% 79.6% -
Avantis® International Small Cap Value ETF
Weight: 20.00% 16.3% -
Select STOXX Europe Aerospace & Defense ETF
Weight: 5.00% 4.1%
Risk contribution shows how much each holding drives total volatility, which isn’t always proportional to its weight. The total US stock ETF is 75% of the portfolio but contributes nearly 80% of the risk, giving it a slightly outsized influence on ups and downs. The international small-cap value and aerospace/defense positions contribute less risk than their weights might suggest, which is a positive sign for diversification. Because the top three ETFs account for 100% of risk, any change in their mix directly reshapes overall behavior. If the goal is to lean harder into factor tilts or reduce reliance on US mega caps, adjusting the relative sizing of these three funds would be the most effective lever.
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.
The risk–return chart shows the current portfolio sitting below the efficient frontier. The efficient frontier is the curve of best possible return for each risk level using only the existing holdings but in different weights. Your current mix has an expected return of 15.63% with 16.52% volatility and a Sharpe ratio of 0.82, while the highest-Sharpe portfolio on the frontier reaches 1.78. That means there is a more efficient combination of these same three ETFs that could deliver significantly better risk-adjusted performance. Even holding risk constant, the same-risk optimized portfolio shows notably higher expected return. The key message: without adding new funds, simply reweighting might materially improve the balance between risk and reward.
Dividends
- Avantis® International Small Cap Value ETF 3.10%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Select STOXX Europe Aerospace & Defense ETF 0.40%
- Weighted yield (per year) 1.54%
The overall dividend yield is a modest 1.54%, with the international small-cap value ETF pulling the average up via its 3.10% yield. The broad US total market ETF sits at 1.20%, while the aerospace and defense ETF yields 0.40%. That profile suggests the portfolio is built more for total return (price growth plus dividends) than for current income. For long-term growth investors, reinvesting these dividends can quietly boost compounding. However, anyone seeking substantial regular cash flow would not view this yield as especially high. The fact that a meaningful portion comes from value-oriented small caps is consistent with the factor tilts and can provide a bit of ballast when growth stocks cool off.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.09%
Costs are impressively low, with a blended total expense ratio around 0.09%. The total US stock market ETF is extremely cheap at 0.03%, and even the more specialized international small-cap value ETF at 0.36% is reasonable for a factor-tilted strategy. Low fees matter because they are one of the few things investors can control: every basis point saved is extra return kept. Over long horizons, the difference between, say, 0.10% and 0.60% compounds into a noticeable gap. This cost profile is a real strength and aligns well with best practices for long-term investors who want most of the market’s return to stay in their account rather than being eaten by fund charges.
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