Globally diversified equity portfolio with strong factor tilts and efficient but aggressive return profile
Report created on Mar 21, 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 well-matched to this kind of portfolio is typically comfortable with meaningful market swings and focused on long-term growth rather than short-term stability. They might be investing for goals 10+ years away—things like retirement, financial independence, or building substantial future wealth. They accept that a 100% stock allocation can involve large drawdowns and occasional scary headlines, but are confident in staying invested through full market cycles. This type of person often appreciates factor strategies, global diversification, and low costs, and is less concerned with steady income or capital preservation over the next few years. Emotional resilience and a disciplined, “stay-the-course” mindset are key traits here.
Positions
-
Vanguard S&P 500 ETF
VOO - US9229083632 30.00% -
Avantis® International Equity ETF
AVDE - US0250727031 10.00% -
Avantis® International Small Cap Value ETF
AVDV - US0250728021 10.00% -
Avantis® Emerging Markets Equity ETF
AVEM - US0250726041 10.00% -
Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00% -
Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 10.00% -
Invesco S&P MidCap Momentum ETF
XMMO - US46137V4648 10.00% -
MarketDesk Focused U.S. Momentum ETF
FMTM 10.00%
The portfolio is a pure equity mix, split between a broad US large cap core and several factor-oriented ETFs across US and international markets. About one-third sits in a classic large cap US index, while the rest leans into small cap value, momentum, and non-US exposure. A 100% stock allocation is typically more volatile than blended stock–bond mixes but can offer higher long-term growth. For someone comfortable with ups and downs, this structure provides both broad market capture and targeted tilts toward known return drivers. The key takeaway is that this is a growth-forward, equities-only setup that prioritizes return potential over short-term stability.
Historical data is limited for this portfolio, which reduces the confidence in the calculated values.
Growth
Over the last year, the $1,000 example investment grew to $1,244, translating to a 23.32% Compound Annual Growth Rate (CAGR). CAGR is the “average speed” of growth per year, smoothing out the bumps. This return outpaced both the US market (16.36%) and the global market (17.40%), which is a solid outcome. The max drawdown of -13.33% matches the depth of falls seen in the benchmarks, showing no extra downside so far despite the higher return. However, the period is short, and strong recent markets can flatter numbers. The main takeaway: performance has been impressive relative to benchmarks, but it’s too brief to rely on as a long-term pattern.
Due to limited historical data, this may show extreme values that are not realistic.
Projection
The Monte Carlo simulation projects many possible 10-year paths by “replaying” risk and return patterns from the recent data in thousands of randomized scenarios. It shows a median outcome of about 2,838% cumulative return and even the 5th percentile near 764%. Annualized returns around 28.5% across simulations are extremely high and almost certainly reflect an unusually strong recent period plus limited history. Monte Carlo is a tool, not a crystal ball; it assumes the future behaves like the recent past, which often isn’t true. The practical takeaway: the simulation confirms this is a high-return, high-equity profile, but the specific numbers are likely far too optimistic for planning.
Asset classes
- Stocks 100%
All capital is in stocks, with no bonds, cash, or alternatives in the asset mix. Equities historically deliver higher long-term growth than bonds but come with sharper drops and longer drawdowns. Balanced “60/40” style portfolios typically blend stocks and bonds to smooth the ride; by contrast, this setup accepts equity volatility in pursuit of higher expected returns. This is aligned with a growth-focused, long-horizon mindset and fits the “Balanced” risk label only because of diversification within equities, not across asset classes. A key takeaway is that short-term capital needs or low risk tolerance would usually call for some defensive assets; this portfolio is more suited to someone who can stay invested through big swings.
Sectors
- Technology 20%
- Financials 18%
- Industrials 17%
- Consumer Discretionary 11%
- Energy 7%
- Basic Materials 7%
- Telecommunications 5%
- Health Care 5%
- Consumer Staples 5%
- Utilities 3%
- Real Estate 2%
Sector exposure is broadly spread, with meaningful allocations to technology, financials, industrials, consumer cyclicals, energy, materials, communication services, healthcare, consumer defensive, utilities, and real estate. Compared with many global benchmarks, there’s still a sizable tilt toward economically sensitive areas like technology, financials, and industrials, which often move more with the business cycle. This diversified sector mix helps avoid overreliance on any single industry while still capturing growth from innovative and cyclical areas. In practice, that means the portfolio should benefit when global growth and risk appetite are healthy but can be more volatile during recessions or credit stress. The sector spread is generally well-balanced and supports the strong diversification score.
Regions
- North America 64%
- Europe Developed 15%
- Japan 6%
- Asia Developed 5%
- Asia Emerging 4%
- Australasia 2%
- Africa/Middle East 2%
- Latin America 1%
Geographically, about 64% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, Australasia, Africa/Middle East, and Latin America. This is more global than a pure US portfolio but still somewhat US-tilted relative to some global benchmarks that place closer to 60% in the US. Global diversification matters because different regions lead at different times; strong US performance recently doesn’t guarantee future dominance. Exposure to emerging markets and smaller developed regions adds growth potential but also political and currency risk. Overall, this global mix is a strong positive: it meaningfully reduces reliance on one country, yet keeps a healthy stake in the world’s largest, most liquid market.
Market capitalization
- Mega-cap 28%
- Mid-cap 27%
- Large-cap 22%
- Small-cap 17%
- Micro-cap 5%
Market cap exposure is well spread: roughly 28% mega-cap, 22% big, 27% mid, 17% small, and 5% micro. That’s a clear tilt away from pure mega-cap dominance toward mid and small caps, which historically can offer higher long-term returns but with bumpier rides. Smaller companies tend to be more sensitive to economic cycles and liquidity conditions; they can outperform in expansions but fall harder in downturns. The blend here balances participation in market leaders with meaningful exposure to less-followed names that may be less efficiently priced. This broad size mix is a strength for diversification and aligns nicely with the portfolio’s factor tilts toward size and value.
True holdings
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NVIDIA Corporation 2.20%Part of fund(s):
- Vanguard S&P 500 ETF
-
Apple Inc 1.99%Part of fund(s):
- Vanguard S&P 500 ETF
-
Microsoft Corporation 1.49%Part of fund(s):
- Vanguard S&P 500 ETF
-
Amazon.com Inc 1.04%Part of fund(s):
- Vanguard S&P 500 ETF
-
Alphabet Inc Class A 0.92%Part of fund(s):
- Vanguard S&P 500 ETF
-
Broadcom Inc 0.77%Part of fund(s):
- Vanguard S&P 500 ETF
-
Woodward Inc 0.74%Part of fund(s):
- Invesco S&P MidCap Momentum ETF
- MarketDesk Focused U.S. Momentum ETF
-
Alphabet Inc Class C 0.74%Part of fund(s):
- Vanguard S&P 500 ETF
-
Meta Platforms Inc. 0.72%Part of fund(s):
- Vanguard S&P 500 ETF
-
Lumentum Holdings Inc 0.65%Part of fund(s):
- Invesco S&P MidCap Momentum ETF
- Top 10 total 11.26%
Looking through the ETFs, the largest underlying exposures include major US tech and communication names such as NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, and Broadcom, each at around 0.7–2.2% of the total portfolio. These companies appear in multiple funds, creating hidden overlap even if no single ETF seems highly concentrated. Only top-10 ETF holdings are captured, so actual overlap is probably higher than it looks. Hidden concentration matters because if these big names sell off together, several funds can be hit at once. The upside is participation in market leaders; the flip side is more sensitivity to a relatively small group of mega-cap growth stocks.
Factors
Factor exposure shows strong tilts toward size, value, and low volatility, with moderate momentum. Factors are like underlying “personality traits” of stocks that research has tied to returns over decades. High size exposure means a tilt to smaller companies; strong value means favoring cheaper stocks; low volatility focuses on steadier names; momentum leans into recent winners. This combination often behaves differently from a plain market-cap-weighted index: it may lag in pure mega-cap growth rallies but historically can shine over longer cycles and in certain regimes. The average signal coverage is limited, so readings aren’t perfect, but the direction is clear. For someone deliberately using factor strategies, this alignment is very consistent and intentional.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 30.00% 29.6% -
Avantis® U.S. Small Cap Value ETF
Weight: 10.00% 11.6% -
Invesco S&P MidCap Momentum ETF
Weight: 10.00% 11.3% -
MarketDesk Focused U.S. Momentum ETF
Weight: 10.00% 10.5% -
Avantis® Emerging Markets Equity ETF
Weight: 10.00% 9.7% - Top 5 risk contribution 72.7%
Risk contribution measures how much each position drives overall ups and downs, which can differ from its weight. Here, the S&P 500 ETF is 30% of the portfolio and contributes about 29.6% of the risk, which is very proportional. The US small cap value ETF and the US midcap momentum ETF each have 10% weights but contribute slightly over 11% of risk, reflecting their more volatile nature. The top three holdings together drive about 52.5% of total portfolio risk, which is notable but not extreme. This pattern is generally healthy: risk is reasonably aligned with position sizes, and no single holding dominates the profile. Fine-tuning weights could modestly shift risk, but there are no glaring imbalances.
Redundant positions
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High correlationAvantis® International Equity ETFAvantis® International Small Cap Value ETF
Correlation shows how investments move together; assets with high correlation tend to rise and fall in sync, limiting diversification. The international Avantis funds are noted as a highly correlated group, suggesting they behave similarly when global developed markets move. That’s not necessarily a problem—funds targeting similar regions or styles often trade alike—but it does mean diversification benefits inside that cluster are smaller than the number of tickers suggests. Across the whole portfolio, the note about “highly correlated assets” indicates that many pieces still respond to common global equity forces. The takeaway: this is still fundamentally a single-risk-engine portfolio—equities—so in big global selloffs, most holdings are likely to move down together.
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 on the efficient frontier, meaning that for its mix of holdings, the weights are already efficient—there’s no obvious free lunch from reshuffling into clearly dominated combinations. However, it’s not at the optimal point with the highest Sharpe ratio (return per unit of risk). The same-risk optimized portfolio would lift expected return materially at roughly similar volatility. The key idea: by tweaking weights among the existing ETFs—without adding anything new—it may be possible to improve the balance between risk and reward. That said, all these numbers are based on a short history, so optimization signals should be treated cautiously rather than followed mechanically.
Dividends
- Avantis® International Equity ETF 2.80%
- Avantis® International Small Cap Value ETF 3.10%
- Avantis® Emerging Markets Equity ETF 2.50%
- Avantis® U.S. Small Cap Value ETF 1.80%
- Invesco S&P International Developed Momentum ETF 3.90%
- Vanguard S&P 500 ETF 1.20%
- Invesco S&P MidCap Momentum ETF 0.70%
- MarketDesk Focused U.S. Momentum ETF 0.30%
- Weighted yield (per year) 1.87%
The total portfolio dividend yield around 1.87% is modest, with some ETFs offering higher yields above 3% and others, especially momentum funds, much lower. Dividend yield is the cash income paid out annually, like rent from owning shares. For return-focused, equity-heavy portfolios, dividends are usually a smaller part of total return compared with price gains, but they still help smooth outcomes and can be reinvested to compound over time. This yield level is quite normal for a growth-oriented mix and suggests the strategy is not primarily income-focused. For investors who care more about long-term wealth building than current cash flow, that’s perfectly aligned and not a concern.
Ongoing product costs
- Avantis® International Equity ETF 0.23%
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® Emerging Markets Equity ETF 0.33%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Invesco S&P International Developed Momentum ETF 0.25%
- Vanguard S&P 500 ETF 0.03%
- Invesco S&P MidCap Momentum ETF 0.34%
- Weighted costs total (per year) 0.18%
The weighted Total Expense Ratio (TER) of about 0.18% is impressively low given the heavy use of specialized factor ETFs. Costs are the silent drag on performance; every 0.1% saved each year compounds over decades. The S&P 500 ETF is extremely cheap at 0.03%, and even the more complex Avantis and Invesco funds are priced competitively versus peers. This cost profile is a real strength: it leaves more of the underlying factor and market returns in the investor’s pocket. Over 20–30 years, keeping fees at this level can meaningfully increase end wealth compared with similar strategies running at higher expense ratios.
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