Globally diversified value focused equity portfolio with strong factor tilts and efficient risk profile

Report created on Mar 26, 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

This portfolio is a pure equity mix, with 100% in stock ETFs and no bonds or cash buffer. Roughly one third is in broad international equities, while the rest is split across U.S. large value, U.S. small value, international small value, and emerging markets value. That means every single position is tilted toward cheaper companies based on fundamentals rather than broad market exposure. A single-asset-class structure like this is simple and focused, but it also means the ride can be bumpy when stocks fall together. For someone comfortable with equity swings, this kind of all-stock, factor-driven setup can be a powerful long-term growth engine.

Growth Info

Over the period from late 2021 to early 2026, the example $1,000 grew to $1,628, matching the U.S. market’s end value while clearly beating the global market. The portfolio’s CAGR, or compound annual growth rate, was 12.39%, higher than both the U.S. and global benchmarks, showing that the style tilts have been rewarded so far. Max drawdown was -23.16%, slightly shallower than both benchmarks, which is impressive for an all-equity mix. Only 15 days produced 90% of the gains, underscoring how returns come in short, unpredictable bursts. The big takeaway: staying invested through volatility has historically been crucial to capturing this portfolio’s return potential.

Projection Info

The Monte Carlo projection uses the portfolio’s past return and volatility to simulate 1,000 alternative 10-year futures, like running the same movie with different random plot twists. It shows a median cumulative gain of about 368%, with a wide but mostly positive range: even the 5th percentile ends about 53% higher, while the upper scenarios compound very strongly. The average simulated annualized return of 13.07% looks great, but it’s crucial to remember this is based on a short and specific history. Market regimes can change, and value or small-cap styles can lag for long stretches. The message is probability-based: outcomes are likely positive over a decade, but the exact path will be uneven and uncertain.

Asset classes Info

  • Stocks
    100%

With 100% in stocks and 0% in bonds or cash, the portfolio is fully exposed to equity market risk and equity market upside. Compared with a classic “balanced” mix that includes bonds, this structure will typically swing more in both directions, especially during sharp downturns. The upside of an all-equity allocation is higher expected long-term returns; the downside is deeper and longer bear markets without the stabilizing effect of fixed income. For someone using this as a core long-term growth engine and managing short-term needs separately, the pure stock approach can be reasonable. For anyone relying on the portfolio for near-term withdrawals, some lower-volatility assets would usually be helpful.

Sectors Info

  • Financials
    21%
  • Industrials
    18%
  • Consumer Discretionary
    14%
  • Energy
    13%
  • Technology
    9%
  • Basic Materials
    8%
  • Consumer Staples
    5%
  • Health Care
    5%
  • Telecommunications
    4%
  • Utilities
    2%
  • Real Estate
    1%

Sector exposure is nicely spread: financials, industrials, consumer cyclicals, and energy lead, with moderate allocations to tech, materials, defensive sectors, healthcare, communications, utilities, and a small real estate slice. This lines up well with what you’d expect from diversified value-focused strategies, which naturally lean a bit away from expensive growth-heavy corners of the market. Compared with broad benchmarks, the relatively modest technology weight and stronger cyclical exposure can mean outperforming when cheaper sectors rebound, but lagging during periods when high-growth tech dominates returns. This sector composition is well-balanced and aligns closely with global standards for a value-oriented equity mix.

Regions Info

  • North America
    55%
  • Europe Developed
    22%
  • Japan
    11%
  • Asia Developed
    3%
  • Australasia
    3%
  • Asia Emerging
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, the portfolio is meaningfully diversified: around a bit more than half in North America, with solid allocations to developed Europe and Japan, plus smaller slices across other developed and emerging regions. That’s less U.S.-centric than many U.S. investors, and it compares favorably to global benchmarks in terms of spreading economic and policy risk. International exposure can help when leadership rotates away from the U.S., and it reduces reliance on any one country’s currency or regulatory environment. The flip side is that global allocations occasionally lag a U.S.-only approach when American markets are dominant. Overall, this geographic spread is broadly diversified and well-aligned with global investing practices.

Market capitalization Info

  • Mid-cap
    25%
  • Small-cap
    23%
  • Large-cap
    21%
  • Mega-cap
    18%
  • Micro-cap
    12%

Market-cap exposure is unusually balanced: mid caps, small caps, big caps, megacaps, and even micro caps all hold meaningful slices. That stands in contrast to typical cap-weighted benchmarks dominated by the largest companies. Smaller and mid-sized firms tend to be more volatile but historically have offered higher long-term return potential, especially when combined with a value tilt. Including micro caps introduces extra risk and tracking error versus the standard indexes, but also adds diversification away from the mega-cap universe most investors already hold elsewhere. This kind of size mix makes the portfolio behave differently from mainstream index funds, which can be a feature if that differentiation is intentional.

True holdings Info

  • Micron Technology Inc
    0.91%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Exxon Mobil Corp
    0.88%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Meta Platforms Inc.
    0.73%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Apple Inc
    0.70%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Amazon.com Inc
    0.68%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Lam Research Corp
    0.63%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Caterpillar Inc
    0.63%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Merck & Company Inc
    0.57%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Costco Wholesale Corp
    0.55%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • JPMorgan Chase & Co
    0.53%
    Part of fund(s):
    • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
  • Top 10 total 6.79%

Looking through ETF top holdings, the largest underlying names like Micron, Exxon Mobil, Meta, Apple, Amazon, and JPMorgan each sit under 1% of the total portfolio. That’s a good sign of single-name diversification, even though the true overlap is understated because we only see ETF top 10s. There is some hidden concentration via repeated megacaps across multiple funds, but it’s relatively modest compared with a portfolio built around a few big individual stocks. Still, these shared holdings can cause parts of the portfolio to move together during major market events. Treat the look-through as a rough map, not an exact blueprint, given that most holdings sit beyond the top-10 disclosure.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 65%
Size
Exposure to smaller companies
Neutral
Data availability: 60%
Momentum
Exposure to recently outperforming stocks
High
Data availability: 100%
Quality
Preference for financially healthy companies
No data
Data availability: 0%
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. It shows a very strong value tilt (85%), notable size tilt toward smaller companies, and high momentum exposure, with moderate low-volatility characteristics. Factor investing focuses on these characteristics—value, size, momentum, quality, low volatility, yield—because research suggests they help explain long-run returns, like different ingredients shaping a recipe. A strong value and small-size bias often shines after long growth-led bull markets, but can trail when investors crowd into expensive, fast-growing names. High momentum helps during trending markets but can hurt in sharp reversals. Overall, this factor mix is deliberate, distinct from the market, and has historically been rewarded in many periods.

Risk contribution Info

  • Avantis® International Equity ETF
    Weight: 35.00%
    31.3%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 25.00%
    31.3%
  • American Century ETF Trust - Avantis U.S. Large Cap Value ETF
    Weight: 25.00%
    24.4%
  • Avantis® International Small Cap Value ETF
    Weight: 10.00%
    9.3%
  • Avantis® Emerging Markets Value ETF
    Weight: 5.00%
    3.8%

Risk contribution shows how much each ETF adds to total portfolio ups and downs, which can differ from its simple weight. The U.S. small-cap value ETF is a clear example: at 25% weight it contributes over 31% of the risk, with a risk-to-weight ratio of 1.25. By contrast, the international equity and U.S. large value funds pull their weight in risk more proportionally, while emerging markets contribute less risk than their size might suggest. With the top three holdings driving almost 87% of total risk, small tweaks in those allocations can meaningfully change the overall volatility. Rebalancing or slightly adjusting these core weights is a powerful lever for dialing risk without changing the fund lineup.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Avantis® International Equity ETF
    High correlation

Correlation measures how closely assets move together, from -1 (opposite) to +1 (in lockstep). Here, the international equity fund and international small-cap value ETF are highly correlated, which isn’t surprising given their overlapping regions and styles. High correlation limits diversification benefits: in major downturns, these pieces are likely to fall at the same time, even if their long-term return profiles differ. That said, diversification is still improved through other dimensions like size, sector, and style. Correlation patterns can also shift over time, especially across regions and factors. The note that overall correlations are high suggests that further diversification would require adding truly different asset classes or styles, not just more similar equity funds.

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 sits on the efficient frontier, meaning that for its specific mix of ETFs, the allocation is already using risk efficiently. The Sharpe ratio of 0.62 is solid, though the optimal portfolio on the same frontier reaches a higher Sharpe of 0.82 with slightly lower volatility and higher expected return. There’s also a “same-risk optimized” mix that targets the current risk level but boosts expected return to about 14.72%. Because all these points use the same holdings, improvements come from reweighting, not adding new funds. That’s encouraging: tweaks to position sizes could potentially improve the risk/return tradeoff while preserving the overall strategy and style tilts.

Dividends Info

  • Avantis® International Equity ETF 2.70%
  • Avantis® International Small Cap Value ETF 3.00%
  • Avantis® Emerging Markets Value ETF 3.20%
  • American Century ETF Trust - Avantis U.S. Large Cap Value ETF 1.20%
  • Avantis® U.S. Small Cap Value ETF 1.40%
  • Weighted yield (per year) 2.06%

The overall dividend yield is a modest but meaningful 2.06%, with international and emerging markets value funds providing higher yields around 2.7–3.2%, and U.S. value funds a bit lower. Dividends are the cash payouts companies make, which can be reinvested to buy more shares or taken as income. For an equity-heavy, total-return approach, this level of yield is quite reasonable: it contributes a steady component to returns without turning the portfolio into an income-only strategy. Historically, reinvested dividends have been a big part of long-term stock returns. For long-horizon investors who don’t need the cash today, automatically reinvesting these distributions can quietly turbocharge compounding over decades.

Ongoing product costs Info

  • Avantis® International Equity ETF 0.23%
  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • American Century ETF Trust - Avantis U.S. Large Cap Value ETF 0.15%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Weighted costs total (per year) 0.23%

Total TER, or ongoing fund expense, is about 0.23%, which is impressively low for an actively tilted, factor-focused global equity lineup. Costs work like friction on a machine: every extra fraction of a percent paid out annually is lost compounding power. Compared with many active approaches that charge significantly more, this structure keeps more of the factor premiums in the investor’s pocket. Over 20–30 years, the difference between 0.23% and, say, 0.75% can translate into a meaningful gap in ending wealth. From a cost perspective, this setup is very efficient and aligned with best practices for long-term, evidence-based investing.

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