History
Popular among evidence-based investors influenced by factor research.
Philosophy
Tilt toward historically rewarded size and value factors without abandoning diversification.
Factor / QuantGrowthFactor basedGrowthMedium complexity
Small Cap Value Tilt
A market portfolio tilted toward small-cap value stocks.
Asset allocation
US Stocks
70%Small Cap Value
30%Performance
How this allocation behaved across modern markets
Annual rebalancing, local bond and cash proxies where relevant, and optional inflation adjustment through CPI.
1970-2024Log scale
CAGR
10.9%
1970-2024
Max drawdown
-42.2%
Volatility
17.9%
Worst year
-39.0%
2008
Implementation
Local products and proxies
🌐 Small Cap Value Tilt implementation
Long-term individual investor
Use broad, low-cost funds or ETFs matching each asset class.
Account notes: Implementation depends on local account types and tax wrappers.
Costs: Prefer low-cost, liquid vehicles.
Rebalancing: Annual rebalancing or tolerance bands.
Tax: Country-specific tax treatment should be reviewed before implementation.
Product names are implementation examples for research. Availability, taxation, share classes and suitability should be checked with the investor's broker and tax situation.
Similar portfolios
Adjacent ideas in the atlas
Merriman Four-Fund Portfolio
A simplified Merriman portfolio emphasizing small-cap value and diversification.
US Stocks25%
Small Cap Value25%
International Stocks25%
Emerging Markets25%
Open atlas entry
Ultimate Buy and Hold
Paul Merriman's highly diversified equity portfolio with factor tilts.
Small Cap Value30%
International Stocks30%
US Stocks20%
Emerging Markets10%
Bonds10%
Open atlas entry
Fama-French Factor Portfolio
A practical investable interpretation of the Fama-French factor framework, combining broad market beta with diversified size and value tilts across US and international equities.
US Total Market40%
US Small Cap Value25%
US Large Cap Value15%
International Developed Value10%
International Small Cap Value10%
Open atlas entry
Multi-Factor Portfolio
A diversified factor portfolio combining value, quality, momentum and size.
Value Stocks25%
Quality Stocks25%
Momentum Stocks25%
Small Cap Value25%
Open atlas entry
Ultimate Buy & Hold REIT Variant
A Merriman-style tilted equity portfolio with a dedicated REIT allocation.
US Stocks30%
International Stocks25%
Small Cap Value20%
Value Stocks15%
REITs10%
Open atlas entry