Momentum and small cap value equity blend with strong historic returns and meaningful global diversification
Report created on Jun 20, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 30.31% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 21.21% -
XM Invesco S&P MidCap Momentum ETF
XMMO - US46137V4648 18.18% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 12.12% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 12.12% -
AV Avantis® Emerging Markets Equity ETF
AVEM - US0250726041 6.06%
This portfolio is a pure equity mix built entirely from six stock ETFs, with no bonds or cash included in the allocation. The largest position is a US large-cap momentum fund at about 30%, followed by international small-cap value and US mid-cap momentum as sizable sleeves. The remaining pieces tilt toward US and international small-cap value and international momentum, plus a smaller emerging-markets exposure. This structure creates a focused, factor‑tilted equity strategy rather than a broad “total market” basket. It aims its exposure at specific parts of the stock market instead of spreading evenly across all segments, which can amplify both upside potential and volatility compared with more blended allocations.
Growth
From late 2019 to mid‑2026, a hypothetical $1,000 in this portfolio grew to about $3,196. That translates into a compound annual growth rate (CAGR) of 18.97%, compared with 16.60% for the US market and 14.12% for the global market. CAGR is like an average yearly “speed” over the full trip, smoothing out bumps along the way. The portfolio’s worst peak‑to‑trough drop was about ‑35.9%, slightly deeper than the US and global benchmarks during the 2020 crash, but it recovered within five months. Only 30 days made up 90% of total returns, showing that missing a small handful of strong days would have had a big impact on long‑term results.
Projection
The Monte Carlo projection takes the portfolio’s historical behavior and runs 1,000 simulated 15‑year paths to estimate a range of possible outcomes. Monte Carlo is basically a “what if” engine: it shakes the same return and volatility patterns many times to show how different the future might look, even with the same average characteristics. Here, the median outcome grows $1,000 to about $2,810, with a wide plausible band from roughly $1,029 to $7,947. The average annual return across simulations is 8.42%, and around 77% of scenarios end positive. These numbers are not promises; they’re statistical sketches based on past data, which can change.
Asset classes
- Stocks 100%
All of the portfolio is invested in stocks, with no allocation to bonds, cash, or alternative assets. That means the return profile is entirely tied to equity markets, without the cushioning effect that fixed income or cash can sometimes provide during downturns. From a diversification standpoint, it’s diversified within equities but not across asset classes. Equity‑only portfolios often enjoy stronger long‑term growth potential than mixed stock‑bond portfolios but typically experience larger and more frequent swings in value. This setup lines up with the portfolio’s “growth” classification and mid‑high risk score, since there’s no structural stabilizer like bonds built into the mix.
Sectors
- Technology 26%
- Industrials 21%
- Financials 15%
- Basic Materials 8%
- Consumer Discretionary 8%
- Energy 7%
- Health Care 4%
- Telecommunications 4%
- Consumer Staples 3%
- Utilities 3%
- Real Estate 2%
Sector exposure is fairly spread out, though there are clear emphases. Technology is the largest slice at 26%, followed by industrials at 21% and financials at 15%, while other sectors sit in single digits. This is more tech‑heavy than a classic broad global index but not dominated by it. Sector weights matter because different parts of the economy respond differently to things like interest rates, inflation, and growth cycles. Tech and industrial tilts can mean more sensitivity to innovation cycles and business investment trends. At the same time, having exposure across energy, materials, consumer areas, and defensive sectors helps avoid being overly reliant on any single economic story.
Regions
- North America 63%
- Europe Developed 15%
- Japan 10%
- Asia Developed 4%
- Asia Emerging 2%
- Africa/Middle East 2%
- Australasia 2%
- Latin America 1%
Geographically, the portfolio leans toward North America at 63%, with the rest spread across Europe developed (15%), Japan (10%), and smaller slices in other developed and emerging regions. Global indices today often sit around 60% US, so this allocation is broadly in line with common benchmarks, which is a positive sign for global diversification. The remaining 37% outside North America brings in different currencies, economic conditions, and policy environments. That mix reduces dependence on a single country while still reflecting the large role of US markets. It also means returns may be influenced by currency moves, global growth trends, and regional surprises over time.
Market capitalization
- Mid-cap 26%
- Large-cap 23%
- Mega-cap 22%
- Small-cap 22%
- Micro-cap 7%
By market capitalization, the portfolio is quite balanced: mid‑caps are the largest bucket at 26%, followed by large‑caps at 23%, mega‑caps at 22%, and small‑caps also at 22%, with a 7% slice in micro‑caps. That’s noticeably heavier in smaller companies than a typical global index, which tends to be dominated by mega and large caps. Company size matters because smaller firms often have higher growth potential but more volatile share prices, while mega‑caps are usually more stable but slower‑growing. This broad spread across size tiers increases diversification within equities but also injects extra volatility compared with a mega‑cap‑heavy approach.
True holdings
-
MU Micron Technology Inc 3.33%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
NV NVIDIA Corporation 2.48%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 1.98%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class A 1.37%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
JN Johnson & Johnson 1.23%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 1.22%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AM Advanced Micro Devices Inc 1.19%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 1.09%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
IN Intel Corporation 0.91%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
XO Exxon Mobil Corp 0.85%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 15.66%
Looking through ETF top‑10 holdings, a few names stand out as recurring exposures, especially in technology and communication services. Micron, NVIDIA, and Broadcom together make up almost 8% of the portfolio through ETFs, while Alphabet appears in both A and C share classes, totaling roughly 2.5% combined. Because these show up across multiple funds, they create “hidden” concentration that is higher than any single fund’s weight might suggest. At the same time, top‑10 data only covers about 29% of the portfolio, so actual overlap is likely more spread out. Still, it’s clear that a handful of large, growth‑oriented companies contribute meaningfully to overall portfolio behavior.
Factors
Factor exposure is where this portfolio is most distinctive. It shows high tilts to value (64%), size (62%), and momentum (63%), with other factors closer to neutral. Factors are like investing “ingredients” that explain why groups of stocks behave similarly over time. A strong value tilt means heavier exposure to companies trading at lower prices relative to fundamentals. High size tilt means more weight in smaller firms, and high momentum tilt leans into stocks that have been recent winners. Historically these factors have been associated with return premiums but also sharper ups and downs and occasional long dry spells when a given style is out of favor.
Risk contribution
-
Invesco S&P 500® Momentum ETF
Weight: 30.31% 30.9% -
Invesco S&P MidCap Momentum ETF
Weight: 18.18% 20.6% -
Avantis® International Small Cap Value ETF
Weight: 21.21% 18.2% -
Avantis® U.S. Small Cap Value ETF
Weight: 12.12% 14.3% -
Invesco S&P International Developed Momentum ETF
Weight: 12.12% 10.9% - Top 5 risk contribution 94.8%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the US large‑cap momentum fund weighs about 30% and contributes roughly 31% of total risk, closely in line. The mid‑cap momentum holding is 18% of assets but over 20% of risk, and the US small‑cap value ETF is 12% of assets yet about 14% of risk. Together, the top three holdings drive nearly 70% of portfolio risk. This pattern is common when larger positions also hold more volatile stocks: even “balanced” weights can hide where day‑to‑day swings are really coming from.
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.
The efficient frontier analysis compares this portfolio’s current mix with other combinations of the same six ETFs. The current portfolio has a Sharpe ratio of 0.77, while the “optimal” mix of these holdings reaches about 1.02, and the minimum‑variance version scores 0.88. The Sharpe ratio is a way of measuring return per unit of risk above the risk‑free rate. Being around 2 percentage points below the efficient frontier at the current risk level means that, on paper, a different weighting of these same funds could deliver better risk‑adjusted returns. Still, the existing allocation is reasonably close, not wildly inefficient.
Dividends
- Avantis® International Small Cap Value ETF 4.10%
- Avantis® Emerging Markets Equity ETF 2.50%
- Avantis® U.S. Small Cap Value ETF 1.60%
- Invesco S&P International Developed Momentum ETF 3.40%
- Invesco S&P 500® Momentum ETF 0.60%
- Invesco S&P MidCap Momentum ETF 0.60%
- Weighted yield (per year) 1.92%
The portfolio’s total dividend yield is about 1.92%, coming from a mix of higher‑yielding value and international funds and lower‑yielding momentum funds. Dividend yield is the annual cash payout as a percentage of the investment’s price, similar to interest from a savings account but not guaranteed. The international small‑cap value ETF, at 4.10%, and the international momentum fund, at 3.40%, are notable contributors, while the US momentum funds yield only about 0.60%. This means total return here has historically leaned more on price growth than income. Dividends still play a supportive role but are not the primary driver of performance.
Ongoing product costs
- 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%
- Invesco S&P 500® Momentum ETF 0.13%
- Invesco S&P MidCap Momentum ETF 0.34%
- Weighted costs total (per year) 0.26%
Average ongoing costs, measured by the total expense ratio (TER), come in at about 0.26% per year across the portfolio. TER is the annual fee charged by each ETF, expressed as a percentage of the amount invested, and it’s automatically deducted from fund assets. In the context of actively managed or factor‑based ETFs, a blended cost in the mid‑0.20s is quite competitive. Lower fees leave more of the gross return in investors’ hands, which compounds over time. The cost profile here is a clear strength: it supports the portfolio’s long‑term growth potential without imposing a heavy drag relative to the strategies it uses.
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