Globally diversified stock portfolio with efficient risk balance and a tilt toward momentum strategies
Report created on Jul 1, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 50.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 30.00% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 20.00%
This portfolio is a simple three‑ETF mix fully invested in global stocks. About half sits in a broad total‑world index fund, while the rest is split between two momentum strategies, one focused on the US and one on developed markets outside the US. So there’s a core “own almost everything” holding, plus two return‑seeking satellites that lean into recent winners. This core‑and‑satellite structure matters because the core helps keep diversification broad, while the satellites shape how the portfolio behaves day to day. In practice, that means overall risk stays in line with a growth‑oriented equity portfolio, while the momentum pieces can make returns more sensitive to changing market trends.
Growth
Over the last decade, a hypothetical $1,000 in this portfolio grew to about $4,141, a compound annual growth rate (CAGR) of 19.18%. CAGR is like your “average speed” over the whole trip, smoothing out bumps along the way. That’s slightly ahead of the US market and clearly ahead of the global market benchmark over this period. The worst drop, or max drawdown, was about -32.6% during early 2020, similar to the benchmarks, showing that in big shocks this behaves like a full‑equity portfolio. Just 38 days explain 90% of total returns, underlining how missing a small number of strong days can significantly change long‑term outcomes.
Projection
The Monte Carlo projection uses past return and volatility patterns to simulate many possible 15‑year futures. Think of it as rolling the dice 1,000 times with odds based on history, not predictions. The median outcome turns $1,000 into roughly $2,723, with a broad “likely” range from about $1,685 to $4,166. The very wide $915 to $8,028 span between the pessimistic and optimistic scenarios shows how uncertain long‑term equity results can be. An average simulated annual return around 8% is much lower than the historical 19%, which illustrates a key point: past performance can be unusually strong, and future paths can be bumpier and more modest than the recent decade.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% allocated to bonds or cash. That means the main engine of returns is company growth and earnings, not interest income or capital stability. A 100% equity mix typically offers higher long‑term return potential than a blended stock‑bond portfolio, but with bigger ups and downs along the way. Compared with “balanced” benchmarks that hold meaningful bonds, this structure is clearly more growth‑oriented and more sensitive to market cycles. The absence of defensive asset classes also means that during equity bear markets there is no built‑in cushion from other asset types, so portfolio value may move closely with global stock sentiment.
Sectors
- Technology 32%
- Financials 18%
- Industrials 14%
- Telecommunications 7%
- Health Care 6%
- Consumer Discretionary 5%
- Basic Materials 5%
- Consumer Staples 4%
- Energy 3%
- Utilities 3%
- Real Estate 2%
Sector‑wise, the portfolio leans heavily into technology at 32%, with financials and industrials also sizable. This makes the sector picture more growth‑tilted than a classic broad‑market index, where tech is large but usually a bit less dominant. Higher tech exposure often means stronger participation in innovation‑driven rallies but more vulnerability when rates rise or when growth expectations get cut. Smaller weights in utilities, energy, and consumer staples suggest less exposure to traditional “defensive” areas that sometimes hold up better in downturns. The broad spread across many sectors is positive for diversification, but the clear tech tilt helps explain why historical returns — and volatility — have both been elevated.
Regions
- North America 66%
- Europe Developed 17%
- Japan 7%
- Asia Developed 4%
- Asia Emerging 3%
- Africa/Middle East 2%
- Australasia 1%
- Latin America 1%
Geographically, about two‑thirds of the portfolio is in North America, with the rest mainly in developed Europe and Japan and smaller slices elsewhere. That US‑heavy tilt is broadly in line with global stock market weights, where the US is the single largest market, so it aligns reasonably well with common benchmarks. Exposure to Europe, Japan, and other developed regions adds meaningful diversification beyond one economy and currency. There is only a modest allocation to emerging markets, so the portfolio is less tied to the fortunes of fast‑growing but more volatile developing countries. Overall, this regional spread is well‑balanced and supports the “own the world, US‑tilted” character of the holdings.
Market capitalization
- Mega-cap 44%
- Large-cap 39%
- Mid-cap 13%
- Small-cap 3%
By market cap, the portfolio is dominated by mega‑ and large‑cap companies, which together make up over 80% of exposure. Mid‑caps are present but smaller, and small‑caps are only a minor slice. Bigger companies often have more diversified businesses, stronger balance sheets, and more analyst coverage, which can make their share prices somewhat more stable than tiny firms. At the same time, heavy large‑cap exposure means returns are closely tied to the biggest global names that drive major indexes. The relatively low small‑cap weight implies less sensitivity to the “smaller, potentially faster‑growing but bumpier” part of the market, and a profile that tracks broad indices fairly closely.
True holdings
-
NV NVIDIA Corporation 4.54%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MU Micron Technology Inc 3.30%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 2.83%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 2.30%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc. 1.90%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.82%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 1.41%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
JN Johnson & Johnson 1.22%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 1.21%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AM Advanced Micro Devices Inc 1.17%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 21.70%
Looking through to the largest underlying holdings, a handful of big names stand out: NVIDIA, Micron, Broadcom, Alphabet, Apple, Microsoft, and several other large tech and healthcare companies. Many appear via more than one ETF, which creates hidden concentration even though you only see three tickers at the top level. For example, NVIDIA alone is about 4.5% of the overall portfolio from overlapping ETF exposure. Because the data only covers the top 10 holdings of each fund, this overlap is likely understated. This clustering in a few mega‑cap growth names helps explain strong past returns but also ties the portfolio closely to how those specific companies perform.
Factors
The factor profile shows neutral, market‑like exposures across all six major factors: value, size, momentum, quality, yield, and low volatility. Factor exposure describes how much a portfolio leans into traits like cheapness (value) or recent winners (momentum) that research links to returns. Here, all readings sit in the 40–60% band, which is considered neutral, meaning no strong systematic tilt stands out versus the broad market. That’s interesting given the explicit use of momentum ETFs; in combination with the broad world index, the overall effect nets back toward a balanced mix. This suggests the portfolio’s behavior should broadly resemble a diversified equity market, rather than a specialized factor strategy.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 50.00% 47.9% -
Invesco S&P 500® Momentum ETF
Weight: 30.00% 33.7% -
Invesco S&P International Developed Momentum ETF
Weight: 20.00% 18.5%
Risk contribution shows how much each ETF adds to the portfolio’s overall ups and downs, which can differ from its weight. Here, the world index fund is 50% of the portfolio and contributes about 48% of total risk, almost exactly proportional. The US momentum ETF is 30% by weight but adds roughly 34% of risk, meaning it’s a bit punchier than its size suggests. The international momentum fund contributes slightly less risk than its 20% weight. Altogether, risk lines up fairly closely with position sizes, indicating no single position is wildly dominating volatility. That balanced risk spread is reassuring for a simple three‑fund structure.
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 suggests this portfolio is already on or very close to the best possible risk‑return mix using its existing holdings. The current Sharpe ratio — a measure of return per unit of risk, after accounting for a 4% risk‑free rate — is 0.78. The maximum‑Sharpe and minimum‑variance mixes are only modestly different, with Sharpe ratios of 1.07 and 0.82 respectively, and slightly higher or lower risk levels. The key takeaway is that, given these three ETFs, the weighting is broadly efficient: you’re not far from the curve that represents “the most return for each risk level.” Any refinements would be more about fine‑tuning than fixing clear inefficiencies.
Dividends
- Invesco S&P International Developed Momentum ETF 3.60%
- Invesco S&P 500® Momentum ETF 0.60%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- Weighted yield (per year) 1.70%
The portfolio’s overall dividend yield is about 1.7%, coming from a mix of a higher‑yield international momentum fund, a moderate‑yield global index fund, and a low‑yield US momentum sleeve. Dividend yield is the annual cash payout as a percentage of price, and it can be an important component of total return over long periods. Here, the yield is modest, reflecting the growth‑oriented nature of the holdings and the tech tilt, since many fast‑growing companies reinvest profits rather than paying them out. Compared with high‑income strategies, this setup leans more on price appreciation than on steady cash distributions as the main driver of long‑term performance.
Ongoing product costs
- Invesco S&P International Developed Momentum ETF 0.25%
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.12%
The weighted average ongoing fee (TER) across the three ETFs is low, at around 0.12% per year. TER, or Total Expense Ratio, is like a small annual membership fee charged by each fund. For context, this level is competitive with many broad market ETFs and well below the cost of most actively managed funds. Low costs are a clear strength because they come straight out of returns every year and compound over time. In a portfolio targeting long‑term growth, keeping fees this low helps more of the underlying market performance reach the end investor, supporting better outcomes without adding any extra risk.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey