Balanced yet dynamic portfolio with a strong emphasis on momentum and high-dividend yields

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.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor who seeks a balance between growth and income with a moderate to high risk tolerance. Ideal for those with a medium to long-term investment horizon, it caters to individuals who are comfortable with market fluctuations in exchange for potentially higher returns. The emphasis on momentum and high-dividend ETFs aligns well with goals of capital appreciation and income generation, making it a compelling choice for investors looking to build wealth while receiving periodic income.

Positions

  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    25.00%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
    JAAA - US47103U8457
    20.00%
  • American Century ETF Trust
    AVGV - US0250722164
    15.00%
  • Global X Funds
    SHLD - US37960A5294
    15.00%
  • Vanguard International High Dividend Yield Index Fund ETF Shares
    VYMI - US9219467944
    15.00%
  • Global X Uranium ETF
    URA - US37954Y8710
    10.00%

This portfolio stands out for its strategic blend of growth and income-focused ETFs, allocating 80% to stocks and 20% to bonds. The inclusion of specialized ETFs, like the Invesco S&P 500® Momentum ETF and Global X Uranium ETF, alongside more traditional income-generating assets such as the Vanguard International High Dividend Yield Index Fund, showcases a well-thought-out approach to balancing risk and reward. This diversified mix not only aims at capital appreciation through sectors with momentum but also seeks to provide a steady income stream through high-dividend yields.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 26.18% and a maximum drawdown of -11.20%, the portfolio has demonstrated robust growth with relatively moderate drawdowns. The days contributing to 90% of returns being limited to 29 indicates a portfolio that has seen significant gains concentrated in brief periods, a characteristic often seen in growth-oriented investments. This performance, especially when compared to a balanced benchmark, suggests that the portfolio's strategy of blending momentum and income-focused investments has paid off in the analyzed period.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, suggest a median annualized return of 30.92% across 1,000 scenarios. This optimistic projection indicates a strong potential for growth, although it's important to note that such simulations are based on past trends, which may not always predict future performance accurately. The wide range between the 5th and 67th percentiles highlights the inherent uncertainty and risk in investing.

Asset classes Info

  • Stocks
    80%
  • Bonds
    20%
  • Cash
    0%
  • Other
    0%
  • No data
    0%

The portfolio's asset allocation—80% in stocks and 20% in bonds—provides a balanced approach, leaning slightly towards growth. This allocation is in line with a balanced investor profile, aiming to strike a harmony between capital appreciation and risk mitigation. The absence of cash or alternative investments may limit flexibility and diversification, but it also indicates a proactive approach to keeping the capital invested in the market.

Sectors Info

  • Industrials
    21%
  • Financials
    14%
  • Technology
    14%
  • Energy
    10%
  • Telecommunications
    5%
  • Consumer Discretionary
    5%
  • Consumer Staples
    3%
  • Utilities
    3%
  • Basic Materials
    3%
  • Health Care
    2%
  • Real Estate
    1%

The sectoral allocation reveals a strategic emphasis on industrials, financial services, and technology, making up nearly half of the portfolio. This concentration in sectors that can benefit from economic growth and innovation suggests a bullish outlook on these industries. However, the relatively lower allocation to defensive sectors like healthcare and utilities indicates a moderate risk appetite, as these areas often provide stability in turbulent markets.

Regions Info

  • North America
    52%
  • Europe Developed
    13%
  • Asia Developed
    4%
  • Japan
    4%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (52%), with meaningful exposures to developed Europe and Asia, including Japan. This allocation underscores a focus on stable, developed markets, potentially at the expense of higher growth opportunities in emerging markets. While this strategy may reduce volatility, it could also limit exposure to high-growth regions.

Market capitalization Info

  • Large-cap
    30%
  • Mega-cap
    24%
  • Mid-cap
    16%
  • Small-cap
    7%
  • Micro-cap
    2%

The market capitalization breakdown—big (30%), mega (24%), and medium (16%)—reflects a preference for established, large companies, likely chosen for their stability and potential for steady growth. The smaller allocations to small and micro-cap stocks suggest a cautious approach to risk, as these can offer higher growth potential but come with increased volatility.

Dividends Info

  • American Century ETF Trust 2.00%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.50%
  • Global X Funds 0.20%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Global X Uranium ETF 1.60%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 3.80%
  • Weighted yield (per year) 2.31%

The dividend yield of 2.31% across the portfolio contributes to its attractiveness for income-seeking investors. This yield, combined with the growth potential from the momentum and sector-focused ETFs, offers a dual approach to wealth accumulation. Regular income from dividends can provide a buffer during market volatility, enhancing the portfolio's risk-adjusted returns over time.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • Global X Funds 0.50%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Global X Uranium ETF 0.69%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.29%

With a total expense ratio (TER) of 0.29%, the portfolio's costs are relatively low, which is commendable. Keeping investment costs down is crucial for enhancing long-term returns, as even small percentage differences can compound significantly over time. This efficient cost structure is a positive aspect, supporting better net performance for the investor.

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.

The portfolio's current configuration, with an expected return of 7.75% at a risk level of 1.57%, showcases an efficient risk-return profile. However, the analysis indicates that there may be room for optimization to achieve the same or higher expected returns at a similar risk level. This suggests that while the portfolio is well-constructed, there could be opportunities to tweak the asset allocation for even better efficiency.

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