Growth-oriented portfolio with a strong focus on momentum stocks across major markets

Report created on Aug 16, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is highly concentrated in two ETFs that track momentum stocks in the U.S. and international developed markets, with a 70%-30% split favoring the U.S. market. This allocation reflects a growth-focused strategy, leveraging the momentum investing principle, which involves buying securities that have had higher returns over the past three to twelve months and selling those that have had poor returns over the same period. While this strategy can offer substantial returns during bull markets, it also carries a higher risk during market corrections or bear markets due to its aggressive nature.

Growth Info

The portfolio has shown a remarkable Compound Annual Growth Rate (CAGR) of 24.04%, with a maximum drawdown of -31.02%. This performance indicates a high growth potential but comes with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of the returns being concentrated in just 34.0 days highlight the portfolio's reliance on short, strong bursts of market performance. This pattern underscores the importance of timing in a momentum-based investment strategy, which can be both an opportunity and a risk.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median simulation suggesting a 1,546.0% return. This method uses historical data to forecast future performance, offering insight into potential risks and rewards. However, it's crucial to remember that these projections are speculative and depend on past market behaviors, which may not predict future movements accurately. The uniform positive returns across simulations underscore the optimistic but uncertain nature of this projection.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, indicating a high-risk, high-reward investment strategy. This singular focus on equities suggests a lack of diversification across asset classes, which could increase volatility and risk. While stocks historically offer higher returns over the long term, incorporating other asset classes like bonds or real estate could provide a buffer against market downturns, potentially stabilizing the portfolio's performance.

Sectors Info

  • Financials
    27%
  • Technology
    20%
  • Telecommunications
    12%
  • Industrials
    12%
  • Consumer Discretionary
    12%
  • Consumer Staples
    8%
  • Health Care
    3%
  • Utilities
    2%
  • Energy
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation shows a heavy emphasis on Financial Services, Technology, and Consumer Cyclicals, which are sectors typically associated with higher volatility but also higher growth potential. This sectoral concentration aligns with the portfolio's growth-oriented strategy. However, the underrepresentation of traditionally defensive sectors like Healthcare and Utilities may limit the portfolio's ability to hedge against market downturns. Balancing high-growth sectors with more stable ones could enhance the portfolio's resilience.

Regions Info

  • North America
    76%
  • Europe Developed
    17%
  • Australasia
    3%
  • Japan
    3%
  • Asia Developed
    1%
  • Africa/Middle East
    1%

The geographic allocation heavily favors North America, with significant exposure to Europe Developed markets. This distribution suggests a focus on established markets, potentially limiting exposure to the higher growth rates sometimes found in emerging markets. While this strategy may reduce geopolitical and currency risks, diversifying into emerging markets could offer additional growth opportunities and further diversification benefits.

Market capitalization Info

  • Mega-cap
    56%
  • Large-cap
    33%
  • Mid-cap
    11%

With a significant tilt towards Mega and Big cap stocks, the portfolio is positioned to capitalize on the stability and growth potential of large, established companies. However, this focus may overlook the higher growth potential of mid and small-cap stocks, which can offer diversification benefits and outsized returns in bullish market conditions. Introducing a broader range of market caps could enhance the portfolio's growth prospects and risk profile.

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.

Considering the Efficient Frontier, there may be opportunities to optimize the portfolio for a better risk-return ratio by adjusting the asset allocation. While the current focus on momentum stocks in developed markets has historically provided strong returns, diversifying across more asset classes, sectors, and geographic regions could potentially offer similar returns with lower volatility, moving the portfolio closer to the Efficient Frontier.

Dividends Info

  • Invesco S&P International Developed Momentum ETF 1.90%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 0.99%

The portfolio's overall dividend yield of 0.99% reflects a moderate income component, secondary to its growth orientation. While dividends contribute to total returns, the focus here is clearly on capital appreciation. For investors seeking income, increasing exposure to higher-yielding assets or sectors could enhance the income generation of the portfolio without necessarily compromising growth potential.

Ongoing product costs Info

  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.17%

The total expense ratio (TER) of 0.17% is relatively low, which is beneficial for long-term growth as lower costs translate directly into higher net returns for investors. This cost efficiency is a positive aspect of the portfolio, especially important in a growth-focused strategy where every percentage point of return matters.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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