Growth-oriented portfolio with a strong tilt towards momentum and value across global equities

Report created on Aug 9, 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 heavily weighted towards equity ETFs, emphasizing momentum and value strategies across different market caps and geographies. Notably, 45% is allocated to a large-cap U.S. momentum ETF, while the remainder is split among U.S. small-cap value, international developed momentum, and international small-cap value ETFs. This composition suggests a strategic focus on capturing growth through stocks exhibiting upward price momentum and those perceived as undervalued by the market. Compared to a more traditional balanced portfolio, this one takes on a more aggressive stance, aiming for higher growth by leveraging these specific investment styles.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 19.20%, with a maximum drawdown of -35.23%. The performance is notably robust, reflecting the potential high returns associated with momentum and value investing strategies. However, the significant drawdown indicates a higher risk level, likely due to the portfolio's full exposure to equities and the inherent volatility of momentum strategies. The days contributing to 90% of returns being concentrated in just 23.0 days highlight the strategy's reliance on short, significant market movements, which can both bolster and detract from overall performance.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 797.6% in portfolio value, suggesting strong growth potential. However, the broad spread of results, from the 5th percentile at 106.5% to the 67th percentile at 1,180.2%, underscores the high level of uncertainty and risk in the portfolio's forward-looking performance. These projections, based on historical data, serve as a reminder that past performance is not indicative of future results. Investors should consider the wide range of potential outcomes when assessing the suitability of this aggressive growth strategy for their financial goals.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, bypassing bonds, cash, or other asset classes. This singular focus on equities enhances its growth potential but also increases its risk profile, especially in volatile market conditions. Diversifying across different asset classes could reduce risk and smooth out returns over time, potentially offering a more balanced approach to achieving long-term financial objectives.

Sectors Info

  • Financials
    27%
  • Industrials
    15%
  • Technology
    15%
  • Consumer Discretionary
    14%
  • Telecommunications
    9%
  • Consumer Staples
    7%
  • Energy
    6%
  • Basic Materials
    4%
  • Health Care
    3%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is broadly diversified, with financial services, industrials, technology, and consumer cyclicals leading the composition. This sector spread supports the portfolio's growth orientation but also reflects a concentration in sectors that can be cyclical and sensitive to economic changes. The emphasis on technology and industrials, in particular, aligns with the momentum strategy, targeting sectors that can show strong performance in favorable market conditions.

Regions Info

  • North America
    72%
  • Europe Developed
    16%
  • Japan
    6%
  • Australasia
    3%
  • Asia Developed
    1%
  • Africa/Middle East
    1%

The geographic allocation shows a heavy bias towards North America (72%), with significant exposures to developed markets in Europe and Japan. This distribution reflects a growth-focused strategy with a foundational emphasis on the stability and potential of developed markets. However, the minimal exposure to emerging markets may limit the portfolio's access to higher growth opportunities available in these regions, potentially affecting its long-term growth prospects.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    22%
  • Small-cap
    14%
  • Mid-cap
    13%
  • Micro-cap
    12%

Market capitalization exposure is varied, with a notable allocation towards mega and big-cap stocks, complemented by meaningful positions in small, medium, and micro-cap stocks. This mix aims to balance the stability and lower risk of larger companies with the higher growth potential of smaller firms. However, the emphasis on larger caps, particularly in the momentum ETF, may skew the portfolio towards more established, possibly slower-growing companies, potentially limiting upside in booming market phases.

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.

Regarding risk vs. return optimization, the portfolio's aggressive stance on growth through momentum and value equities places it towards the higher end of the risk spectrum. While this may align with the Efficient Frontier in the context of its current composition, investors should consider whether a reallocation towards a more diversified set of asset classes could achieve a more optimal risk-return balance, especially for those with a lower risk tolerance or nearing retirement.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.49%

The portfolio's dividend yield averages 1.49%, with the highest yield from the Avantis® International Small Cap Value ETF at 3.70%. While dividends contribute to the total return, the focus on growth strategies means that dividend income is not the primary goal. Investors seeking regular income might consider a higher allocation to assets with stable and higher dividend yields, although this could potentially come at the expense of growth.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • 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%
  • Weighted costs total (per year) 0.21%

With a Total Expense Ratio (TER) averaging 0.21%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This low cost structure is commendable, especially given the specialized nature of the momentum and value strategies, which often command higher fees. Keeping costs low is crucial for enhancing long-term returns, particularly in a growth-oriented portfolio where compound interest plays a significant role.

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