Growth-focused portfolio with a blend of momentum and value across diverse sectors and geographies

Report created on Aug 6, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is structured around a series of ETFs and a single common stock, focusing heavily on equities across various sectors and geographic regions. Notably, it maintains a balance between international and domestic assets, with a tilt towards growth and momentum strategies. This composition suggests a strategic approach to capturing growth opportunities worldwide, while the inclusion of utility and small cap value ETFs introduces a measure of value-oriented stability. The singular stock holding, ASML Holding NV ADR, indicates a targeted bet on technology.

Growth Info

Historically, this portfolio has demonstrated a strong performance with a Compound Annual Growth Rate (CAGR) of 16.40%. However, it's important to note the maximum drawdown of -34.65%, which underscores the portfolio's exposure to significant market downturns. Such performance metrics suggest that while the portfolio has the potential for high returns, it also carries a substantial risk level. The days contributing to 90% of returns being concentrated in just 18.0 days highlight the impact of short-term volatility.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, show a wide range of outcomes for this portfolio. The 50th percentile outcome suggests a potential 556.0% increase, indicating optimistic growth prospects. However, the wide variance between the 5th and 67th percentiles (38.2% to 974.6%) illustrates the high level of uncertainty and risk associated with these projections. Such simulations are useful for understanding potential volatility but should not be solely relied upon for investment decisions due to their hypothetical nature.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no exposure to bonds, cash, or other asset classes. This allocation aligns with a growth-focused strategy but lacks the diversification benefits that bonds or alternative investments might provide. While stocks have historically offered higher returns, they come with increased volatility, which might not be suitable for all investors. Introducing other asset classes could help mitigate risk and smooth out returns over time.

Sectors Info

  • Technology
    20%
  • Financials
    18%
  • Industrials
    15%
  • Consumer Discretionary
    11%
  • Utilities
    7%
  • Telecommunications
    6%
  • Consumer Staples
    6%
  • Health Care
    5%
  • Basic Materials
    5%
  • Energy
    4%
  • Real Estate
    2%

The sectoral allocation covers a broad spectrum, with significant investments in technology, financial services, and industrials. This diversified sector exposure helps balance the portfolio's risk, as different sectors react differently to economic cycles. However, the heavy weighting in technology and financial services could expose the portfolio to sector-specific downturns. Balancing sector exposure by considering underrepresented sectors like healthcare or consumer defensive might provide additional stability.

Regions Info

  • North America
    58%
  • Europe Developed
    24%
  • Japan
    10%
  • Australasia
    3%
  • Asia Developed
    2%
  • Africa/Middle East
    1%

Geographically, the portfolio is diversified across North America, Europe, and Japan, with minimal exposure to emerging markets. This geographic distribution can offer protection against region-specific economic downturns but may also limit potential growth opportunities available in faster-growing emerging markets. Increasing exposure to emerging markets could enhance growth prospects but would also introduce additional volatility and risk.

Market capitalization Info

  • Mega-cap
    29%
  • Mid-cap
    27%
  • Large-cap
    21%
  • Small-cap
    18%
  • Micro-cap
    2%

The market capitalization breakdown shows a balanced exposure across mega, medium, big, and small-cap stocks, with a minimal allocation to micro-caps. This diversification helps in risk management, as larger companies typically offer stability, while smaller companies provide growth potential. However, the portfolio might benefit from a more strategic allocation to small and micro-cap segments to boost growth prospects, considering the investor's risk tolerance.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Avantis® International Equity ETF
    VictoryShares International Value Momentum ETF
    High correlation

The portfolio exhibits high correlation among certain international ETFs, which could limit diversification benefits and amplify risk during market downturns. High correlation means these assets tend to move in the same direction under similar market conditions, reducing the effectiveness of diversification as a risk management tool. Reducing overlap by reallocating investments from highly correlated assets to those with lower correlations could enhance portfolio resilience.

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.

Optimizing this portfolio involves addressing the high correlation among certain assets to enhance diversification benefits. The Efficient Frontier suggests that there's potential to achieve a better risk-return ratio by adjusting allocations. This optimization would not only aim to reduce volatility but also to potentially increase returns by reallocating investments from overlapping assets to those offering unique value. Such adjustments should be carefully considered within the context of the investor's risk tolerance and investment horizon.

Dividends Info

  • ASML Holding NV ADR 1.00%
  • Avantis® International Equity ETF 2.80%
  • Avantis® International Small Cap Value ETF 3.80%
  • Invesco S&P 500® Momentum ETF 0.60%
  • VictoryShares International Value Momentum ETF 4.30%
  • Vanguard Utilities Index Fund ETF Shares 2.70%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • Invesco S&P SmallCap Momentum ETF 0.90%
  • Weighted yield (per year) 1.90%

Dividend yields across the portfolio vary, contributing to a total yield of 1.90%. While not the primary focus of this growth-oriented portfolio, dividends offer a source of passive income and can provide a buffer during market downturns. The varying yields, from high in value-oriented ETFs to low in growth-focused funds, reflect a balanced approach to growth and income. Investors might consider rebalancing to optimize the trade-off between dividend income and growth potential.

Ongoing product costs Info

  • Avantis® International Equity ETF 0.23%
  • Avantis® International Small Cap Value ETF 0.36%
  • Invesco S&P 500® Momentum ETF 0.13%
  • VictoryShares International Value Momentum ETF 0.35%
  • Vanguard Utilities Index Fund ETF Shares 0.10%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Invesco S&P SmallCap Momentum ETF 0.39%
  • Weighted costs total (per year) 0.22%

The portfolio's total expense ratio (TER) averages out to 0.22%, which is relatively low, helping to maximize net returns. Keeping costs low is crucial for long-term investment success, as high fees can significantly erode returns over time. The portfolio's focus on low-cost ETFs demonstrates a cost-efficient approach to investing, which is commendable. However, investors should continuously monitor fees and consider rebalancing towards similarly low-cost options if any holdings' costs increase.

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