A growth-focused portfolio with a strong tilt towards quality and momentum strategies

Report created on Aug 24, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is characterized by a strategic emphasis on quality and momentum within the S&P 500, alongside a significant allocation to small-cap value stocks in both the U.S. and international markets. The equal weighting of 30% each in Invesco S&P 500® Quality ETF and Invesco S&P 500® Momentum ETF reflects a deliberate focus on stocks that exhibit strong fundamentals and upward price trends, respectively. The remaining 40% is equally divided between Avantis® International Small Cap Value ETF and Avantis® U.S. Small Cap Value ETF, indicating a balanced approach to tapping into the value presented by smaller companies across diverse geographies. This blend aims to capitalize on different market dynamics, balancing the pursuit of growth through quality and momentum with the potential for value-driven returns from small-cap investments.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 17.91%, with a maximum drawdown of -36.03%. This performance is indicative of high growth potential but also suggests a susceptibility to significant market downturns. The days contributing to 90% of returns being concentrated in just 21.0 days highlights the portfolio's reliance on short, sharp gains, which is typical for strategies focusing on momentum and quality. While past performance is an encouraging sign of the portfolio's strategy effectiveness, it's important to remember that past success is not a guaranteed predictor of future results.

Projection Info

Utilizing Monte Carlo simulations, which project potential outcomes based on historical data, the portfolio's future performance shows a wide range of possibilities, with a median increase of 753.3% and a high percentile performance potentially reaching 1,157.5%. These simulations underscore the portfolio's growth potential but also reflect inherent uncertainties in market behaviors. It's crucial to understand that while these projections provide a useful risk and return assessment, they are hypothetical and subject to the limitations of past data.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no presence in cash, bonds, or other asset classes. This singular focus on equities is aligned with the portfolio's growth-oriented risk profile but lacks the risk mitigation typically provided by asset class diversification. Incorporating a broader range of asset classes could enhance the portfolio's resilience against market volatility and downturns, potentially smoothing out returns over the long term.

Sectors Info

  • Financials
    19%
  • Industrials
    18%
  • Technology
    17%
  • Consumer Discretionary
    13%
  • Consumer Staples
    10%
  • Energy
    6%
  • Telecommunications
    5%
  • Basic Materials
    5%
  • Health Care
    4%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation shows a diversified spread across financial services, industrials, technology, and consumer cyclicals, among others. This sector diversity helps mitigate the risk of overexposure to any single sector's downturn. However, the significant weight in sectors like technology, which can be more volatile, aligns with the portfolio's growth orientation but also introduces sector-specific risks. Balancing sector exposures can help manage these risks while still capturing growth opportunities.

Regions Info

  • North America
    82%
  • Europe Developed
    8%
  • Japan
    7%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Asia Developed
    1%

With 82% of assets allocated to North America and the remainder spread across developed and emerging markets, the portfolio demonstrates a strong home bias. This geographic concentration may limit exposure to global growth opportunities and diversification benefits. Expanding into broader international and emerging markets could potentially enhance returns and reduce risk through greater geographic diversification.

Market capitalization Info

  • Large-cap
    25%
  • Mega-cap
    23%
  • Mid-cap
    21%
  • Small-cap
    17%
  • Micro-cap
    11%

The portfolio's market capitalization exposure is well-distributed across big, mega, medium, small, and micro-cap stocks, which is beneficial for diversification. This mix allows the portfolio to capture growth opportunities across the market cap spectrum, balancing the stability of larger companies with the high-growth potential of smaller firms. Adjusting these allocations can fine-tune the portfolio's risk-return profile in line with investment goals.

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 current allocation demonstrates a thoughtful approach to balancing growth with risk, leveraging the Efficient Frontier concept to optimize the risk-return ratio based on historical data. While the portfolio is well-positioned for growth, there's always room for optimization. Regularly reviewing and adjusting asset allocations can ensure the portfolio remains aligned with evolving market conditions and investment objectives.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.60%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P 500® Quality ETF 1.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.54%

The portfolio's dividend yield stands at an average of 1.54%, with the highest yield from the Avantis® International Small Cap Value ETF at 3.60%. While dividends contribute to the portfolio's total return, the focus on growth-oriented investments naturally results in a lower overall yield. Investors seeking income alongside growth may consider adjusting the balance between high-growth and dividend-paying assets.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Quality ETF 0.15%
  • 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 benefits from relatively low costs, which is favorable for long-term growth. Keeping investment costs low is crucial for maximizing returns, as even small differences in fees can significantly impact investment outcomes over time. The portfolio's cost efficiency is a positive aspect, supporting better long-term performance.

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