A growth-oriented portfolio with a strong emphasis on US equities and momentum strategies

Report created on Aug 4, 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 US equities, comprising 84% of the total allocation, with a significant emphasis on the S&P 500 and momentum strategies through the Vanguard S&P 500 ETF and Invesco S&P 500® Momentum ETF. The remaining 16% is allocated to international stocks via the Vanguard Total International Stock Index Fund ETF Shares. This structure suggests a growth-focused strategy, leveraging the stability and potential of large-cap US companies while seeking additional growth through momentum investing.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 17.85%, with a maximum drawdown of -32.79%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of the returns were limited to 34, highlighting the impact of sharp, short-term gains on overall performance. This volatility and return pattern is typical for growth-oriented strategies focusing on equity markets, especially those with a momentum component.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The median projection suggests a 662.3% increase, with a high degree of variability indicated by the 5th and 67th percentiles. While these simulations offer a glimpse into potential future performance, it's important to remember that they are based on past trends, which may not always predict future movements accurately.

Asset classes Info

  • Stocks
    99%

The portfolio's almost exclusive focus on stocks, with 99% allocated to this asset class, underscores its growth orientation. This concentration in equities enhances potential returns but also increases risk, especially in market downturns. The absence of other asset classes like bonds or real estate limits diversification, which could help mitigate volatility.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Industrials
    10%
  • Consumer Staples
    7%
  • Health Care
    7%
  • Energy
    3%
  • Utilities
    3%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation reveals a heavy tilt towards technology, financial services, and consumer cyclicals, which are sectors often associated with higher growth and volatility. This concentration aligns with the portfolio's growth objectives but also exposes it to sector-specific risks, such as regulatory changes or economic downturns affecting consumer spending.

Regions Info

  • North America
    85%
  • Europe Developed
    7%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is predominantly invested in North America (85%), with modest exposure to developed Europe and emerging Asian markets. This heavy US concentration benefits from the country's economic stability and growth potential but lacks significant exposure to faster-growing emerging markets, which could offer diversification and growth benefits.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    34%
  • Mid-cap
    15%
  • Small-cap
    1%

The focus on mega and big-cap stocks (83% combined) aligns with the portfolio's emphasis on stability and growth within the equity space. These companies often have more established business models and global reach, potentially offering more resilience during market fluctuations compared to smaller companies.

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's risk-return profile by adjusting asset allocations. While the current focus on equities, particularly US and momentum strategies, aligns with growth objectives, diversifying into other asset classes or regions could potentially improve the risk-adjusted returns without significantly sacrificing growth potential.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.27%

The portfolio's dividend yield stands at 1.27%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares. While dividends contribute to total returns, the focus here is clearly on capital appreciation rather than income generation, consistent with the portfolio's growth orientation.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of just 0.07%, the portfolio benefits from low costs, which supports better long-term performance. Lower costs mean more of the investment's return is retained by the investor, a crucial factor in building wealth over time.

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