A balanced equity heavy portfolio focused on momentum and dividend income with moderate international exposure

Report created on Dec 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is equity heavy with six ETFs split into domestic and international broad market exposures plus momentum and dividend tilts. US total market and international total market each hold 25% while two momentum ETFs and two dividend ETFs split the remainder, giving distinct style exposures. This structure blends passive market coverage with active factor tilts which increases style concentration versus a plain market cap benchmark. The mix is broadly diversified across instruments and aligned with standard practice for balanced equity tilt portfolios. Recommendation: keep clear target bands for each ETF and confirm that the active tilts reflect an intentional strategy rather than incidental overlap.

Growth Info

Historic performance shows a strong compound annual growth rate (CAGR) of 11.71% where CAGR measures average annual growth like a steady speed over a long trip. The portfolio’s max drawdown was -24.08% illustrating meaningful downside during stress periods. Using a hypothetical $100,000 start would have grown materially but with notable volatility; benchmarks with broader cap weighting may have slightly different volatility and returns. Past performance is informative but not predictive — historical returns reflect environments that may not repeat. Recommendation: evaluate whether the historical risk profile fits tolerance and plan for drawdowns with a written rebalancing and cash buffer rule.

Projection Info

A Monte Carlo projection was run with 1,000 simulations to estimate a range of outcomes using historical return patterns; Monte Carlo uses random sampling to build many possible future paths based on past volatility and correlations. Reported percentiles show a wide outcome band with the 5th percentile at 59.5% and median at 344.8%, indicating skewed upside potential but nontrivial downside scenarios. Annualized simulated return was 12.23% with most simulations positive. Limitations: Monte Carlo relies on historical inputs and assumed distributions so it can understate regime shifts, structural market changes, or rare tail events. Recommendation: use projections as planning scenarios not guarantees.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The allocation is almost entirely equities (99%) with 1% cash, meaning asset class diversification is minimal. This heavy equity tilt boosts expected long‑term returns but raises sensitivity to market downturns; bonds or alternatives can reduce volatility and provide income smoothing. Compared to balanced benchmark norms that include fixed income, this is significantly more growth oriented. Recommendation: if the goal is balanced risk, consider introducing a low‑correlation asset class or increasing cash/bond allocation within target risk bands to reduce sequence-of-returns risk and improve drawdown resilience while keeping core equity exposure for growth.

Sectors Info

  • Financials
    22%
  • Technology
    19%
  • Industrials
    13%
  • Telecommunications
    9%
  • Consumer Discretionary
    8%
  • Health Care
    8%
  • Consumer Staples
    8%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure is fairly broad with Financials 22% and Technology 19% leading, followed by Industrials and Communication Services; no sector exceeds extreme concentration but the tilt toward Financials and Tech is notable versus a plain market cap benchmark. Sector balance matters because sectors react differently to macro shifts — for example tech can be sensitive to rising rates while financials may benefit. Recommendation: monitor sector drift regularly and rebalance to prevent unintended overweight. This allocation is reasonably aligned with benchmark sector mixes which supports diversification and reduces single-sector vulnerability.

Regions Info

  • North America
    55%
  • Europe Developed
    24%
  • Japan
    5%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographic exposure is tilted to North America at 55% with meaningful Europe Developed exposure at 24% and smaller weights to Japan and emerging Asia. Relative to a global market cap benchmark this is slightly overweight US and developed Europe and underweight emerging markets. Geography impacts diversification since different regions cycle differently and have distinct political and currency risks. Recommendation: decide whether current regional tilts are intentional; if broader emerging market exposure is a goal, consider a modest allocation increase to emerging markets to enhance diversification and capture different growth drivers.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    36%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    1%

Market capitalization exposure leans toward large caps with Mega at 42% and Big at 36%, while Mid and Small caps comprise 19% combined. Large caps often provide stability and liquidity while smaller caps can offer higher growth potential with higher volatility. This positioning reduces idiosyncratic stock risk but may miss outsize small cap returns in certain cycles. Recommendation: if seeking higher long‑term return potential and diversification, consider gradually tilting a small portion toward mid/small caps or dedicated small cap exposure within risk limits and ensure this aligns with rebalancing rules.

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 portfolio can be analyzed against the Efficient Frontier which represents the set of portfolios offering the highest expected return for a given level of risk; Efficient Frontier optimization uses only the current assets and changes weights among them to seek better risk‑return tradeoffs. This process does not introduce new assets but can reduce risk or improve returns by reweighting momentum dividend and broad market ETFs. Recommendation: run constrained optimization to respect investor preferences and implement resulting weights cautiously, remembering that “efficiency” focuses on Sharpe‑type tradeoffs and not on diversification goals, taxes, or liquidity needs.

Dividends Info

  • Invesco S&P International Developed Momentum ETF 1.70%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab International Dividend Equity ETF 3.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.02%

Dividend yield averages around 2.02% for the portfolio combining higher yields from dividend ETFs and lower yields from momentum and market ETFs. Dividends can provide steadier cash flow and a cushion during down markets, especially for income oriented strategies. For growth focused portfolios dividends are a modest contributor to total return but can improve realized return when reinvested. Recommendation: decide if dividend income is a core objective — if so, consider allocating more to dividend focused ETFs in income buckets or taxable accounts depending on tax efficiency to optimize after‑tax returns.

Ongoing product costs Info

  • Invesco S&P International Developed Momentum ETF 0.25%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Dividend Equity ETF 0.14%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.10%

Total expense ratio (TER) averages roughly 0.10% which is impressively low and supports better long‑term compounding as lower fees preserve returns. TER is the recurring annual fee expressed as a percentage of assets that reduces gross returns. While some momentum ETFs have higher fees around 0.13–0.25%, the bulk of exposure sits in very low cost Vanguard funds which is a strong alignment with best practice. Recommendation: prioritize tax efficient placement and periodic cost reviews; small fee differences add up over decades so maintain low‑cost core holdings and justify higher fee active tilts by expected value add.

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