A balanced and broadly diversified investment portfolio with a focus on momentum and growth

Report created on Aug 16, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a significant weighting in momentum ETFs, which is indicative of a strategy targeting stocks that have shown strong recent performance. The largest position, the Invesco S&P 500® Momentum ETF, constitutes 35% of the portfolio, emphasizing a heavy tilt towards U.S. large-cap stocks exhibiting momentum. The inclusion of both U.S. and international developed market momentum ETFs, alongside specific sector and regional exposures, suggests a deliberate strategy to harness growth across a broad spectrum of markets. However, the portfolio's exclusive focus on equities, without any allocation to bonds or alternative asset classes, positions it towards the higher end of the risk spectrum within its balanced profile.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 16.14%, with a maximum drawdown of -23.82%. This performance, especially the drawdown metric, highlights the portfolio's vulnerability to market volatility, typical of equity-heavy strategies. The days contributing to 90% of the returns being concentrated in just 18.0 days underscores the impact of short-term, significant market movements on performance. While past performance is impressive, it's essential to remember that it doesn't guarantee future results, and such high returns often come with increased risk.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values. The 50th percentile outcome showing a 624.6% increase indicates optimistic median growth, yet the broad spread to the 5th percentile at 99.4% growth highlights substantial downside risk. These projections underscore the uncertainty inherent in investing, especially in a portfolio with a high equity concentration. Investors should consider these projections as one of many tools in evaluating potential future performance, keeping in mind the limitations of relying solely on historical data.

Asset classes Info

  • Stocks
    100%

The portfolio's 100% allocation to stocks, with no presence in bonds, cash, or other asset classes, indicates a strong growth orientation but also a higher risk level. This allocation aligns with the portfolio's balanced profile, aiming for growth while accepting significant volatility. Diversifying across different asset classes could provide a buffer against market downturns, potentially smoothing out returns over time. Investors might consider whether introducing bonds or alternative investments could achieve a more balanced risk-return profile.

Sectors Info

  • Technology
    22%
  • Financials
    21%
  • Consumer Discretionary
    12%
  • Industrials
    11%
  • Telecommunications
    10%
  • Energy
    6%
  • Consumer Staples
    6%
  • Health Care
    4%
  • Utilities
    4%
  • Basic Materials
    3%
  • Real Estate
    1%

The sectoral allocation spans technology, financial services, consumer cyclicals, and industrials, among others, reflecting a diversified approach within the equity component of the portfolio. The heavy emphasis on technology and financial services, constituting 43% of the allocation, mirrors common growth-oriented strategies but may increase sensitivity to sector-specific risks. Diversification across sectors is generally positive, yet the concentration in high-growth areas suggests a need to monitor sectoral shifts closely.

Regions Info

  • North America
    71%
  • Europe Developed
    16%
  • Japan
    4%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%

With 71% of assets allocated to North America and significant positions in developed Europe and Japan, the portfolio is well-diversified geographically but leans heavily towards developed markets. The modest allocations to emerging markets and specific regions like Greece indicate an attempt to capture growth outside traditional markets. However, investors should consider the balance between developed and emerging markets to ensure global exposure aligns with their risk tolerance and investment objectives.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    28%
  • Mid-cap
    20%
  • Small-cap
    6%
  • Micro-cap
    1%

The portfolio's emphasis on mega and large-cap stocks, which together constitute 71% of the allocation, aligns with its momentum strategy, as these companies often lead market movements. The presence of medium, small, and micro-cap stocks adds diversification and potential for higher returns, albeit with increased volatility. This mix supports a balanced growth strategy, leveraging the stability of larger companies while capturing the growth potential of smaller firms.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Dimensional International Value ETF
    High correlation
  • Schwab U.S. Large-Cap Growth ETF
    Dimensional U.S. Equity ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation among certain ETFs, particularly those focused on large-cap U.S. equities and international value stocks, may limit the portfolio's diversification benefits. While these overlaps are common in diversified portfolios, they underscore the importance of periodically reviewing asset allocations to ensure they contribute to the portfolio's overall diversification and risk management objectives.

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 the portfolio involves addressing the identified overlaps among highly correlated assets to enhance diversification benefits. While the current allocation supports a balanced growth strategy, removing or reducing exposure to overlapping ETFs could improve the portfolio's risk-adjusted returns. This process should consider the portfolio's overall objectives, ensuring that any adjustments align with the investor's risk tolerance and investment horizon.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® Emerging Markets Equity ETF 2.80%
  • Dimensional International Value ETF 3.20%
  • Dimensional U.S. Equity ETF 1.00%
  • Global X MSCI Greece ETF 3.80%
  • Invesco S&P International Developed Momentum ETF 1.90%
  • VanEck Uranium+Nuclear Energy ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.36%

The portfolio's dividend yield stands at 1.36%, which is relatively modest but expected given the growth and momentum focus of the investment strategy. Dividends contribute to total return and provide some income, although the primary goal here appears to be capital appreciation. Investors prioritizing income alongside growth might explore opportunities to include higher-yielding assets without significantly altering the portfolio's risk profile.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Equity ETF 0.33%
  • Dimensional International Value ETF 0.27%
  • Dimensional U.S. Equity ETF 0.09%
  • Global X MSCI Greece ETF 0.57%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • VanEck Uranium+Nuclear Energy ETF 0.61%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.19%

With a total Expense Ratio (TER) of 0.19%, the portfolio is cost-efficient, minimizing the drag on returns that higher fees can cause. This low TER is beneficial for long-term growth, as even small differences in costs can significantly impact compounded returns. The portfolio's focus on low-cost ETFs demonstrates a mindful approach to cost management, which is commendable.

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