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

Report created on Jun 26, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is uniquely structured, focusing entirely on two ETFs that target the S&P 500's quality and momentum aspects, each constituting half of the portfolio. This concentration in just two investment strategies within the same geographic region and asset class (stocks) indicates a specialized approach but comes with low diversification. The portfolio's composition aligns with growth objectives, leveraging the historical performance of quality and momentum stocks within the S&P 500.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 19.68%, the portfolio has exhibited strong performance historically. This high return rate reflects the effectiveness of combining quality and momentum strategies within a growth-focused portfolio. However, the maximum drawdown of -31.21% highlights the potential volatility and risk associated with this focused approach. The significant returns concentrated in just 34 days underscore the portfolio's reliance on specific market movements, emphasizing the importance of timing in this investment strategy.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential performances for this portfolio, with a median increase of 1,217.3% over the simulation period. While 998 out of 1,000 simulations returned positively, indicating a high probability of future gains, investors should remember that these projections are speculative and depend on past market conditions repeating themselves.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no diversification into other asset classes like bonds or real estate. This singular focus enhances growth potential but also increases risk, particularly in market downturns. Diversifying across different asset classes can reduce volatility and provide a safety net during stock market corrections.

Sectors Info

  • Technology
    24%
  • Financials
    17%
  • Industrials
    16%
  • Consumer Staples
    15%
  • Consumer Discretionary
    11%
  • Telecommunications
    8%
  • Health Care
    5%
  • Utilities
    2%
  • Energy
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

Sector allocation shows a heavy tilt towards technology, financial services, and industrials, with lesser exposure to healthcare and utilities. This sector distribution supports the portfolio's growth orientation but may be vulnerable to sector-specific downturns. Balancing sector exposure can mitigate risks associated with overconcentration in certain industries.

Regions Info

  • North America
    100%

Geographic allocation is entirely focused on North America, specifically the U.S. market. While this concentration may benefit from the robust performance of U.S. equities, it also exposes the portfolio to regional economic and political risks. Expanding geographic diversification could reduce these risks and tap into growth opportunities in other regions.

Market capitalization Info

  • Large-cap
    45%
  • Mega-cap
    39%
  • Mid-cap
    15%

The portfolio's market capitalization exposure leans heavily towards big and mega-cap stocks, which are typically less volatile than smaller companies. This bias towards larger companies is consistent with the portfolio's quality focus but limits exposure to the potentially higher growth rates of mid and small-cap stocks.

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 between quality and momentum strategies is efficient in terms of risk-return ratio, based on historical data. However, considering the Efficient Frontier, there may be room for optimization by adjusting the allocation or introducing new assets to achieve a better balance between risk and return, without necessarily compromising growth potential.

Dividends Info

  • Invesco S&P 500® Quality ETF 0.80%
  • Invesco S&P 500® Momentum ETF 0.40%
  • Weighted yield (per year) 0.60%

The portfolio's dividend yield stands at 0.60%, reflecting a moderate contribution to total returns. Given the growth orientation, dividends are not the primary focus, but they offer a source of passive income and can provide a cushion during market volatility.

Ongoing product costs Info

  • Invesco S&P 500® Quality ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.14%

With a total expense ratio (TER) of 0.14%, the portfolio benefits from relatively low costs, supporting better long-term performance. Keeping investment costs low is crucial for maximizing returns, especially in a growth-focused strategy where compounding plays a significant role.

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