A balanced and highly diversified portfolio with a strategic focus on momentum and value ETFs

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio is suitable for investors with a balanced risk tolerance, seeking growth through diversified global exposure. The emphasis on momentum and value strategies, combined with a moderate allocation to alternative assets like cryptocurrency, indicates it's designed for those comfortable with moderate volatility in exchange for potentially higher returns. Ideal for individuals with a medium to long-term investment horizon, it aims to capitalize on market trends and value opportunities across a broad array of sectors and geographies.

Positions

  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    35.00%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    25.00%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    10.00%
  • Invesco S&P International Developed Momentum ETF
    IDMO - US46138E2220
    9.00%
  • Dimensional ETF Trust - Dimensional Emerging Markets Value ETF
    DFEV - US25434V7405
    8.00%
  • Dimensional International Value ETF
    DFIV - US25434V8072
    8.00%
  • iShares Bitcoin Trust
    IBIT - US46438F1012
    5.00%

The portfolio showcases a well-thought-out structure, heavily leaning towards ETFs that cover a broad spectrum of the market, including total stock market indices, momentum, international stocks, emerging markets value, and a small but significant allocation to a Bitcoin trust. With 95% of the portfolio in stocks and the remaining in alternative investments, it's positioned for growth while maintaining a balanced risk profile. The diversification across sectors and geographies further strengthens its resilience against market volatility.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

Historically, this portfolio has demonstrated impressive performance with a Compound Annual Growth Rate (CAGR) of 27.59%. The maximum drawdown of -16.96% indicates a relatively moderate level of risk, considering the high returns. The fact that 90% of returns came from just 15 days highlights the impact of short-term significant gains, a common characteristic of momentum investing strategies. While past performance is promising, it's essential to remember it doesn't guarantee future results.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows potential for substantial growth. The simulations predict a wide range of outcomes, with the median at a 4,979.8% increase, suggesting strong upward potential. However, it's crucial to understand these projections are theoretical and depend on market conditions remaining similar to the past, which is never a certainty.

Asset classes Info

  • Stocks
    95%
  • Other
    5%
  • Cash
    0%
  • No data
    0%

The allocation across asset classes with a dominant position in stocks aligns with the portfolio's growth-oriented strategy. The inclusion of a cryptocurrency ETF adds an alternative asset class, increasing diversification and potential for high returns but also adding volatility and risk. Balancing between stocks and alternative investments is key to managing risk while pursuing growth.

Sectors Info

  • Financials
    21%
  • Technology
    20%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    6%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation reveals a strong emphasis on Financial Services and Technology, sectors known for their growth potential. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or technological disruptions. Diversifying across more sectors or adjusting allocations could mitigate these risks.

Regions Info

  • North America
    63%
  • Europe Developed
    14%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Japan
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographic distribution shows a heavy tilt towards North America, complemented by exposure to developed European markets and emerging markets in Asia. This global exposure enhances diversification, reducing the risk of regional downturns significantly impacting the portfolio. However, the underrepresentation of regions like Latin America and Africa/Middle East suggests an opportunity for further diversification.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega and big-cap stocks provides stability and reduces volatility, as these companies are typically more resilient during market downturns. The smaller allocations to medium, small, and micro-cap stocks offer growth potential but come with higher volatility. A slight adjustment to include more small and medium-cap stocks could enhance growth prospects while maintaining a balanced risk profile.

Dividends Info

  • Dimensional ETF Trust - Dimensional Emerging Markets Value ETF 3.00%
  • Dimensional International Value ETF 3.30%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.53%

With a total yield of 1.53%, the portfolio offers a moderate income stream through dividends, contributing to its total return. The varying dividend yields across the ETFs reflect the diverse income-generating potential within the portfolio. Reinvesting these dividends can compound growth over time, an important consideration for long-term investors.

Ongoing product costs Info

  • Dimensional ETF Trust - Dimensional Emerging Markets Value ETF 0.43%
  • Dimensional International Value ETF 0.27%
  • iShares Bitcoin Trust 0.12%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • 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) 0.13%

The Total Expense Ratio (TER) of 0.13% is impressively low, enhancing the portfolio's net return potential. Keeping costs low is crucial for long-term investment success, as high fees can significantly erode returns. This portfolio exemplifies efficient cost management, a practice that should be maintained.

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.

Based on the Efficient Frontier analysis, the portfolio appears well-optimized for the current asset allocation, offering a favorable risk-return ratio. However, continuous monitoring and adjustments are necessary to maintain this efficiency, especially considering market fluctuations and changing investment objectives.

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