High quality global growth portfolio using leverage with strong historic gains and higher drawdowns
Report created on Jul 21, 2024Risk profile
5/7
Diversification profile
4/5
Positions
-
ZG BMO MSCI All Country World High Quality Index ETF
ZGQ - CA05580K1021 50.00% -
QQ BetaPro NASDAQ-100 2x Daily Bull ETF
QQU - CA08662F1080 25.00% -
ZU BMO MSCI USA High Quality Index ETF
ZUQ - CA05580L1004 25.00%
The portfolio is very streamlined: three ETFs, all equity-focused, with a clear tilt to “high quality” companies and a 25% sleeve in a 2x leveraged NASDAQ-100 product. That leverage piece is the main driver of extra juice and extra risk, sitting alongside broadly diversified global and US quality funds. Structurally, this is a concentrated approach to growth rather than a multi-asset mix including bonds or cash. This sort of design matters because when everything is equities and one position is leveraged, the ride can be powerful but bumpy. Anyone using a structure like this generally wants strong long-term growth and is consciously accepting a rockier path to get there.
Growth
Historically, $1,000 grew to about $5,413, which is a compound annual growth rate (CAGR) of 18.49%; CAGR is like your average “speed” over the whole journey. That’s comfortably ahead of both the US market at 14.28% and global stocks at 11.58%. The flip side is a max drawdown of about -45%, meaning at one point the portfolio almost halved from its peak, far deeper than the roughly -27% falls in the benchmarks. This pattern — much higher returns with much steeper drops — is exactly what you’d expect when leverage is involved. It’s a strong outcome, but it requires real emotional and financial tolerance for big swings.
Asset classes
- US Equity 75%
- No data 25%
On the asset-class side, 75% is clearly tagged as US equity, with 25% in “no data” where the system can’t classify the holdings. Given the instructions, it’s important not to guess what that 25% represents. The visible slice already shows a pure equity growth posture rather than a balanced stock/bond mix. In practice, that usually means higher long-term return potential than a conservative allocation, but with much larger swings along the way. For someone aiming for smoother returns or near-term withdrawals, a mix including more defensive assets can help. For an aggressive growth mindset with a long runway, this all‑equity structure can be very intentional.
Sectors
- Technology 26%
- Health Care 12%
- Telecommunications 9%
- Industrials 9%
- Consumer Staples 8%
- Financials 6%
- Consumer Discretionary 3%
- Basic Materials 2%
This breakdown covers the equity portion of your portfolio only.
Sector-wise, there’s a clear tech lead at 26%, followed by health care, telecoms, industrials, staples, and a modest spread across financials, consumer sectors, and materials. That tech‑tilted but still multi-sector spread is actually pretty close to modern global benchmarks, which are also dominated by technology and related industries. This alignment is a positive sign for diversification across the real economy — you’re not betting everything on a single niche. The key nuance is that the leveraged fund amplifies whatever sector mix it holds; during periods when tech is under pressure or interest rates are rising, the ups and downs of this sector tilt will likely feel more intense.
Regions
- North America 58%
- Europe Developed 8%
- Asia Developed 4%
- Asia Emerging 2%
- Japan 2%
- Australasia 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, the portfolio is anchored in North America at 58%, with smaller allocations to Europe, developed and emerging Asia, Japan, and Australasia. That North American tilt is very common today and roughly in line with many global indices that are dominated by the US market. This is a good sign: it means the portfolio captures a big chunk of the world’s most liquid, innovative companies while still sprinkling in other regions for diversification. The underweight in non‑North American areas versus a perfectly even world split does mean returns will be heavily influenced by how North America performs, for better or worse, in the coming decade.
Market capitalization
- Mega-cap 39%
- Large-cap 27%
- Mid-cap 9%
This breakdown covers the equity portion of your portfolio only.
By market cap, there’s a heavy lean to mega-cap and large-cap stocks, with only a modest mid-cap slice and essentially no direct small-cap exposure. Larger companies tend to be more established, more profitable, and better researched, so their prices usually move less wildly than tiny firms, though they can still swing hard in crises. This profile fits nicely with the “high quality” label of your main ETFs. The trade-off is missing some of the historical small-cap growth premium, but in exchange you get more exposure to globally dominant businesses. With leverage already amping up volatility, focusing that leverage on bigger, higher-quality names can actually be a sensible balance.
True holdings
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ME Meta Platforms Inc. 3.84%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
- BMO MSCI USA High Quality Index ETF
-
NV NVIDIA Corporation 3.50%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
- BMO MSCI USA High Quality Index ETF
-
AA Apple Inc 3.46%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
- BMO MSCI USA High Quality Index ETF
-
MS Microsoft Corporation 2.77%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
- BMO MSCI USA High Quality Index ETF
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 2.76%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
-
LL Eli Lilly and Company 2.56%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
- BMO MSCI USA High Quality Index ETF
-
V Visa Inc. Class A 2.28%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
- BMO MSCI USA High Quality Index ETF
-
GO Alphabet Inc Class A 2.13%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
- BMO MSCI USA High Quality Index ETF
-
AS ASML Holding N.V. 1.30%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
-
GO Alphabet Inc Class C 1.18%
Part of fund(s):- BMO MSCI All Country World High Quality Index ETF
- Top 10 total 25.77%
This breakdown covers the equity portion of your portfolio only.
Looking through ETF top holdings, there’s a clear cluster in a handful of mega-cap names: Meta, NVIDIA, Apple, Microsoft, TSMC, Alphabet, and others together already represent a meaningful slice of total exposure. Many of these appear in more than one ETF, which creates hidden concentration even though you technically only hold three funds. Overlap data is incomplete because only ETF top-10s are used, so true overlap is likely higher. This isn’t inherently a problem, especially since these are strong global franchises, but it does mean the portfolio’s fate is tied closely to a relatively small group of dominant companies.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows mild tilts away from value, size, and yield — in plain terms, less focus on cheap, smaller, high-dividend companies — and more emphasis on growthy, larger, lower-yield names. Quality, momentum, and low volatility all sit near neutral, so there’s no extreme bet on any of those traits. This lines up with a growth-oriented equity style that rides strong, established winners rather than hunting for bargains or income. In environments where growth stocks lead, this can be powerful. But in periods when value or high-yield strategies outperform, this kind of profile might lag broader markets, especially if interest rates stay high and investors demand cheaper valuations.
Risk contribution
-
BetaPro NASDAQ-100 2x Daily Bull ETF
Weight: 25.00% 48.1% -
BMO MSCI All Country World High Quality Index ETF
Weight: 50.00% 33.6% -
BMO MSCI USA High Quality Index ETF
Weight: 25.00% 18.4%
Risk contribution highlights how much each holding drives overall volatility. The leveraged NASDAQ-100 ETF, with 25% weight, contributes about 48% of total risk — nearly double its size — showing it’s the main “engine” of ups and downs. The two high-quality BMO funds, despite comprising 75% of assets, together deliver just over half the risk, acting as the steadier core. This imbalance isn’t necessarily a flaw; it simply makes the portfolio more aggressive than its weights might suggest. If someone wanted a smoother ride without changing the overall lineup, trimming the leveraged portion and boosting the core equity funds would reduce that risk concentration quite effectively.
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.
On the risk–return chart, the current portfolio sits right on or very close to the efficient frontier, meaning that for its level of risk, the mix is already using the existing holdings effectively. The Sharpe ratio of 0.78 is slightly below the optimal mix at 0.86, but that optimal portfolio has meaningfully lower risk and lower expected return. The minimum-variance option still has a strong Sharpe ratio but dials back volatility even more. This is encouraging: it shows that, from a math standpoint, the portfolio is already highly efficient. Tweaks would mostly be about fine-tuning risk comfort rather than hunting for big efficiency gains.
Dividends
- BMO MSCI All Country World High Quality Index ETF 0.20%
- BMO MSCI USA High Quality Index ETF 0.10%
- Weighted yield (per year) 0.12%
The total dividend yield is low at about 0.12%, with the underlying quality ETFs also yielding very modestly. That tells you this structure is built almost entirely for capital growth, not for generating current income. For investors still in the accumulation phase, low yield isn’t a problem; reinvesting small dividends and focusing on total return can actually be tax‑efficient in some cases. For someone needing regular cash flow, though, this kind of yield would mean selling shares periodically to fund withdrawals. The positive side is that the portfolio isn’t sacrificing growth potential in order to chase dividends, which aligns well with a long time horizon and growth mindset.
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