A growth-focused portfolio with a strong emphasis on momentum and value across diverse markets

Report created on Jul 30, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is uniquely structured, focusing heavily on momentum and value strategies within the equity market. It's composed of four ETFs: two targeting momentum (one domestic and one international) and two targeting small-cap value (again, one domestic and one international). This approach suggests an aggressive pursuit of growth, leveraging both the rapid changes in stock prices (momentum) and the potential undervaluation in smaller companies (value). The allocation is heavily weighted towards the U.S. market but maintains significant international exposure, aiming for global diversification.

Growth Info

Historically, the portfolio has shown a high Compound Annual Growth Rate (CAGR) of 19.11%, with a notable maximum drawdown of -35.23%. This performance indicates a strong growth trajectory, albeit with significant volatility. Such a drawdown level underscores the portfolio's higher risk profile, consistent with its growth orientation and the inherent risks of momentum and small-cap value investing. The days contributing most to returns highlight the momentum strategy's dependency on select high-performance periods.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The median simulation suggests potential substantial growth, but the wide spread between the 5th and 67th percentiles indicates considerable uncertainty. While promising, it's crucial to remember that such simulations rely on past trends, which may not always predict future movements accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, providing no cushion against equity market volatility through bonds or other asset classes. This allocation suits a high-growth strategy but lacks the balance that might protect against downturns. Diversifying across different asset classes could mitigate some risk without necessarily compromising long-term growth potential.

Sectors Info

  • Financials
    27%
  • Industrials
    14%
  • Technology
    14%
  • Consumer Discretionary
    14%
  • Telecommunications
    9%
  • Consumer Staples
    7%
  • Energy
    6%
  • Basic Materials
    4%
  • Health Care
    3%
  • Utilities
    2%
  • Real Estate
    1%

The sector allocation is broad, with a heavier emphasis on financial services, industrials, technology, and consumer cyclicals. This spread suggests a tilt towards sectors that can offer both growth and value but may also expose the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting consumer spending and technological innovation.

Regions Info

  • North America
    72%
  • Europe Developed
    17%
  • Japan
    6%
  • Australasia
    3%
  • Asia Developed
    1%
  • Africa/Middle East
    1%

With 72% of assets in North America and diversified exposure across developed markets in Europe and Japan, the portfolio is positioned to capture growth in major economies. However, the minimal exposure to emerging markets and certain developed regions might limit potential returns from faster-growing economies, suggesting an area for possible expansion.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    23%
  • Small-cap
    14%
  • Mid-cap
    12%
  • Micro-cap
    12%

The mix of market capitalizations, with a balance across mega, big, medium, small, and micro caps, enhances the portfolio's diversification. This variety allows for capturing growth across the spectrum of company sizes, though the emphasis on smaller companies aligns with the portfolio's higher risk and potential reward strategy.

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.

Considering the Efficient Frontier, this portfolio might already be optimized for its current risk-return profile. However, the potential for further diversification across asset classes and geographies could be explored to enhance returns or reduce volatility. The portfolio's strong alignment with growth and value strategies suggests a well-considered approach, but continuous review against changing market conditions is advisable.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.50%

The dividend yield across the portfolio averages to 1.50%, with the highest yield from the Avantis® International Small Cap Value ETF. While dividends contribute to total return, the portfolio's focus remains on capital appreciation through growth and value investing, rather than income generation.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.21%

The total expense ratio (TER) of 0.21% is relatively low, especially for a portfolio with specialized strategies like momentum and small-cap value investing. This cost efficiency is commendable, as lower costs can significantly enhance long-term returns by minimizing the drag on performance.

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