A balanced and highly diversified portfolio with a strategic focus on momentum and high dividends

Report created on Nov 24, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is strategically composed of four ETFs, emphasizing momentum within the S&P 500, diversified American and international high-dividend stocks, and specialized exposure through AAA CLOs. This mix showcases a significant tilt towards equities (85%) with a smaller allocation in bonds (15%), reflecting a balanced approach between growth and income. The heavy weighting towards the Invesco S&P 500® Momentum ETF indicates a focus on capturing growth from stocks demonstrating strong performance trends, while the allocations in high-dividend ETFs aim to provide steady income and reduce volatility.

Growth Info

Historically, this portfolio has displayed impressive performance with a Compound Annual Growth Rate (CAGR) of 22.70%. Its maximum drawdown was limited to -15.26%, suggesting resilience during market downturns. Notably, a significant portion of returns was generated on a few key days, emphasizing the impact of timing and momentum in the portfolio's strategy. When compared to benchmarks, this performance suggests the portfolio's growth focus and risk management strategies have been effective, though it's important to remember that past performance is not indicative of future results.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a wide range of potential future scenarios. With all simulations indicating positive returns and an average annualized return of 20.59%, the forward-looking projection remains optimistic. However, it's crucial to understand that these simulations are based on past trends and cannot account for unforeseen market changes, making it important to view these projections as one of many tools in evaluating potential future performance.

Asset classes Info

  • Stocks
    85%
  • Bonds
    15%

The portfolio's asset class allocation, with a dominant stake in stocks and a minor in bonds, aligns well with a balanced investment strategy that seeks growth while mitigating risk through income-generating securities. This composition supports diversification, though the heavy reliance on equities does introduce higher volatility. Adjusting the equity-to-bond ratio could be considered to match changes in risk tolerance or market outlook.

Sectors Info

  • Financials
    21%
  • Technology
    19%
  • Industrials
    10%
  • Telecommunications
    9%
  • Consumer Discretionary
    7%
  • Consumer Staples
    5%
  • Energy
    4%
  • Health Care
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    1%

Sector allocation reveals a diversified yet targeted approach, with significant investments in financial services and technology. This sectoral distribution reflects a balance between cyclical sectors that can offer growth in economic expansions and more stable, defensive sectors. However, the concentration in technology and financial services sectors might expose the portfolio to sector-specific risks, suggesting a review to ensure alignment with the investor's risk tolerance and market outlook.

Regions Info

  • North America
    59%
  • Europe Developed
    11%
  • Japan
    4%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is primarily focused on North America, with diversified exposure across developed and emerging markets in Europe and Asia. This distribution supports risk mitigation through geographic diversification while capitalizing on growth opportunities in both established and developing economies. However, the modest allocation to emerging markets might limit exposure to high-growth potential regions, which could be reconsidered for enhanced global diversification.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    4%
  • Micro-cap
    2%

The market capitalization breakdown, favoring mega and big-cap stocks, positions the portfolio towards companies with established track records and potentially more stable returns. While this may reduce volatility, the lower allocation to small and micro-cap stocks could limit opportunities for outsized growth. Diversifying further across market caps could introduce more growth potential, albeit with increased risk.

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 portfolio's risk-return profile suggests there's room for optimization, with the potential to achieve a higher expected return of 7.04% at a similar risk level. This indicates that while the portfolio is performing well, there may be opportunities to reallocate assets to reach an even more efficient point on the Efficient Frontier, enhancing the portfolio's risk-adjusted returns without necessarily increasing risk.

Dividends Info

  • American Century ETF Trust 2.10%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.50%
  • Invesco S&P 500® Momentum ETF 0.70%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 3.90%
  • Weighted yield (per year) 2.34%

The portfolio's focus on high-dividend-yielding ETFs contributes not only to its income generation but also to its overall return profile, with a total yield of 2.34%. This approach balances growth and income, providing a buffer during market volatility through regular dividend payments. However, investors should remain mindful of the varying tax implications of dividend income and consider the overall yield in the context of their income needs and tax situation.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.19%

With total portfolio costs averaging 0.19%, the portfolio is efficiently managed, minimizing the drag on returns due to fees. This cost efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns for investors. Continuously monitoring and managing these costs will remain an essential aspect of maintaining portfolio efficiency.

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