Growth-focused portfolio with high momentum and minimal international exposure

Report created on Oct 28, 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 heavily weighted towards the Invesco S&P 500® Momentum ETF, making up 95.42% of the total, with a minor allocation to the Avantis® International Small Cap Value ETF. Such a composition suggests a strong focus on growth, primarily through U.S. large-cap stocks that exhibit momentum. The minimal diversification, as indicated by a low diversity score, concentrates risk but aligns with a growth-oriented strategy aiming for higher returns. This approach, while aggressive, leverages the potential of momentum investing within the S&P 500.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 21.67%, with a significant maximum drawdown of -31.36%. This performance highlights the portfolio's high-growth potential but also underscores its volatility and risk. The fact that 90% of returns came from 26 days illustrates the impact of short-term gains, typical of momentum strategies. While past success is notable, it's essential to remember that such strategies can be highly sensitive to market shifts.

Projection Info

Using Monte Carlo simulations, the forward projection offers a wide range of outcomes, with a median increase of 890.6%. This method, which forecasts potential returns based on historical data, suggests a strong growth trajectory but also emphasizes the uncertainty and risk inherent in a heavily concentrated, momentum-driven portfolio. It's crucial to understand that these projections are hypothetical and subject to the limitations of past performance as a predictor of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no presence in bonds, cash, or other asset classes. This singular focus on equities maximizes growth potential but also increases risk, particularly in market downturns. Diversifying across different asset classes could provide a buffer against volatility while still allowing for significant growth opportunities.

Sectors Info

  • Technology
    33%
  • Financials
    19%
  • Telecommunications
    15%
  • Industrials
    11%
  • Consumer Staples
    6%
  • Consumer Discretionary
    5%
  • Utilities
    3%
  • Health Care
    2%
  • Energy
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

The sector allocation is heavily skewed towards technology, financial services, and communication services. This concentration in high-growth sectors complements the portfolio's overall strategy but also increases susceptibility to sector-specific downturns. Balancing with more defensive sectors or broadening sector exposure could mitigate risk without significantly compromising growth potential.

Regions Info

  • North America
    96%
  • Japan
    2%
  • Europe Developed
    2%

Geographic exposure is overwhelmingly North American (96%), with minimal allocations to Japan and developed Europe. This U.S.-centric approach has historically provided strong growth but limits global diversification benefits. Expanding into emerging markets or other developed regions could offer new growth avenues and risk diversification.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    38%
  • Mid-cap
    15%
  • Small-cap
    2%

The portfolio's focus on mega and big-cap stocks (83% combined) aligns with its growth and momentum strategy, leveraging the stability and potential of large companies. However, incorporating medium or small-cap stocks could enhance diversification and possibly introduce higher growth potential from more volatile segments.

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, while aggressive, may not sit on the Efficient Frontier, implying there could be opportunities to achieve a better risk-return balance. Adjusting the asset mix to include more diversification across asset classes, sectors, and geographies might move the portfolio closer to the Efficient Frontier, optimizing risk-adjusted returns without necessarily sacrificing growth potential.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 0.73%

The overall low dividend yield (0.73%) reflects the portfolio's growth orientation, prioritizing capital appreciation over income. For investors seeking income or a more balanced return profile, incorporating higher-yielding assets could provide regular income streams while still participating in growth opportunities.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) of 0.14% is impressively low, enhancing long-term return potential by minimizing costs. This efficiency is a strong point, ensuring that more of the portfolio's gross returns contribute to net performance.

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