A growth-focused portfolio with a strong tilt towards quality and momentum strategies

Report created on Sep 14, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is structured around four ETFs, focusing heavily on the S&P 500 with an emphasis on quality and momentum, complemented by small-cap value exposure in both the U.S. and international markets. This allocation suggests a strategic approach to capturing growth through high-quality and momentum-driven companies while seeking value in smaller companies. The equal weighting between the quality and momentum ETFs indicates a balanced approach to capturing different market dynamics, whereas the significant allocation to small-cap value ETFs introduces a higher risk-reward component, aiming to leverage the potential outperformance of undervalued small-cap stocks.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 18.01%, with a maximum drawdown of -36.03%. This performance is indicative of a high-growth strategy, albeit with significant volatility, as highlighted by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 21 days underscores the portfolio's susceptibility to short-term market movements, emphasizing the importance of staying invested during volatile periods to capture potential gains.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, project a wide range of returns for this portfolio, with a median increase of 793.6% and a high percentile performance suggesting even greater returns. However, it's crucial to note that such projections are inherently uncertain and should be viewed as indicative rather than predictive. The simulations underscore the portfolio's growth potential but also highlight the importance of risk management and long-term commitment.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocation to cash, bonds, or other asset classes. This singular focus on equities is consistent with a growth-oriented investment strategy but lacks diversification across asset classes, which could mitigate risk during market downturns. Investors should consider the implications of a 100% equity allocation, particularly in relation to their risk tolerance and investment horizon.

Sectors Info

  • Financials
    19%
  • Industrials
    18%
  • Technology
    17%
  • Consumer Discretionary
    14%
  • Consumer Staples
    10%
  • Energy
    6%
  • Basic Materials
    6%
  • Telecommunications
    5%
  • Health Care
    4%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation spans financial services, industrials, technology, and consumer sectors, among others, reflecting a well-rounded exposure to different segments of the economy. This diversification can help cushion the portfolio against sector-specific downturns. However, the relatively lower allocation to healthcare and utilities, sectors often considered defensive, may make the portfolio more sensitive to market volatility.

Regions Info

  • North America
    82%
  • Europe Developed
    7%
  • Japan
    7%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Asia Developed
    1%

With 82% of assets allocated to North America and limited exposure to emerging markets, the portfolio is heavily skewed towards developed markets, particularly the U.S. This geographic distribution supports stability and growth potential but may miss out on the higher growth opportunities available in emerging markets. Diversifying geographically could enhance returns and reduce risk by spreading exposure across different economic cycles.

Market capitalization Info

  • Large-cap
    28%
  • Mid-cap
    21%
  • Mega-cap
    21%
  • Small-cap
    17%
  • Micro-cap
    10%

The market capitalization breakdown reveals a balanced exposure across big, medium, mega, and small-cap stocks, with a notable allocation to micro-caps. This mix supports diversification and the potential for outperformance through small and micro-cap investments. However, the higher volatility and risk associated with smaller companies necessitate a careful consideration of individual risk tolerance.

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 portfolio's current allocation suggests an attempt to balance risk and return, potentially aligning with the Efficient Frontier concept, which aims for the highest possible return for a given level of risk. However, the heavy reliance on equities and specific sectors may present opportunities for further optimization, particularly in enhancing diversification across asset classes and geographies to improve the risk-return profile.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.50%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco S&P 500® Quality ETF 1.00%
  • Invesco S&P 500® Momentum ETF 0.50%
  • Weighted yield (per year) 1.47%

The dividend yields, ranging from 0.5% to 3.5%, contribute to the portfolio's total yield of 1.47%. While dividends are not the primary focus of this growth-oriented strategy, they provide a modest income stream and potential for reinvestment. The lower yield reflects the portfolio's emphasis on capital appreciation over income, aligning with the goals of growth-focused investors.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Quality ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.21%

With a total expense ratio (TER) of 0.21%, the portfolio benefits from relatively low costs, supporting better long-term performance. Keeping investment costs low is crucial for maximizing returns, especially in growth strategies where compound interest plays a significant role. The portfolio's cost efficiency is a positive aspect, allowing more of the investment returns to compound over time.

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