Highly concentrated US momentum tilt with strong historic returns and higher risk growth orientation
Report created on Apr 4, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 33.34% -
XM Invesco S&P MidCap Momentum ETF
XMMO - US46137V4648 33.33% -
XS Invesco S&P SmallCap Momentum ETF
XSMO - US46137V4986 33.33%
This portfolio is a very pure play on equity momentum, split almost evenly across large‑cap, mid‑cap, and small‑cap momentum ETFs. There are no bonds, cash surrogates, or diversifiers like real assets, so everything rides on stocks that have been recent winners. That makes the structure simple and focused, but also amplifies sensitivity to equity market cycles. For someone wanting aggressive growth, this kind of all‑equity momentum mix can be attractive. The tradeoff is that without stabilizing assets, portfolio swings will be larger, and drawdowns can feel intense. A key takeaway is that this setup fits investors who can tolerate sharp ups and downs and are comfortable sitting through volatility without changing course.
Growth
Historically, this portfolio has been a performance powerhouse, turning $1,000 into about $4,730 over ten years, with a compound annual growth rate (CAGR) of 19.26%. CAGR is like your average yearly “speed” over the whole trip, smoothing out bumps along the way. It beat both the US market and global market by wide margins, which is consistent with momentum strategies during strong equity cycles. However, the max drawdown of around -35.6% shows it can fall hard in stressed markets, similar to broad equities but with a bit more pain. Past returns highlight the potential upside, but they are not a promise, and momentum can underperform for stretches when trends reverse.
Projection
The Monte Carlo projection uses historical return and volatility patterns to simulate many possible 15‑year paths, like running 1,000 alternative futures. The median outcome grows $1,000 to about $2,775, but the range is wide: from roughly $945 at the low end (5th percentile) to about $7,637 at the high end (95th). This shows how unpredictable markets can be, especially with a high‑risk, equity‑only portfolio. The average simulated annual return of about 8.17% is notably lower than the backtested 19% CAGR, underlining that recent history may have been unusually strong. Simulations are still based on the past, so they’re best viewed as rough weather maps, not precise forecasts.
Asset classes
- Stocks 100%
All of the money here is in stocks, with 0% allocated to bonds, cash, or other asset classes. Equities are the main long‑term growth engine in most portfolios because they represent ownership in businesses, but they also bring the most volatility. Classic diversified portfolios usually include some mix of bonds or defensive assets to cushion market shocks and smooth the ride. By going 100% stocks, this structure fully embraces growth potential and accepts bigger drawdowns and more emotional swings. That can work well for investors with long horizons, strong stomachs, and a clear plan; those needing stability or near‑term withdrawals might find this level of equity exposure challenging.
Sectors
- Technology 26%
- Industrials 25%
- Health Care 10%
- Financials 7%
- Consumer Discretionary 6%
- Energy 5%
- Telecommunications 5%
- Basic Materials 5%
- Real Estate 4%
- Utilities 4%
- Consumer Staples 3%
Sector exposure is relatively balanced for a momentum strategy, with Technology and Industrials together just over half the portfolio, and the rest spread across health care, financials, energy, real estate, and others. The tilt toward economically sensitive sectors means performance often tracks the business cycle and interest rate expectations closely. Momentum screens naturally pull in sectors that have been winning recently, so the mix can shift over time, sometimes clustering more heavily in one area during strong trends. While this portfolio’s sector mix isn’t wildly out of line with broad benchmarks, the momentum overlay means sector weights can change faster, and downturns in leading sectors may hit performance harder.
Regions
- North America 98%
- Europe Developed 2%
- Latin America 1%
Geographically, this portfolio is overwhelmingly concentrated in North America, at about 98%, with tiny exposure to developed Europe and Latin America. That lines up closely with many US‑based benchmarks, which are also heavily US‑tilted, and it has been a tailwind over the last decade as US stocks outperformed much of the world. However, it does mean economic, policy, and currency risk are all tied mainly to one region. If US markets lag other areas for a decade, this portfolio will likely lag as well. The positive side is familiarity and simplicity; the tradeoff is missing some diversification that comes from owning more of the global opportunity set.
Market capitalization
- Small-cap 38%
- Mid-cap 22%
- Large-cap 20%
- Mega-cap 12%
- Micro-cap 9%
The market‑cap mix is quite unusual compared with a standard market index. There’s heavy exposure to small‑caps (38%) and meaningful micro‑caps (9%), with mid‑caps another 22%, while mega‑caps are only 12%. Smaller companies usually offer higher growth potential but can be more volatile, less liquid, and more sensitive to economic shocks. Combining this small‑cap bias with momentum creates a more “spicy” risk profile than a typical large‑cap‑dominated portfolio. The upside is the chance for outsized gains when smaller, strong‑trending companies lead the market. The cost is deeper drawdowns and sharper swings, especially in recessions or liquidity crunches, where small‑caps often get hit hardest.
True holdings
-
NV NVIDIA Corporation 3.05%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 2.32%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
JN Johnson & Johnson 1.87%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
MU Micron Technology Inc 1.80%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class A 1.58%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
XO Exxon Mobil Corp 1.49%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
CW Curtiss-Wright Corporation 1.33%
Part of fund(s):- Invesco S&P MidCap Momentum ETF
-
GO Alphabet Inc Class C 1.26%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
FT TechnipFMC PLC 1.15%
Part of fund(s):- Invesco S&P MidCap Momentum ETF
-
LR Lam Research Corp 1.07%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 16.92%
Looking through the ETFs’ top holdings, a few big names like NVIDIA, Broadcom, and Alphabet appear, but no single company dominates the total portfolio. Hidden concentration from overlap seems moderate: the largest stock exposure is just over 3%. That’s helpful, because owning the same stock through multiple funds can quietly increase risk if that company stumbles. Coverage is only about one‑third of actual holdings, since we only see ETF top‑10s, so real overlap could be higher or lower. The general takeaway is that single‑stock risk doesn’t appear extreme here; instead, the main risk comes from the overall strategy and factor tilts rather than one or two names.
Factors
Factor exposure shows clear tilts toward Size (77%) and Momentum (78%), with Value, Quality, and Low Volatility all near neutral and Yield quite low. Factors are like underlying “personality traits” of your holdings that research links to long‑term return patterns. A high Momentum tilt means owning stocks that have been recent winners, which can do very well in trending bull markets but often struggle when leadership rotates suddenly. The Size tilt toward smaller companies amplifies this behavior: gains can be strong in risk‑on environments, but reversals can be sharp. Low Yield suggests income isn’t a focus; returns are expected to come mainly from price appreciation rather than dividends.
Risk contribution
-
Invesco S&P SmallCap Momentum ETF
Weight: 33.33% 36.5% -
Invesco S&P MidCap Momentum ETF
Weight: 33.33% 34.2% -
Invesco S&P 500® Momentum ETF
Weight: 33.34% 29.3%
Risk contribution shows how much each ETF drives total portfolio volatility, which can differ from its weight. Here, the three funds are equal in weight, but the SmallCap Momentum ETF contributes about 36% of risk, the MidCap around 34%, and the large‑cap Momentum ETF about 29%. This tells us the smaller‑company sleeves are slightly louder “instruments” in the risk orchestra. The differences aren’t extreme, but they confirm that more of the ups and downs come from the small and mid segments. If a smoother ride were desired, tilting a bit more toward the large‑cap sleeve would generally lower risk contribution; as it stands, the balance is intentionally growth‑heavy.
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 below the efficient frontier, with a Sharpe ratio of 0.73 versus around 0.94 for both the optimal and minimum‑variance mixes. The Sharpe ratio measures return per unit of risk, like “miles per gallon” for your portfolio. Being 1.4 percentage points below the frontier at this risk level means that, using only these same three ETFs, different weights could improve risk‑adjusted returns. Interestingly, both the maximum Sharpe and minimum variance portfolios still have high expected returns with slightly lower risk. That suggests there is room to fine‑tune the balance between the three sleeves to get more efficiency without changing the underlying strategy.
Dividends
- Invesco S&P 500® Momentum ETF 0.90%
- Invesco S&P MidCap Momentum ETF 0.70%
- Invesco S&P SmallCap Momentum ETF 0.60%
- Weighted yield (per year) 0.73%
The overall dividend yield is low, at about 0.73%, with each ETF yielding below 1%. Yield is the cash paid out each year as a percentage of the investment’s price, and it’s an important component of total return for income‑focused investors. In a momentum strategy, low yield is normal: high‑growth, trend‑leading companies often reinvest profits rather than paying them out. This setup is clearly designed for capital appreciation rather than regular cash flow. For someone who doesn’t need current income and is focused on growing wealth over time, the low yield isn’t a problem. For those seeking payouts, this structure would likely feel underwhelming.
Ongoing product costs
- Invesco S&P 500® Momentum ETF 0.13%
- Invesco S&P MidCap Momentum ETF 0.34%
- Invesco S&P SmallCap Momentum ETF 0.39%
- Weighted costs total (per year) 0.29%
Costs are reasonably competitive for a factor‑tilted portfolio, with a total expense ratio (TER) of about 0.29%. TER is the annual fee charged by the funds, taken out of returns automatically, similar to a small “service charge” each year. The large‑cap sleeve is particularly cheap at 0.13%, while the small‑ and mid‑cap momentum funds are a bit pricier but still within a normal range for smart‑beta strategies. Lower costs mean more of the gross return stays in your pocket, and over many years, even small differences compound. Overall, the fee level here supports the goal of strong long‑term performance without being a major drag.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey