A growth-focused portfolio with a strong momentum strategy across global markets

Report created on Nov 4, 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 distinctly composed of four ETFs, focusing heavily on momentum strategies within both the U.S. and international developed markets. The Invesco S&P 500® Momentum ETF and Invesco S&P International Developed Momentum ETF together form the core, comprising 70% of the portfolio. The addition of the Avantis® International Small Cap Value ETF and WisdomTree U.S. Quality Shareholder Yield Fund introduces value and quality factors, respectively, diversifying the investment approach. This structure suggests a strategic emphasis on capturing growth through market trends, while the allocation towards value and quality aims to balance volatility and add potential for steady returns.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 18.11%, with a significant max drawdown of -33.91%. This performance is indicative of a high-growth strategy that comes with considerable volatility. The days contributing to 90% of returns being concentrated in just 25 days highlights the momentum-driven nature of the portfolio, where select periods of strong market trends significantly impact overall performance. Comparing this to benchmarks would likely show a higher return at the expense of increased risk, aligning with the portfolio's growth-oriented risk profile.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting a 746.5% increase, underlining the portfolio's high-growth potential. However, the broad spread between the 5th and 67th percentiles (138.7% to 1,118.4%) underscores the inherent uncertainty and risk. These projections, based on historical data, offer insight into possible future performance but should be interpreted with caution as past performance is not a guaranteed predictor of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, providing a clear focus on equity growth. This singular asset class exposure maximizes potential returns but also increases risk, lacking the balance that bonds or alternative investments might offer. In a broader context, such concentration in equities is typical for growth-oriented investors willing to accept higher volatility for the chance of substantial gains. However, diversifying across different asset classes could offer a smoother investment journey, especially during market downturns.

Sectors Info

  • Financials
    28%
  • Technology
    17%
  • Industrials
    16%
  • Telecommunications
    10%
  • Consumer Discretionary
    8%
  • Consumer Staples
    6%
  • Basic Materials
    6%
  • Energy
    4%
  • Health Care
    3%
  • Utilities
    3%
  • Real Estate
    1%

With a sectoral spread across financial services, technology, and industrials making up over 60% of the portfolio, there's a clear tilt towards sectors often associated with high growth and, correspondingly, higher volatility. The underweight exposure to traditionally defensive sectors like healthcare and utilities may limit the portfolio's resilience during market downturns. Balancing growth-oriented sectors with defensive ones could enhance stability without significantly compromising on growth potential.

Regions Info

  • North America
    58%
  • Europe Developed
    25%
  • Japan
    9%
  • Australasia
    4%
  • Asia Developed
    2%
  • Africa/Middle East
    2%

The geographic allocation with a dominant 58% in North America and significant exposure to developed Europe and Japan provides a solid foundation in stable, developed markets. The negligible exposure to emerging markets limits potential growth opportunities and diversification benefits these regions can offer. Increasing exposure to emerging markets could introduce higher growth prospects and diversification, albeit with added risk.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    29%
  • Mid-cap
    22%
  • Small-cap
    10%
  • Micro-cap
    1%

The market capitalization breakdown, favoring mega and big-cap stocks, aligns with the portfolio's growth and momentum strategy, as these companies often have more established market positions and stability compared to their smaller counterparts. However, the inclusion of small and micro-cap stocks, albeit minimal, introduces a layer of potential high-growth opportunities. A more balanced approach across different market caps could enhance diversification while still capturing growth.

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, the portfolio's current allocation suggests a focus on maximizing returns, potentially at the expense of higher volatility. Optimization could involve adjusting asset allocations to achieve a more favorable risk-return balance. This doesn't necessarily mean sacrificing growth but rather strategically reallocating to maintain high potential returns while mitigating risk. The goal would be to move closer to the Efficient Frontier, where each unit of risk is optimized for maximum return.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.40%
  • Invesco S&P International Developed Momentum ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • WisdomTree Trust - WisdomTree U.S. Quality Shareholder Yield Fund 1.50%
  • Weighted yield (per year) 1.58%

The dividend yields, ranging from 0.60% to 3.40%, contribute to the portfolio's total return, albeit modestly given the growth-focused strategy. The overall yield of 1.58% offers a supplementary income stream, which could be particularly beneficial during periods of slow capital appreciation. Considering the portfolio's growth orientation, the current dividend strategy seems appropriate, though investors seeking higher income might explore options with higher yielding assets.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • WisdomTree Trust - WisdomTree U.S. Quality Shareholder Yield Fund 0.12%
  • Weighted costs total (per year) 0.21%

The portfolio's overall cost, represented by a Total Expense Ratio (TER) of 0.21%, is relatively low, enhancing its attractiveness by preserving investor returns over the long term. Lower costs are crucial for long-term growth, as they compound positively by leaving more capital invested in the market. The portfolio's cost efficiency is commendable and aligns with best practices for maximizing investment growth potential.

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