This portfolio has only about 1.8 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

A growth-focused ETF portfolio with an emphasis on value and momentum strategies

Report created on Aug 21, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in exchange-traded funds (ETFs) that focus on small-cap value, momentum, and quality stocks across both U.S. and international markets. With 100% allocation to stocks, it lacks exposure to bonds, cash, or other asset classes, which could be a concern for diversification. The portfolio's structure, heavily weighted towards financial services, industrials, and consumer cyclicals, suggests a tilt towards sectors that may benefit from economic recoveries or expansions.

Growth Info

The portfolio has shown impressive historical performance, with a Compound Annual Growth Rate (CAGR) of 28.22%. However, it's important to remember that past performance is not indicative of future results. The maximum drawdown of -18.77% indicates the portfolio's vulnerability during market downturns. The concentration in specific sectors and asset classes may have contributed to these high returns, but it also increases risk.

Projection Info

A Monte Carlo simulation, which uses historical data to project future outcomes, suggests a wide range of potential returns for this portfolio. The median projected return is quite optimistic, but investors should be cautious, as simulations cannot predict unexpected market shifts. Diversifying further could mitigate some risk without dramatically sacrificing potential returns.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without any bonds or cash, positions it for potentially high returns but also high volatility. In periods of market downturn, bonds or cash can offer stability and reduce overall portfolio volatility. Diversifying into these asset classes may provide a more balanced risk-return profile.

Sectors Info

  • Financials
    24%
  • Industrials
    17%
  • Consumer Discretionary
    14%
  • Technology
    13%
  • Consumer Staples
    8%
  • Energy
    7%
  • Telecommunications
    5%
  • Basic Materials
    4%
  • Health Care
    4%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation shows a significant tilt towards financial services, industrials, and consumer cyclicals. This concentration could expose the portfolio to sector-specific risks. For instance, financial services and industrials might be particularly sensitive to economic cycles. Diversifying across more sectors could reduce volatility and improve returns over different market conditions.

Regions Info

  • North America
    82%
  • Europe Developed
    9%
  • Japan
    4%
  • Australasia
    2%
  • Asia Developed
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is heavily weighted towards North America, with limited exposure to developed and emerging markets outside this region. This concentration may limit the portfolio's growth potential and increase its vulnerability to regional economic downturns. Increasing exposure to international markets could offer additional growth opportunities and risk diversification.

Market capitalization Info

  • Small-cap
    24%
  • Mid-cap
    22%
  • Mega-cap
    22%
  • Large-cap
    17%
  • Micro-cap
    13%

The portfolio's allocation across small, medium, mega, big, and micro-cap stocks is relatively balanced, which is a positive aspect for diversification. However, the significant allocation to small and micro-cap stocks could increase volatility, as these stocks are often more sensitive to market swings. Adjusting the balance towards medium and mega-cap stocks may offer a smoother return profile.

Redundant positions Info

  • Avantis® U.S. Small Cap Value ETF
    American Century ETF Trust
    High correlation

The high correlation observed between certain ETFs, like the Avantis® U.S. Small Cap Value ETF and American Century ETF Trust, suggests redundancy in the portfolio, which may not be contributing to diversification. Identifying and reducing overlapping investments can enhance the portfolio's efficiency by lowering risk without sacrificing returns.

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 analysis suggests that the portfolio could achieve a higher expected return with the same level of risk through optimization. Removing highly correlated assets and rebalancing towards a more diversified asset allocation could improve the risk-return profile. This optimization approach aligns with the Efficient Frontier concept, aiming to maximize returns for a given level of risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.60%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P International Developed Momentum ETF 1.90%
  • Invesco S&P 500® Quality ETF 1.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • American Century ETF Trust 1.30%
  • Weighted yield (per year) 1.42%

The portfolio's average dividend yield is modest, reflecting its growth-oriented strategy. While dividends can provide a steady income stream and contribute to total return, the focus here seems to be on capital appreciation. Investors seeking income might consider increasing exposure to higher-yielding assets.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Quality ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • American Century ETF Trust 0.20%
  • Weighted costs total (per year) 0.22%

The total expense ratio (TER) of 0.22% is relatively low, which is beneficial for long-term performance as costs can significantly erode returns over time. Keeping costs low while maintaining a diversified and balanced portfolio is crucial for enhancing net returns.

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