Balanced and broadly diversified portfolio with a strong focus on growth ETFs
Report created on Jul 11, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 25.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 25.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 25.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 25.00%
The portfolio is evenly distributed across four major ETFs, each representing a distinct segment of the market: the Invesco NASDAQ 100 ETF, the Invesco S&P 500® Momentum ETF, the Vanguard Total Stock Market Index Fund ETF Shares, and the Vanguard Total International Stock Index Fund ETF Shares. This structure provides a broad market exposure, with a significant tilt towards the technology sector and U.S. equities. The equal weighting suggests a strategy designed to balance risk and return by diversifying across different market segments and geographies.
Growth
Historically, the portfolio has demonstrated strong performance, with a Compound Annual Growth Rate (CAGR) of 15.11% and a maximum drawdown of -26.98%. These figures indicate a resilient portfolio that has managed to recover and grow despite market volatility. The days contributing to 90% of returns being concentrated in just 20 days highlights the impact of short-term gains, underscoring the importance of staying invested during market fluctuations to capture potential spikes in performance.
Projection
Monte Carlo simulations, which use historical data to project future performance under a range of scenarios, suggest a wide range of outcomes for this portfolio. With the majority of simulations (995 out of 1,000) showing positive returns and an annualized return across all simulations at 16.32%, the forward-looking projection is optimistic. However, it's crucial to remember that these projections are based on past data and cannot guarantee future results.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This allocation aligns with the portfolio’s balanced risk profile but leans towards growth, given the high equity exposure. While this setup is conducive to capital appreciation, it also means the portfolio may experience higher volatility compared to more conservative allocations, such as those with higher allocations to bonds or cash.
Sectors
- Technology 30%
- Financials 14%
- Consumer Discretionary 12%
- Telecommunications 11%
- Industrials 9%
- Consumer Staples 7%
- Health Care 7%
- Energy 3%
- Basic Materials 2%
- Utilities 2%
- Real Estate 2%
A closer look at the sectoral allocation reveals a strong emphasis on technology, financial services, and consumer cyclicals, which are sectors often associated with higher growth potential. However, this concentration also exposes the portfolio to sector-specific risks. For instance, the technology sector can be particularly volatile in response to changes in market sentiment or regulatory environments.
Regions
- North America 76%
- Europe Developed 10%
- Asia Emerging 4%
- Japan 4%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is heavily weighted towards North America (76%), with moderate exposure to developed Europe and emerging markets in Asia. This distribution reflects a balance between seeking growth in more stable, developed markets and tapping into the potential of emerging markets. However, the relatively low exposure to emerging markets might limit the portfolio’s growth potential in the long run, given the higher growth rates often seen in these regions.
Market capitalization
- Mega-cap 49%
- Large-cap 32%
- Mid-cap 15%
- Small-cap 3%
- Micro-cap 1%
The portfolio's exposure is predominantly in mega (49%) and large-cap (32%) companies, which are typically more stable and less volatile than smaller companies. This focus on larger companies, combined with a smaller allocation to medium, small, and micro-cap stocks, supports the portfolio’s balanced risk profile while still allowing for 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.
Regarding risk vs. return optimization, the portfolio appears to be positioned near the Efficient Frontier, suggesting that it is achieving a favorable balance between risk and return. This balance is crucial for long-term growth, as it aims to maximize returns for a given level of risk. However, continuous monitoring and occasional rebalancing are recommended to maintain this optimal positioning as market conditions change.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Invesco S&P 500® Momentum ETF 0.60%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.28%
The dividend yields across the ETFs range from 0.50% to 2.80%, with a total portfolio yield of 1.28%. This indicates a moderate contribution of dividends to the portfolio's total return. While the focus is clearly on capital appreciation, dividends provide a steady income stream and can offer some cushion during market downturns.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.09%
The portfolio’s total expense ratio (TER) of 0.09% is impressively low, enhancing its attractiveness by ensuring that costs do not significantly erode returns. Lower costs are particularly beneficial over the long term, as they allow a greater portion of investment returns to compound.
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