Growth focused global equity mix with a strong momentum tilt and low costs
Report created on May 9, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 50.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 50.00%
This portfolio is built from just two equity ETFs split evenly at 50% each. One fund tracks a momentum-tilted slice of a major US index, while the other gives broad global equity coverage. That keeps the structure simple and easy to understand: it’s 100% stocks, with no bonds or alternatives. A concentrated line-up like this can still be diversified if the underlying holdings span many companies and regions, which is the case here. The combination effectively layers a focused momentum sleeve on top of a diversified world equity core. This design means portfolio behavior will be driven by stock markets overall, with an extra push from trends in the US companies favoured by the momentum strategy.
Growth
From 2016 to 2026, a hypothetical $1,000 invested grew to about $4,805, implying a Compound Annual Growth Rate (CAGR) of 19.28%. CAGR is like average speed on a long road trip: it smooths out the bumps to show steady yearly growth. Over the same period, the US market returned 17.50% and the global market 14.56%, so this mix outpaced both by a meaningful margin. The worst peak-to-trough drop was about -32.4% during early 2020, similar to broad markets. This shows the portfolio has delivered strong returns but still experiences sharp drawdowns typical of equity-heavy strategies, reminding that past performance does not guarantee future results.
Projection
The Monte Carlo projection uses many random “what if” paths based on historical behavior to estimate future outcomes. Think of it as running the next 15 years 1,000 different ways, then summarizing the results. Here, the median outcome turns $1,000 into about $2,734, with a central range of roughly $1,729 to $4,215. There’s a 72.5% chance of ending above the starting amount, and the average annualized return across simulations is 8.09%. These ranges are wide, showing real uncertainty. They’re also lower than the historical CAGR, underlining that the last decade’s strong run may not repeat. Projections are approximations, not promises, and can’t capture all future market conditions.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with 0% in bonds, cash, or alternative assets. That creates a clear growth-oriented profile, because equities historically have higher long-term return potential but also larger ups and downs. Compared with many blended portfolios that mix stocks and bonds, this one accepts more market volatility in exchange for that growth focus. The lack of defensive asset classes means that when stock markets fall broadly, there is little built-in cushion from more stable holdings. On the other hand, keeping everything in one asset class makes the behavior straightforward: performance is driven almost entirely by global equity market trends rather than interest rates or credit markets.
Sectors
- Technology 38%
- Industrials 13%
- Financials 11%
- Telecommunications 9%
- Health Care 8%
- Consumer Discretionary 5%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector exposure is tilted toward Technology at 38%, with the rest spread across Industrials, Financials, Telecommunications, Healthcare, Consumer sectors, Energy, Materials, Utilities, and Real Estate. This tech tilt is stronger than in many broad market indices, likely influenced by the momentum ETF and its focus on recent winners. Sector allocation matters because different parts of the economy respond differently to interest rates, regulation, and growth cycles. Tech-heavy portfolios may benefit when innovation and growth stocks are in favor, but they can be more sensitive during periods of rising rates or when investor sentiment shifts away from high-growth names. The remaining sectors provide some balance, reducing dependence on a single economic theme.
Regions
- North America 82%
- Europe Developed 7%
- Japan 3%
- Asia Emerging 3%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 82% of the portfolio is in North America, with smaller slices in Developed Europe, Japan, other parts of Asia, Latin America, and Africa/Middle East. This represents a clear home bias toward North American markets compared with truly global benchmarks, which typically allocate a lower share there. Geography matters because economic growth, currencies, and political environments differ by region. A strong North American tilt has historically helped when US markets led global performance, as they have for much of the past decade. However, it also means portfolio results are heavily tied to one region’s fortunes and currency, while exposure to other parts of the world is present but relatively modest.
Market capitalization
- Mega-cap 42%
- Large-cap 40%
- Mid-cap 14%
- Small-cap 3%
By market capitalization, the portfolio is dominated by large companies: about 42% in mega-caps, 40% in large-caps, with 14% in mid-caps and a small 3% in small-caps. Market cap describes a company’s size on the stock market and influences how stable or volatile it tends to be. Heavy exposure to mega- and large-caps usually means more established businesses with deeper liquidity and broader analyst coverage. These companies often move more with global indexes and may be less volatile than smaller firms, although they can still experience big swings. The modest mid- and small-cap exposure adds some growth and diversification potential but doesn’t dominate the risk profile, which is mainly driven by large global leaders.
True holdings
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NV NVIDIA Corporation 6.42%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 4.64%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MU Micron Technology Inc 3.56%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class A 3.52%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 2.81%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
JN Johnson & Johnson 2.14%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AA Apple Inc 1.77%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
-
XO Exxon Mobil Corp 1.65%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 1.61%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AM Advanced Micro Devices Inc 1.53%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 29.66%
Looking through the ETFs, several companies appear as notable underlying exposures, with names like NVIDIA, Broadcom, Micron, Alphabet, and Johnson & Johnson among the largest. For example, NVIDIA alone accounts for about 6.4% of the total portfolio when aggregating across funds. When the same stock shows up in multiple ETFs, that creates hidden concentration: the position is larger than it looks if you only glance at fund weights. The current list suggests a meaningful tilt toward certain large technology and semiconductor names. Coverage is limited to ETF top-10 holdings, so total overlap is likely understated, but this snapshot still highlights that a handful of companies play an outsized role in how the portfolio behaves.
Factors
Factor exposure shows a high tilt to Momentum at 62%, while Value, Size, Quality, and Low Volatility are all near neutral, and Yield is on the low side. Factors are like the underlying “ingredients” that help explain why investments move the way they do over time. A momentum tilt means the portfolio leans toward stocks that have recently performed well, which can boost returns in strong, trending markets. The flip side is sensitivity to sharp reversals when leadership changes. The low Yield reading reflects a general preference for companies that reinvest profits rather than pay them out, which fits with a growth-focused style. Overall, the factor profile is dominated by this momentum characteristic rather than multiple competing tilts.
Risk contribution
-
Invesco S&P 500® Momentum ETF
Weight: 50.00% 54.4% -
Vanguard Total World Stock Index Fund ETF Shares
Weight: 50.00% 45.6%
Risk contribution looks at how much each holding drives total portfolio volatility, which can differ from simple weights. Here, the momentum ETF is 50% of the portfolio but contributes about 54.4% of overall risk, while the global ETF contributes 45.6% of risk. This shows the momentum fund is slightly more volatile relative to its size, consistent with its style. In a two-holding portfolio, seeing risk contributions nearly match weights suggests there is no single extreme outlier. Still, the momentum sleeve is the marginally louder “instrument in the orchestra,” nudging overall behavior toward more trend-sensitive swings. Understanding this helps explain why performance may react strongly to shifts in US growth and momentum stocks.
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 efficient frontier analysis shows the current mix sitting on or very near the optimal curve, with a Sharpe ratio of 0.79. The Sharpe ratio compares excess return to volatility, like checking how much “reward” you’re getting for each unit of “bumpiness.” The maximum Sharpe portfolio using just these two funds would have a higher Sharpe of 1.02 but also slightly higher risk and return, while the minimum-variance mix has similar Sharpe but lower risk and lower return. Being on the frontier means the existing 50/50 allocation is already efficient for its chosen risk level; any major improvement in risk-adjusted return would require changing the building blocks, not just reweighting them.
Dividends
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- Weighted yield (per year) 1.15%
The combined dividend yield is about 1.15%, with the global ETF yielding 1.60% and the momentum ETF 0.70%. Dividend yield is the annual cash payout as a percentage of price, like interest on a savings account but paid by companies. This level is relatively modest, reflecting the portfolio’s growth and momentum lean, where firms often reinvest earnings rather than distribute them. Dividends can be an important component of long-term total return, especially when reinvested, but here they are a smaller share compared with potential capital gains. In strong markets, most of the portfolio’s return is likely to come from price appreciation rather than income, consistent with its equity growth character.
Ongoing product costs
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.10%
The portfolio’s total ongoing cost, measured by Total Expense Ratio (TER), is about 0.10% per year. TER is like a small annual service fee charged by the funds to cover management and operations. These costs are impressively low by industry standards, especially for a global equity allocation, and they help support better long-term performance by leaving more of the return in the investor’s pocket. Over many years, even small fee differences can compound into meaningful amounts. In this case, the cost structure is a clear strength: it aligns closely with best practices for low-cost, index-based and rules-based investing, and does not appear to be a drag on the portfolio’s growth potential.
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