Growth-oriented portfolio with a strong emphasis on global stock markets and momentum strategies
Report created on Jun 10, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 20.00%
The portfolio is structured around three major ETFs, with a significant 50% allocation to the Vanguard Total Stock Market Index Fund ETF, 30% in the Vanguard Total International Stock Index Fund ETF, and 20% in the Invesco S&P 500® Momentum ETF. This composition underscores a growth-oriented strategy with a global outlook, leaning heavily on stock investments. The broad diversification across major sectors and geographies, combined with a focus on momentum within the S&P 500, indicates a proactive approach to capturing growth while spreading risk across a wide array of global equities.
Growth
With a historical Compound Annual Growth Rate (CAGR) of 15.70% and a maximum drawdown of -33.71%, the portfolio demonstrates a robust growth trajectory tempered by significant volatility. The days contributing to 90% of returns being limited to 28 indicates that a few key periods have driven the majority of the portfolio's growth. This performance, while impressive, highlights the portfolio's sensitivity to market highs and lows, underscoring the importance of a long-term perspective when dealing with growth-oriented investments.
Projection
Utilizing a Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. With 997 out of 1,000 simulations yielding positive returns and a median projected increase of 708.4%, the forward-looking scenario is optimistic. However, it's crucial to remember that Monte Carlo simulations are based on past data, which doesn't guarantee future results, especially in unpredictable markets.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's allocation is overwhelmingly in stocks (99%), with a nominal presence in cash (1%), reflecting a high growth potential but also higher risk. This asset class distribution aligns with the portfolio's growth profile but offers limited protection against market downturns. Diversifying across different asset classes could provide a buffer during stock market volatility.
Sectors
- Technology 23%
- Financials 18%
- Consumer Discretionary 11%
- Industrials 11%
- Telecommunications 9%
- Health Care 9%
- Consumer Staples 7%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 3%
Sector allocation is concentrated in Technology (23%), Financial Services (18%), and Consumer Cyclicals (11%), among others, reflecting a bias towards sectors often associated with high growth but also higher volatility. This sectoral composition is aligned with the portfolio's growth objectives, though it may benefit from increased exposure to more defensive sectors to mitigate risk during market downturns.
Regions
- North America 72%
- Europe Developed 12%
- Asia Emerging 5%
- Japan 5%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
The geographic allocation emphasizes North America (72%) while maintaining significant exposure to developed Europe (12%) and emerging Asian markets (5%). This distribution supports global diversification, reducing the impact of regional downturns, but the portfolio may benefit from increased exposure to emerging markets for potential higher growth rates and further diversification.
Market capitalization
- Mega-cap 45%
- Large-cap 31%
- Mid-cap 17%
- Small-cap 4%
- Micro-cap 1%
With a focus on Mega (45%) and Big (31%) cap stocks, the portfolio is positioned to capitalize on the stability and growth potential of large companies. However, the relatively lower allocation to Medium (17%), Small (4%), and Micro (1%) cap stocks suggests a missed opportunity for higher growth potential and further diversification benefits that smaller companies can offer.
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 current allocation shows a well-thought-out strategy aimed at maximizing growth within a defined risk profile. However, optimizing the portfolio using the Efficient Frontier could identify opportunities to achieve a better risk-return ratio. This process might suggest slight adjustments in asset allocation to further align with the investor's risk tolerance and return objectives, ensuring that the portfolio is positioned as efficiently as possible within the growth investment space.
Dividends
- Invesco S&P 500® Momentum ETF 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.30%
- Vanguard Total International Stock Index Fund ETF Shares 2.90%
- Weighted yield (per year) 1.62%
The dividend yields from the ETFs contribute to the portfolio's total income, with a combined yield of 1.62%. While not the primary focus of a growth-oriented strategy, dividends offer a source of passive income and can provide a cushion during market dips. Balancing growth and income-generating assets could enhance the portfolio's resilience and total return over time.
Ongoing product costs
- 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) 0.06%
The portfolio's total expense ratio (TER) of 0.06% is impressively low, enhancing its long-term return potential by minimizing costs. This cost efficiency is a strong point, as lower expenses translate directly into higher net returns for investors, particularly important in a growth-focused portfolio where every percentage point of return matters.
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