A balanced growth-oriented portfolio with a strong focus on large-cap and momentum ETFs

Report created on Aug 18, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio's composition is heavily weighted towards Exchange-Traded Funds (ETFs) that focus on U.S. large-cap growth and momentum, making up 55% of the allocation. The inclusion of a global stock index fund and international momentum ETFs introduces a degree of geographical diversification. However, the overall asset class exposure is predominantly in stocks, with a minimal cash holding, indicating a growth-focused strategy with moderate diversification across sectors and geographies. This structure aligns with a balanced risk profile, aiming to capitalize on the growth potential of large-cap and momentum-driven companies while attempting to mitigate risk through international exposure.

Growth Info

Historically, the portfolio has demonstrated a strong Compound Annual Growth Rate (CAGR) of 22.86%, with a maximum drawdown of -18.56%. This performance is indicative of the portfolio's ability to generate significant returns, albeit with periods of notable volatility. The days contributing to 90% of returns highlight the impact of short-term gains, emphasizing the momentum strategy's effectiveness. However, investors should be mindful that past performance is not always indicative of future results, especially in volatile market segments.

Projection Info

Monte Carlo simulations, which project potential future outcomes based on historical data, suggest a wide range of possible performances for this portfolio. With all simulations showing positive returns and a median projected increase of 1,524.6%, the analysis supports the portfolio's strong growth potential. However, the broad spread between the 5th and 67th percentiles underscores the inherent uncertainty and risk, particularly given the portfolio's emphasis on growth and momentum strategies.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a negligible cash position (1%), reflecting a clear growth orientation. This concentration in equities, particularly in large-cap and momentum stocks, is typical for investors seeking higher returns and who are comfortable with the associated risks. Diversifying across more asset classes could provide additional risk mitigation, especially during market downturns.

Sectors Info

  • Technology
    29%
  • Financials
    17%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Industrials
    9%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation highlights a significant emphasis on technology and financial services, which together constitute nearly half of the portfolio. This sectoral concentration aligns with the growth and momentum focus but introduces sector-specific risks. Diversification across a broader range of sectors could help reduce volatility without necessarily compromising growth potential, especially considering the cyclicality of tech and financial markets.

Regions Info

  • North America
    68%
  • Europe Developed
    7%
  • Japan
    2%
  • Australasia
    1%
  • Asia Developed
    1%
  • Asia Emerging
    1%

Geographically, the portfolio is predominantly invested in North America (68%), with modest exposure to developed Europe and minimal allocations to other regions. This concentration in developed markets, particularly the U.S., leverages their stability and growth prospects but underrepresents emerging markets, which could offer diversification benefits and exposure to faster-growing economies.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    31%
  • Mid-cap
    14%
  • Small-cap
    2%

The portfolio's market capitalization breakdown, with a dominant allocation to mega (51%) and big (31%) cap stocks, reinforces its growth focus while potentially limiting exposure to the higher volatility and growth opportunities found in smaller-cap companies. Incorporating a broader cap range could enhance diversification and possibly increase returns over the long term.

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 an effective balance between risk and expected return based on current allocations. However, continuous monitoring and adjustments are essential to maintain this balance, especially as market conditions evolve. Re-evaluating asset correlations and diversification periodically can help in staying aligned with the Efficient Frontier, ensuring the portfolio remains optimized for the best possible risk-return ratio.

Dividends Info

  • Invesco S&P International Developed Momentum ETF 1.90%
  • Amplify International Enhanced Dividend Income ETF 5.40%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.44%

Dividend yields across the portfolio vary, contributing to its total yield of 1.44%. While the growth-focused ETFs offer lower yields, the inclusion of dividend equity ETFs provides income, which can be reinvested to compound growth. Balancing growth and income-generation strategies could further optimize the portfolio's performance, especially for investors seeking both capital appreciation and income.

Ongoing product costs Info

  • Invesco S&P International Developed Momentum ETF 0.25%
  • Amplify International Enhanced Dividend Income ETF 0.66%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.12%

The portfolio's overall expense ratio (TotalTER) of 0.12% is impressively low, enhancing long-term return potential by minimizing cost drag. This cost efficiency is particularly noteworthy given the portfolio's diversified ETF structure, which often incurs additional costs. Maintaining low costs is crucial for maximizing net returns, especially in a growth-oriented strategy where compounding plays a significant role.

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