A balanced and moderately diversified portfolio with a strong focus on momentum and global stocks
Report created on Nov 24, 2025Risk profile
4/7
Diversification profile
3/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 50.00% -
JA Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
JAAA - US47103U8457 20.00% -
AV American Century ETF Trust
AVGV - US0250722164 15.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 15.00%
The portfolio is structured around four ETFs, with a significant 50% allocation to a momentum-focused ETF, suggesting a strategy that aims to capitalize on the continuation of existing market trends. Another 20% is invested in a CLO ETF, which introduces fixed-income elements, potentially for stability. The remaining 30% is split between an American Century ETF and a global stock index, enhancing diversification. This composition indicates a balanced approach, leaning towards growth through momentum in equities while maintaining a cushion through bonds.
Growth
Historically, the portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 22.85%, with a maximum drawdown of -16.06%. The concentration on momentum and diversified global exposure has likely contributed to these impressive returns. However, it's important to note that past performance is not indicative of future results. The relatively small number of days contributing to the majority of returns suggests high volatility on those days, which is characteristic of momentum strategies.
Projection
Utilizing Monte Carlo simulations, the portfolio's forward projection shows a wide range of outcomes, with a median increase of 1,116.7%. This method, which runs numerous simulations based on historical data to forecast future performance, underscores the potential for significant growth but also highlights the uncertainty inherent in investing. It's a useful reminder of the variability in potential investment outcomes, emphasizing the need for risk tolerance in such strategies.
Asset classes
- Stocks 80%
- Bonds 20%
With 80% allocated to stocks and 20% to bonds, the portfolio is positioned for growth while using bonds to mitigate risk. This allocation aligns with a balanced risk profile, aiming to capture the upside of equity markets with a buffer against volatility. Adjusting this mix could further tailor the portfolio to specific risk tolerance and investment horizons.
Sectors
- Technology 24%
- Financials 15%
- Telecommunications 10%
- Industrials 9%
- Consumer Discretionary 6%
- Consumer Staples 4%
- Health Care 3%
- Energy 3%
- Utilities 2%
- Basic Materials 2%
- Real Estate 1%
The sectoral allocation showcases a heavy tilt towards technology and financial services, which are sectors known for their growth potential but also their volatility. This concentration may increase the portfolio's risk-return profile, especially during market swings. Diversifying into underrepresented sectors could help in smoothing out returns over time without significantly dampening growth prospects.
Regions
- North America 69%
- Europe Developed 4%
- Japan 2%
- Asia Emerging 2%
- Asia Developed 1%
- Australasia 1%
Geographically, the portfolio is heavily weighted towards North America, with minimal exposure to other regions. This concentration in developed markets, particularly the U.S., has likely been a source of strong past performance but may limit global diversification benefits. Increasing exposure to emerging and developed markets outside North America could provide additional growth opportunities and risk mitigation.
Market capitalization
- Mega-cap 30%
- Large-cap 29%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 1%
The market capitalization breakdown shows a preference for mega and big cap stocks, which typically offer stability and consistent returns. However, the relatively lower allocation to small and micro caps suggests a missed opportunity for higher growth rates these segments can offer, albeit with increased risk. A slight increase in exposure to smaller caps could enhance potential returns while adding diversification.
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 an optimized portfolio, maintaining the same risk level, could achieve an expected return of 7.03%, which is a significant improvement. This optimization points towards the potential for reallocating assets to achieve a better risk-return balance. It's a reminder that regular portfolio reviews and adjustments are essential for maintaining alignment with investment goals and risk tolerance.
Dividends
- American Century ETF Trust 2.10%
- Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.50%
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 2.02%
The dividend yield across the portfolio averages to 2.02%, contributing to the total return. While not the primary focus, these yields offer a stream of income, adding to the portfolio's attractiveness, especially in volatile markets. Rebalancing towards assets with higher dividend yields could be considered for investors seeking more income alongside growth.
Ongoing product costs
- American Century ETF Trust 0.26%
- Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.16%
With a total expense ratio (TER) of 0.16%, the portfolio is efficiently managed in terms of costs, which is commendable. Lower costs translate to higher net returns over time, a critical factor in long-term investment success. Maintaining low costs while achieving desired diversification and performance should remain a priority.
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