Strong momentum and value blend with global tilt and efficient risk balance for growth investors
Report created on Mar 26, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
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SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 59.12% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 40.88%
The structure is very focused yet thoughtfully balanced: roughly 59% sits in a U.S. large cap momentum fund, while about 41% is in an international small cap value fund. So you’re 100% in stocks, but split between a fast-moving growth engine and a more contrarian value sleeve overseas. That mix creates an interesting “barbell”: one side leans into recent winners, the other into cheaper, smaller companies abroad. This set‑up is firmly in the growth camp, not defensive. For someone comfortable with ups and downs, this kind of concentrated two‑ETF approach can work well, but it relies heavily on these specific styles continuing to deliver.
Growth
Historically, the results have been very strong. From late 2019 to early 2026, $1,000 grew to about $2,800, a compound annual growth rate (CAGR) of 17.87%. CAGR is like your long‑term average “speed” per year. That outpaced both the U.S. market (14.71%) and global market (12.30%), which is impressive. Max drawdown, the worst peak‑to‑trough drop, was about -34.6%, similar to the benchmarks, so you’re getting higher return without meaningfully worse crashes. One key detail: 90% of returns came in just 27 days, which shows how “lumpy” equity gains are. Staying invested through rough patches has clearly mattered a lot here.
Projection
The Monte Carlo simulation projects many possible 10‑year paths for a $1,000 investment, based on how the portfolio behaved in the past. Monte Carlo is basically a “what if” engine that shakes the historical data thousands of ways to see a range of future outcomes. Here, the median result is very strong, with typical scenarios more than eight‑folding the money, and even the 5th percentile ending substantially positive. The average simulated annual return of 19.09% is eye‑catching, but it assumes the future looks broadly like the backtest. It’s important to treat this as an illustration of risk/return balance, not a promise.
Asset classes
- Stocks 100%
All of the capital is in stocks, with no bonds, cash, or alternatives in the mix. That makes this a high‑growth, high‑volatility structure by design. Equities historically offer the best chance of long‑term compounding, but they can also drop sharply in bear markets. Benchmarks that include a blend of stocks and bonds would typically show lower swings than this setup. The benefit is clear upside potential, as reflected in the historical returns. The trade‑off is that temporary losses of 30% or more are entirely possible. Anyone using a 100% stock allocation usually needs a long horizon and a strong stomach for fluctuations.
Sectors
- Technology 29%
- Industrials 19%
- Financials 10%
- Basic Materials 9%
- Energy 7%
- Consumer Discretionary 7%
- Health Care 6%
- Telecommunications 6%
- Consumer Staples 4%
- Utilities 2%
- Real Estate 1%
Sector exposure is broad but with clear tilts. Technology leads at 29%, followed by industrials at 19%, with meaningful stakes in financials, basic materials, energy, consumer cyclicals, healthcare, and communication services. Compared with common broad‑market mixes, this skews a bit more toward tech and industrials, and slightly less toward healthcare and consumer defensives. A higher tech weight can boost growth when innovation and risk appetite are strong, but can magnify volatility when interest rates rise or sentiment turns. The solid spread across nine sectors, though, is a positive sign and helps avoid being overly dependent on just one economic story.
Regions
- North America 64%
- Europe Developed 15%
- Japan 13%
- Australasia 4%
- Africa/Middle East 2%
- Asia Developed 1%
Geographically, about 64% of the equity exposure sits in North America, with 15% in developed Europe, 13% in Japan, and the rest spread across Australasia, Africa/Middle East, and developed Asia. That means there is a U.S. anchor, but with a notable international tilt versus a pure U.S. portfolio. Compared to a global market benchmark, this is still somewhat U.S.-heavy, but the intentional international small cap value sleeve meaningfully widens diversification. This mix can reduce reliance on a single economy while still harnessing the strength of U.S. markets. It also adds currency and regional risk, which cuts both ways over time.
Market capitalization
- Large-cap 29%
- Mid-cap 29%
- Mega-cap 24%
- Small-cap 15%
- Micro-cap 2%
Market cap exposure is nicely balanced: 24% in mega caps, 29% in big caps, 29% in mid caps, 15% in small caps, and a small 2% in micro caps. That’s a more even spread than a typical cap‑weighted index, which usually leans heavily toward mega and large caps. Mid and small caps tend to be more volatile but can offer higher long‑term growth potential, especially when combined with value or quality tilts. This structure supports a diversified growth profile that isn’t solely dependent on a few mega names, even though some of those giants still appear prominently via the momentum ETF.
True holdings
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NV NVIDIA Corporation 5.43%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 4.17%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
MU Micron Technology Inc 3.38%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
JN Johnson & Johnson 3.11%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class A 2.84%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
XO Exxon Mobil Corp 2.45%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 2.27%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 2.05%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
CA Caterpillar Inc 1.64%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AM Advanced Micro Devices Inc 1.27%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 28.61%
Looking through the ETFs, the biggest underlying exposures include names like NVIDIA, Broadcom, Micron, Alphabet, and Exxon Mobil. These appear indirectly via the momentum ETF. The international small cap value ETF contributes far more diversified, smaller positions that don’t dominate the look‑through list. There is some concentration in a handful of large U.S. growth and tech‑related companies, although overlap is only measured using ETF top‑10 holdings, so hidden duplication could be higher. This means portfolio behavior can be heavily influenced by a relatively small group of big U.S. stocks, even though you technically only hold two ETFs.
Factors
Factor exposure shows strong tilts toward value (85%) and size (85%), plus a solid momentum tilt (57.1%). Factor exposure describes how much a portfolio leans into characteristics like cheapness (value), smaller company size, or recent performance trends (momentum). Here, the international ETF drives value and small‑size exposure, while the U.S. ETF drives momentum. Quality, low volatility, and yield are closer to neutral. This mix often does well in environments where beaten‑down smaller companies recover and market trends persist. It may lag if high‑growth, expensive large caps without strong value characteristics dominate for long stretches or if market leadership rotates violently.
Risk contribution
-
Invesco S&P 500® Momentum ETF
Weight: 59.12% 64.3% -
Avantis® International Small Cap Value ETF
Weight: 40.88% 35.7%
Risk contribution, which measures how much each holding drives the portfolio’s overall ups and downs, is slightly skewed toward the momentum ETF. Despite being 59% of the weight, it contributes about 64% of total volatility, giving it a risk‑to‑weight ratio above 1. The international small cap value ETF, at 41% weight, contributes only about 36% of risk, with a ratio below 1. In plain terms, the U.S. momentum sleeve punches a bit above its weight in risk, while the international value sleeve dampens things a bit. This is a healthy balance, but it’s worth knowing which side is likely to drive the big moves.
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.
On the risk‑return chart, the current portfolio sits on the efficient frontier, which means it’s already using the existing holdings in a very efficient way. The efficient frontier represents the best trade‑offs between risk and return possible with these two ETFs. The Sharpe ratio of 0.83 is slightly below the optimal combination’s 0.88, and a same‑risk optimization could lift expected returns a bit but with slightly higher volatility. The key point: you’re already close to the sweet spot, and any fine‑tuning would be about marginal improvements rather than fixing big inefficiencies. That’s a strong sign of a well‑structured allocation.
Dividends
- Avantis® International Small Cap Value ETF 3.00%
- Invesco S&P 500® Momentum ETF 0.60%
- Weighted yield (per year) 1.58%
The overall dividend yield is about 1.58%, with the international small cap value ETF yielding around 3% and the U.S. momentum ETF only about 0.6%. That means income is a nice side effect, not the main focus. Dividend‑heavy portfolios usually lean toward mature, slower‑growth companies; this one leans more toward total return through price appreciation. For a growth‑oriented equity mix, that’s entirely consistent. Anyone seeking meaningful cash flow today would likely need a higher yield elsewhere, but for reinvestors, modest dividends plus strong capital growth can compound nicely over longer horizons.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Invesco S&P 500® Momentum ETF 0.13%
- Weighted costs total (per year) 0.22%
Total ongoing costs, with an estimated TER of about 0.22%, are impressively low for an actively tilted factor portfolio. The momentum ETF is particularly cheap at 0.13%, while the international small cap value fund is higher at 0.36% but still reasonable for that niche. Costs matter because they come off returns every year, like friction on a wheel. Compared with many active funds or complex products, this fee level supports better long‑term compounding. From a cost perspective, the set‑up is very efficient and aligns well with best practices for long‑term, factor‑oriented investing.
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