Growth-focused portfolio with strong momentum and quality yield components

Report created on Nov 4, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is primarily composed of ETFs focusing on momentum and quality yield strategies across both U.S. and international markets. The largest allocation is to the Invesco S&P 500® Momentum ETF, making up 45% of the portfolio. This is followed by international momentum and quality yield ETFs, alongside small cap value and emerging markets equity ETFs. Such a composition suggests a growth-oriented strategy with a tilt towards companies showing strong performance trends, complemented by a focus on shareholder yield and value in smaller companies and emerging markets.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 18.13%, with a maximum drawdown of -33.70%. The days contributing to 90% of the returns were relatively few, indicating that the portfolio's performance has been significantly impacted by short periods of high returns. This performance trajectory underscores the portfolio's growth-oriented nature but also highlights its susceptibility to sharp market movements, which is typical for momentum strategies.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median simulation suggests a potential increase of over 672% in value, indicating strong growth prospects. However, it's important to note that such projections are based on past data, and actual future performance can significantly differ due to unforeseen market conditions.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no exposure to bonds, cash, or other asset classes. This allocation supports its growth profile but increases volatility and risk. Diversifying across different asset classes could provide a buffer against stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Financials
    23%
  • Technology
    18%
  • Industrials
    13%
  • Telecommunications
    10%
  • Consumer Discretionary
    7%
  • Consumer Staples
    6%
  • Health Care
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is diversified, with the largest exposures in financial services, technology, and industrials. This sector spread supports growth but may be sensitive to economic cycles, particularly the technology and industrials sectors, which can be volatile. The portfolio's sector composition is reflective of its momentum strategy, targeting sectors that have shown strong recent performance.

Regions Info

  • North America
    65%
  • Europe Developed
    15%
  • Asia Developed
    5%
  • Asia Emerging
    5%
  • Japan
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographic allocation is heavily weighted towards North America (65%), with significant investments in developed Europe and emerging markets. This distribution suggests a balance between the stability of developed markets and the growth potential of emerging markets. However, the portfolio may benefit from increased exposure to underrepresented regions to enhance diversification and capture global growth opportunities.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    31%
  • Mid-cap
    21%
  • Small-cap
    9%

The portfolio's market capitalization exposure is tilted towards mega and big cap stocks, which comprise 68% of the allocation. This bias towards larger companies may contribute to stability and reduce volatility. However, incorporating a greater mix of medium, small, and micro-cap stocks could enhance growth potential and 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 portfolio's current allocation suggests it is positioned near the Efficient Frontier, indicating an optimal balance between risk and return based on historical data. However, continuous monitoring and rebalancing are essential to maintain this efficiency, especially given the portfolio's emphasis on momentum, which can shift rapidly with market trends.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.40%
  • Avantis® Emerging Markets Equity ETF 2.60%
  • Invesco S&P International Developed Momentum ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • WisdomTree Trust - WisdomTree U.S. Quality Shareholder Yield Fund 1.50%
  • Weighted yield (per year) 1.44%

The dividend yield across the portfolio averages 1.44%, with the highest yield from the Avantis® International Small Cap Value ETF. While dividends contribute to total return, the portfolio's focus appears to be more on capital appreciation through momentum and quality yield strategies. Investors seeking higher income might consider increasing allocations to higher-yielding assets.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Equity ETF 0.33%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • WisdomTree Trust - WisdomTree U.S. Quality Shareholder Yield Fund 0.12%
  • Weighted costs total (per year) 0.20%

The portfolio's total expense ratio (TER) averages 0.20%, which is relatively low, enhancing its attractiveness by keeping investment costs down. Lower costs directly translate to higher net returns over time, which is particularly beneficial in a growth-focused strategy where every percentage point of return matters.

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