Strong momentum driven global equity portfolio with heavy US focus and concentrated growth exposure
Report created on Aug 8, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 85.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 15.00%
This portfolio is built from just two equity ETFs, with about 85% in a US momentum strategy and 15% in a broad global index fund. So it is fully invested in stocks and highly tilted toward one style: momentum in large US companies. The smaller global fund adds a modest layer of diversification across other regions and sectors, but the overall structure is intentionally focused rather than spread across many building blocks. This kind of concentrated composition means the portfolio’s behavior will be heavily influenced by trends in US growth-oriented stocks. The simple two-fund layout is easy to understand and track, but it also means any strengths or weaknesses in the main ETF will drive most outcomes.
Growth
From late 2016 to mid‑2026, a hypothetical $1,000 in this portfolio grew to about $5,697. That works out to a compound annual growth rate (CAGR) of 21.02%, meaning the value increased on average 21% per year over the period, like averaging your speed over a long road trip. This clearly outpaced both the US market (16.83%) and the global market (13.76%). The maximum drawdown, or worst peak‑to‑trough drop, was about ‑31.4%, slightly milder than the benchmarks’ ~‑33.5%. Returns were also concentrated, with 90% of gains coming from just 41 trading days, underscoring how missing a handful of strong days can dramatically change long‑term results.
Projection
The forward projection uses a Monte Carlo simulation, which is like running 1,000 alternate futures based on how similar portfolios have behaved historically. Each simulation jitters returns around past patterns to show a range of possible 15‑year outcomes for $1,000 invested. The median result is about $2,732, with a central “likely” band from roughly $1,819 to $4,082, and more extreme outcomes between about $1,011 and $7,538. The average simulated annual return of 7.93% is much lower than the historical 21% CAGR, highlighting that past performance—even very strong past performance—doesn’t guarantee similar results. Instead, the projection illustrates the wide uncertainty around future equity returns.
Asset classes
- Stocks 100%
All of this portfolio sits in one asset class: stocks. There are no bonds, cash substitutes, or alternative assets in the mix. This creates a very clear risk profile—fully tied to equity market ups and downs—without the stabilizing effect that fixed income or cash can sometimes provide. Compared to broad multi‑asset benchmarks that often blend stocks and bonds, this is an aggressive stance. The benefit is full participation in equity growth when markets are strong. The trade‑off is that downturns will be felt directly, with no built‑in cushion from less volatile asset classes. The “Growth” risk classification and mid‑high risk score reflect this equity‑only structure.
Sectors
- Technology 48%
- Industrials 13%
- Telecommunications 9%
- Financials 8%
- Health Care 7%
- Consumer Staples 4%
- Energy 3%
- Consumer Discretionary 2%
- Basic Materials 2%
- Utilities 1%
- Real Estate 1%
Sector‑wise, the portfolio is heavily tilted, with about 48% in technology and another 13% in industrials. Telecommunications and financials together add roughly 17%, while health care, consumer staples, energy, consumer discretionary, basic materials, utilities, and real estate make up smaller slices. Relative to broad global benchmarks, this is a tech‑heavy, growth‑oriented mix. Such a structure often benefits from innovation cycles, digitalization, and productivity gains, but it can also be sensitive to interest rate changes and shifts in investor sentiment toward growth companies. The smaller allocations to defensive areas like utilities and staples mean there is less built‑in ballast when markets rotate away from growth themes.
Regions
- North America 94%
- Europe Developed 2%
- Asia Developed 1%
- Asia Emerging 1%
- Japan 1%
Geographically, about 94% of the portfolio is in North America, with only small allocations to developed Europe, Japan, and parts of Asia. Relative to global equity benchmarks—which spread more widely across regions—this is a strong home‑country tilt toward the US. That alignment has historically been beneficial over the last decade, as US markets outperformed many others, and it helps keep currency exposure straightforward for a US‑based investor. The flip side is that economic, regulatory, or market shocks centered in North America will have an outsized effect. The low diversification score reflects this concentrated regional exposure despite modest holdings across other developed and emerging markets.
Market capitalization
- Large-cap 48%
- Mega-cap 39%
- Mid-cap 12%
- Small-cap 1%
By market size, the portfolio is dominated by mega‑ and large‑cap stocks, which together make up about 87% of exposure. Mid‑caps account for around 12%, and small‑caps only 1%. This leans toward established, globally significant companies that often have more stable business models and deeper liquidity than smaller firms. Compared with a more size‑balanced equity universe, the low exposure to small‑caps means less participation in the sometimes higher, but bumpier, growth potential of smaller companies. The factor data also aligns with this, showing a mild tilt away from the size factor, which is consistent with a preference for bigger names over smaller, more volatile ones.
True holdings
-
MU Micron Technology Inc 8.22%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
NV NVIDIA Corporation 7.88%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 6.07%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 4.42%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
JN Johnson & Johnson 3.82%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 3.53%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AM Advanced Micro Devices Inc 3.42%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 2.88%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
XO Exxon Mobil Corp 2.61%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
CA Caterpillar Inc 2.17%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 45.02%
Looking through the ETFs’ top holdings, a handful of companies dominate the visible exposures. Micron, NVIDIA, and Broadcom together account for over 22% of the covered portion, and both Alphabet share classes appear, effectively doubling that business exposure. Large weights in advanced chipmakers and a few mega‑cap growth names show how performance can hinge on a small group of companies. Because only top‑10 ETF holdings are used here, actual overlap may be somewhat higher than reported. Still, the pattern is clear: the portfolio has “hidden” concentration in specific growth and semiconductor names, which can be powerful drivers in strong cycles but can also magnify swings if those areas stumble.
Factors
The standout factor here is momentum, with a high exposure of 71%. Momentum means tilting toward stocks that have recently performed well, on the idea that trends can persist for a while. Portfolios with strong momentum tilts often do very well in persistent bull markets or when leadership remains stable, which fits the strong historical returns. However, they can be vulnerable during sharp style reversals, when yesterday’s winners quickly turn into laggards. Size exposure is low at 36%, consistent with the dominance of larger companies, and yield is also low at 33%, implying a growth‑over‑income bias. Quality and low volatility sit near neutral, suggesting no strong tilt there.
Risk contribution
-
Invesco S&P 500® Momentum ETF
Weight: 85.00% 88.5% -
Vanguard Total World Stock Index Fund ETF Shares
Weight: 15.00% 11.5%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the momentum ETF is 85% of the portfolio but contributes about 88.5% of total risk, slightly more than its size alone would suggest. The global index ETF, at 15% weight, adds only 11.5% of risk, punching a bit below its weight in volatility terms. This pattern is typical when one holding is more concentrated or factor‑tilted than a broad index fund. Overall, risk is highly concentrated in a single ETF, aligning with the low diversification score and reinforcing that the portfolio’s behavior will largely mirror that one strategy.
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 risk‑return chart shows this portfolio sits on or very close to the efficient frontier built from its two holdings. The efficient frontier represents the best possible return for each level of risk using different weight mixes of the same components. The current Sharpe ratio—a measure of risk‑adjusted return, comparing excess return to volatility—is 0.82, while the optimal mix reaches 0.97 with slightly higher risk and return. The minimum‑variance combination offers lower risk but also much lower expected return and Sharpe. Overall, the current allocation is described as efficient for its chosen risk level, meaning that, given these two ETFs, the structure is already making good use of what’s available.
Dividends
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard Total World Stock Index Fund ETF Shares 1.50%
- Weighted yield (per year) 0.82%
The portfolio’s total dividend yield is modest at about 0.82%, with the momentum ETF yielding around 0.7% and the global index ETF about 1.5%. Dividend yield is the cash payout relative to price, so this level indicates that most of the portfolio’s historical and expected return has come from price appreciation rather than income. That aligns with the growth‑ and momentum‑centric design, where companies often reinvest earnings into expansion instead of paying large dividends. For an all‑equity, growth‑tilted portfolio, a low yield is typical and not necessarily a negative; it simply means that any cash flow received will likely be a smaller share of total long‑term returns.
Ongoing product costs
- 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%
Costs in this portfolio are impressively low. The overall total expense ratio (TER) is about 0.12% per year, with 0.13% on the momentum ETF and 0.07% on the global index ETF. TER is the annual fee charged by funds, and even small differences can add up when compounded over many years. This level is well within the range of cost‑efficient index and factor funds and supports better long‑term outcomes by leaving more of the portfolio’s gross return in the investor’s hands. Given the strong factor tilts and active‑style behavior of a momentum strategy, achieving this with low explicit fees is a notable structural strength of the portfolio.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey