Growth focused US equity portfolio with strong momentum tilt and low but efficient diversification
Report created on May 24, 2026Risk profile
5/7
Diversification profile
2/5
Positions
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SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 60.00% -
VT Vanguard Total Stock Market Index Fund Admiral Shares
VTSAX - US9229087286 40.00%
This portfolio is very simple: two US stock funds, one momentum-focused ETF at 60% and one broad US market fund at 40%. That means 100% in equities with no bonds, cash substitutes, or alternative assets in the mix. A concentrated structure like this is easy to follow and aligns cleanly with a growth-focused profile, but it also means returns will closely track the ups and downs of the stock market. The momentum ETF adds an extra layer of dynamism on top of the broad market holding. Overall, the structure favors capital growth over stability, and day‑to‑day moves are likely to be more noticeable than in a mixed stock‑and‑bond portfolio.
Growth
Over the period from 2016 to 2026, a hypothetical $1,000 invested here grew to about $5,365, implying a compound annual growth rate (CAGR) of 20.68%. CAGR is like your average speed over a long road trip, smoothing out all the bumps along the way. This comfortably beat both the US market and the global market, which returned 17.29% and 14.30% per year. The worst peak‑to‑trough drop was about -32.5%, similar in depth to the benchmarks, and it recovered in around four months. That shows strong upside historically but with real downside shocks, especially visible during events like early 2020.
Projection
The Monte Carlo projection looks ahead 15 years using many random paths based on historical behavior. Monte Carlo is basically a “what if” machine: it takes the past pattern of returns and volatility, shuffles them thousands of times, and shows a range of possible futures. Here, the median outcome turns $1,000 into about $2,684, with a broad inner range from roughly $1,716 to $4,147. Extreme but still plausible paths span about $997 to $7,615. The average simulated annual return of 7.96% is far lower than the recent 20%+ CAGR, underlining that past strong performance doesn’t guarantee similar results going forward.
Asset classes
- Stocks 100%
All of this portfolio is invested in stocks, with 0% in bonds, cash, or other asset classes. Stocks historically offer higher growth potential than bonds, but they also tend to swing more in the short term. A 100% equity allocation removes the natural stabilizing effect that fixed income or cash can provide during market stress. Compared with more mixed portfolios, this setup relies entirely on the equity risk premium — the extra return investors hope to earn for holding stocks. The asset-class choice is very aligned with a growth mindset, but it does mean that staying invested through downturns would be more demanding than in a blended portfolio.
Sectors
- Technology 44%
- Industrials 12%
- Telecommunications 10%
- Financials 8%
- Health Care 8%
- Consumer Staples 5%
- Consumer Discretionary 4%
- Energy 4%
- Basic Materials 2%
- Utilities 2%
- Real Estate 2%
- Consumer Discretionary 1%
Sector exposure leans heavily toward technology at 44%, with smaller slices in industrials, telecoms, financials, health care, and various other areas. Broad market indices tend to have significant tech exposure today, but this portfolio’s tech weight is particularly elevated, likely driven by the momentum ETF, which often favors recent winners. Tech‑heavy setups can do well when innovation and growth stories are in favor, but they may see sharper moves when interest rates rise or investors rotate into more defensive areas. At the same time, there’s still representation in sectors like energy, consumer staples, and utilities, which adds some balance even within this tech‑tilted profile.
Regions
- North America 100%
Geographically, the portfolio is 100% in North America, specifically the US. That keeps things simple in terms of currency and economic exposure, and US markets have been strong over the last decade. However, it also means there is no exposure to other major regions, such as Europe or emerging markets, which together account for a large share of global stock market value. A single‑region focus like this tends to rise and fall with that specific economy’s fortunes and policy decisions. When the US outperforms, this can look very favorable; when other regions lead, a US‑only portfolio won’t capture those gains.
Market capitalization
- Large-cap 42%
- Mega-cap 41%
- Mid-cap 14%
- Small-cap 3%
- Micro-cap 1%
By market capitalization, most of the holdings are in mega‑cap and large‑cap companies, with 83% in those two buckets and modest exposure to mid, small, and micro caps. Large and mega caps are typically well‑established firms with deeper liquidity and more analyst coverage, which can mean relatively more stability than tiny companies. The smaller allocation to mid and small caps provides some access to the faster‑growth segment of the market without dominating the risk profile. Compared with a more small‑cap‑tilted portfolio, this one is likely to behave more like the mainstream US market, with moderate extra punch from the smaller segments.
True holdings
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NV NVIDIA Corporation 5.68%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
MU Micron Technology Inc 4.81%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 4.56%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class A 3.20%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 2.54%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
JN Johnson & Johnson 2.50%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AM Advanced Micro Devices Inc 2.16%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 1.97%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
XO Exxon Mobil Corp 1.96%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
IN Intel Corporation 1.78%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 31.15%
Looking through the funds’ top holdings, several names appear as meaningful exposures, especially in technology and related areas. NVIDIA, Micron, Broadcom, AMD, Intel, and Lam Research all show up, alongside Alphabet, Exxon Mobil, Johnson & Johnson, and others. Because both funds are US‑focused, and one is momentum‑tilted, some of these companies may be held in multiple products, creating hidden concentration. Overlap is likely understated because only ETF top‑10 positions are captured, and the mutual fund’s full list isn’t shown. Still, the visible pattern suggests a cluster around large, high‑profile US growth and tech names that can drive a significant share of overall portfolio movement.
Factors
Factor exposure shows a standout tilt toward momentum at 65%, with other factors sitting near neutral, and yield notably low at 30%. Factors are like the underlying “traits” of stocks — momentum, for example, captures stocks that have done well recently and tend to keep trending for a while. A high momentum tilt means returns can be strong when trends persist, but reversals or sharp rotations can hit harder. The low yield score reflects an emphasis on companies that reinvest earnings rather than pay high dividends. Overall, this is a growth‑ and trend‑oriented profile rather than one focused on steady income or defensive, low‑volatility characteristics.
Risk contribution
-
Invesco S&P 500® Momentum ETF
Weight: 60.00% 62.9% -
Vanguard Total Stock Market Index Fund Admiral Shares
Weight: 40.00% 37.1%
Risk contribution shows that the momentum ETF, at 60% weight, contributes about 62.9% of the portfolio’s overall volatility, slightly more than its share of assets. Risk contribution is like asking, “Who’s making the portfolio noisy?” rather than just “Who’s the biggest holding?” Even though the Vanguard total market fund is 40% by weight, it adds only 37.1% of the risk, implying it’s a bit calmer relative to its size. This confirms that the momentum sleeve is the main driver of ups and downs. The relationship between weight and risk is still fairly proportional, indicating no single position is wildly dominating risk beyond its allocation.
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 efficient frontier analysis shows this portfolio sitting on or very near the frontier, meaning its current mix offers an efficient trade‑off between risk and return for these two holdings. The Sharpe ratio — a measure of risk‑adjusted return, like “miles per unit of fuel” for your portfolio — is 0.83 for the current allocation. The optimal mix pushes that up to 1.02 with slightly higher return and modestly higher risk, while the minimum‑variance version lowers risk a bit with a Sharpe of 0.86. Since the current point is already close to the frontier, the historical data suggests the balance between the two funds has been quite effective.
Dividends
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard Total Stock Market Index Fund Admiral Shares 1.00%
- Weighted yield (per year) 0.82%
The combined dividend yield is relatively low at around 0.82%, with the momentum ETF at 0.70% and the total market fund at 1.00%. Dividend yield is the annual cash payout as a percentage of price, like the interest on a savings account but for stocks. This portfolio leans more on price appreciation than on regular income, which aligns with its growth‑ and momentum‑oriented makeup. Dividends still contribute something to total return, but they are not the main story here. Compared with higher‑yield strategies, this setup will feel less like an income stream and more like a long‑term capital growth engine, with cash flows playing a minor role.
Ongoing product costs
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
- Weighted costs total (per year) 0.09%
Costs are impressively low: the combined total expense ratio (TER) is about 0.09%, blending 0.13% for the momentum ETF and 0.04% for the Vanguard fund. TER is the annual fee charged by a fund, taken out automatically, so you never see a bill — it just slightly reduces returns. Keeping this number low leaves more of the portfolio’s performance in your pocket, especially over long periods where costs compound. Relative to many active or specialized funds, a sub‑0.10% fee level is very competitive and supports better long‑term outcomes. This cost structure is a real strength and aligns well with best practices for efficient investing.
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