Growth-oriented portfolio with diversified ETFs and focus on quality and momentum strategies

Report created on Sep 14, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is characterized by a strategic mix of ETFs that span across major global markets and sectors, with a significant emphasis on stocks. The allocation includes large, mid, small, and micro-cap stocks, providing a broad exposure to the equity market. The inclusion of both U.S. and international stocks, alongside specialized ETFs focusing on quality and momentum within the S&P 500 and mid-cap segments, indicates a pursuit of growth while attempting to mitigate risk through diversification. The absence of bonds and alternative asset classes suggests a higher risk tolerance, aligning with the portfolio's growth profile.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 15.98%, a robust figure indicative of strong past performance. However, it's essential to note that it has experienced a maximum drawdown of -36.41%, highlighting periods of significant volatility. The fact that 90% of returns were generated on just 19 days underscores the unpredictability and the importance of staying invested during volatile periods. Comparing this performance to relevant benchmarks would provide further context on its relative success.

Projection Info

Monte Carlo simulations, which project future portfolio performance based on historical data, show a wide range of outcomes, with the 50th percentile suggesting a 654.5% increase. While these projections offer insight into potential growth, it's crucial to remember that they rely on past trends, which may not predict future movements accurately. The high percentage of simulations with positive returns, however, does suggest resilience in various market conditions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's near-exclusive focus on stocks, with a 99% allocation, positions it for significant growth potential but also exposes it to higher market volatility. The minimal cash holding provides liquidity but does not contribute to risk mitigation. A more balanced asset class distribution, including fixed income or alternative investments, could offer better protection against downturns while still allowing for growth.

Sectors Info

  • Financials
    19%
  • Technology
    18%
  • Industrials
    17%
  • Consumer Discretionary
    12%
  • Consumer Staples
    7%
  • Health Care
    7%
  • Telecommunications
    6%
  • Energy
    5%
  • Basic Materials
    5%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocations are well-diversified, covering financial services, technology, industrials, and consumer sectors, among others. This spread helps mitigate sector-specific risks and capitalizes on growth across different areas of the economy. However, the heavy weighting towards financial services and technology sectors could expose the portfolio to sector-specific downturns, suggesting a potential area for rebalancing.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Japan
    7%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is heavily weighted towards North America (72%), with moderate exposure to developed Europe and Japan. Emerging markets are underrepresented, which may limit exposure to high-growth regions. Increasing allocations to emerging and developed markets outside North America could enhance diversification and potentially boost returns, given their different growth trajectories and economic cycles.

Market capitalization Info

  • Mega-cap
    26%
  • Large-cap
    23%
  • Mid-cap
    21%
  • Small-cap
    19%
  • Micro-cap
    8%

The portfolio's allocation across mega, big, medium, small, and micro-cap stocks is commendable for its attempt at comprehensive market coverage. This diversity helps spread risk and capture growth from companies of various sizes. However, the significant positions in smaller cap stocks increase the portfolio's risk profile, as these can be more volatile than their larger counterparts.

Redundant positions Info

  • Invesco S&P 500® Quality ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between certain assets, notably the Invesco S&P 500® Quality ETF and the Vanguard Total Stock Market Index Fund ETF Shares, suggests redundancy that doesn't contribute to diversification. Identifying and reducing overlap can help enhance the portfolio's efficiency by ensuring each investment contributes uniquely to the portfolio's risk and return profile.

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.

Optimizing the portfolio using the Efficient Frontier could improve the risk-return ratio by adjusting asset allocations without necessarily increasing risk. This might involve reducing exposure to highly correlated assets and potentially introducing new asset classes or strategies to enhance diversification. Such adjustments aim to position the portfolio closer to the optimal balance of risk and return for its growth objectives.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.50%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco S&P 500® Quality ETF 1.00%
  • Invesco S&P 500® Momentum ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Invesco S&P MidCap Quality ETF 0.60%
  • Invesco S&P MidCap Momentum ETF 0.60%
  • Weighted yield (per year) 1.62%

The portfolio's overall dividend yield of 1.62% contributes to its total return, providing a steady income stream in addition to capital gains. The varying yields across ETFs reflect different investment strategies and sector focuses. While not the primary focus for a growth-oriented portfolio, dividends can offer a buffer during market downturns and contribute to compounding over time.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Quality ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Invesco S&P MidCap Quality ETF 0.25%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.15%

With a total expense ratio (TER) of 0.15%, the portfolio is efficiently managed, minimizing the drag on returns caused by fees. The range of individual ETF costs from 0.03% to 0.36% indicates a thoughtful selection of funds balancing cost with strategy and exposure. Keeping costs low is crucial for enhancing long-term returns, especially in a growth-focused 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.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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