Strong US growth portfolio tilted to momentum and large technology with efficient risk and low costs
Report created on Aug 7, 2026Risk profile
5/7
Diversification profile
2/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 60.00% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 30.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 10.00%
This portfolio is made up of three equity ETFs, all focused on US large companies. The biggest piece is a momentum-based S&P 500 ETF at 60%, then a NASDAQ 100 ETF at 30%, with a broad S&P 500 index ETF rounding things out at 10%. So while there are three funds on paper, the underlying exposure is quite concentrated in a similar slice of the market. This kind of structure can behave more like one focused growth strategy than a broadly spread mix. The overall design clearly emphasizes growth and trend-following in big US companies rather than balancing across many different regions, styles, and asset types.
Growth
Over the period from late 2020 to mid‑2026, $1,000 in this portfolio grew to about $2,824. That translates into a compound annual growth rate (CAGR) of 19.64%, meaning it grew roughly 19–20% per year on average, compared with 15.54% for the US market and 13.49% for the global market. Max drawdown, the worst peak‑to‑trough decline, was about ‑25.7%, similar to the benchmarks. The portfolio bounced back to its prior peak in around 15 months. So historically it has been rewarded with higher returns without dramatically deeper drawdowns, but the path involved sharp moves where a small number of strong days (about 30) drove most of the gains.
Projection
The Monte Carlo simulation projects many possible 15‑year futures by remixing past return and volatility patterns in thousands of random paths. It’s like running the same “movie” of risk and return with slightly different dice rolls each time. The median outcome grows $1,000 to around $2,706, with a broad “likely” range from about $1,726 to $4,188. There’s a roughly 73% chance of ending with more than the starting amount, and the average annual return across simulations is about 8%. These figures show a wide spread of potential outcomes, including flat or negative ones, underlining that simulations are educated guesses based on history, not forecasts or guarantees.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with 0% in bonds, cash, or other asset classes. That means there’s no built‑in buffer from lower‑risk assets that might dampen volatility when equities fall. Pure‑equity allocations typically experience more dramatic swings, both up and down, than mixed stock‑and‑bond portfolios. This single‑asset‑class focus has historically helped during strong equity markets, as shown by the high CAGR, because every dollar is working in growth‑oriented assets. At the same time, when stock markets struggle broadly, there’s no other asset class here to offset the impact, so the ride can feel bumpier.
Sectors
- Technology 52%
- Telecommunications 10%
- Industrials 10%
- Health Care 6%
- Consumer Staples 5%
- Consumer Discretionary 5%
- Financials 5%
- Energy 2%
- Basic Materials 1%
- Utilities 1%
- Real Estate 1%
Sector exposure is heavily tilted toward technology at 52%, with the remaining half spread thinly across areas like telecoms, industrials, health care, and various smaller slices. Compared with common broad benchmarks, this is a pronounced tech emphasis. Technology‑heavy portfolios often do very well when innovation, digitalization, and growth themes are in favor, which has been the case for much of the past decade. However, they can be more sensitive when interest rates rise or when markets rotate toward more defensive or slower‑growth sectors. The relatively modest allocations to utilities, real estate, and basic materials mean less balance from traditionally steadier or differently driven industries.
Regions
- North America 99%
Geographically, the portfolio is almost entirely focused on North America, at around 99%. That lines up with the US‑centric nature of the chosen indices and funds. Many broad global benchmarks have a large US component, but they still include meaningful exposure to Europe, Asia, and emerging markets. Here, that international slice is effectively missing. A strong US home bias can pay off when US markets outperform, as has often been the case in recent years. On the flip side, it leaves the portfolio tied closely to one economy, one currency, and one policy environment, with limited diversification from different regional cycles and policy regimes.
Market capitalization
- Mega-cap 44%
- Large-cap 43%
- Mid-cap 12%
Market‑cap exposure leans toward the very largest companies: about 44% in mega‑caps and 43% in large‑caps, with a smaller 12% in mid‑caps. This structure is typical of index‑style funds that weight positions by size, but here it’s amplified by the momentum and NASDAQ‑heavy angles. Tilt toward bigger companies often means exposure to firms with established business models, strong balance sheets, and global reach, which can help during shocks. At the same time, there is less representation from smaller companies, which historically can behave differently and sometimes offer higher growth but with more volatility. The result is a portfolio strongly anchored in dominant market leaders.
True holdings
-
NV NVIDIA Corporation 8.08%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 7.59%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 5.35%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 4.02%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
AM Advanced Micro Devices Inc 3.55%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 3.35%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Invesco S&P 500® Momentum ETF
- Vanguard S&P 500 ETF
-
AA Apple Inc. 2.80%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
JN Johnson & Johnson 2.75%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
MS Microsoft Corporation 2.16%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
LR Lam Research Corp 2.08%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 41.73%
Looking through the ETFs, a handful of individual companies stand out, especially in technology and related industries. NVIDIA, Micron, Broadcom, Alphabet (both share classes), AMD, Apple, Microsoft, and Lam Research together make up a sizeable slice of the covered portion. Some of these appear via more than one ETF, creating overlap: the same underlying stock can be held in both the momentum fund and the NASDAQ fund, for example. That kind of overlap leads to “hidden” concentration, where a few names drive a large share of the portfolio’s behavior, even though the top‑down view shows three diversified ETFs. This effect may actually be understated since only ETF top‑10 holdings are included.
Factors
Factor exposure shows a notable high tilt to momentum at 67%, with value and size both on the low side, and quality and low volatility roughly neutral. Factors are like underlying “personality traits” of investments that research links to returns over time. A strong momentum tilt means the portfolio leans into stocks that have been recent winners, which can enhance returns in trending markets but may hurt more during sharp reversals when prior leaders fall out of favor. Lower exposure to value and smaller companies suggests less participation in classic “cheap” or small‑cap rallies. Neutral quality and low‑volatility scores indicate no strong tilt toward defensive or more stable characteristics.
Risk contribution
-
Invesco S&P 500® Momentum ETF
Weight: 60.00% 60.4% -
Invesco NASDAQ 100 ETF
Weight: 30.00% 31.9% -
Vanguard S&P 500 ETF
Weight: 10.00% 7.7%
Risk contribution shows how much each ETF adds to the portfolio’s overall ups and downs, which can differ from its simple weight. Here the picture is very straightforward: the 60% momentum ETF contributes about 60% of total risk, the NASDAQ ETF at 30% contributes around 32%, and the S&P 500 ETF at 10% contributes roughly 8%. That tells us there’s no hidden leverage or outsized volatility in a small position—risk scales quite cleanly with size. Still, it confirms that most of the portfolio’s movement is driven by the momentum and NASDAQ exposures, while the vanilla S&P 500 slice plays a relatively modest stabilizing role.
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 optimization stats show the current portfolio sitting on or very close to the efficient frontier. The Sharpe ratio, which measures return per unit of risk above the risk‑free rate, is 0.81 for the current mix versus 1.0 for the optimal weighting and 0.93 for the minimum‑variance mix. The differences in expected return and risk between these points are relatively small, indicating the existing allocation already uses its three holdings in a risk‑efficient way. In other words, given these specific ETFs, the portfolio is broadly making the most of them from a risk/return standpoint, without obvious signs of inefficient overweighting or underweighting.
Dividends
- Invesco NASDAQ 100 ETF 0.40%
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard S&P 500 ETF 1.00%
- Weighted yield (per year) 0.64%
The portfolio’s overall dividend yield is modest at about 0.64%, reflecting its growth‑oriented, tech‑tilted nature. Individual ETF yields range from roughly 0.40% to 1.00%, all on the lower side compared with more income‑focused strategies. Dividends represent cash paid out by companies; lower yields usually mean a larger portion of profits is being reinvested back into the business, which often aligns with growth themes. For this portfolio, most historical return has come from price appreciation rather than income. That means the experience is more tied to market swings and capital gains than to a steady stream of cash distributions.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.13%
Total ongoing costs are low, with a weighted TER of around 0.13%. That’s driven by the very low‑cost Vanguard S&P 500 ETF at 0.03% and reasonably priced Invesco funds. Fees like TER are deducted from fund assets each year and reduce net returns, so lower costs leave more of the gross performance in the investor’s hands. Over long periods, even small fee differences compound significantly. In this case, the cost structure is a clear strength: it aligns well with best practices for index‑based investing and supports the strong historical risk‑adjusted performance seen in the data.
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