A high octane equity portfolio blending momentum and small cap value tilts with broad global reach

Report created on Jan 26, 2026

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 built almost entirely from stocks via four equity ETFs, with no bonds and only a tiny cash slice. The largest piece tracks large US companies with strong price momentum, with the rest split between international momentum and small cap value tilts. Compared with a classic broad market mix that usually includes bonds and more neutral stock exposure, this setup is clearly growth‑oriented and factor‑tilted. That structure can be powerful for long‑term wealth building but can feel rough in market downturns. Someone using this mix might think about whether they want to keep the “all‑equity plus factor tilts” approach or blend in some steadier assets to smooth the ride over time.

Growth Info

Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of about 18.5%. CAGR is like your average speed on a long road trip: it smooths out all the ups and downs into one clean yearly number. Beating that kind of number is tough for most broad market benchmarks, which suggests these factor tilts and full‑equity stance have paid off so far. The trade‑off is a max drawdown of about –36%, meaning at one point the portfolio was down roughly a third from a peak. That’s normal for aggressive equity portfolios but emotionally challenging, so it’s smart to check whether such swings feel bearable.

Projection Info

The forward‑looking Monte Carlo analysis, which runs 1,000 random “what if” market paths using historical patterns, shows an annualized return near 20% with mostly positive outcomes. Monte Carlo is basically a big set of dice rolls based on past returns and volatility to see a range of futures instead of just one line. The median result of around 910% growth sounds amazing, but it’s crucial to remember that simulations lean heavily on history. Markets change, and past patterns can break. Treat these results as a rough map, not a promise, and use them to think about whether you could handle weaker outcomes than the median scenario.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With roughly 99% in stocks and almost nothing in bonds or alternatives, the portfolio is all‑in on equity risk. Many broad benchmarks for balanced investors hold a healthy chunk of bonds to cushion stock volatility and provide some stability in rough markets. Being nearly 100% in stocks is totally aligned with a growth profile but also means losses during bear markets can be large and prolonged. For someone wanting to stay aggressive but sleep better, a small slice of more defensive assets could help smooth the path. For a truly long‑horizon investor who can ride deep drawdowns, staying all‑equity may still be acceptable.

Sectors Info

  • Financials
    27%
  • Technology
    17%
  • Industrials
    16%
  • Consumer Discretionary
    10%
  • Telecommunications
    7%
  • Basic Materials
    6%
  • Energy
    6%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Health Care
    2%
  • Real Estate
    1%

Sector exposure is nicely spread across financials, technology, industrials, consumer areas, energy, and materials, with no single sector absolutely dominating. Financials and tech together take a decent lead, but the mix otherwise looks quite close to what you’d see in many global equity benchmarks, which is a strong sign of solid diversification. This balance means the portfolio isn’t making a huge bet on any single economic story, even though momentum and value tilts are in play. It does mean, though, that in environments where rates jump or growth expectations change quickly, sectors like financials or tech can still swing performance quite a bit, so periodic check‑ins are useful.

Regions Info

  • North America
    66%
  • Europe Developed
    20%
  • Japan
    8%
  • Australasia
    3%
  • Africa/Middle East
    2%
  • Asia Developed
    2%

Geographically, the portfolio leans about two‑thirds toward North America, with the rest spread mostly across developed Europe and Japan, plus small slices elsewhere. That’s actually quite close to the global investable market, where US and Canadian stocks naturally dominate by size. This alignment with world market weights is a positive sign, supporting broad exposure to many economies and company types. The trade‑off is very little dedicated exposure to emerging markets, which can either help or hurt depending on future growth patterns. Anyone wanting more of the “fast‑growing but bumpier” regions might consider a modest tilt there; others might appreciate the focus on more established markets.

Market capitalization Info

  • Mega-cap
    27%
  • Large-cap
    24%
  • Mid-cap
    19%
  • Small-cap
    17%
  • Micro-cap
    11%

The portfolio spans the full market‑cap spectrum: large and mega‑caps still lead, but small and micro‑caps together make up nearly 30%. That’s a much stronger tilt to smaller companies than broad benchmarks, which are usually dominated by the very largest firms. Small and micro‑caps can boost long‑term return potential because they’re earlier in their growth story, but they also tend to be more volatile and can underperform for long stretches. This small‑cap value emphasis is a deliberate style choice that’s historically rewarded patient investors. It’s worth making sure this tilt is intentional and that the investor is comfortable with periods when big, well‑known stocks pull ahead while smaller names lag.

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.

On a risk‑return basis, this portfolio likely sits on the aggressive side of the Efficient Frontier for equity‑only mixes. The Efficient Frontier is the curve showing the best possible trade‑off between risk (ups and downs) and return using a given set of assets. Within this specific group of funds, there may be alternative weightings that slightly reduce volatility without giving up much return, or that boost expected return with only a modest bump in risk. Importantly, “efficient” doesn’t mean perfectly diversified or suitable for all goals; it just means getting the most expected return for a chosen level of risk, based solely on these current building blocks.

Dividends Info

  • Avantis® International Small Cap Value ETF 2.80%
  • Avantis® U.S. Small Cap Value ETF 1.50%
  • Invesco S&P International Developed Momentum ETF 3.60%
  • Invesco S&P 500® Momentum ETF 0.70%
  • Weighted yield (per year) 1.86%

The overall dividend yield of about 1.9% is modest, which fits with a growth‑tilted equity portfolio. Some components, particularly the international momentum and small cap value pieces, offer higher yields, while the US momentum slice is relatively low. Dividends can act like a steady paycheck from investments, providing some return even when prices drift sideways. For an investor mainly focused on long‑term growth, this level of income is perfectly reasonable. If steady cash flow were a priority—say, for someone nearing or in retirement—then a slightly higher‑income mix might be more appropriate, potentially by blending in more income‑oriented equity or other yield‑focused assets 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 International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.22%

The total expense ratio (TER) around 0.22% is impressively low for a portfolio using specialized factor ETFs. TER is basically the yearly “membership fee” for owning a fund, taken out automatically. Keeping this fee small leaves more of the return in the investor’s pocket, and over decades that difference compounds significantly. Relative to many active or specialty strategies, this cost level is highly competitive and a real strength of the setup. It still makes sense to review fees periodically, but there doesn’t appear to be obvious “cost fat” to trim here, which supports stronger long‑term performance without needing to chase riskier ideas.

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