Momentum tilted global equity portfolio with strong value focus and efficient risk adjusted performance
Report created on Jun 28, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
AV Avantis ALL Equity Markets Value ETF
AVGV - US0250722164 40.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 30.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 20.00% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 10.00%
This portfolio is a four-ETF, 100% stock mix that blends broad global exposure with explicit value and momentum tilts. The largest position is a global value factor fund at 40%, followed by a total world index ETF at 30%, then US and international momentum ETFs at 20% and 10%. So, most of the portfolio tracks or resembles the global market, but a majority of the weight intentionally leans into specific styles rather than plain indexing. This kind of structure matters because it uses a small, simple set of building blocks to reach thousands of underlying companies. The moderate number of holdings keeps the portfolio easy to monitor while still delivering diversified exposure across regions, industries, and company sizes.
Growth
Over the last three years or so, $1,000 in this portfolio grew to about $1,986, which equates to a 25.93% compound annual growth rate (CAGR). CAGR is like average speed on a road trip — it smooths out the bumps to show how fast money grew overall. That return beat both the US market and the global market by more than 5 percentage points a year, which is a meaningful gap over a short window. The worst peak‑to‑trough drop, or max drawdown, was -16.76%, a little milder than the US benchmark. This period has strongly favored certain factors and sectors, so it’s important to remember that past outperformance doesn’t guarantee similar results going forward.
Projection
The Monte Carlo projection uses the portfolio’s historical risk and return patterns to simulate 1,000 possible 15‑year futures. Think of it as rolling the dice many times to see a range of paths your $1,000 might follow. The median outcome lands around $2,780, with a middle band from roughly $1,799 to $4,200. The very wide full range, $896 to $7,970, shows how uncertain long‑term equity results can be. The average simulated annual return of 8.17% is far lower than the recent historical CAGR, underlining that the backtest period was unusually strong. These simulations are not forecasts; they just illustrate what could happen if future volatility and returns broadly resemble the past.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with no bonds, cash vehicles, or alternative assets in the mix. That’s why the risk classification lands in a “balanced” band even though the underlying holdings are fully in equities — the balance comes from style and regional diversification, not from mixing stocks and bonds. A 100% stock allocation usually means larger swings in value compared with portfolios that include fixed income or cash buffers. On the flip side, a pure equity mix keeps full exposure to potential long‑term equity growth. The implication is that diversification here is horizontal (across types of stocks) rather than vertical (across different asset classes).
Sectors
- Technology 24%
- Financials 19%
- Industrials 14%
- Consumer Discretionary 9%
- Energy 7%
- Telecommunications 6%
- Health Care 6%
- Basic Materials 5%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 1%
Sector-wise, the portfolio is clearly diversified, with no single area completely dominating. Technology is the largest slice at 24%, but financials at 19% and industrials at 14% provide substantial balance. Consumer areas, energy, telecom, health care, and materials all have mid‑single‑digit weights, and traditionally defensive sectors like utilities and staples are present, though smaller. Compared with broad global equity benchmarks, this sector mix looks fairly aligned, with a modest tech emphasis rather than an extreme one. This alignment is helpful because it reduces the risk of the portfolio behaving like a single theme play. At the same time, technology’s leadership still means performance can be sensitive to interest rates and innovation cycles.
Regions
- North America 67%
- Europe Developed 15%
- Japan 6%
- Asia Developed 5%
- Asia Emerging 3%
- Africa/Middle East 1%
- Australasia 1%
- Latin America 1%
Geographically, about two‑thirds of the portfolio is in North America, with most of the rest spread across developed Europe, Japan, and other developed Asia. Emerging regions, plus Africa, the Middle East, Latin America, and Australasia, make up only a small portion. This pattern resembles common global benchmarks, which are also heavily tilted toward North America due to its large market capitalization. The positive here is that the regional breakdown is familiar and benchmark‑like, supporting broad global diversification. The flip side is that returns are naturally influenced heavily by the US and Canadian markets. If those markets underperform other regions for a stretch, the portfolio will likely reflect that tilt.
Market capitalization
- Large-cap 33%
- Mega-cap 32%
- Mid-cap 21%
- Small-cap 10%
- Micro-cap 4%
The portfolio has a healthy spread across company sizes: roughly one‑third mega‑cap, one‑third large‑cap, and the rest mid, small, and micro. That’s broader than many simple index portfolios that lean more heavily toward mega‑caps. Market capitalization exposure matters because big companies often provide more stability, while smaller ones can be more volatile but occasionally faster‑growing. With about 35% in mid, small, and micro caps combined, this portfolio captures a meaningful slice of that “smaller company” segment without letting it dominate. This balanced size mix can create a smoother ride than a pure small‑cap tilt while still offering potential benefits from owning companies across the full spectrum.
True holdings
-
NV NVIDIA Corporation 2.89%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MU Micron Technology Inc 2.70%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 1.83%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 1.59%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 1.47%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 1.17%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
LR Lam Research Corp 1.10%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Invesco S&P 500® Momentum ETF
-
AM Amazon.com Inc 1.08%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
XO Exxon Mobil Corp 0.94%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Invesco S&P 500® Momentum ETF
-
MS Microsoft Corporation 0.85%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 15.60%
Looking through the ETFs to their underlying top holdings, several well‑known names appear multiple times: NVIDIA, Micron, Broadcom, Apple, Alphabet, Amazon, Microsoft, and Exxon Mobil all show up. The largest individual exposure is NVIDIA at 2.89%, followed by Micron at 2.70%. Overlap matters because owning the same company through multiple funds can quietly raise concentration in that stock, even if each ETF looks diversified on its own. Here, the biggest names stay in the low single digits, which is still fairly moderate. It’s worth noting that this view uses only the ETFs’ top 10 holdings, so total overlap in the full portfolios is probably understated relative to reality.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows a clear tilt toward value, with value at 61% versus a neutral 50% baseline. Factor exposure is like checking which “traits” the portfolio favors — cheapness (value), size, momentum, quality, yield, or low volatility. Here, size, momentum, quality, yield, and low volatility all sit roughly in the neutral band, meaning they behave broadly like the overall market. The notable story is that value tilt, which aligns with the explicit “all equity value” ETF at 40% of the portfolio. Historically, value stocks have had periods of both strong catch‑up and long droughts versus growth, so this tilt can influence how the portfolio responds when market leadership rotates between styles.
Risk contribution
-
Avantis ALL Equity Markets Value ETF
Weight: 40.00% 37.6% -
Vanguard Total World Stock Index Fund ETF Shares
Weight: 30.00% 28.1% -
Invesco S&P 500® Momentum ETF
Weight: 20.00% 24.2% -
Invesco S&P International Developed Momentum ETF
Weight: 10.00% 10.1%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from its simple weight. The Avantis value fund is 40% of the portfolio and contributes about 37.6% of the risk, so its volatility is roughly in line with its size. The Vanguard total world ETF behaves similarly, with risk contribution closely matching its 30% weight. The standout is the Invesco S&P 500 Momentum ETF: at 20% weight it contributes around 24.2% of portfolio risk, giving it the highest risk‑to‑weight ratio. That means this single fund has a slightly outsized influence on day‑to‑day swings. Overall, the top three positions drive almost 90% of total risk, reflecting a concentrated core.
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 compares this portfolio’s risk/return tradeoff with the best combinations possible using the same four ETFs. The Sharpe ratio, which measures return per unit of risk above the risk‑free rate, is 1.3 for the current mix. The optimal mix reaches a Sharpe of 1.76 with higher risk and higher return, while the minimum‑variance mix delivers slightly lower risk with a Sharpe close to 1.27. The report notes the current allocation sits on or very near the efficient frontier, meaning it’s already using these ingredients in a risk‑efficient way. In simple terms, based on historical data, the weights are doing a good job of balancing risk and reward without obvious inefficiencies.
Dividends
- Avantis ALL Equity Markets Value ETF 1.60%
- Invesco S&P International Developed Momentum ETF 3.70%
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- Weighted yield (per year) 1.63%
The portfolio’s overall dividend yield is about 1.63%, generated mostly by the value and total world funds, with a higher contribution from the international momentum ETF. Dividend yield is the annual cash payout as a percentage of the investment, like interest from stocks. The US momentum ETF has a lower yield at 0.70%, which is typical for strategies that focus on price trends rather than income. A yield in this range suggests that most of the portfolio’s long‑term return is expected to come from price appreciation rather than cash distributions. For investors who reinvest dividends, even a modest yield can still contribute meaningfully to compounding over time.
Ongoing product costs
- Avantis ALL Equity Markets Value ETF 0.26%
- Invesco S&P International Developed Momentum ETF 0.25%
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.18%
The weighted average ongoing fund cost, or TER, for this portfolio is around 0.18% per year. TER (Total Expense Ratio) is the annual fee charged by each ETF, expressed as a percentage of assets, and it’s deducted inside the fund. This level is impressively low for a combination of global index and factor strategies, and it compares favorably with many actively managed funds that charge several times more. Lower costs mean more of the portfolio’s gross return stays in the account rather than going to fees, which can make a significant difference over long periods. In this case, the fee structure is a clear strength and supports better long‑term compounding.
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