A growth-focused portfolio with a blend of momentum and value strategies across major markets

Report created on Jul 6, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is structured with a significant emphasis on ETFs, covering a wide spectrum of market capitalizations and sectors. The largest allocation is to the Vanguard Total Stock Market Index Fund ETF Shares, making up 39% of the portfolio, which provides broad exposure to the U.S. stock market. The inclusion of specialized ETFs like the Invesco S&P 500® Momentum and Quality ETFs, alongside Avantis® U.S. Small Cap Value ETF, indicates a strategy that balances between growth through momentum and value investing. The international exposure, though present, is less pronounced, suggesting a home country bias.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 16.99% and a historical maximum drawdown of -35.25%, the portfolio has demonstrated strong growth potential albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 19 days highlights the portfolio's susceptibility to short-term market movements. This performance, while impressive, underscores the importance of understanding the inherent market risks and the potential for wide swings in portfolio value.

Projection Info

Monte Carlo simulations, based on 1,000 iterations, suggest a wide range of potential outcomes, with the median scenario indicating a 704.6% increase. However, the significant spread between the 5th and 67th percentiles (105.9% to 1,015.5%) illustrates the uncertainty in future returns. These projections, while informative, should be approached with caution as they rely on historical data, which is not a perfect predictor of future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%), indicating a high-risk, high-reward strategy. This asset class distribution aligns with the portfolio's growth profile but lacks the risk mitigation benefits that bonds or other asset classes could provide. Diversifying into additional asset classes could enhance the portfolio's resilience against market downturns.

Sectors Info

  • Technology
    21%
  • Financials
    19%
  • Industrials
    14%
  • Consumer Discretionary
    12%
  • Consumer Staples
    8%
  • Health Care
    7%
  • Telecommunications
    7%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation shows a heavy tilt towards Technology and Financial Services, which are known for their growth potential but also for their volatility. The presence of Industrials, Consumer Cyclicals, and a range of other sectors helps balance the portfolio, though the concentration in high-growth areas may increase risk during market corrections. Considering a more balanced sector exposure could mitigate some of this risk.

Regions Info

  • North America
    82%
  • Europe Developed
    9%
  • Japan
    4%
  • Asia Emerging
    2%
  • Australasia
    1%
  • Asia Developed
    1%
  • Africa/Middle East
    1%

With 82% of assets allocated to North America, the portfolio exhibits a significant home country bias. While this may reflect a comfort with domestic markets, it potentially overlooks the diversification and growth opportunities available in developed European countries, Japan, and emerging markets. Increasing international exposure could offer benefits, especially in diversifying economic and geopolitical risks.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    29%
  • Mid-cap
    16%
  • Small-cap
    11%
  • Micro-cap
    8%

The market capitalization breakdown indicates a balanced approach, with a lean towards Mega and Big cap stocks, which typically offer stability and lower volatility. However, the inclusion of Medium, Small, and Micro cap stocks introduces growth potential at the cost of higher risk. This blend supports the portfolio's growth orientation while attempting to maintain a level of risk management through diversification.

Redundant positions Info

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

The high correlation observed between the Vanguard Total Stock Market Index Fund ETF Shares and the Invesco S&P 500® Quality ETF suggests redundancy, which may limit the portfolio's diversification benefits. Identifying and reducing overlapping investments can help in achieving a more efficient allocation that could potentially lower risk without sacrificing returns.

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 portfolio's current asset allocation shows room for optimization, particularly in reducing highly correlated assets. Focusing on diversification not just within but across asset classes and sectors can enhance the risk-return profile. Utilizing the Efficient Frontier concept could guide adjustments to achieve the most desirable balance between risk and return, tailored to the investor's objectives.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco S&P 500® Quality ETF 1.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.48%

The overall dividend yield of the portfolio stands at 1.48%, reflecting a moderate income component. This yield, while contributing to the total return, indicates the portfolio's focus is more on capital appreciation than on income generation. Investors seeking regular income might consider adjusting the allocation to include higher-yielding assets.

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® 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%
  • Weighted costs total (per year) 0.12%

The Total Expense Ratio (TER) of 0.12% is impressively low, enhancing the portfolio's appeal by minimizing the drag on returns due to costs. This cost efficiency is crucial for long-term growth, as even small differences in fees can significantly impact cumulative returns over time.

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