Growth-oriented portfolio with a strong emphasis on momentum and international diversification
Report created on Jun 7, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 20.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 15.00% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 10.00% -
FB Fidelity Wise Origin Bitcoin Trust
FBTC - US3159481098 5.00%
The portfolio is structured to capture growth by allocating 50% to a broad U.S. stock market ETF, 20% to a U.S. momentum ETF, 15% to an international stock ETF, 10% to an international momentum ETF, and 5% to a cryptocurrency ETF. This composition reflects a strategic emphasis on momentum investing and geographical diversification, with a notable tilt towards technology and financial services sectors. The inclusion of a cryptocurrency ETF introduces an alternative asset class, adding an innovative edge but also increasing volatility.
Growth
With a Compound Annual Growth Rate (CAGR) of 25.34% and a maximum drawdown of -17.59%, the portfolio has demonstrated robust growth with manageable downturns. The days contributing to 90% of returns being limited to 11 indicates significant gains were concentrated in brief periods, highlighting the impact of market timing and momentum strategies. This performance, while impressive, should be contextualized with market conditions during the period analyzed.
Projection
Monte Carlo simulations, utilizing 1,000 iterations, project a wide range of outcomes with a median increase of 8,124.9% and a high percentile (67th) growth up to 13,317.4%. All simulations yielded positive returns, suggesting a strong likelihood of future growth. However, the inherent uncertainty of these projections, especially with assets like cryptocurrency, underscores the need for ongoing risk assessment.
Asset classes
- Stocks 94%
- Other 5%
- Cash 1%
The portfolio's asset allocation is predominantly in stocks (94%), with a small allocation to other assets (5%) and minimal cash holdings (1%). This allocation supports the portfolio's growth orientation but comes with higher volatility. The "other" category, primarily consisting of cryptocurrency, introduces additional risk and potential for high reward, fitting for a growth-focused investor.
Sectors
- Technology 22%
- Financials 19%
- Consumer Discretionary 10%
- Industrials 10%
- Telecommunications 9%
- Health Care 8%
- Consumer Staples 6%
- Energy 3%
- Utilities 2%
- Basic Materials 2%
- Real Estate 2%
Sector allocation is concentrated in technology (22%) and financial services (19%), reflecting a momentum strategy that capitalizes on sectors with higher growth potential. However, the concentration in these sectors can lead to increased volatility, especially in tech-heavy market corrections. Diversifying into sectors with lower correlation to the market's overall movements might provide stability.
Regions
- North America 73%
- Europe Developed 12%
- Japan 3%
- Asia Emerging 3%
- Asia Developed 2%
- Australasia 2%
- Africa/Middle East 1%
Geographic diversification is strong, with 73% allocated to North America and significant investments in developed Europe (12%) and emerging Asian markets (3%). This global exposure positions the portfolio to benefit from growth across various economies. However, the relatively low allocation to emerging markets may limit exposure to high-growth regions.
Market capitalization
- Mega-cap 44%
- Large-cap 30%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 1%
The market capitalization breakdown shows a preference for mega (44%) and big (30%) cap stocks, which are typically less volatile than their smaller counterparts. This preference aligns with the portfolio's growth but risk-aware strategy. Considering a slight increase in medium to small-cap allocations could enhance growth potential, albeit with added risk.
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 allocation suggests it is positioned near the Efficient Frontier, indicating an optimal balance between risk and return based on historical data. However, given the dynamic nature of markets, continuous monitoring and reallocation may be necessary to maintain this balance, especially considering the volatile components like cryptocurrency.
Dividends
- Invesco S&P International Developed Momentum ETF 1.60%
- Invesco S&P 500® Momentum ETF 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.30%
- Vanguard Total International Stock Index Fund ETF Shares 2.90%
- Weighted yield (per year) 1.34%
The dividend yield of the portfolio averages 1.34%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares at 2.90%. While dividends are not the primary focus of this growth-oriented portfolio, they provide a steady income stream and potential for reinvestment, contributing to compounding growth over time.
Ongoing product costs
- Invesco S&P International Developed Momentum ETF 0.25%
- 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) 0.07%
The portfolio's overall expense ratio is relatively low at 0.07%, which is beneficial for long-term growth as lower costs translate directly into higher net returns. The focus on low-cost ETFs is a prudent strategy, ensuring that investment returns are not unduly eroded by fees.
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