A growth-focused portfolio with high exposure to the S&P 500 and momentum stocks

Report created on Aug 16, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is evenly split between the Invesco S&P 500® Momentum ETF and the Vanguard S&P 500 ETF, indicating a strong focus on large-cap U.S. equities. The concentration in these two ETFs suggests a strategy aimed at capturing the growth of the S&P 500 while leveraging the potential additional returns from stocks with strong momentum. However, this approach results in low diversification across asset classes and sectors, with a complete absence of international exposure.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 20.16%, with a maximum drawdown of -32.44%. These figures suggest a high return potential but also significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of the returns being concentrated in just 37 days indicates that the portfolio's performance is heavily reliant on short, sharp market movements, which can be risky.

Projection Info

Monte Carlo simulations, based on 1,000 iterations, project a wide range of outcomes for this portfolio, with a median increase of 1,256.3%. While all simulations resulted in positive returns, indicating robustness in upward market conditions, the reliance on historical data means these projections cannot guarantee future performance. Investors should be mindful of the inherent limitations of such simulations, including their inability to predict unforeseen market shifts or black swan events.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes like bonds or real estate. This allocation underlines a growth-oriented strategy but comes with higher volatility and risk, especially during market downturns. Diversifying across multiple asset classes can help mitigate these risks and smooth out returns over time.

Sectors Info

  • Technology
    29%
  • Financials
    16%
  • Consumer Discretionary
    13%
  • Telecommunications
    12%
  • Industrials
    9%
  • Consumer Staples
    7%
  • Health Care
    6%
  • Utilities
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Basic Materials
    1%

Sector allocation is concentrated in Technology, Financial Services, and Consumer Cyclicals, making up over half of the portfolio. This concentration in cyclical sectors may offer high growth potential but also increases susceptibility to economic cycles and market volatility. A more balanced sector distribution could provide a buffer during sector-specific downturns.

Regions Info

  • North America
    100%

Geographic exposure is limited to North America, missing out on potential growth opportunities and diversification benefits from developed and emerging markets elsewhere. This geographical concentration increases the portfolio's vulnerability to regional economic and political events, suggesting a need for broader international exposure.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    34%
  • Mid-cap
    15%

The focus on Mega and Big cap stocks, constituting 84% of the portfolio, aligns with the portfolio's growth profile and preference for established companies. However, the lack of exposure to Small and Medium cap stocks limits opportunities for higher growth rates these companies can offer, albeit with increased 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.

Considering the portfolio's current composition, there's room for optimization towards achieving a better risk-return profile. Utilizing the Efficient Frontier could help identify an asset allocation that offers the highest expected return for a given level of risk. This might involve diversifying into other asset classes or adjusting the sector and geographic exposure to reduce volatility and improve long-term performance.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.90%

The portfolio yields a combined dividend of 0.90%, which is relatively modest. While dividends are not the primary focus of this growth-oriented strategy, they can provide a steady income stream and contribute to total return, particularly in volatile or declining markets.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from low costs, which is commendable. Lower costs can significantly enhance long-term returns by reducing the drag on performance. This cost efficiency is a strong aspect of the portfolio's construction.

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