A growth-focused portfolio with high exposure to momentum and developed markets

Report created on Jul 5, 2025

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 structured around three ETFs, focusing on the S&P 500 momentum stocks, developed market equities, and international small cap value stocks. The allocation heavily favors momentum stocks at 50%, suggesting a strategy that seeks to capitalize on current market trends. The inclusion of developed markets and international small caps at 30% and 20%, respectively, indicates an effort to diversify internationally and tap into the potential of undervalued small-cap stocks outside the U.S.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 16.70%, with a maximum drawdown of -33.73%. These figures suggest a strong performance, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 21 days indicates that the portfolio's gains are highly dependent on a few strong market days, a characteristic of momentum investing strategies.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possible performances for this portfolio. With a median projected growth of 593.9% and 984 out of 1,000 simulations showing positive returns, the analysis supports optimism for future growth. However, the broad spread between the 5th and 67th percentiles underscores the inherent risk and uncertainty in these projections.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's near-total investment in stocks (99%) aligns with its growth profile, offering high potential returns at the expense of increased risk. The minimal cash holding (1%) provides very limited liquidity and downside protection, emphasizing the portfolio's aggressive growth orientation.

Sectors Info

  • Financials
    20%
  • Technology
    15%
  • Industrials
    15%
  • Consumer Discretionary
    14%
  • Telecommunications
    9%
  • Consumer Staples
    8%
  • Basic Materials
    6%
  • Health Care
    5%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation is broadly diversified, with the largest exposures in financial services, technology, and industrials. This diversification can help mitigate sector-specific risks, but the significant weight in technology and financial services, sectors known for volatility, contributes to the portfolio's overall risk profile.

Regions Info

  • North America
    55%
  • Europe Developed
    24%
  • Japan
    13%
  • Australasia
    4%
  • Asia Developed
    2%
  • Africa/Middle East
    1%

Geographic allocation emphasizes North America and developed regions in Europe and Japan, reflecting a conservative approach to international diversification by focusing on more stable, developed markets. The absence of emerging markets exposure limits potential growth opportunities and risk associated with more volatile regions.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    27%
  • Mid-cap
    21%
  • Small-cap
    8%
  • Micro-cap
    1%

The portfolio's market capitalization exposure is balanced across mega, big, and medium-sized companies, with a smaller allocation to small and micro-cap stocks. This balance suggests a moderate approach to risk, as larger companies typically offer stability, while smaller companies provide growth potential but with higher volatility.

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.

Based on the Efficient Frontier analysis, there may be opportunities to optimize the risk-return profile by adjusting the asset allocation. However, the current focus on momentum and developed markets, combined with a strong historical performance, suggests that the portfolio is already well-positioned for growth-oriented investors seeking higher returns at a controlled level of risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.87%

The portfolio's overall dividend yield of 1.87% contributes to its total return, with the international small cap value ETF offering the highest yield. While dividends provide a steady income stream, the focus on growth and momentum strategies means that dividend income is a secondary consideration.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.15%

The portfolio benefits from relatively low costs, with a Total Expense Ratio (TER) of 0.15%. Lower costs can significantly enhance long-term returns by reducing the drag on performance, making this an efficient portfolio in terms of expense management.

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