Growth-oriented portfolio with a strong tilt towards momentum and small-cap value ETFs

Report created on Jul 21, 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 heavily weighted towards two ETFs: the Invesco S&P 500® Momentum ETF, constituting 75% of the portfolio, and the Avantis® U.S. Small Cap Value ETF, making up the remaining 25%. This composition indicates a growth-focused strategy, leveraging the momentum of large-cap stocks alongside the potential undervalued opportunities within the small-cap sector. However, the portfolio's low diversity score suggests a concentrated risk, particularly within the U.S. market and specific sectors.

Growth Info

Historically, this portfolio has delivered a Compound Annual Growth Rate (CAGR) of 20.44%, with a maximum drawdown of -34.58%. This performance underscores the portfolio's aggressive growth orientation but also highlights its susceptibility to significant market downturns. The days contributing to 90% of returns being few suggest that the portfolio's gains are heavily reliant on short, strong market movements, a characteristic of momentum investing strategies.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data and statistical models, this portfolio shows a wide range of potential future values. The median projection suggests an 898.6% return, indicating strong growth potential. However, the wide spread between the 5th and 67th percentiles highlights the high risk associated with this portfolio. It's important to note that while these simulations can provide insight, they are not guarantees of future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes such as bonds or real estate. This allocation aligns with its growth-focused strategy but increases volatility and risk. Diversifying across different asset classes can help mitigate risk and smooth out returns over time, especially during stock market downturns.

Sectors Info

  • Financials
    22%
  • Technology
    19%
  • Consumer Discretionary
    16%
  • Telecommunications
    12%
  • Industrials
    11%
  • Consumer Staples
    8%
  • Energy
    5%
  • Health Care
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

Sector allocation shows a heavy concentration in financial services, technology, and consumer cyclicals, which are sectors typically associated with higher growth but also higher volatility. The underrepresentation in more stable sectors like healthcare and utilities further emphasizes the portfolio's aggressive stance. Balancing sector exposure can reduce risk without significantly compromising potential returns.

Regions Info

  • North America
    99%

With 99% of assets allocated to North America, the portfolio's geographic exposure is highly concentrated. This focus on the U.S. market can offer substantial growth opportunities but also exposes the portfolio to regional economic and market risks. Increasing exposure to developed or emerging markets outside North America could offer additional diversification benefits.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    26%
  • Micro-cap
    13%
  • Small-cap
    12%
  • Mid-cap
    9%

The portfolio's market capitalization exposure is skewed towards mega and big cap stocks, with a notable portion in micro and small caps through the Avantis® ETF. This mix supports the portfolio's growth objectives but also introduces specific risks associated with small-cap investing, such as higher volatility and liquidity concerns.

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 expected return is slightly below the optimal level identified through portfolio optimization techniques. By adjusting the asset allocation to achieve an expected return of 21.64% without increasing the risk beyond the current level, the portfolio could potentially enhance its performance. This optimization suggests there are opportunities to refine the asset mix to achieve a better risk-return balance.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 0.88%

The portfolio yields a combined dividend of 0.88%, which is relatively low, reflecting its growth over income orientation. While dividends contribute to total returns, the focus here is clearly on capital appreciation. Investors seeking income alongside growth might consider a higher allocation to assets with stronger dividend yields.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.16%

The total expense ratio (TER) of 0.16% is impressively low, which is beneficial for long-term growth as lower costs directly translate to higher net returns. This efficient cost structure is a strong aspect of the portfolio, particularly important in growth-focused investing where every percentage point of return matters.

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