Focused global equity portfolio emphasizing small value and momentum with higher risk and strong historic returns
Report created on Jun 3, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 35.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 35.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 15.00% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 15.00%
This portfolio is a concentrated all-stock mix built from four factor ETFs: two focused on small cap value and two on momentum, split evenly between US and international markets. Each pair has the same weight, so 70% sits in US stocks and 30% in international developed markets. With 100% in equities and no bonds or cash, the structure leans clearly toward growth and price swings rather than stability. This kind of construction concentrates on specific return “engines” instead of broad market exposure. The simple four-holding lineup makes it easy to understand what drives results: small caps and momentum trends, especially in the US, will have an outsized impact on performance and risk.
Growth
From late 2019 to mid‑2026, $1,000 in this portfolio grew to about $3,184, a compound annual growth rate (CAGR) of 19.01%. CAGR is the “average yearly speed” over the whole period, smoothing out ups and downs like a long road‑trip speedometer. That beats both the US market (16.70%) and the global market (14.11%) by a meaningful margin. The trade‑off is sharper drops: the max drawdown, or worst peak‑to‑trough fall, was about ‑37.9%, steeper than both benchmarks around early 2020. Returns were also concentrated, with just 29 days driving 90% of gains, which is typical for more factor‑focused equity strategies.
Projection
The Monte Carlo projection uses the portfolio’s past risk and return patterns to simulate 1,000 different 15‑year futures. It’s like running many alternate histories, each with random sequences of good and bad years based on historical volatility. The median scenario turns $1,000 into about $2,744, while the middle half of outcomes (25th to 75th percentile) ranges from around $1,841 to $4,126. The very wide 5th–95th percentile range ($1,049–$7,911) shows how uncertain long‑term equity outcomes can be. The average simulated annual return of 8.17% is much lower than recent realized CAGR, highlighting that past strong performance may not repeat. These are statistical forecasts, not promises.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with no allocation to bonds, cash, or alternative assets. That makes it clean and focused but also means there is no built‑in ballast for equity downturns. Broad market portfolios often mix in bonds or other lower‑volatility assets to soften big drawdowns. Here, diversification happens only within equities, through different regions, sizes, and factors. In rising markets, a 100% stock mix often benefits from full participation in growth. During market stress, however, every holding can decline at the same time, which can magnify the emotional and financial impact of volatility compared with more mixed‑asset allocations.
Sectors
- Technology 24%
- Financials 20%
- Industrials 16%
- Consumer Discretionary 10%
- Energy 8%
- Basic Materials 7%
- Telecommunications 5%
- Health Care 4%
- Consumer Staples 4%
- Utilities 2%
- Real Estate 1%
Sector exposure is spread across many areas, with technology the largest at 24%, followed by financials at 20% and industrials at 16%. Consumer‑related sectors, energy, and materials together form a substantial additional slice, while health care, staples, utilities, and real estate are smaller. Compared with typical global benchmarks, tech is elevated but not extreme, and financials and industrials are also meaningfully higher. This distribution supports diversification across economic drivers, even though the portfolio is factor‑tilted. One implication is that sector risk is reasonably balanced: while tech and cyclical sectors matter, the portfolio is not purely dependent on a single industry narrative, which can help smooth sector‑specific shocks.
Regions
- North America 73%
- Europe Developed 13%
- Japan 8%
- Africa/Middle East 2%
- Australasia 1%
- Asia Developed 1%
- Latin America 1%
Geographically, about 73% of exposure is in North America, 13% in developed Europe, and 8% in Japan, with the rest spread thinly across other regions. This is more US‑tilted than the global equity market, where North America is significant but not quite this dominant. A strong home‑bias like this often tracks US economic and policy conditions more closely than global patterns. The international developed holdings add some diversification through different currencies, growth rates, and interest‑rate environments, but the overall risk story is still heavily tied to the US. That can help when the US leads but means underperformance if other regions outpace it.
Market capitalization
- Small-cap 24%
- Mega-cap 23%
- Large-cap 23%
- Micro-cap 17%
- Mid-cap 13%
By market capitalization, the portfolio has an unusually even spread: roughly a quarter in small caps, similar amounts in mega and large caps, plus notable allocations to micro and mid caps. This is far more tilted toward smaller companies than broad indices, which are dominated by mega and large caps. Smaller firms often bring higher growth potential and more sensitivity to economic cycles, resulting in larger price swings. The mix here pairs that small‑cap exposure with big, established names, which can balance some extremes but not eliminate them. Overall, the structure suggests a bias toward more volatile return drivers compared with a standard market‑cap‑weighted index.
True holdings
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MU Micron Technology Inc 3.58%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
NV NVIDIA Corporation 3.01%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 2.54%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class A 1.73%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AM Advanced Micro Devices Inc 1.46%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
JN Johnson & Johnson 1.38%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 1.37%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 1.24%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
IN Intel Corporation 1.09%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
XO Exxon Mobil Corp 0.99%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 18.39%
Looking through ETF top holdings, several names repeat, especially in technology: Micron, NVIDIA, Broadcom, Alphabet (both share classes), AMD, Lam Research, and Intel appear via multiple funds. This creates “hidden” concentration: even if no single ETF seems dominant, overlapping positions aggregate to meaningful exposure in a handful of large growth and semiconductor companies. Because only top‑10 ETF holdings are captured, actual overlap is likely higher than reported. This overlap can amplify the impact of news in certain industries—positive or negative—on the overall portfolio. It also shows how factor strategies can still converge on similar underlying companies despite targeting different characteristics.
Factors
Factor exposure here is clearly tilted: value scores 72% and size 64%, both classified as “High,” meaning a noticeable lean toward cheaper, smaller companies versus the broad market. Momentum sits at 60%, at the top end of “Neutral,” reflecting the two momentum ETFs but not an extreme tilt overall. Other factors—quality, yield, and low volatility—cluster around market‑like levels, indicating no strong push there. Factor investing targets these characteristics as long‑term drivers of return, similar to choosing specific ingredients in a recipe. This combination of value and size tilts suggests the portfolio may behave differently from mainstream indices, especially during style rotations between growth and value.
Risk contribution
-
Avantis® U.S. Small Cap Value ETF
Weight: 35.00% 42.7% -
Invesco S&P 500® Momentum ETF
Weight: 35.00% 32.7% -
Invesco S&P International Developed Momentum ETF
Weight: 15.00% 12.3% -
Avantis® International Small Cap Value ETF
Weight: 15.00% 12.2%
Risk contribution shows how much each holding drives overall portfolio ups and downs, which can differ from its simple weight. The US small cap value ETF is 35% of assets but contributes about 42.7% of total risk, so its risk/weight ratio above 1 indicates it’s more volatile than the rest. The US momentum ETF, also 35% weight, contributes slightly less risk at 32.7%. The two 15% international funds together add roughly a quarter of total risk. Overall, the top three positions account for nearly 88% of portfolio volatility, underlining a concentrated risk profile where one holding—the US small value ETF—plays an especially outsized role.
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 efficient frontier chart compares the current mix with portfolios using the same four ETFs but different weights. The current portfolio has a Sharpe ratio of 0.76, a measure of risk‑adjusted return that compares excess return to volatility. The optimal mix reaches a Sharpe of 1.02 with slightly higher return and similar risk, while the minimum‑variance mix achieves lower risk and a Sharpe of 0.92. Because the current point sits about 2.7 percentage points below the frontier at its risk level, it’s not using these holdings in the most efficient combination. In other words, historically, different weightings of the same ETFs would have delivered better risk‑return balance.
Dividends
- Avantis® International Small Cap Value ETF 2.70%
- Avantis® U.S. Small Cap Value ETF 1.30%
- Invesco S&P International Developed Momentum ETF 3.50%
- Invesco S&P 500® Momentum ETF 0.70%
- Weighted yield (per year) 1.63%
The portfolio’s overall dividend yield is about 1.63%, combining relatively higher payouts from the international momentum (3.5%) and international small value (2.7%) ETFs with lower yields from the US funds. Dividends are the cash distributions companies pay from profits, and over long periods they can form a significant part of total return, especially when reinvested. Here, the yield is modest compared with income‑focused strategies, which fits a growth‑oriented, factor‑tilted equity approach. The main return driver is expected to be price movement rather than income, so dividend patterns may matter less for the portfolio’s behavior than capital appreciation and factor cycles.
Ongoing product costs
- 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® Momentum ETF 0.13%
- Weighted costs total (per year) 0.22%
Total ongoing fund costs (TER) for this mix come to about 0.22% per year, which is low for specialized factor ETFs that target small caps and momentum. TER, or Total Expense Ratio, is the annual fee charged by a fund, taken out of returns before you see them. Over decades, even small fee differences compound, so keeping costs low helps more of the gross return reach the investor. While there may be slightly cheaper broad index funds available, this fee level is impressively efficient for the more complex strategies in use. It supports the portfolio’s objective by not heavily dragging on long‑term performance.
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