A growth-focused portfolio with strong momentum and dividend strategies

Report created on Aug 2, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs that focus on the S&P 500 momentum, U.S. dividend equity, and U.S. large-cap growth, making up over 81% of the total allocation. This indicates a strong preference for growth-oriented investments within the U.S. market. The inclusion of developed and emerging markets ETFs, although smaller in allocation, suggests an attempt at geographical diversification. However, the concentration in specific ETFs raises questions about risk concentration and potential overexposure to market volatility within the U.S.

Growth Info

With a historical CAGR of 17.70% and a maximum drawdown of -32.30%, the portfolio has demonstrated strong growth potential albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 34 days highlights the portfolio's reliance on short, sharp gains, which can be a double-edged sword, potentially leading to high volatility during market downturns. This performance metric underscores the growth-focused nature of the portfolio but also signals the need for caution and regular monitoring.

Projection Info

Monte Carlo simulations, utilizing historical data to forecast future performance, suggest a wide range of outcomes with the 50th percentile indicating a 547.9% return. While encouraging, it's crucial to remember that such projections are speculative, relying on past trends that may not predict future movements accurately. This underscores the importance of maintaining a diversified portfolio to mitigate unforeseen market shifts.

Asset classes Info

  • Stocks
    100%

The portfolio's 100% allocation to stocks, without any presence in bonds, cash, or alternative investments, indicates a high-risk, high-reward strategy. This asset class distribution aligns with the portfolio's growth objectives but lacks the balance that might protect against market downturns. Diversifying across different asset classes could provide a buffer during stock market volatility.

Sectors Info

  • Technology
    21%
  • Financials
    15%
  • Consumer Discretionary
    13%
  • Consumer Staples
    10%
  • Industrials
    10%
  • Telecommunications
    10%
  • Health Care
    8%
  • Energy
    7%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

The sectoral allocation shows a significant leaning towards technology, financial services, and consumer cyclicals, which are sectors typically associated with high growth but also higher volatility. The underrepresentation of traditionally defensive sectors like utilities and real estate may limit the portfolio's ability to hedge against market downturns. Rebalancing to include more defensive sectors could offer more stability.

Regions Info

  • North America
    86%
  • Europe Developed
    7%
  • Japan
    2%
  • Asia Emerging
    2%
  • Asia Developed
    1%
  • Australasia
    1%

With 86% of assets in North America and minimal exposure to emerging markets and other developed regions, the portfolio is heavily skewed towards U.S. equities. This geographic concentration enhances exposure to U.S. market performance but also increases vulnerability to localized economic downturns. Expanding into more diverse international holdings could reduce this risk and potentially tap into growth opportunities abroad.

Market capitalization Info

  • Large-cap
    38%
  • Mega-cap
    37%
  • Mid-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    1%

The distribution across market capitalizations shows a balanced approach, with a mix of big, mega, and medium-sized companies. This balance is beneficial for risk management, as it combines the stability of large-cap companies with the growth potential of medium and small caps. However, the relatively small allocation to small and micro caps suggests a cautious approach to the most volatile segments of the market.

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 Efficient Frontier, the portfolio may benefit from optimization to enhance the risk-return ratio. This could involve adjusting allocations between current assets or introducing new asset classes and sectors to improve diversification. Optimization aims to achieve the most efficient risk-return trade-off, but it's important to revisit these decisions periodically as market conditions evolve.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Small-Cap Index Fund ETF Shares 1.40%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.86%

The dividend yield of 1.86% adds a layer of income generation to the portfolio, complementing the growth strategy. The varying yields across ETFs—from 0.40% to 3.90%—demonstrate a range of income potentials. While dividends contribute to total returns, the focus should remain on balancing yield with growth prospects and risk exposure.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Small-Cap Index Fund ETF Shares 0.05%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from relatively low costs, which is commendable. Lower costs directly translate to higher net returns over time, especially important in a growth-oriented strategy. Continuously monitoring and minimizing investment costs remains a key factor in maximizing long-term performance.

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