A growth-focused portfolio with a strong emphasis on momentum and technology sectors

Report created on Jul 30, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the Invesco S&P 500® Momentum ETF, comprising 70% of the allocation, signaling a clear preference for momentum-driven growth strategies within the large-cap U.S. equity space. The inclusion of specialized ETFs like the Avantis® U.S. Small Cap Value ETF, Invesco S&P International Developed Momentum ETF, and VanEck Semiconductor ETF diversifies the portfolio across different market caps, sectors, and geographies, albeit with a strong bias towards technology. This composition suggests an aggressive growth orientation, leveraging momentum and sector-specific bets, particularly in semiconductors, to drive performance.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 22.62%, with a maximum drawdown of -32.44%. This performance indicates periods of high returns, albeit with significant volatility, as evidenced by the steep drawdown. The concentration in momentum and technology sectors likely contributed to both the high returns and volatility. While past performance is impressive, it's important to remember that it doesn't guarantee future results, especially with high-growth strategies that can be sensitive to market shifts.

Projection Info

Monte Carlo simulations, which run a range of outcomes based on historical data to project future performance, show a wide variance in potential outcomes. With the majority of simulations (994 out of 1,000) suggesting positive returns and a median projected annualized return of 26.09%, the forward-looking outlook appears optimistic. However, the broad range between the 5th and 67th percentiles underscores the high risk and potential for volatility within this portfolio.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, reflecting a single-asset class strategy. This concentration in equities is typical for growth-oriented investors seeking higher returns, though it comes with increased market risk. Diversifying across additional asset classes, such as bonds or real estate, could provide a buffer against equity market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    28%
  • Financials
    21%
  • Consumer Discretionary
    13%
  • Telecommunications
    11%
  • Industrials
    10%
  • Consumer Staples
    8%
  • Energy
    3%
  • Health Care
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

With a heavy tilt towards technology, financial services, and consumer cyclicals, the sectoral allocation underscores the portfolio's growth focus. These sectors often lead during economic expansions but can be more volatile in downturns. The underrepresentation of traditionally defensive sectors like healthcare and utilities may increase the portfolio's sensitivity to market swings. Adjusting sector weights could help manage risk without significantly detracting from growth potential.

Regions Info

  • North America
    90%
  • Europe Developed
    6%
  • Asia Developed
    2%
  • Australasia
    1%
  • Japan
    1%

The geographic allocation is heavily skewed towards North America (90%), with minimal exposure to developed markets in Europe, Asia, and Australasia. This concentration enhances exposure to the U.S. economy's growth dynamics but limits potential gains from diversification into international markets, which may offer growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    32%
  • Mid-cap
    9%
  • Micro-cap
    5%
  • Small-cap
    5%

The market capitalization breakdown reveals a focus on mega and large-cap stocks, which constitute 80% of the portfolio. This bias towards larger companies is consistent with the momentum strategy, as these firms often have more stable growth patterns. However, the inclusion of small and micro-cap stocks, albeit minimal, introduces additional growth potential and 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.

The current allocation demonstrates a strong growth orientation but may benefit from optimization towards the Efficient Frontier, aiming for the best possible risk-return ratio. This could involve adjusting the asset allocation to reduce volatility without significantly compromising potential returns. Such optimization must consider the investor's risk tolerance and investment horizon.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • VanEck Semiconductor ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 0.83%

The portfolio's overall dividend yield of 0.83% reflects a modest income component, secondary to its growth objectives. Given the growth focus, this yield level is reasonable, as reinvestment and capital appreciation are likely prioritized over income. For investors seeking higher income, considering assets with higher dividend yields could be beneficial, though it may alter the portfolio's risk-return profile.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • VanEck Semiconductor ETF 0.35%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.18%

With a total expense ratio (TER) of 0.18%, the portfolio's costs are relatively low, which is advantageous for long-term growth. Keeping costs minimal is crucial in maximizing returns, especially in growth strategies where compound interest plays a significant role. The portfolio's cost efficiency is a positive attribute, supporting better performance net of fees.

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