A growth-oriented portfolio with a strong focus on US equities and momentum strategies

Report created on Jul 23, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards U.S. equities, particularly in the S&P 500 and momentum strategies, making up over 43% of the allocation with the Vanguard S&P 500 ETF and Invesco S&P 500® Momentum ETF. The inclusion of Berkshire Hathaway and Rocket Lab USA Inc. as significant positions adds a blend of established conglomerate stability and high-growth aerospace exposure. The international diversification is primarily through the Vanguard Total International Stock Index Fund ETF Shares, though it's less than 13%, indicating a strong home bias. The mix of large, mid, and small-cap equities suggests a comprehensive approach to capturing growth across different market segments.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 22.01%, the portfolio has demonstrated strong performance. The maximum drawdown of -30.53% indicates a relatively high risk, consistent with the growth profile and the portfolio's risk score of 5 out of 7. It's important to note that while past performance is impressive, it does not guarantee future results. The days contributing to 90% of returns being concentrated in 21.0 days highlight the portfolio's reliance on significant market movements for gains, underscoring the importance of timing in this strategy.

Projection Info

The Monte Carlo simulation, with 1,000 iterations, suggests a wide range of potential outcomes, from a 5th percentile growth of 13.2% to a 67th percentile growth of 1,744.9%. This wide dispersion underscores the high level of uncertainty and risk in the portfolio's forward-looking performance. While the annualized return of all simulations at 24.90% appears optimistic, it's crucial to remember that such projections are based on past data and cannot predict future market conditions accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocation to cash, bonds, or other asset classes. This singular focus on equities enhances growth potential but also increases volatility and risk. Diversifying across different asset classes can provide a buffer against stock market downturns and reduce overall portfolio volatility.

Sectors Info

  • Financials
    29%
  • Industrials
    23%
  • Technology
    15%
  • Consumer Discretionary
    9%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Health Care
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

The sectoral allocation is heavily skewed towards Financial Services, Industrials, and Technology, making up over two-thirds of the portfolio. This concentration in cyclical sectors may lead to higher volatility, as these areas are more sensitive to economic changes. However, it also positions the portfolio to benefit from economic growth. Balancing this with more defensive sectors could mitigate risk while still allowing for growth.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%
  • Latin America
    1%

The geographic allocation is predominantly in North America (88%), with minimal exposure to other regions. This heavy home bias towards the U.S. market limits global diversification and exposure to potential growth in emerging markets and other developed economies. Increasing international exposure could reduce risk and tap into growth opportunities outside the U.S.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    33%
  • Mid-cap
    13%
  • Small-cap
    8%
  • Micro-cap
    4%

The portfolio's market capitalization exposure is well-diversified across mega, big, and medium-sized companies, with a smaller allocation towards small and micro-caps. This distribution suggests a balanced approach to capturing growth and stability, as larger companies tend to be more stable, while smaller companies offer higher growth potential but with increased 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.

Considering the Efficient Frontier, the portfolio might benefit from optimization to achieve a better risk-return ratio. This could involve adjusting the asset allocation or diversifying into different asset classes or sectors. Optimization aims to maximize returns for a given level of risk, not simply to increase diversification or minimize costs.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • Weighted yield (per year) 0.95%

The dividend yield across the portfolio averages to 0.95%, which is relatively modest. This is consistent with the growth orientation, as growth stocks typically reinvest earnings rather than pay out dividends. For investors seeking income, increasing exposure to higher dividend-yielding assets could provide a steady income stream.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) of 0.09% is impressively low, minimizing the drag on returns due to costs. This efficiency is beneficial for long-term growth, as lower costs compound positively over time. Maintaining focus on cost-effective investments will continue to support better net returns.

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