High-octane growth-focused portfolio with aggressive leverage and momentum strategies
Report created on Nov 6, 2025Risk profile
6/7
Diversification profile
2/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 50.00% -
SP Direxion Daily S&P 500® Bull 2X Shares
SPUU - US25459Y1652 50.00%
This portfolio is characterized by its aggressive growth strategy, leveraging two ETFs that focus on the S&P 500, with one aiming for momentum and the other providing leveraged exposure. The 50/50 split between the Invesco S&P 500® Momentum ETF and the Direxion Daily S&P 500® Bull 2X Shares creates a highly concentrated strategy in large-cap U.S. equities. This composition indicates a preference for high-risk, high-reward investments, relying heavily on the performance of the S&P 500 and its momentum.
Growth
Historically, the portfolio has demonstrated a high Compound Annual Growth Rate (CAGR) of 26.76%, with a maximum drawdown of -47.66%. These figures illustrate the portfolio's volatile nature, where significant gains are possible but come with substantial risk. The days contributing to 90% of returns being limited to 32 signifies extreme performance sensitivity to market movements.
Projection
Monte Carlo simulations, based on 1,000 trials, suggest a wide range of potential outcomes, from a 5th percentile growth of 267.4% to a 67th percentile at 4,202.9%. This wide dispersion underscores the high level of uncertainty and risk in the portfolio's future performance, with a significant majority of simulations yielding positive returns.
Asset classes
- Stocks 105%
The portfolio's asset allocation is exclusively in stocks, with a notable 105% exposure due to the leveraged component of the Direxion Daily S&P 500® Bull 2X Shares. This over-allocation to stocks, without any bond holdings or other asset classes, amplifies both potential returns and volatility, lacking in diversification to cushion against market downturns.
Sectors
- Technology 36%
- Financials 16%
- Telecommunications 13%
- Industrials 9%
- Consumer Discretionary 8%
- Health Care 6%
- Consumer Staples 5%
- Utilities 3%
- Energy 2%
- Real Estate 2%
- Basic Materials 1%
Sector-wise, the portfolio leans heavily towards technology, financial services, and communication services, mirroring the sectoral composition of the S&P 500 but with enhanced volatility due to its momentum and leveraged strategies. This concentration increases susceptibility to sector-specific risks.
Regions
- North America 100%
Geographically, the portfolio is entirely allocated to North America, missing out on potential growth and diversification benefits from developed European markets or emerging markets. This geographic concentration aligns with its S&P 500 focus but limits global diversification.
Market capitalization
- Mega-cap 45%
- Large-cap 36%
- Mid-cap 15%
- Small-cap 1%
The market capitalization breakdown highlights a focus on mega and big-cap stocks, which is typical for S&P 500-based investments. While such companies are generally more stable than smaller caps, the leverage and momentum strategies amplify risks, making the portfolio's performance more sensitive to large-cap market movements.
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, this portfolio's current allocation suggests it is targeting the highest possible returns, accepting significant risk. While not the most diversified, its position could be optimal for investors with a high-risk tolerance seeking maximum growth, assuming they are comfortable with potential large drawdowns.
Dividends
- Invesco S&P 500® Momentum ETF 0.60%
- Direxion Daily S&P 500® Bull 2X Shares 0.60%
- Weighted yield (per year) 0.60%
The portfolio yields a dividend of 0.60%, which is modest. Given the aggressive growth focus, dividends are not a primary goal; however, they provide a slight income stream which could be reinvested for compound growth, albeit this might be overshadowed by the portfolio's volatility.
Ongoing product costs
- Invesco S&P 500® Momentum ETF 0.13%
- Direxion Daily S&P 500® Bull 2X Shares 0.61%
- Weighted costs total (per year) 0.37%
The portfolio's total expense ratio (TER) of 0.37% is relatively low, especially considering the inclusion of a leveraged ETF. Keeping costs low is crucial for long-term growth, and in this aspect, the portfolio is well-positioned to maximize returns minus fees.
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