A two-trick pony galloping on momentum but forgetting the rest of the racecourse
Report created on Oct 28, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 75.00% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 25.00%
Diving into this portfolio, it's like someone heard "diversification" in a finance podcast and thought two ETFs should cover it. With 75% in an S&P 500 Momentum ETF and the rest in its international cousin, it's like betting on the fastest horses without checking if they're running on a cliff. This "moderately diversified" claim feels like saying a diet of only fast food is balanced because you order from two different places.
Growth
Historically, this portfolio has been on a sugar rush with a CAGR of 22.65%. But let's remember, past performance is a bit like bragging about your high school football days — not necessarily indicative of future success. The -30.99% max drawdown is a stark reminder that what goes up can come crashing down, especially when your portfolio is riding the volatility of the momentum strategy.
Projection
Monte Carlo simulations are like video game simulations of your portfolio's future, and this one's showing a wild ride with potential outcomes ranging from "buying a yacht" to "selling your yacht for rent money." Sure, all simulations have positive returns, but the spread from 246.3% to 1,799.7% suggests you're more at the mercy of market winds than the captain of your ship.
Asset classes
- Stocks 100%
A portfolio with 100% in stocks is like going to Vegas and putting all your money on red — thrilling, but potentially disastrous. While stocks are great for growth, the complete absence of bonds, real estate, or even a smidge of cash for stability is like building a one-legged stool; it might stand for a while, but don't be surprised when it tips over.
Sectors
- Technology 27%
- Financials 27%
- Telecommunications 14%
- Industrials 12%
- Consumer Staples 6%
- Consumer Discretionary 4%
- Utilities 4%
- Health Care 2%
- Energy 1%
- Real Estate 1%
- Basic Materials 1%
With 27% in technology and financial services each, this portfolio is riding the tech and finance train hard. It's like having a diet solely of steak and ice cream — fantastic until your body (or the market) decides it's had enough. The minimal spread across other sectors is a nod to diversification, but barely more than a polite acknowledgment.
Regions
- North America 80%
- Europe Developed 15%
- Japan 2%
- Asia Developed 1%
- Australasia 1%
- Africa/Middle East 1%
North America takes up 80% of the geographic allocation, making this portfolio as American as apple pie. While there's a sprinkle of international exposure, it's like saying you're worldly because you once ate at an international food court. The global market offers a buffet of opportunities, and this portfolio is stuck at the burger stand.
Market capitalization
- Mega-cap 49%
- Large-cap 39%
- Mid-cap 11%
With a heavy lean towards mega and big caps (88% combined), this portfolio is like that friend who only watches blockbuster movies and misses out on indie gems. Sure, it's less risky to bet on the big names, but ignoring medium and small caps means missing out on growth opportunities that could give your portfolio a performance kick.
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.
This portfolio's approach to risk vs. return optimization is like trying to balance a seesaw with two elephants on one side and a mouse on the other. It's heavily skewed towards high-risk, high-reward assets without a safety net. Efficient Frontier? More like wandering into the wild with a broken compass.
Dividends
- Invesco S&P International Developed Momentum ETF 1.70%
- Invesco S&P 500® Momentum ETF 0.60%
- Weighted yield (per year) 0.88%
The dividend yield here is like finding loose change in the couch — nice to have but not changing your life. A total yield of 0.88% won't keep the lights on, especially in a market downturn. Relying on dividends for income in this setup is like hoping a drizzle will fill your swimming pool.
Ongoing product costs
- Invesco S&P International Developed Momentum ETF 0.25%
- Invesco S&P 500® Momentum ETF 0.13%
- Weighted costs total (per year) 0.16%
At least the portfolio’s costs are under control, with a total expense ratio of 0.16%. It's like finding a reasonably priced ticket for a rollercoaster ride — great value if you enjoy the ups and downs. Just remember, low fees on a risky strategy are still fees on a risky strategy.
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