A growth-oriented portfolio with a strong focus on high momentum and dividend yield ETFs

Report created on Aug 8, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around three ETFs, each holding a third of the total assets, focusing on high momentum stocks, broad market exposure, and international high dividend yields. The concentration in these areas suggests an aggressive growth strategy while maintaining a broad diversification across sectors and geographies. The inclusion of both domestic and international ETFs enhances global exposure, potentially mitigating region-specific risks. However, the heavy reliance on just three ETFs could expose the portfolio to sector-specific downturns, despite its broad diversification claims.

Growth Info

Historically, this portfolio has demonstrated a strong Compound Annual Growth Rate (CAGR) of 17.44%, with a maximum drawdown of -33.45%. The days contributing to 90% of returns being notably few suggest that the portfolio's performance is significantly affected by short-term market movements. This level of performance, coupled with the drawdown, indicates a higher risk-reward profile, aligning with the portfolio's growth orientation. It's important to remember that past performance is not indicative of future results, especially in a market environment characterized by rapid changes.

Projection Info

Using Monte Carlo simulations, the projections show a wide range of potential outcomes, from a 169.1% increase at the 5th percentile to an 816.7% increase at the median, highlighting the portfolio's high growth potential. However, this also underscores the inherent uncertainty and risk, as the actual outcome could significantly deviate from these projections. These simulations, while useful for understanding potential variability, should not be the sole basis for investment decisions due to their reliance on historical data.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%). This asset allocation is typical for growth-focused portfolios seeking higher returns, albeit at a higher risk level. The lack of diversification into other asset classes, such as bonds or real estate, means the portfolio may be more susceptible to market volatility. Investors might consider diversifying across more asset classes to manage risk better.

Sectors Info

  • Financials
    25%
  • Technology
    20%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    9%
  • Consumer Staples
    8%
  • Health Care
    6%
  • Energy
    4%
  • Utilities
    4%
  • Basic Materials
    3%
  • Real Estate
    2%

Sector allocation is heavily weighted towards financial services, technology, and consumer cyclicals, which are sectors often associated with higher growth potential. However, this concentration can also lead to higher volatility, especially in market downturns. The portfolio's sector spread, covering everything from industrials to real estate, does provide a level of diversification, but the heavy weights in high-growth sectors underscore its aggressive strategy.

Regions Info

  • North America
    69%
  • Europe Developed
    15%
  • Japan
    5%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

The geographic allocation shows a strong emphasis on North America (69%), with meaningful exposure to developed Europe and a modest presence in emerging markets. This distribution suggests a strategy that balances the stability of developed markets with the growth potential of emerging ones. However, the relatively low exposure to emerging markets might limit the portfolio's growth potential, given these regions' higher expected growth rates.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    34%
  • Mid-cap
    15%

With 50% in mega-cap stocks, the portfolio leans towards companies with a proven track record of performance and stability. The allocation towards big (34%) and medium (15%) caps further indicates a preference for lower volatility associated with larger companies. However, the absence of small and micro-cap investments suggests a missed opportunity for higher growth potential, albeit with increased risk.

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.

Regarding risk vs. return optimization, the portfolio appears to be positioned towards the higher end of the risk spectrum, aiming for substantial growth. The Efficient Frontier concept could be used to assess if the current allocation represents the optimal risk-return trade-off. However, any adjustments should consider the investor's risk tolerance, investment horizon, and financial goals. It's essential to recognize that "optimal" doesn't mean risk-free but rather the most efficient way to achieve the desired return for a given level of risk.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 4.10%
  • Weighted yield (per year) 1.97%

The dividend yield aspect of the portfolio, with a total yield of 1.97%, contributes to its total return, adding a layer of income on top of capital gains. The high dividend yield from the Vanguard International High Dividend Yield Index Fund ETF Shares (4.10%) is particularly noteworthy, offering a cushion during market downturns. However, investors should balance the pursuit of high dividends with the overall portfolio growth strategy and risk tolerance.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.13%

The portfolio's total expense ratio (TER) of 0.13% is relatively low, which is beneficial for long-term growth as it minimizes the drag on returns caused by fees. Keeping costs low is a crucial aspect of maximizing investment returns, especially in growth-oriented portfolios where compounding plays a significant role. This low-cost structure is a positive feature, supporting better long-term performance.

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