A cautious yet high-performing ETF portfolio with a focus on momentum and high dividend yields

Report created on Nov 24, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is predominantly composed of ETFs, with a significant tilt towards the Invesco S&P 500® Momentum ETF at 45%, followed by the American Century ETF Trust and Janus Henderson AAA CLO ETF each holding substantial allocations. This mix emphasizes momentum in large-cap stocks and credit opportunities, alongside international high dividend yields. The portfolio's classification as 'highly diversified' is supported by its broad sectoral spread and a cautious risk profile, aligning with a risk score of 3 out of 7. Despite its cautious stance, the portfolio's heavy momentum ETF allocation suggests a strategy aiming to capitalize on trends within the S&P 500, balancing between growth and cautious risk management.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 22.13%, with a maximum drawdown of -14.92%. This performance is notable, especially considering the portfolio's cautious risk classification. The days contributing to 90% of returns highlight the impact of significant market movements on performance. While past success is commendable, it's crucial to remember that historical performance is not a reliable indicator of future results. The portfolio's ability to minimize drawdowns while capturing substantial upside reflects well on its strategic asset allocation.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes with a median increase of 1,173.8%. However, it's important to note that these simulations are based on past market conditions and cannot predict future market behavior with certainty. The consistent positive returns across simulations indicate resilience but should be viewed with caution, as market dynamics are ever-changing. Investors should consider these projections as one of many tools in evaluating potential future performance.

Asset classes Info

  • Stocks
    80%
  • Bonds
    20%

The portfolio's asset allocation leans heavily towards stocks (80%) with a smaller bond component (20%), reflecting a balance between seeking growth and maintaining a degree of risk mitigation. This allocation is typical for investors with a cautious yet growth-oriented approach, aiming to capitalize on equity market gains while using bonds to dampen volatility. The absence of cash or alternative investments suggests a fully invested stance, optimized for ongoing market participation rather than holding reserves for opportunistic buying.

Sectors Info

  • Financials
    19%
  • Technology
    19%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Discretionary
    6%
  • Consumer Staples
    5%
  • Energy
    4%
  • Health Care
    3%
  • Utilities
    3%
  • Basic Materials
    3%
  • Real Estate
    1%

Sectoral distribution shows a balanced approach, with significant exposure to financial services and technology, each constituting 19% of the portfolio. This is complemented by a diverse spread across industrials, communication services, consumer cyclicals, and other sectors. Such a mix leverages growth potential in tech and financial sectors while maintaining a broad base to mitigate sector-specific risks. The portfolio's sectoral balance is conducive to navigating cyclical market shifts, though the heavy tech and financial services concentration may introduce volatility.

Regions Info

  • North America
    59%
  • Europe Developed
    9%
  • Japan
    4%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (59%), with meaningful exposure to developed Europe and Japan. Emerging markets represent a smaller fraction, suggesting a conservative approach to geographic diversification. This allocation prioritizes stability and familiarity found in developed markets while underweighting potentially higher-growth but riskier emerging markets. For a cautious investor, this geographic spread balances the pursuit of growth with the need for stability.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    28%
  • Mid-cap
    15%
  • Small-cap
    4%
  • Micro-cap
    2%

The market capitalization breakdown showcases a preference for mega and big-cap companies, which together constitute 58% of the portfolio. This is complemented by medium, small, and micro-cap exposures, ensuring some level of participation in the growth potential of smaller companies. The tilt towards larger companies is consistent with the portfolio's cautious profile, as these entities typically offer more stability and resilience during market downturns.

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 portfolio's current configuration is close to optimal for its risk level, with a potential for an expected return of 7.04% at a slightly adjusted risk level of 1.37%. This suggests that with minor adjustments, the portfolio could achieve a more favorable risk-return profile. Optimization, in this context, might involve rebalancing asset allocations or diversifying further across less correlated assets. The goal would be to maintain or slightly adjust the risk level while seeking to enhance returns.

Dividends Info

  • American Century ETF Trust 2.10%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.50%
  • Invesco S&P 500® Momentum ETF 0.70%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 3.90%
  • Weighted yield (per year) 2.42%

The dividend yields across the ETFs contribute to the portfolio's income, with a total yield of 2.42%. This is particularly beneficial for a cautious investor, providing a steady income stream alongside potential capital appreciation. The high yield from the Janus Henderson AAA CLO ETF stands out, supplementing the portfolio's income significantly. Dividend yields not only offer a return cushion during market dips but also compound over time, enhancing long-term portfolio growth.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.19%

With a total expense ratio (TER) of 0.19%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This is crucial for long-term growth, as lower costs directly translate to higher net returns. The individual ETF costs are well below industry averages, reflecting well on the portfolio's construction with an eye towards minimizing overhead. Maintaining low costs while achieving a diversified and strategic asset allocation is commendable.

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