Strongly momentum tilted global equity portfolio with a value twist and efficient risk balance
Report created on Jun 28, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 50.00% -
AV Avantis ALL Equity Markets Value ETF
AVGV - US0250722164 30.00% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 20.00%
This portfolio is a very focused all‑equity mix built from just three ETFs. Half of the allocation sits in a US momentum strategy, 30% in a globally diversified value strategy, and 20% in international developed momentum. So structurally it blends two distinct styles: momentum, which chases recent winners, and value, which targets cheaper‑priced stocks. Having only three funds keeps things simple and makes the structure easy to understand and monitor. At the same time, each ETF is broadly diversified inside, so the overall portfolio still spreads risk across many companies and countries. The result is a concentrated expression of two well‑known equity styles rather than a broad “market only” approach.
Growth
Historically, from mid‑2023 to mid‑2026, $1,000 in this portfolio grew to about $2,350. That translates to a Compound Annual Growth Rate (CAGR) of 33.25%, meaning it compounded like a car averaging 33% speed over a three‑year trip, even with bumps along the road. Over the same period, both the US and global equity markets returned roughly 20% per year, so this mix outpaced them by about 13 percentage points annually. The worst drop from peak to trough, or max drawdown, was around ‑17%, similar to broad markets. This shows historically strong upside with drawdowns that stayed in the same ballpark as the benchmarks, though past results can’t guarantee anything going forward.
Projection
The Monte Carlo projection takes that historical return and volatility and uses them to simulate 1,000 different 15‑year futures. Think of it as re‑rolling the dice of yearly returns many times to see a range of outcomes, not just one forecast. In these simulations, a $1,000 starting amount has a median ending value of about $2,899, with a broad “likely” band from roughly $1,816 to $4,231. The average annual return across all paths is 8.03%, far lower than the recent 33% CAGR, which underlines how unusual recent performance has been. Simulations are only as good as their assumptions, so they’re best viewed as a risk‑range map, not a promise.
Asset classes
- Stocks 100%
Asset‑class wise, this is a pure 100% stock portfolio, with no bonds, cash instruments, or alternatives in the mix. That’s important because stocks are generally the main engine of long‑term growth but also the main source of short‑term ups and downs. Compared with more mixed stock‑bond blends, a structure like this usually experiences larger swings in value but offers more participation in equity market rallies. Relative to global benchmarks, the all‑equity tilt is aggressive from an asset‑class standpoint, even though the holdings themselves are diversified. This helps explain the strong historical growth and the “balanced” risk rating reflects that within an equity‑only context rather than a multi‑asset one.
Sectors
- Technology 32%
- Financials 18%
- Industrials 15%
- Telecommunications 6%
- Energy 6%
- Consumer Discretionary 5%
- Health Care 5%
- Basic Materials 5%
- Consumer Staples 4%
- Utilities 2%
- Real Estate 1%
Sector exposure is clearly tilted, with technology standing out at 32% of equity holdings. Financials at 18% and industrials at 15% are the next largest buckets, while areas like utilities and real estate are small. Compared with broad global indices, this shows an above‑average emphasis on more cyclical, growth‑oriented sectors and less on defensive ones. Momentum strategies often gravitate toward sectors that have been leading recently, which helps explain the tech‑heavy profile. This kind of sector mix can amplify performance in periods when growth and cyclical companies are popular, but it can also make returns more sensitive to interest rate moves, changes in economic expectations, or sentiment shifts around technology and finance.
Regions
- North America 73%
- Europe Developed 14%
- Japan 6%
- Asia Developed 3%
- Asia Emerging 1%
- Africa/Middle East 1%
- Australasia 1%
Geographically, around 73% of the portfolio is in North America, with 14% in developed Europe and 6% in Japan, plus smaller slices across other developed and emerging regions. This means the portfolio is globally diversified but strongly US‑tilted compared to the world market, where the US is big but not quite this dominant. Having meaningful allocations outside North America provides exposure to different economic cycles, currencies, and policy regimes, which is helpful for diversification. At the same time, the US overweight ties a large part of the portfolio’s fortunes to one economy and currency, which has recently been beneficial but may feel more concentrated if other regions lead for a while.
Market capitalization
- Large-cap 40%
- Mega-cap 34%
- Mid-cap 16%
- Small-cap 6%
- Micro-cap 3%
By market capitalization, the portfolio leans toward larger companies, with roughly 34% in mega‑caps and 40% in large‑caps. Mid‑caps at 16% and smaller firms at about 9% (small plus micro) still play a role but are clearly secondary. Larger companies tend to be more established, more liquid, and often less volatile than very small firms, which can help stabilize day‑to‑day swings a bit. The presence of micro‑ and small‑caps adds some exposure to the “size” segment that historically has had different performance patterns. Overall, this market‑cap mix is broadly in line with global equity norms, offering a solid base of big names with a modest tilt toward smaller companies.
True holdings
-
MU Micron Technology Inc 5.87%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Invesco S&P 500® Momentum ETF
-
NV NVIDIA Corporation 4.10%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 3.27%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class A 2.26%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 2.23%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Invesco S&P 500® Momentum ETF
-
JN Johnson & Johnson 2.03%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AM Advanced Micro Devices Inc 1.96%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 1.80%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
XO Exxon Mobil Corp 1.69%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis ALL Equity Markets Value ETF
- Invesco S&P 500® Momentum ETF
-
IN Intel Corporation 1.50%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 26.71%
Looking through the ETFs’ top holdings, a few individual companies stand out as meaningful combined exposures. Micron, NVIDIA, and Broadcom together account for over 13% of the portion we can see, with additional weight in other major tech and semiconductor names like AMD, Intel, and Alphabet. Because the same company can appear in more than one ETF, this creates hidden concentration—if one of these big names has a strong move, it can influence multiple funds at once. Coverage of about 61% means there’s still a sizable portion of holdings outside the disclosed top‑10 lists, so the true overlap is likely somewhat higher than shown, though the data already indicates a noticeable tilt toward a handful of large technology‑related firms.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows a standout tilt toward momentum at 66%, while value, size, quality, and low volatility all sit in the neutral zone around market‑like levels. Momentum as a factor means the portfolio leans into stocks that have been strong performers recently; historically, this has often rewarded investors in trending markets but can bite during sharp reversals when yesterday’s winners suddenly lag. Yield exposure is low at 40%, which fits with the emphasis on growth and price appreciation rather than steady income. Overall, this factor profile describes a portfolio whose behavior is likely driven more by price trends and less by high dividends or defensive, slow‑moving names.
Risk contribution
-
Invesco S&P 500® Momentum ETF
Weight: 50.00% 58.5% -
Avantis ALL Equity Markets Value ETF
Weight: 30.00% 23.5% -
Invesco S&P International Developed Momentum ETF
Weight: 20.00% 18.0%
Risk contribution highlights how much each ETF drives the portfolio’s overall volatility, which can differ from simple weights. The US momentum ETF is 50% of the portfolio but contributes about 58% of total risk, with a risk‑to‑weight ratio of 1.17. That means it punches a bit above its size in terms of ups and downs. The global value ETF, at 30% weight, contributes only about 24% of risk, so it’s relatively “calmer” per dollar invested. The international momentum ETF’s risk share is roughly in line with its weight. This pattern suggests the US momentum piece is the main risk engine, while the value sleeve helps moderate things somewhat.
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 risk‑return optimization chart shows this portfolio sits on or very close to the efficient frontier, which is the curve of the best possible return for each level of risk using these three holdings. The current Sharpe ratio—risk‑adjusted return—is 1.52, compared with 1.76 for the mathematically optimal mix and 1.32 for the minimum‑volatility option. That means the existing allocation is already making good use of what’s in the basket, trading a bit of potential extra efficiency for slightly lower volatility than the maximum‑Sharpe point. It’s encouraging that the current mix is classed as efficient, since it suggests the weights work well together without obvious structural waste.
Dividends
- Avantis ALL Equity Markets Value ETF 1.60%
- Invesco S&P International Developed Momentum ETF 3.70%
- Invesco S&P 500® Momentum ETF 0.70%
- Weighted yield (per year) 1.57%
The overall dividend yield of the portfolio is about 1.57%, blending a low 0.70% from the US momentum ETF, 1.60% from the global value fund, and a higher 3.70% from the international momentum ETF. Dividends are the cash payments companies distribute from profits, and they can be an important part of long‑term total return even when they look modest. Here, income plays a secondary role compared with price growth, which is typical for momentum and many value‑tilted global equity strategies. The more generous yield from the international sleeve adds some balance, but overall, this portfolio is clearly built more around capital appreciation than around steady cash payouts.
Ongoing product costs
- Avantis ALL Equity Markets Value ETF 0.26%
- Invesco S&P International Developed Momentum ETF 0.25%
- Invesco S&P 500® Momentum ETF 0.13%
- Weighted costs total (per year) 0.19%
Costs are a clear strength. The portfolio’s weighted average Total Expense Ratio (TER) is around 0.19%, with the cheapest fund at 0.13% and the others just above a quarter of a percent. TER is the annual fee charged by the funds, similar to a small ongoing service charge on the invested balance. Compared with many active mutual funds or older ETFs, this level of cost is impressively low and supports better long‑term compounding because less return is eaten by fees each year. Over long horizons, even a fraction of a percent matters, so this cost structure is a solid foundation for an equity portfolio that expects to hold positions for many years.
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