Momentum tilted global equity portfolio with strong diversification and limited but impressive short term results
Report created on Jul 4, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 55.00% -
AV Avantis All Equity Markets ETF
AVGE - US0250722321 20.00% -
TO iShares S&P 500 3% Capped ETF
TOPC - US46438G3496 15.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 5.00% -
VF Vanguard U.S. Momentum Factor
VFMO - US9219355081 5.00%
This portfolio is a pure equity mix built from five broad stock ETFs, with no bonds or cash in the data. The largest holding is a global stock fund at 55%, supported by a 20% all‑equity fund and a 15% core US fund. Two smaller 5% positions target momentum in US stocks. This structure creates a “core and satellite” setup, where most risk and return come from broad market exposure while smaller pieces lean into specific styles. Because the history is only about 1.2 years, it mainly shows how this mix behaved in a very strong recent market, not across a full cycle with recessions or long flat periods.
Growth
Over the roughly 14‑month period, $1,000 in this portfolio grew to about $1,494, a compound annual growth rate (CAGR) near 40%. CAGR is like the average yearly speed of a road trip, smoothing out bumps along the way. The portfolio slightly outpaced both US and global equity benchmarks and had a shallow max drawdown of about -9%, recovering within weeks. That pattern is very favorable, but it’s drawn from a short, strong market window. With only 1.2 years of data, these numbers highlight how the portfolio handled recent conditions, not how it might behave over decades or through severe downturns.
Projection
The forward projection uses Monte Carlo simulation, which replays and reshuffles past returns to create many possible future paths. Here, 1,000 simulations over 15 years suggest a median outcome of about $2,846 from $1,000, with a wide range from roughly $1,016 to $8,207. This illustrates that equities can lead to growth but with big uncertainty. Because the simulation relies heavily on the short, very strong 1.2‑year history, the estimated 8.43% annualized return and probabilities are less reliable than if we had decades of data. It’s better to treat these results as rough illustrations of risk and variability, not as predictive promises.
Asset classes
- Stocks 85%
- No data 15%
On an asset‑class level, 85% of the portfolio is classified as stocks, with 15% labeled “no data,” which just means the system couldn’t assign an asset class for those portions. The observable picture is therefore an almost entirely equity‑driven portfolio, with no clear allocation to bonds or cash in the data. Equity‑heavy structures tend to experience larger swings but can also capture more long‑term growth. Compared with typical diversified mixes that include fixed income, this setup will usually move more in line with stock markets. With only a short performance window, it’s especially important not to assume the relatively mild drawdowns seen so far are a permanent feature.
Sectors
- Technology 23%
- Financials 13%
- Industrials 11%
- Consumer Discretionary 8%
- Health Care 7%
- Telecommunications 6%
- Energy 5%
- Consumer Staples 4%
- Basic Materials 4%
- Real Estate 2%
- Utilities 2%
Sector exposure is spread across many areas, with technology at 23% leading the way, followed by financials at 13% and industrials at 11%. The remaining sectors are in single‑digit percentages, including consumer‑focused areas, health care, energy, and real estate. This looks broadly in line with a global equity mix, where tech is often the largest slice but not overwhelmingly dominant. Sector diversification matters because different parts of the economy can shine or struggle at different times. For example, tech can be sensitive to interest rates, while defensive sectors may hold up better in downturns. With only 1.2 years of data, the sector mix hasn’t been stress‑tested across multiple full economic cycles.
Regions
- North America 60%
- Europe Developed 10%
- Asia Developed 5%
- Japan 4%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, around 60% of the portfolio sits in North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, and smaller slices in Australasia, Latin America, and Africa/Middle East. That North American tilt is common in global equity funds, reflecting the large weight of US markets in global indices. This alignment with broad market geography supports diversification across many economies and currencies, which is a strength. Still, most of the portfolio’s behavior will be driven by North American markets. Over the short 1.2‑year history, that exposure has been a tailwind; over longer horizons, leadership between regions can rotate significantly.
Market capitalization
- Mega-cap 31%
- Large-cap 26%
- Mid-cap 17%
- Small-cap 7%
- Micro-cap 3%
By market capitalization, the portfolio is anchored in mega‑ and large‑cap stocks, together making up more than half of exposure, with meaningful allocations to mid‑caps and smaller slices to small‑ and micro‑caps. Market cap simply measures company size; larger firms tend to be more stable, while smaller ones can be more volatile but offer higher growth potential. This blend helps balance stability from big established companies with some dynamism from smaller names. Historically, small‑cap behavior varies a lot across cycles, sometimes leading and sometimes lagging. Because the available history here is only about 1.2 years, it doesn’t capture the full range of environments where size effects can really show up.
True holdings
-
NV NVIDIA Corporation 3.57%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
- iShares S&P 500 3% Capped ETF
-
AA Apple Inc. 3.01%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares S&P 500 3% Capped ETF
-
MS Microsoft Corporation 2.26%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares S&P 500 3% Capped ETF
-
AM Amazon.com Inc 2.02%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares S&P 500 3% Capped ETF
-
AV Broadcom Inc 1.85%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
- iShares S&P 500 3% Capped ETF
-
GO Alphabet Inc Class A 1.51%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
- Vanguard U.S. Momentum Factor
-
ME Meta Platforms Inc. 1.22%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Vanguard Total World Stock Index Fund ETF Shares
- iShares S&P 500 3% Capped ETF
-
MU Micron Technology Inc 1.21%
Part of fund(s):- American Century ETF Trust - Avantis U.S. Large Cap Value ETF
- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Invesco S&P 500® Momentum ETF
- iShares S&P 500 3% Capped ETF
-
GO Alphabet Inc Class C 1.15%
Part of fund(s):- Avantis All Equity Markets ETF
- Avantis America Equity UCITS ETF USD ACC
- Invesco S&P 500® Momentum ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.90%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total World Stock Index Fund ETF Shares
- iShares S&P 500 3% Capped ETF
- Top 10 total 18.70%
Looking through ETF top‑10 holdings, several well‑known large US companies appear repeatedly, such as NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Tesla. For instance, NVIDIA alone adds up to about 3.6% of the portfolio, and Apple about 3%. These overlaps create “hidden” concentration, because the same company is held via multiple ETFs. Coverage is only about 38% of ETF assets, so real overlap is likely higher. This means a handful of big growth names exert a meaningful influence on returns, even though you don’t hold them directly. That concentration has been helpful over the short, strong tech‑driven period, but the data doesn’t show how the portfolio would react if these leaders hit a long rough patch.
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.
On factor exposure, there is a very low tilt to size, plus high tilts to momentum and low volatility. Factors are like underlying “traits” of stocks, such as recent performance (momentum) or price stability (low volatility). A very low size exposure means the portfolio leans toward larger companies overall. High momentum exposure fits with the explicit momentum ETFs and can perform well when trends persist, but it may bite when markets quickly reverse. At the same time, high low‑volatility exposure suggests an emphasis on relatively steadier names, which can soften swings. With only 1.2 years of history, factor scores reflect recent behavior and may not fully capture how these traits play out over full market cycles.
Risk contribution
-
Vanguard Total World Stock Index Fund ETF Shares
Weight: 55.00% 54.0% -
Avantis All Equity Markets ETF
Weight: 20.00% 18.9% -
iShares S&P 500 3% Capped ETF
Weight: 15.00% 13.2% -
Vanguard U.S. Momentum Factor
Weight: 5.00% 7.2% -
Invesco S&P 500® Momentum ETF
Weight: 5.00% 6.7%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from simple weights. The 55% global ETF contributes about 54% of total risk, closely matching its size. The 20% and 15% core equity funds together bring total risk from the top three holdings to about 86%, so most volatility comes from broad market exposure. The two 5% momentum funds are small in weight but contribute more risk than their size, with risk/weight ratios above 1.3. That’s common for more specialized, potentially more volatile strategies. This pattern means position sizing is fairly proportional, with a modest “risk amplifier” effect from the momentum satellites.
Redundant positions
-
High correlationiShares S&P 500 3% Capped ETFVanguard Total World Stock Index Fund ETF SharesAvantis All Equity Markets ETF
Historical correlations show that the Avantis All Equity Markets ETF moves very similarly to the global Vanguard ETF, and the Vanguard ETF also closely tracks the S&P 500 capped fund. Correlation measures how often assets move together; high correlation means they tend to rise and fall in sync. When major holdings are tightly correlated, diversification benefits are limited during broad equity sell‑offs, because they can all drop at the same time. This is normal for a portfolio built entirely from global and US equity funds. The short 1.2‑year window suggests strong recent alignment, but correlations can shift in different market phases, especially if style or regional performance diverges.
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 chart compares your current mix with an “efficient frontier,” which shows the best trade‑offs achievable using only these existing holdings in different weights. The portfolio’s Sharpe ratio, a measure of return per unit of volatility, is 2.23, while the max‑Sharpe mix using the same ETFs reaches 2.7, and the minimum‑variance mix sits at 2.37. Being about 3 percentage points below the frontier at the current risk level means that, historically, a different weighting of these same funds could have improved risk‑adjusted returns. Because the inputs come from just 1.2 years of strong markets, though, these optimization results are more of a short‑term snapshot than a timeless blueprint.
Dividends
- Avantis All Equity Markets ETF 1.40%
- Invesco S&P 500® Momentum ETF 0.70%
- Vanguard U.S. Momentum Factor 0.60%
- Vanguard Total World Stock Index Fund ETF Shares 1.60%
- iShares S&P 500 3% Capped ETF 1.00%
- Weighted yield (per year) 1.38%
The portfolio’s overall dividend yield is about 1.38%, with individual ETFs ranging roughly from 0.6% to 1.6%. Dividend yield is the yearly cash payout as a percentage of the investment, similar to rent from a property. At this level, most of the portfolio’s total return is likely to come from price movements rather than income. That lines up with a growth‑oriented global equity mix and the explicit momentum holdings, which often favor companies that reinvest profits. Over the brief 1.2‑year period, capital gains have dominated results, so the data doesn’t yet show how steady or variable these dividends might be through different rate or earnings environments.
Ongoing product costs
- Avantis All Equity Markets ETF 0.23%
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard U.S. Momentum Factor 0.13%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.10%
Costs are low, with a weighted total expense ratio around 0.10%. TER is the annual fee the ETFs charge; it comes out of fund returns before you see performance, like a small ongoing service fee. This level is impressively low for an all‑equity portfolio with global reach and style tilts, and it supports better long‑term compounding compared with higher‑fee setups. Even small fee differences add up over many years, because you earn returns on the money not paid out in costs. The cost picture here is a clear strength of the portfolio’s design and doesn’t depend heavily on the short 1.2‑year performance history.
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