Growth-focused portfolio with a strong tilt towards S&P 500 momentum and international exposure

Report created on Sep 25, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily invested in stocks, with a 50% allocation in a broad-market Vanguard S&P 500 ETF, 30% in an Invesco S&P 500® Momentum ETF, and 20% in an Invesco S&P International Developed Momentum ETF. This composition emphasizes growth, particularly through U.S. large-cap stocks that exhibit momentum, alongside a significant international component for geographic diversification. The exclusive focus on ETFs and stocks, without bonds or alternative asset classes, positions this portfolio on the higher end of the risk spectrum, suitable for growth-oriented investors.

Growth Info

Historically, this portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 20.70%, despite experiencing a maximum drawdown of -32.60%. This performance is indicative of high volatility but also significant growth potential. The days contributing to 90% of returns being concentrated in a relatively short period highlights the impact of market timing and momentum strategies on the portfolio's gains. Investors should be prepared for periods of sharp declines, given the high maximum drawdown.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes, from a 257.5% increase at the 5th percentile to a 1,903.5% increase at the 67th percentile. While these simulations suggest a high likelihood of continued growth, with an annualized return of 22.85%, investors should remember that such projections are speculative and depend on market conditions remaining similar to those in the past.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, reflecting a clear growth strategy but also a higher risk profile. This concentration in equities, without the balance of bonds or other asset classes, means the portfolio could be subject to significant volatility. Diversifying across different asset classes could help mitigate risk while still allowing for considerable growth potential.

Sectors Info

  • Technology
    26%
  • Financials
    22%
  • Consumer Discretionary
    11%
  • Telecommunications
    11%
  • Industrials
    10%
  • Consumer Staples
    6%
  • Health Care
    6%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

Sector allocation is predominantly in Technology and Financial Services, making up nearly half of the portfolio. This concentration could lead to higher volatility, especially in market downturns affecting these sectors. However, it also positions the portfolio to capitalize on growth trends in these industries. Balancing sector exposure may reduce risk without significantly compromising growth potential.

Regions Info

  • North America
    84%
  • Europe Developed
    11%
  • Japan
    2%
  • Australasia
    2%
  • Asia Developed
    1%

With 84% of assets in North America and a modest allocation to developed markets in Europe, Japan, and Australasia, the portfolio has a strong bias towards developed markets. This geographic distribution supports stability and growth but may miss out on potential high-growth opportunities in emerging markets. Incorporating a more global perspective could enhance diversification and growth prospects.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    34%
  • Mid-cap
    14%
  • Small-cap
    1%

The focus on Mega and Big cap stocks (85% combined) aligns with the portfolio's growth and momentum strategy, as these companies often have more stable returns. However, the minimal exposure to Medium and Small cap stocks limits potential high-growth opportunities from these segments. A slight increase in allocation to smaller companies could introduce more 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.

The current allocation suggests a portfolio positioned for growth with a reasonable risk-return balance. However, examining the Efficient Frontier could reveal opportunities to optimize the risk-return ratio further. This might involve adjusting allocations or diversifying into additional asset classes or sectors. Optimization should aim to maintain the growth focus while managing volatility through strategic diversification.

Dividends Info

  • Invesco S&P International Developed Momentum ETF 1.40%
  • Invesco S&P 500® Momentum ETF 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.98%

The overall dividend yield of 0.98% suggests a moderate contribution to total returns from dividends. While growth is the primary goal, dividends can provide a steady income stream and reduce volatility. Considering assets with higher dividend yields could offer a more balanced approach to growth and income, especially in volatile markets.

Ongoing product costs Info

  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.10%

The total expense ratio (TER) of 0.10% is impressively low, enhancing long-term returns by minimizing costs. This cost efficiency is a strong aspect of the portfolio, ensuring that more of the returns are retained by the investor. Maintaining focus on low-cost investments is advisable to continue maximizing net returns.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey