A balanced and highly diversified portfolio with a strong focus on momentum and international high dividend yield ETFs

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor looking for a balanced approach with a tilt towards growth. The investor likely has a moderate risk tolerance, seeking to balance the potential for high returns with the stability of income-generating assets. The focus on diversified ETFs across various sectors and geographies suggests a long-term investment horizon, where the investor is comfortable with some market fluctuations but prefers a well-rounded portfolio to mitigate significant downturns.

Positions

  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    30.00%
  • American Century ETF Trust
    AVGV - US0250722164
    20.00%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
    JAAA - US47103U8457
    15.00%
  • Vanguard International High Dividend Yield Index Fund ETF Shares
    VYMI - US9219467944
    15.00%
  • First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
    GRID - US33737A1088
    10.00%
  • Global X Funds
    SHLD - US37960A5294
    10.00%

This portfolio boasts a strategic composition, heavily weighted towards ETFs that focus on momentum within the S&P 500, international high dividend yields, and specific sectors like clean energy and financial structured products. The allocation spans across a mix of stocks (85%) and bonds (15%), indicating a balanced approach towards growth and income. The diversification is further enhanced by a broad geographic and sectoral spread, aligning with the portfolio's balanced risk profile.

Growth Info

With a CAGR of 24.86% and a maximum drawdown of -12.52%, the portfolio has demonstrated strong performance. The days contributing to 90% of returns highlight the impact of significant market movements on the portfolio's gains. This performance, compared to a balanced benchmark, suggests the portfolio's strategy of focusing on momentum and high dividend yields, combined with its diversified approach, has paid off in the observed period.

Projection Info

The Monte Carlo simulation projects a wide range of outcomes, with the median scenario suggesting a potential 2,796.9% increase in value. This forward-looking analysis, while optimistic, underscores the importance of considering a range of outcomes in financial planning. It's crucial to remember, however, that such simulations are based on historical data and cannot guarantee future returns.

Asset classes Info

  • Stocks
    85%
  • Bonds
    15%
  • Cash
    0%
  • Other
    0%
  • No data
    0%

The allocation between stocks and bonds is well-suited for a balanced portfolio, offering a mix of growth potential and income. This blend aims to mitigate volatility while seeking to capitalize on market upswings. The absence of cash or alternative investments might limit flexibility or hedge opportunities, but it aligns with the portfolio's growth-oriented strategy.

Sectors Info

  • Industrials
    22%
  • Financials
    16%
  • Technology
    16%
  • Telecommunications
    6%
  • Consumer Discretionary
    6%
  • Utilities
    4%
  • Consumer Staples
    4%
  • Energy
    4%
  • Basic Materials
    3%
  • Health Care
    2%
  • Real Estate
    1%

The sectoral allocation shows a strong emphasis on industrials, financial services, and technology. This concentration could expose the portfolio to sector-specific risks but also positions it to benefit from growth in these dynamic areas. The spread across other sectors, including utilities and healthcare, provides a counterbalance, potentially reducing volatility.

Regions Info

  • North America
    54%
  • Europe Developed
    17%
  • Japan
    4%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographic distribution emphasizes North America and developed European markets, with modest exposure to emerging markets and other global regions. This allocation supports diversification while focusing on more stable, developed economies. However, the limited exposure to faster-growing emerging markets might mean missing out on higher growth opportunities.

Market capitalization Info

  • Large-cap
    31%
  • Mega-cap
    29%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization spread, with a tilt towards big and mega-cap stocks, suggests a preference for established, less volatile companies. While this may offer stability, the relatively smaller allocation to small and micro-cap stocks could limit potential for outsized gains typical of high-growth, smaller companies.

Dividends Info

  • American Century ETF Trust 2.00%
  • First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund 1.00%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.50%
  • Global X Funds 0.20%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 3.80%
  • Weighted yield (per year) 2.10%

The dividend yield of 2.10% across the portfolio contributes to its income generation, complementing capital appreciation as a source of total return. The varied yields across the ETFs reflect a balance between growth-focused investments and those providing regular income, aligning with the balanced profile of the portfolio.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund 0.57%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • Global X Funds 0.50%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.26%

With a Total Expense Ratio (TER) averaging 0.26%, the portfolio is efficiently managed in terms of costs. Keeping expenses low is crucial for enhancing long-term returns, as even small differences in fees can significantly impact investment outcomes over time.

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.

The portfolio's current configuration is closely aligned with the Efficient Frontier, suggesting an optimal balance between risk and return. Further optimization could push the expected return to 7.75% without significantly altering the risk profile, indicating room for fine-tuning to achieve even better risk-adjusted returns.

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