Growth-focused portfolio with high exposure to S&P 500 ETFs and Microsoft

Report created on Aug 16, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily invested in two Invesco S&P 500 ETFs, focusing on momentum and quality, and a significant position in Microsoft Corporation stock. This composition indicates a targeted approach towards companies exhibiting strong financial health and growth momentum within the S&P 500. However, the concentration in only three positions, all within the stock asset class, reflects low diversification across asset types and sectors.

Growth Info

Historically, the portfolio has demonstrated impressive growth, with a Compound Annual Growth Rate (CAGR) of 22.15%. This performance is noteworthy, considering the maximum drawdown of -30.34%, which suggests the portfolio has experienced significant volatility but has recovered well over time. The days contributing most to returns highlight the impact of short-term gains, underscoring the momentum strategy's effectiveness.

Projection Info

Using Monte Carlo simulations, the portfolio's future performance has a wide range of outcomes, with the median projection suggesting a substantial increase. However, the reliance on historical data in these simulations means future market changes, not reflected in past trends, could alter actual results. This method helps visualize potential risk and return but doesn't guarantee future outcomes.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in other asset classes like bonds or real estate. This allocation supports a growth-focused strategy but comes with higher volatility and risk. Diversifying across different asset classes could provide a buffer against stock market downturns, potentially stabilizing returns over time.

Sectors Info

  • Technology
    33%
  • Financials
    16%
  • Industrials
    13%
  • Consumer Staples
    11%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Health Care
    3%
  • Utilities
    2%
  • Energy
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation leans heavily towards technology, financial services, and industrials, with minimal exposure to healthcare, utilities, energy, real estate, and basic materials. This concentration in certain sectors, particularly technology, enhances growth potential but also increases susceptibility to sector-specific downturns.

Regions Info

  • North America
    100%

Geographic allocation is exclusively North American, missing out on potential growth opportunities and diversification benefits from developed and emerging markets outside the USA. This geographic concentration could expose the portfolio to regional economic and political risks.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    35%
  • Mid-cap
    15%

The portfolio's focus on mega and big-cap stocks aligns with its growth and quality strategy, as these companies typically offer more stability and less volatility than smaller companies. However, the absence of small-cap exposure limits potential high-growth opportunities that smaller firms could offer.

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.

Considering the portfolio's current assets, there's potential for risk vs. return optimization using the Efficient Frontier concept. This could involve adjusting allocations to find the best possible risk-return ratio. However, such optimization is based on historical data, which may not fully predict future performance but can guide adjustments towards a more efficient allocation.

Dividends Info

  • Microsoft Corporation 0.60%
  • Invesco S&P 500® Quality ETF 1.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 0.72%

The overall dividend yield of the portfolio is relatively low, reflecting its growth orientation over income generation. While dividends contribute to total returns, the focus here is clearly on capital appreciation. Investors seeking regular income might consider a higher allocation to assets with higher dividend yields.

Ongoing product costs Info

  • Invesco S&P 500® Quality ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.12%

The portfolio benefits from relatively low costs, with total expense ratios (TER) for the ETFs averaging 0.12%. Low costs are crucial for long-term growth, as they directly enhance net returns. This cost efficiency is a strong aspect of the portfolio's construction.

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