Balanced and diversified portfolio with a focus on momentum and high dividends

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 balance between growth and income, with a moderate risk tolerance and a long-term investment horizon. It's designed for those who prefer a diversified approach, with a mix of stable, high-dividend-paying assets and growth-oriented sectors. Ideal for investors who are comfortable with some exposure to market fluctuations but seek to mitigate extreme volatility through diversification and a focus on established markets.

Positions

  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    30.00%
  • American Century ETF Trust
    AVGV - US0250722164
    25.00%
  • Vanguard International High Dividend Yield Index Fund ETF Shares
    VYMI - US9219467944
    20.00%
  • First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
    GRID - US33737A1088
    15.00%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
    JAAA - US47103U8457
    10.00%

This portfolio is structured around five ETFs, with a strong emphasis on momentum and high-dividend yields, accounting for 90% in stocks and 10% in bonds. The allocation spans various sectors, with significant positions in Financial Services, Industrials, and Technology, indicating a blend of growth and stability. The geographic allocation is predominantly in North America and Europe, reflecting a conservative approach to international exposure. This composition suggests a strategy aiming for growth through market trends while seeking income through dividends.

Growth Info

Historically, the portfolio has shown impressive performance with a Compound Annual Growth Rate (CAGR) of 22.18% and a maximum drawdown of -15.32%. The days contributing to 90% of returns being concentrated in just 24.0 days highlights the impact of significant market movements on performance. This historical performance, while strong, should be viewed with the understanding that past results do not guarantee future outcomes.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting a potential increase of 1,345.7%. This method uses historical data to forecast future performance, providing a probabilistic range of outcomes rather than a specific return. However, it's important to note that these projections are based on past market behaviors, which may not repeat in the future.

Asset classes Info

  • Stocks
    90%
  • Bonds
    10%
  • Cash
    0%
  • Other
    0%
  • No data
    0%

The portfolio's asset class allocation is heavily skewed towards stocks (90%), with a smaller bond component (10%). This mix supports the portfolio's balanced profile but leans more towards growth, given the dominant stock allocation. This composition is suitable for investors seeking a mix of income and capital appreciation, though it may carry higher volatility than more conservative allocations.

Sectors Info

  • Financials
    19%
  • Industrials
    18%
  • Technology
    16%
  • Consumer Discretionary
    8%
  • Telecommunications
    7%
  • Utilities
    6%
  • Energy
    5%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Health Care
    3%
  • Real Estate
    1%

Sectoral allocation shows a diversified approach, with significant investments in Financial Services, Industrials, and Technology. This diversification can help mitigate sector-specific risks, but the concentration in these sectors also exposes the portfolio to sectoral trends and economic cycles. The balance between cyclical (e.g., Technology) and defensive sectors (e.g., Utilities) suggests an attempt to blend growth and stability.

Regions Info

  • North America
    54%
  • Europe Developed
    19%
  • Japan
    5%
  • Asia Developed
    4%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Latin America
    1%
  • Africa/Middle East
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (54%) and Europe (19%), with minimal exposure to emerging markets. This conservative geographic distribution aligns with the portfolio's balanced risk profile but may limit potential growth from emerging market economies. Expanding geographic diversity could enhance returns and reduce volatility over the long term.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    30%
  • Mid-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown, with a focus on Mega (32%) and Big (30%) cap stocks, underscores the portfolio's preference for established, large-scale companies. This allocation likely contributes to the portfolio's stability and resilience but may limit exposure to the higher growth potential of smaller companies. Considering a broader cap spectrum could introduce more growth opportunities.

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%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 3.80%
  • Weighted yield (per year) 2.14%

The portfolio's dividend yield stands at an average of 2.14%, with individual ETF yields ranging from 0.60% to 5.50%. This indicates a strategic focus on income generation through dividends, complementing capital growth strategies. Regular dividend income can provide a steady cash flow and mitigate volatility, aligning with the portfolio's balanced approach.

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%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.25%

With a total Expense Ratio (TER) of 0.25%, the portfolio's costs are relatively low, which is beneficial for long-term growth. Lower costs mean more of the investment's return is retained by the investor, enhancing compounding effects over time. Continuously monitoring and managing these costs is crucial for maintaining portfolio efficiency.

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 risk-return profile suggests room for optimization, with potential for achieving a 7.10% expected return at a similar risk level. This implies that adjustments in asset allocation could yield better outcomes. Regularly reviewing and adjusting the portfolio to maintain an optimal balance between risk and return is advisable.

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.