A growth-focused portfolio with strong emphasis on US equities and momentum strategies

Report created on Oct 8, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards large-cap US equities, with a 75% allocation across two S&P 500 ETFs, one focusing on the broader market and the other on momentum strategies. The remaining 25% is invested in international stocks, providing some geographic diversification. The concentration in large-cap stocks, particularly in the technology and financial services sectors, suggests a growth-oriented investment approach. However, the portfolio's diversification across sectors and geographies could be enhanced to mitigate sector-specific and regional risks.

Growth Info

The portfolio has shown a commendable Compound Annual Growth Rate (CAGR) of 17.30%, with significant returns concentrated in a few trading days. This performance indicates a strong upward trend, but it also highlights the portfolio's vulnerability to market volatility. The maximum drawdown of -33.06% underscores the potential for significant short-term losses, which investors should be prepared for, especially in growth-oriented portfolios. Comparing this performance to benchmarks could provide further insights into its relative strength.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with the median scenario suggesting a significant increase in portfolio value. These projections, while optimistic, should be approached with caution. They rely on historical data, which, as the disclaimer goes, is not a guarantee of future performance. The simulations underscore the portfolio's growth potential but also highlight the need for ongoing risk management to navigate the inherent uncertainties of the stock market.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash reserve. This allocation aligns with a growth investment strategy, aiming for higher returns at the expense of higher volatility. Given the portfolio's risk score, this heavy stock allocation is appropriate, but it may benefit from a slight increase in cash or other asset classes to improve liquidity and reduce volatility during market downturns.

Sectors Info

  • Technology
    30%
  • Financials
    17%
  • Industrials
    11%
  • Telecommunications
    10%
  • Consumer Discretionary
    9%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    3%
  • Basic Materials
    3%
  • Real Estate
    2%

The sector allocation is heavily skewed towards technology and financial services, which are known for their high growth potential but also for their volatility. While this sector concentration has likely contributed to the portfolio's strong performance, it also increases susceptibility to sector-specific downturns. Diversifying into sectors with defensive characteristics, like healthcare or consumer staples, could provide a buffer during market corrections.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is predominantly invested in North America, with limited exposure to international markets. This concentration in developed markets, particularly the US, has historically offered stable growth opportunities but also exposes the portfolio to regional economic and political risks. Increasing allocations to developed European countries, emerging markets in Asia, or other regions could enhance diversification and potentially tap into higher growth rates abroad.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    35%
  • Mid-cap
    16%
  • Small-cap
    1%

The focus on mega and big cap stocks is consistent with the portfolio's growth and risk profile, providing stability and potential for significant returns. However, the minimal exposure to small and micro-cap stocks limits opportunities for outsized gains from smaller companies. Considering a modest increase in allocation to medium or small-cap stocks could introduce more growth potential, albeit with added volatility.

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 Efficient Frontier, the portfolio shows a promising risk-return profile but may not be fully optimized. Adjustments in asset allocation could potentially achieve a better balance, enhancing returns for the given level of risk. This optimization process should be revisited periodically, especially after significant market movements, to ensure the portfolio remains aligned with the investor's goals and risk tolerance.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.38%

The portfolio's average dividend yield of 1.38% contributes to its total return, providing a steady income stream in addition to capital appreciation. The higher yield from the international fund suggests that global equities can offer attractive income opportunities. For investors seeking both growth and income, maintaining or slightly increasing the allocation to high-dividend-yielding assets could be beneficial.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, maximizing the return potential by minimizing costs. This cost efficiency is crucial for long-term growth, as even small differences in fees can significantly impact net returns over time. The portfolio's focus on low-cost ETFs is a best practice that should be maintained.

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