A balanced and moderately diversified portfolio with a strategic focus on momentum and value

Report created on Aug 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is strategically composed of 90% stocks and 10% bonds and cash, showcasing a balanced approach between growth and stability. The significant allocation towards ETFs focusing on U.S. small-cap value and S&P 500 momentum, alongside international developed momentum, suggests an emphasis on capturing growth through market trends and value investing. The minor allocations to a BBB-B rated CLO ETF and a senior loan ETF introduce income-generating assets with higher yields, albeit with a different risk profile compared to traditional bonds.

Growth Info

Historically, the portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 20.32%, with a maximum drawdown of -17.76%. The concentration on momentum and value strategies has evidently paid off, though it's important to note that past performance does not guarantee future results. The days contributing to 90% of returns being limited suggests significant gains were achieved in relatively few trading sessions, highlighting the portfolio's vulnerability to market timing and volatility.

Projection Info

Using Monte Carlo simulations, which forecast potential outcomes based on historical data, the portfolio shows a wide range of possible future performances. With all simulations yielding positive returns and a median projected increase of 862.9%, the outlook appears optimistic. However, these projections carry limitations, as they cannot account for unforeseen market shifts or economic events, emphasizing the need for ongoing review and adjustment.

Asset classes Info

  • Stocks
    90%
  • Bonds
    9%
  • Cash
    1%

The allocation across asset classes with a dominant stock position aligns with the portfolio's balanced risk profile, aiming for growth while mitigating volatility through a smaller bond and cash component. This mix supports a strategy focused on long-term capital appreciation, with the bond allocation providing a cushion against stock market fluctuations.

Sectors Info

  • Financials
    25%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Technology
    12%
  • Telecommunications
    7%
  • Energy
    6%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Health Care
    3%
  • Utilities
    1%
  • Real Estate
    1%

Sectoral allocations reveal a diversified yet focused investment strategy, with significant positions in financial services, industrials, consumer cyclicals, and technology. This sector distribution reflects a pursuit of growth opportunities across a broad economic spectrum, while also exposing the portfolio to sector-specific risks and potential volatility.

Regions Info

  • North America
    73%
  • Europe Developed
    11%
  • Japan
    2%
  • Australasia
    2%
  • Asia Developed
    1%

Geographically, the portfolio is heavily weighted towards North America (73%), with modest exposure to developed European markets and minimal allocations to Japan, Australasia, and Asia Developed. This concentration in developed markets, particularly the U.S., aligns with the portfolio's risk and return objectives but may limit global diversification benefits and exposure to emerging market growth.

Market capitalization Info

  • Mega-cap
    31%
  • Micro-cap
    18%
  • Large-cap
    18%
  • Small-cap
    16%
  • Mid-cap
    6%

Market capitalization exposure demonstrates a balanced approach, with investments spread across mega, micro, big, small, and medium-cap stocks. This diversification can help mitigate risk, as different market caps respond uniquely to economic cycles. However, the tilt towards smaller caps, known for their higher growth potential and volatility, aligns with the portfolio's growth-oriented strategy.

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.

Risk-return optimization analysis suggests that the portfolio could achieve a more efficient balance with an expected return of 10.19% at a slightly reduced risk level of 3.09. This indicates room for improvement in asset allocation to enhance the portfolio's risk-adjusted performance without necessarily increasing exposure to volatility.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Panagram Bbb-B Clo ETF 8.20%
  • Invesco S&P International Developed Momentum ETF 1.90%
  • Invesco S&P 500® Momentum ETF 0.60%
  • SPDR Blackstone Senior Loan ETF 8.00%
  • Weighted yield (per year) 2.00%

The dividend yield, averaging at 2.00%, contributes to the portfolio's total returns, blending growth and income elements. The higher yields from the CLO and senior loan ETFs enhance income generation, albeit with a higher risk profile compared to traditional dividend-paying stocks or bonds.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Panagram Bbb-B Clo ETF 0.51%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • SPDR Blackstone Senior Loan ETF 0.70%
  • Weighted costs total (per year) 0.24%

The portfolio's total expense ratio (TER) of 0.24% is relatively low, enhancing net returns over time. Keeping costs in check is crucial for long-term investment success, as even small differences in fees can significantly impact compounded returns.

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