Globally diversified momentum and value equity mix with a strong small company tilt
Report created on Jun 2, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 35.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 35.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 15.00% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 15.00%
This portfolio is made up of four equity ETFs, split evenly between the US and international markets and between value and momentum styles. Two funds focus on smaller value companies, while the other two track momentum strategies in larger, established markets. With 100% in stocks and no bonds or cash, the structure clearly leans toward growth and higher risk. This kind of focused equity mix can capture strong returns when stock markets do well, but it also tends to move around more in market downturns. The balance between US and non‑US and between value and momentum creates several different “engines” for returns within an all‑stock framework.
Growth
One or more local-currency benchmark funds are unavailable for this report.
From late 2019 to mid‑2026, $1,000 in this portfolio grew to about $3,151, a compound annual growth rate (CAGR) of 18.84%. CAGR is like your average speed on a road trip, smoothing out all the bumps along the way. Over the same period, the global market benchmark returned 14.12% annually, so this mix outpaced it meaningfully. The worst drop, or max drawdown, was about -37.9% during early 2020, slightly deeper than the global market’s fall. The portfolio recovered in roughly five months, showing a strong rebound after the shock. Only 29 days made up 90% of total returns, highlighting how a small number of very good days drove much of the long‑term outcome.
Projection
The Monte Carlo projection uses many simulations to imagine how $1,000 might grow over 15 years based on past volatility and returns. Think of it as rolling the dice 1,000 times using historical patterns, not as a crystal ball. The median outcome lands around $2,687, with a “middle” range from about $1,779 to $4,234. The wide possible band from roughly $1,016 to $7,793 shows there’s a lot of uncertainty, even with the same underlying strategy. The average simulated annual return is 8.11%, lower than the historical figure, reflecting more conservative expectations. As always, these simulations are just educated guesses; real future markets can behave very differently from historical data.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with 0% in bonds, cash, or alternative assets. That creates a clear growth‑oriented structure with no built‑in stabilizer from fixed income. Historically, stocks have offered higher long‑term returns than bonds, but with more severe ups and downs along the way. A 100% equity allocation means the portfolio fully participates in equity market swings, both good and bad. Compared with a typical broad global index that includes some large, stable names, this portfolio’s tilt to smaller and more active styles may add an extra layer of variability. This all‑stock setup is straightforward to understand but depends heavily on equity market health over time.
Sectors
- Technology 24%
- Financials 20%
- Industrials 16%
- Consumer Discretionary 10%
- Energy 8%
- Basic Materials 7%
- Telecommunications 5%
- Health Care 4%
- Consumer Staples 4%
- Utilities 2%
- Real Estate 1%
Sector exposure is fairly diversified but has notable tilts. Technology is the largest slice at 24%, followed by financials at 20% and industrials at 16%. Other sectors like consumer discretionary, energy, and basic materials also have meaningful roles, while areas such as health care and consumer staples are smaller. Compared with many broad global benchmarks, this mix is more balanced between technology and traditional “cyclical” sectors like financials and industrials. Portfolios with sizable cyclical exposure may benefit more during strong economic growth and can feel more pressure in recessions. The presence of all major sectors, even at different weights, supports diversification across different business types and economic drivers.
Regions
- North America 73%
- Europe Developed 13%
- Japan 8%
- Africa/Middle East 2%
- Australasia 1%
- Asia Developed 1%
- Latin America 1%
Geographically, about 73% of the portfolio is in North America, with the rest spread mainly across developed markets like Europe and Japan plus small allocations to other regions. This creates a clear home‑market tilt toward the US and Canada compared with a pure global market index, where North America is usually a bit lower but still dominant. A higher North American share means results will be strongly influenced by that region’s economy, currency, and policy decisions. At the same time, the allocations to Europe, Japan, and other regions add some diversification, so trends outside North America still matter. Overall, this is a global portfolio with a pronounced North American anchor.
Market capitalization
- Small-cap 24%
- Mega-cap 23%
- Large-cap 23%
- Micro-cap 17%
- Mid-cap 13%
The market cap mix is unusual and quite diversified: about 24% small‑cap, 23% mega‑cap, 23% large‑cap, 17% micro‑cap, and 13% mid‑cap. That’s a much stronger tilt to smaller companies than a typical broad global index, which is usually dominated by large and mega‑caps. Smaller and micro‑cap companies often have more room to grow but can be less stable and more sensitive to economic shocks or liquidity issues. Larger companies tend to be more established and can offer some ballast. This barbell‑like spread from micro to mega means the portfolio captures very different parts of the corporate universe, adding both diversification and potential for higher volatility compared with a standard large‑cap‑heavy mix.
True holdings
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MU Micron Technology Inc 3.58%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
NV NVIDIA Corporation 3.01%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AV Broadcom Inc 2.54%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class A 1.73%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
AM Advanced Micro Devices Inc 1.46%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
JN Johnson & Johnson 1.38%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
GO Alphabet Inc Class C 1.37%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
LR Lam Research Corp 1.24%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
IN Intel Corporation 1.09%
Part of fund(s):- Invesco S&P 500® Momentum ETF
-
XO Exxon Mobil Corp 0.99%
Part of fund(s):- Invesco S&P 500® Momentum ETF
- Top 10 total 18.39%
Looking through the ETFs’ top holdings, there is some concentration in well‑known technology and communication names. Micron, NVIDIA, and Broadcom together account for over 9% of the covered portion, with Alphabet’s share classes and other semiconductor firms adding more. Because only top‑10 positions are shown, actual overlap is likely broader than what appears here. When the same companies appear in multiple funds, their influence on returns and risk becomes larger than any single ETF weight might suggest. This hidden concentration is especially relevant in sectors that can move sharply, like semiconductors. Still, the presence of staples like Johnson & Johnson and energy names such as Exxon Mobil adds some variety within the look‑through list.
Factors
Factor exposure shows strong tilts toward value at 72% and size at 64%, while momentum, quality, yield, and low volatility sit near neutral. Factors are simply characteristics, like “cheap versus expensive” (value) or “small versus big” (size), that research links to long‑term return patterns. A high value tilt means the portfolio leans toward companies trading at lower prices relative to fundamentals, which can outperform after periods when growth stocks dominate but may lag during strong growth stock rallies. The high size score reflects a tilt toward smaller companies, which historically can outperform over very long periods but usually come with bumpier rides. Neutral scores in other factors suggest the portfolio’s main “personality” comes from its value and small‑cap focus.
Risk contribution
-
Avantis® U.S. Small Cap Value ETF
Weight: 35.00% 42.7% -
Invesco S&P 500® Momentum ETF
Weight: 35.00% 32.7% -
Invesco S&P International Developed Momentum ETF
Weight: 15.00% 12.3% -
Avantis® International Small Cap Value ETF
Weight: 15.00% 12.2%
Risk contribution measures how much each holding drives the portfolio’s overall ups and downs, which can differ from raw weight. The US Small Cap Value ETF is 35% of the portfolio but contributes about 42.7% of total risk, with a risk‑to‑weight ratio of 1.22. That means it punches above its weight in volatility. The S&P 500 Momentum ETF, also at 35%, contributes around 32.7% of risk, slightly less than its share. Each 15% international ETF adds a bit over 12% of risk. Altogether, the top three positions account for nearly 88% of volatility. This pattern shows that while allocation is spread across four funds, one small‑cap value position is the main driver of portfolio swings.
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.
The efficient frontier analysis compares the current mix with the best possible combinations of these same four ETFs. The current portfolio has a Sharpe ratio of 0.75, while the optimal mix reaches 1.02 and the minimum‑variance option comes in at 0.91. The Sharpe ratio is a simple way to measure risk‑adjusted return: how much extra return you get for each unit of risk above a risk‑free rate. Being about 2.67 percentage points below the frontier at the current risk level suggests the portfolio isn’t using these holdings in the most efficient proportions. In plain terms, different weights among the same four ETFs could historically have offered either higher return for similar risk or similar return with less volatility.
Dividends
- Avantis® International Small Cap Value ETF 2.70%
- Avantis® U.S. Small Cap Value ETF 1.30%
- Invesco S&P International Developed Momentum ETF 3.50%
- Invesco S&P 500® Momentum ETF 0.70%
- Weighted yield (per year) 1.63%
The blended dividend yield is about 1.63%, which is modest compared with traditional income‑focused portfolios but typical for growth‑leaning equity mixes. Dividend yield is the annual cash payout from holdings as a percentage of the portfolio’s value. Here, the highest‑yielding ETF is the international developed momentum fund at 3.5%, while the US momentum ETF yields just 0.7%. The value‑oriented small‑cap funds sit in between. This pattern suggests that most of the portfolio’s historical return has come from price growth rather than income. For investors tracking cash flow, the yield provides some support, but it’s not the main feature; the strategy is primarily about capital appreciation over time.
Ongoing product costs
- Avantis® International Small Cap Value ETF 0.36%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Invesco S&P International Developed Momentum ETF 0.25%
- Invesco S&P 500® Momentum ETF 0.13%
- Weighted costs total (per year) 0.22%
The overall cost, measured by the total expense ratio (TER), is a low 0.22% per year across all holdings. TER is the annual fee charged by funds as a percentage of assets, quietly deducted inside the ETF. Individual fund costs range from 0.13% to 0.36%, with the cheapest being the S&P 500 Momentum ETF. These levels are competitive for factor and small‑cap strategies, which often charge more than plain‑vanilla index funds. Low ongoing costs matter because they compound over time: every 0.1% saved each year is money that stays invested. Here, the fee drag is modest, which supports better long‑term net returns relative to higher‑cost approaches using similar building blocks.
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