Balanced portfolio with a strong focus on momentum strategies and moderate diversification
Report created on Nov 24, 2025Risk profile
4/7
Diversification profile
3/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 60.00% -
AV American Century ETF Trust
AVGV - US0250722164 20.00% -
JA Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
JAAA - US47103U8457 20.00%
The portfolio is heavily concentrated in ETFs, with 60% allocated to the Invesco S&P 500® Momentum ETF, showcasing a strong preference for momentum investing strategies. The remaining 40% is divided equally between the American Century ETF Trust and the Janus Detroit Street Trust - Janus Henderson AAA CLO ETF, indicating an interest in diversified American equities and collateralized loan obligations (CLOs). This composition suggests a strategy that leans towards higher-risk, higher-reward assets within a balanced risk framework.
Growth
With a Compound Annual Growth Rate (CAGR) of 24.32% and a maximum drawdown of -16.46%, the portfolio has demonstrated robust growth potential while maintaining a relatively moderate level of risk. The days contributing to 90% of the returns highlight the portfolio's sensitivity to market momentum, emphasizing the importance of timing in the investment strategy. When compared to benchmark indices, this performance indicates a successful navigation of market volatilities, likely benefiting from the momentum strategy's ability to capitalize on trends.
Projection
Monte Carlo simulations, which use historical data to forecast various portfolio outcomes, project a wide range of future returns for this portfolio. With all simulations showing positive returns and a median projected increase of 1,161.7%, the analysis suggests strong growth potential. However, it's crucial to remember that these projections are speculative and depend heavily on past market behaviors repeating in the future, which is never guaranteed.
Asset classes
- Stocks 80%
- Bonds 20%
The portfolio's asset allocation is 80% stocks and 20% bonds, with no cash or other asset classes represented. This allocation aligns with a balanced but growth-oriented investment strategy, offering a mix of high-growth potential through equities and stability through bonds. However, the absence of cash or alternative investments might limit flexibility and risk mitigation in rapidly changing markets.
Sectors
- Technology 24%
- Financials 16%
- Telecommunications 10%
- Industrials 10%
- Consumer Discretionary 6%
- Consumer Staples 4%
- Energy 3%
- Health Care 2%
- Utilities 2%
- Basic Materials 2%
- Real Estate 1%
Sector allocation is broadly diversified across technology, financial services, and communication services, among others, with technology taking the lead at 24%. This tech-heavy focus may increase the portfolio's exposure to sector-specific risks, such as regulatory changes or market sentiment shifts. However, it also positions the portfolio to benefit from the growth potential of tech companies.
Regions
- North America 73%
- Europe Developed 3%
- Japan 1%
- Asia Emerging 1%
- Asia Developed 1%
Geographically, the portfolio is heavily concentrated in North America (73%), with minimal exposure to developed Europe, Japan, and emerging Asian markets. This concentration enhances exposure to the US economy's growth potential but may limit global diversification benefits, potentially increasing vulnerability to region-specific economic downturns or geopolitical events.
Market capitalization
- Large-cap 29%
- Mega-cap 29%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 2%
The portfolio's market capitalization exposure is balanced between big (29%) and mega (29%) cap stocks, with a smaller allocation to medium, small, and micro caps. This distribution suggests a focus on established, large-scale companies, likely aiming for stability and predictable growth. However, the limited exposure to smaller companies may restrict opportunities for higher returns associated with emerging businesses.
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 portfolio's current expected return, based on the Efficient Frontier analysis, suggests there is room for optimization without increasing risk. By adjusting the asset allocation to achieve an expected return of 7.03% with a risk level of 1.37%, the portfolio can potentially enhance its risk-return profile. This optimization process focuses on reallocating investments to maximize returns for a given level of risk, illustrating the importance of continuous portfolio review and adjustment.
Dividends
- American Century ETF Trust 2.10%
- Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.50%
- Invesco S&P 500® Momentum ETF 0.70%
- Weighted yield (per year) 1.94%
The portfolio's overall dividend yield of 1.94% contributes to its total return, with the Janus Henderson AAA CLO ETF offering a notably high yield of 5.50%. This diversified approach to income generation, combining lower-yield momentum strategies with higher-yield CLOs, provides a balanced income stream while still allowing for significant capital appreciation.
Ongoing product costs
- American Century ETF Trust 0.26%
- Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
- Invesco S&P 500® Momentum ETF 0.13%
- Weighted costs total (per year) 0.17%
The total expense ratio (TER) of 0.17% is impressively low, especially considering the diversified strategies and asset classes within the portfolio. Keeping costs minimized is crucial for long-term investment success, as even small differences in fees can significantly impact net returns over time. This portfolio's cost efficiency is a strong point, supporting better performance outcomes.
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