Growth-focused portfolio with high momentum and value exposure across major markets
Report created on Sep 25, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 65.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00% -
ID Invesco S&P International Developed Momentum ETF
IDMO - US46138E2220 15.00% -
AV Avantis® International Small Cap Value ETF
AVDV - US0250728021 5.00%
This portfolio predominantly invests in ETFs that target momentum and value strategies within the U.S. and developed international markets. With 65% allocated to a U.S. S&P 500 Momentum ETF, the focus is clearly on growth through momentum in large-cap stocks. The inclusion of small-cap value ETFs, both domestically and internationally, at 20% of the portfolio, introduces a value play, aiming to capitalize on undervalued companies with potential for appreciation. The geographic allocation heavily favors North America, which might limit global diversification but aligns with the portfolio's growth-oriented risk profile.
Growth
Historically, the portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 20.13%, though it experienced a significant maximum drawdown of -33.67%. This indicates a high growth potential but also underscores the level of risk, as evidenced by the portfolio's risk score of 5 out of 7. The days contributing to 90% of returns being concentrated in just 25 days highlights the portfolio's reliance on short periods of significant gains, typical of momentum strategies.
Projection
Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, suggest a wide dispersion in potential future returns for this portfolio. With 990 out of 1,000 simulations generating positive returns and a median projected increase of 782.2%, the analysis supports the portfolio's strong growth prospects. However, the broad spread from the 5th to 67th percentiles (116.9% to 1,157.3%) illustrates the high uncertainty and risk associated with these projections.
Asset classes
- Stocks 100%
The portfolio's allocation is entirely in stocks, with no presence in bonds, cash, or other asset classes. This singular focus on equities enhances growth potential but also increases volatility and risk, especially during market downturns. Diversifying across different asset classes could provide a buffer against stock market volatility and reduce overall portfolio risk.
Sectors
- Financials 24%
- Technology 18%
- Consumer Discretionary 15%
- Industrials 13%
- Telecommunications 11%
- Consumer Staples 7%
- Energy 4%
- Health Care 3%
- Basic Materials 2%
- Utilities 2%
- Real Estate 1%
Sector allocation reveals a heavy emphasis on Financial Services and Technology, comprising 42% of the portfolio. This concentration in sectors known for their volatility, especially technology, can lead to significant short-term swings in portfolio value. The presence of Consumer Cyclicals and Industrials also aligns with the growth focus but adds to the cyclical risk exposure.
Regions
- North America 83%
- Europe Developed 10%
- Japan 3%
- Australasia 2%
- Asia Developed 1%
- Africa/Middle East 1%
With 83% of assets in North America and minimal exposure to emerging markets, the portfolio's geographic distribution underscores a preference for developed market stability and growth potential. However, this concentration may limit exposure to high-growth opportunities in emerging economies and increase susceptibility to regional economic downturns.
Market capitalization
- Mega-cap 42%
- Large-cap 28%
- Mid-cap 12%
- Small-cap 9%
- Micro-cap 7%
The market capitalization breakdown shows a bias towards mega and big-cap stocks (70% combined), which typically offer more stability and less growth potential than smaller caps. The allocation to medium, small, and micro caps (28% combined) introduces growth potential but also adds volatility and risk to the portfolio.
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 portfolio's current composition and its alignment with the Efficient Frontier, there's room for optimization towards achieving a better risk-return ratio. Adjusting the asset allocation to introduce non-correlated assets or increasing exposure to underrepresented sectors and geographies could enhance diversification without necessarily compromising growth prospects. This approach might involve balancing the heavy emphasis on North American equities with increased allocations to emerging markets or alternative asset classes.
Dividends
- Avantis® International Small Cap Value ETF 3.50%
- Avantis® U.S. Small Cap Value ETF 1.70%
- Invesco S&P International Developed Momentum ETF 1.40%
- Invesco S&P 500® Momentum ETF 0.50%
- Weighted yield (per year) 0.96%
The portfolio's overall dividend yield is relatively low at 0.96%, reflecting the growth orientation over income generation. The higher yields from the small-cap value ETFs contribute to the portfolio's income but are overshadowed by the low yield of the large-cap momentum ETF, which is consistent with growth-focused investment strategies prioritizing capital appreciation over dividend income.
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) 0.18%
The portfolio benefits from relatively low total expenses (TER of 0.18%), which is favorable for long-term growth by minimizing the drag on returns. Keeping costs low is crucial in maximizing the compounding effect of returns, especially important in a growth-oriented strategy where every percentage point of return can significantly impact the end value.
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