A dynamic growth-focused portfolio with a high concentration in US small-cap and momentum stocks

Report created on Jul 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is uniquely structured, evenly split between the Avantis® U.S. Small Cap Value ETF and the Invesco S&P 500® Momentum ETF. This composition indicates a strategic focus on growth through small-cap value and large-cap momentum stocks, which can offer higher potential returns but come with increased volatility. The concentration in just two ETFs suggests a targeted investment approach but raises concerns about diversification, as it exposes the portfolio to specific market segments without the buffer of broader asset class representation.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 19.23% and a historical maximum drawdown of -38.55%, the portfolio has demonstrated strong growth potential. However, the significant drawdown highlights the inherent risks of a growth-oriented strategy, especially one focused on specific market segments. The days contributing most to returns suggest that performance is heavily reliant on short, sharp market movements, typical of high-volatility investments.

Projection Info

Monte Carlo simulations, based on 1,000 iterations, project a wide range of outcomes, with the median scenario suggesting an 852.2% return. This optimistic projection is tempered by the realization that a small percentage of simulations result in less favorable outcomes. Such projections emphasize the uncertainty and risk in high-growth strategies, underscoring the importance of understanding the potential for significant fluctuations in portfolio value.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no representation from other asset classes like bonds or real estate. This allocation supports a high-growth strategy but lacks the diversification benefits that other asset classes can provide, particularly in terms of reducing volatility and protecting against market downturns.

Sectors Info

  • Financials
    24%
  • Consumer Discretionary
    16%
  • Technology
    15%
  • Industrials
    13%
  • Telecommunications
    9%
  • Energy
    8%
  • Consumer Staples
    7%
  • Basic Materials
    3%
  • Health Care
    3%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation is diverse within the stock component, spanning financial services, consumer cyclicals, technology, and more. This sector spread can mitigate some risks associated with a stock-only portfolio. However, the heavy emphasis on financial services and technology sectors could expose the portfolio to sector-specific risks, such as regulatory changes or rapid technological shifts.

Regions Info

  • North America
    99%
  • Latin America
    1%

With 99% of assets allocated to North America, the portfolio's geographic exposure is highly concentrated. This focus on the US market can offer substantial growth opportunities, particularly in the technology and consumer sectors. However, it also limits exposure to global growth dynamics and diversification benefits that international markets might provide.

Market capitalization Info

  • Mega-cap
    27%
  • Micro-cap
    26%
  • Small-cap
    23%
  • Large-cap
    18%
  • Mid-cap
    6%

The market capitalization breakdown shows a balanced exposure across mega, micro, small, and big cap stocks, with a slight emphasis on smaller companies. This balance can offer a mix of stability from larger companies and growth potential from smaller firms, though the focus on smaller caps tends to increase overall portfolio 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.

The current portfolio's expected return is slightly below the optimal level that could be achieved with the same risk level. Optimization suggests a potential for a slight increase in expected return to 21.64% without altering the portfolio's overall risk profile. This indicates room for improvement in allocation to enhance returns without additional risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.15%

The portfolio's dividend yield of 1.15% contributes to its total return, combining growth and income. However, the focus on growth-oriented ETFs means dividends are not the primary goal. Investors should consider whether the trade-off between growth potential and regular income aligns with their financial objectives.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.19%

The total expense ratio (TER) of 0.19% is relatively low, which is beneficial for long-term growth as it minimizes the drag on returns. Keeping costs low is crucial for maximizing the compounding effect, especially important in a growth-focused strategy like this one.

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