A cautiously diversified portfolio with a strong emphasis on momentum and high-dividend yields
Report created on Nov 24, 2025Risk profile
3/7
Diversification profile
5/5
Positions
-
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 45.00% -
AV American Century ETF Trust
AVGV - US0250722164 20.00% -
JA Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
JAAA - US47103U8457 20.00% -
VY Vanguard International High Dividend Yield Index Fund ETF Shares
VYMI - US9219467944 15.00%
This portfolio is characterized by its significant allocation to ETFs across various sectors and geographies, with a 45% weighting in the Invesco S&P 500® Momentum ETF, highlighting a focus on momentum investing. The inclusion of the American Century ETF Trust and the Janus Detroit Street Trust - Janus Henderson AAA CLO ETF, each with a 20% allocation, alongside the Vanguard International High Dividend Yield Index Fund ETF Shares at 15%, indicates a blend of high-dividend and credit strategies. This composition suggests a strategy aimed at balancing growth through momentum stocks and income through dividends and credit instruments, within a framework of cautious risk tolerance.
Growth
Historically, this portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 22.13%, with a maximum drawdown of -14.92%. This performance, coupled with the fact that a significant portion of returns came from a limited number of days, suggests a high degree of volatility and concentration risk. However, this volatility has been rewarded with strong growth over the analyzed period. It's important to note that past performance is not indicative of future results, and such high returns may not be sustainable in different market conditions.
Projection
The Monte Carlo simulation, which uses historical data to forecast potential future outcomes, suggests a wide range of possible portfolio values. With all simulations showing positive returns and a median projected growth of 1,167.9%, the forward-looking outlook appears optimistic. However, it's crucial to understand that these projections are hypothetical and subject to the limitations of past data, which may not accurately predict future market behaviors.
Asset classes
- Stocks 80%
- Bonds 20%
The portfolio's asset allocation is 80% in stocks and 20% in bonds, with no allocation to cash or other asset classes. This allocation supports a growth-oriented strategy while providing some level of income and risk mitigation through bonds. The absence of cash or alternative investments might limit flexibility and diversification, potentially increasing exposure to market volatility. Considering the cautious risk profile, a slight adjustment to include more non-correlated assets could enhance risk management.
Sectors
- Financials 19%
- Technology 19%
- Industrials 9%
- Telecommunications 9%
- Consumer Discretionary 6%
- Consumer Staples 5%
- Energy 4%
- Health Care 3%
- Utilities 3%
- Basic Materials 3%
- Real Estate 1%
The sectoral distribution is well-diversified across financial services and technology (each representing 19%), followed by industrials and communication services. This diversification helps mitigate sector-specific risks but also reflects a significant exposure to sectors that can be highly sensitive to economic cycles. Given the current composition, there may be opportunities to rebalance sector allocations to align more closely with a cautious risk profile, especially considering potential volatility in tech and financial sectors.
Regions
- North America 59%
- Europe Developed 9%
- Japan 4%
- Asia Emerging 3%
- Asia Developed 2%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is heavily weighted towards North America (59%), with modest exposure to developed Europe and Japan, and minimal allocations to emerging markets. This concentration in developed markets, particularly North America, may offer stability but limits exposure to potentially higher growth opportunities in emerging markets. Diversifying more into emerging and frontier markets could offer better growth prospects and risk dispersion.
Market capitalization
- Mega-cap 30%
- Large-cap 28%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 2%
The market capitalization breakdown shows a preference for mega and big-cap stocks, which comprise 58% of the portfolio. This bias towards larger companies may offer stability and lower volatility but can also limit growth potential compared to medium or small-cap investments. Given the cautious risk profile, this allocation is appropriate, though a slight increase in exposure to medium-cap companies could enhance growth prospects without significantly increasing risk.
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 is below the optimal level that could be achieved with the same risk level, according to the Efficient Frontier analysis. This suggests there's room for improvement in reallocating assets to maximize returns for the given risk. Adjusting the portfolio to reach an expected return of 7.04% with a risk level of 1.37% could enhance performance without significantly altering the investor's risk tolerance.
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%
- Vanguard International High Dividend Yield Index Fund ETF Shares 3.90%
- Weighted yield (per year) 2.42%
Dividend yields across the ETFs contribute to the portfolio's income, with an overall yield of 2.42%. The Janus Detroit Street Trust - Janus Henderson AAA CLO ETF stands out with a 5.50% yield, indicating a significant income component. This income generation is a positive aspect for investors seeking regular cash flow, in addition to capital appreciation. However, it's essential to balance the pursuit of high dividends with the overall growth strategy and risk profile.
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%
- Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
- Weighted costs total (per year) 0.19%
The total expense ratio (TER) of 0.19% for the portfolio is impressively low, especially given the diversified exposure across various ETFs. This cost efficiency supports better net returns over the long term. Investors should continue to monitor fund expenses, as even small differences in fees can have a significant impact on long-term growth.
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