A growth focused equity portfolio tilting to small value and momentum factors with strong US bias

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This structure suits an investor with above‑average risk tolerance, a long time horizon, and clear growth‑oriented goals. Typical objectives might include building substantial wealth for retirement, funding long‑term education costs, or growing a legacy over decades rather than years. Short‑term portfolio swings, including temporary drops of 30% or more, must be emotionally and financially tolerable. This personality is comfortable with an equity‑only approach and understands that higher expected returns come with higher volatility and uncertainty. Patience, discipline, and a willingness to stay invested during market stress are key traits, as is holding separate liquid reserves so that long‑term investments do not need to be sold during downturns.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    50.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    15.00%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    15.00%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    10.00%
  • Invesco S&P International Developed Momentum ETF
    IDMO - US46138E2220
    10.00%

This portfolio is a pure equity mix, with half in a broad large‑cap index and the rest in small value and momentum tilts across US and developed international markets. Compared with a simple market‑cap index, it is more concentrated in equities and factor tilts, with no stabilizing bonds or cash. That structure aims at higher long‑term growth but accepts larger swings in value. Someone using this setup could consider whether all‑equity exposure matches their need for short‑term liquidity and comfort with big drawdowns, possibly holding any safety buffer separately in cash or low‑risk accounts rather than inside this portfolio.

Growth Info

Historically, this mix shows a very strong compound annual growth rate (CAGR) of 17.5%. CAGR is like your average speed on a long trip, smoothing out good and bad years. A $10,000 starting value growing at 17.5% for 10 years would hypothetically reach around $50,000, versus roughly $28,000 at 10% per year. The max drawdown of about –35% shows that at some point a $100,000 balance could have dropped to around $65,000. This combination of strong growth and deep drops fits a growth‑oriented profile, but it’s crucial to remember that past performance cannot guarantee similar future results in different market conditions.

Projection Info

The Monte Carlo analysis runs 1,000 simulated futures using patterns from historical returns to estimate a range of possible outcomes. It shows a median (50th percentile) end value of about 802%, meaning $10,000 could hypothetically grow to $80,000 in the mid‑scenario, with a 5th percentile still positive around 121.7%. The average annualized return across simulations, roughly 19.4%, looks very strong but is based on historical behavior that may not repeat. Simulations are best viewed as rough weather forecasts, not promises. An investor using these numbers might set optimistic but realistic expectations and make sure their savings rate and time horizon can handle wide result ranges.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%

All assets here are stocks, with 0% in bonds, cash, or alternatives. Compared with many growth benchmarks, which often keep a modest bond share for stability, this is an all‑in approach on equity markets. That can be attractive for long horizons because stocks historically delivered higher returns than bonds, but it also means no built‑in cushion when markets fall sharply. This 100% stock stance is well‑aligned with an aggressive growth style. To keep it workable, someone using a setup like this might pair it with separate emergency savings and avoid needing this money for short‑term spending, so they aren’t forced to sell during downturns.

Sectors Info

  • Technology
    26%
  • Financials
    20%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    8%
  • Health Care
    6%
  • Energy
    5%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is broad across 11 sectors, with notable weights in technology, financials, industrials, and consumer cyclicals, closely reflecting diversified benchmarks. This spread is positive because it avoids betting too heavily on a single area of the economy. At the same time, technology at 26% and financial services at 20% mean swings in those areas will significantly influence overall returns. Tech‑heavy and cyclical tilts can feel more volatile during interest‑rate changes or economic slowdowns. The sector mix here is generally well‑balanced and aligns closely with global standards, which supports diversification while still letting the chosen factor ETFs (value and momentum) express their strengths across multiple industries.

Regions Info

  • North America
    83%
  • Europe Developed
    10%
  • Japan
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Asia Developed
    1%
  • Asia Emerging
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographically, around 83% is in North America, with modest exposures to Europe, Japan, and small slices of other developed regions, and almost no emerging markets. This heavy US tilt has been rewarding over the last decade because US markets outperformed many peers. However, that same concentration increases vulnerability if US stocks lag or face structural challenges. Common global benchmarks usually hold a larger share outside the US, so this portfolio is more home‑biased than “world market” norms. This allocation is still moderately diversified internationally, but someone wanting broader global balance could consider increasing non‑US developed and possibly selective emerging‑market exposure over time.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    27%
  • Mid-cap
    17%
  • Small-cap
    11%
  • Micro-cap
    8%

The market‑capitalization mix ranges from mega‑caps down to micro‑caps: roughly 35% mega, 27% big, 17% medium, 11% small, and 8% micro. This is more tilted toward smaller companies than a standard large‑cap index, which is intentional given the small‑cap value ETFs. Smaller and micro‑cap companies can offer higher long‑term growth potential but also tend to be bumpier, with bigger price swings and sometimes sharper declines in recessions. This spread across company sizes is a strength for diversification, since different size segments lead at different times. To keep this tilt comfortable, it can help to mentally prepare for more volatility than a plain large‑cap index and commit to staying invested through rough periods.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco S&P International Developed Momentum ETF 1.60%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 1.37%

The overall dividend yield of roughly 1.37% is modest, with higher payouts from international small value and lower yields from momentum and large‑cap growth‑oriented holdings. Dividends are cash payments from companies and can provide a small, steady return stream, but for growth investors, total return (price gains plus dividends) usually matters more. This yield level is consistent with a focus on equities tilted toward smaller and more dynamic firms rather than high‑payout income stocks. For someone reinvesting dividends, the compounding effect over time can still be meaningful. This setup fits investors who prioritize long‑term appreciation and are comfortable not relying on this portfolio for significant current income.

Ongoing product costs Info

  • 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%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.13%

The blended ongoing cost (Total TER) of about 0.13% per year is impressively low for a portfolio that uses factor‑tilted and international ETFs. TER, or total expense ratio, is like a small annual membership fee charged as a percentage of assets. Lower costs leave more of the return in the investor’s pocket, and over decades even tiny differences compound significantly. Here the broad US index ETF is extremely cheap, and the more specialized funds are reasonably priced for what they offer. The costs are impressively low, supporting better long‑term performance, so there is little pressure to change products purely for fee reasons as long as they continue to match the intended strategy.

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.

From a risk‑return perspective, this portfolio could likely be placed near the upper area of the Efficient Frontier, which is the set of portfolios that give the best possible return for each risk level using the existing building blocks. Efficiency here refers only to the trade‑off between volatility and expected return, not to diversification, taxes, or personal comfort. Shifting weights among the current ETFs could slightly reduce volatility or enhance expected returns, but any move would still keep it firmly in growth territory because all holdings are equities. Someone using this mix could revisit the balance between the core broad index and the tilts if they want to fine‑tune how aggressive or factor‑heavy the strategy feels.

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