A growth tilted diversified equity portfolio with momentum and value blend and moderate risk

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

Balanced Investors

This portfolio suits an investor focused on long-term capital growth who is comfortable with above-average equity risk and periodic drawdowns. Typical characteristics include a multi-year horizon of at least five to ten years, an openness to factor-tilted strategies like momentum and value, and tolerance for volatility around the mid-level range. Goals may center on wealth accumulation rather than current income, and the investor is likely willing to accept significant interim losses in pursuit of higher long-term returns. Risk tolerance is moderate-to-growth oriented, favoring active rebalancing and periodic review.

Positions

  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    17.50%
  • Invesco NASDAQ 100 ETF
    QQQM - US46138G6492
    17.50%
  • Invesco S&P 500® Quality ETF
    SPHQ - US46137V2410
    17.50%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    10.00%
  • Avantis® Emerging Markets Equity ETF
    AVEM - US0250726041
    10.00%
  • Invesco S&P International Developed Momentum ETF
    IDMO - US46138E2220
    10.00%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    8.75%
  • Invesco S&P MidCap Momentum ETF
    XMMO - US46137V4648
    8.75%

The portfolio is a 100% equity mix concentrated in eight ETFs with weights ranging from 8.75% to 17.5% and a total expense ratio around 0.23%. It blends momentum and value factor exposures with dedicated small cap and emerging market sleeves. Compared with a broad balanced benchmark that typically includes bonds and cash, this setup is much more equity oriented and factor tilted. The equity-only structure increases expected long-term returns but also raises volatility. Recommendation: consider whether the pure equity stance matches the intended risk budget and whether a small allocation to stabilizing assets would better align with a balanced profile.

Growth Info

Using a hypothetical $10,000 initial investment over a ten-year lens and the reported CAGR of 16.69% (CAGR means Compound Annual Growth Rate and shows average yearly growth like a car’s steady speed), the ending value would be roughly $46,800. The portfolio’s max drawdown of −25.2% signals meaningful cyclical declines that investors should expect. Compared with typical broad market benchmarks, the reported CAGR suggests strong historical relative performance, but higher volatility as illustrated by the drawdown. Recommendation: keep expectations balanced by preparing for sizable interim losses while aiming to capture long-term gains.

Projection Info

The Monte Carlo analysis used 1,000 simulations to model a range of possible outcomes by randomly combining historical return patterns and volatility inputs. Monte Carlo here estimates probability distributions rather than precise predictions; the 5th percentile ending value at 141.6% and median at 725.2% illustrate a wide outcome spread. Simulations indicate a high likelihood of positive returns but are sensitive to input assumptions. Recommendation: use these projections to understand outcome variability and stress scenarios, but remember simulated paths assume some historical behavior that may not repeat exactly in the future.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%
  • No data
    0%

Asset class allocation is exclusively equities with 0% in cash or fixed income which departs from conventional mixed-asset benchmarks that include bonds for stability. Being fully invested in stocks increases return potential but concentrates exposure to market cycles and equity-specific risks. This allocation can perform well in long bull markets but will likely show sharper downturns during recessions. Recommendation: if stability or capital preservation is important, consider introducing a modest allocation to low-correlation assets or cash equivalents to smooth volatility and provide dry powder for opportunistic rebalancing.

Sectors Info

  • Technology
    24%
  • Financials
    18%
  • Industrials
    16%
  • Consumer Discretionary
    11%
  • Consumer Staples
    7%
  • Telecommunications
    6%
  • Energy
    5%
  • Basic Materials
    5%
  • Health Care
    4%
  • Utilities
    2%
  • Real Estate
    1%

Sector weights show a meaningful technology tilt at 24% and sizable allocations to financial services and industrials, with real estate minimal. A tech-heavy posture often brings higher growth potential but also sensitivity to interest rate and sentiment shifts, while financials and industrials add cyclical exposure. Compared with broad market sector mixes this composition appears growth and cyclical oriented which can be a strength in expansionary periods. Recommendation: monitor sector drift and consider periodic trimming of the largest sector exposures to avoid inadvertent concentration and to maintain alignment with strategic risk targets.

Regions Info

  • North America
    72%
  • Europe Developed
    10%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Japan
    4%
  • Africa/Middle East
    2%
  • Australasia
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographic exposure is dominated by North America at 72% with the remainder split across developed Europe and small emerging market slices; Asia emerging and Japan each have modest shares. This U.S.-centric tilt aligns with many investor home-bias tendencies but reduces the portfolio’s diversification benefits from global economic cycles and currency moves. Underweight emerging markets and other regions may limit upside when non-U.S. markets outperform. Recommendation: evaluate whether incremental increases to international and emerging market allocations would improve diversification without materially changing the overall risk profile.

Market capitalization Info

  • Large-cap
    28%
  • Mega-cap
    25%
  • Mid-cap
    20%
  • Small-cap
    16%
  • Micro-cap
    10%

Market-cap exposure is reasonably diversified across mega and big caps (combined 53%) plus mid, small and micro caps making up the rest. The inclusion of small and micro caps (about 26%) increases return potential through higher growth but also heightens volatility and liquidity risk. Midcap and small cap value exposure can add long-term excess return possibilities versus cap-weighted benchmarks but may underperform during certain market regimes. Recommendation: ensure the small cap sleeve size reflects the investor’s ability to tolerate volatility and consider liquidity when sizing micro-cap exposures.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Avantis® Emerging Markets Equity ETF 2.60%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco S&P International Developed Momentum ETF 1.60%
  • Invesco NASDAQ 100 ETF 0.50%
  • Invesco S&P 500® Quality ETF 1.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • Weighted yield (per year) 1.41%

The portfolio’s blended dividend yield is about 1.41% with higher yields in some international small cap and emerging market holdings. Dividends contribute modestly to total returns here and act as a small income buffer during downturns. For investors focused on income or total return stability, a 1.41% yield is low and indicates a growth orientation rather than income generation. Recommendation: if income is a goal, consider increasing allocation to higher-yielding strategies or instruments while weighing trade-offs in growth and tax treatment.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Equity ETF 0.33%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • Invesco S&P 500® Quality ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.23%

Total expense ratio of roughly 0.23% is commendably low and supports better net returns over long horizons since fees compound against returns. TER (Total Expense Ratio) measures annual fund costs much like fuel efficiency affects a car trip; lower fees leave more return for the investor. Given multiple ETFs in the mix, cost efficiency is a positive alignment with best practices and helps maintain long-term performance. Recommendation: maintain awareness of trading costs and bid-ask spreads and consider consolidating overlapping exposures if it can reduce overall costs further without changing risk exposures significantly.

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.

The Efficient Frontier is a mean-variance concept that maps the best possible expected return for each level of portfolio risk; it helps identify the most "efficient" mixes among the current assets. Optimization here would use only the existing ETFs and adjust weights to improve the return per unit of risk, not introduce new asset types. Efficiency means the best risk-return tradeoff for the given set of choices and relies heavily on input estimates that can be unstable. Recommendation: view optimization as a useful diagnostic tool, run it periodically, and combine results with qualitative judgment about factor tilts and liquidity.

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