A growth-focused portfolio with a strong emphasis on momentum and value across US and international markets

Report created on Aug 23, 2025

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.

Positions

The portfolio is notably concentrated in stocks, with a significant 60% allocation to the Invesco S&P 500® Momentum ETF, complemented by 20% allocations each to the Avantis® International Small Cap Value ETF and Avantis® U.S. Small Cap Value ETF. This composition underscores a growth-oriented strategy, leveraging momentum within the S&P 500 alongside value plays in both U.S. and international small-cap sectors. While the focus on stocks exclusively enhances potential for high returns, it also introduces higher volatility and risk, particularly given the substantial weight in momentum stocks.

Growth Info

Historical performance showcases a compelling Compound Annual Growth Rate (CAGR) of 19.39%, though it's accompanied by a significant maximum drawdown of -35.69%. This volatility is indicative of the portfolio's growth profile, where periods of high returns are often offset by notable declines. The concentration in momentum and small-cap value stocks, while beneficial in bull markets, can lead to pronounced losses during downturns. Investors should consider whether the potential for high returns aligns with their risk tolerance and investment horizon.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 747.6% and a notable 989 out of 1,000 simulations yielding positive returns. This suggests a high likelihood of favorable outcomes over the long term, but the significant spread between the 5th and 67th percentiles highlights the inherent uncertainty and risk. These projections, while useful, are based on historical data and cannot guarantee future performance. Investors should use them as one of several tools in decision-making.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no exposure to bonds, cash, or alternative asset classes. This singular focus on equities maximizes growth potential but also increases risk, particularly in volatile markets. Diversifying across different asset classes can provide a buffer against stock market downturns and reduce overall portfolio volatility.

Sectors Info

  • Financials
    20%
  • Technology
    17%
  • Consumer Discretionary
    16%
  • Industrials
    14%
  • Telecommunications
    10%
  • Consumer Staples
    7%
  • Energy
    6%
  • Basic Materials
    5%
  • Health Care
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation shows a balanced spread across financial services, technology, consumer cyclicals, and industrials, among others. This diversification within the equity component can help mitigate sector-specific risks. However, the portfolio's performance may be more sensitive to market swings in these sectors, especially given the high allocation to sectors like technology and financial services, which can be volatile.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Japan
    7%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Asia Developed
    1%

Geographically, the portfolio is heavily weighted towards North America (81%), with modest exposure to developed markets in Europe and Japan. The limited presence in emerging markets and other regions may reduce potential geographic diversification benefits. Expanding into emerging markets could offer growth opportunities and further diversification, albeit with increased risk.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    20%
  • Mid-cap
    18%
  • Small-cap
    17%
  • Micro-cap
    11%

The market capitalization breakdown reveals a mix of mega, big, medium, small, and micro-cap stocks. This variety supports diversification and potential for outperformance in different market conditions. However, the emphasis on smaller cap stocks, while potentially offering higher growth, also increases risk due to their higher volatility compared to larger, more established companies.

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 Efficient Frontier, the current portfolio might not be fully optimized for the best risk-return ratio due to its heavy reliance on equities and specific sectors. Adjusting the allocation to include more asset classes and diversifying further geographically and by market capitalization could potentially enhance returns for the same level of risk or achieve a similar return with reduced risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.60%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.42%

The dividend yield across the portfolio averages to 1.42%, with the highest yield from the Avantis® International Small Cap Value ETF at 3.60%. While dividends contribute to total return, the portfolio's focus is clearly on capital appreciation. Investors seeking income alongside growth may need to adjust allocations or consider additional income-generating assets.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.20%

The total expense ratio (TER) of 0.20% is relatively low, which is beneficial for long-term growth as costs can significantly impact net returns over time. Keeping investment costs low is a critical component of maximizing returns, especially in a growth-oriented portfolio where the compound effect of costs can be substantial.

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