Balanced and broadly diversified portfolio with a strong focus on technology and global equities

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 seeking balanced growth with a moderate risk tolerance and a long-term investment horizon. It's ideal for individuals comfortable with stock market fluctuations and looking to capitalize on growth opportunities, particularly in the technology sector and developed markets. The investor likely values diversification but is also willing to accept higher volatility for the potential of above-average returns.

Positions

  • iShares Core S&P 500 UCITS ETF USD (Acc)
    SXR8 - IE00B5BMR087
    40.00%
  • Amundi Stoxx Europe 600 UCITS ETF C EUR
    LYP6 - LU0908500753
    20.00%
  • iShares Core MSCI Emerging Markets IMI UCITS
    IS3N - IE00BKM4GZ66
    10.00%
  • VanEck Semiconductor UCITS ETF
    VVSM - IE00BMC38736
    8.00%
  • iShares Physical Gold ETC EUR
    PPFB - IE00B4ND3602
    5.00%
  • Xtrackers MSCI World Information Technology UCITS ETF 1C
    XDWT - IE00BM67HT60
    5.00%
  • HANetf ICAV - Future of Defence UCITS ETF - Accumulating EUR
    ASWC - IE000OJ5TQP4
    4.00%
  • Lyxor UCITS Stoxx Banks C-EUR
    LYBK - LU1829219390
    3.00%
  • VanEck Uranium and Nuclear Technologies UCITS ETF A USD Acc EUR
    NUKL - IE000M7V94E1
    3.00%
  • L&G Gold Mining UCITS ETF
    ETLX - IE00B3CNHG25
    2.00%

This portfolio showcases a strategic blend of asset classes, primarily focused on stocks (95%) with a modest allocation to other assets (5%). The dominant position is in the iShares Core S&P 500 UCITS ETF, making up 40% of the portfolio, which underscores a significant tilt towards North American equities. The diversification across ten sectors, with technology leading at 32%, indicates a growth-oriented approach. However, the absence of more conservative asset classes like bonds or cash equivalents suggests a balanced but growth-leaning risk profile.

Growth Info

Historically, the portfolio has exhibited strong performance with a Compound Annual Growth Rate (CAGR) of 19.45%. The maximum drawdown of -19.61% reflects resilience during market downturns, which is commendable. However, it's important to note that a significant portion of returns came from a limited number of days, highlighting the impact of market volatility. This historical performance, while impressive, should be viewed with caution as past success is not a guaranteed indicator of future results.

Projection Info

The Monte Carlo simulation, using 1,000 iterations, projects a wide range of outcomes, with a median potential growth of 3,533.9% over the simulation period. This suggests considerable upside potential but also underscores the inherent uncertainty in financial markets. Such simulations are useful for understanding possible future scenarios but should be interpreted as one of many tools, not a precise forecast, due to their reliance on historical data and assumptions.

Asset classes Info

  • Stocks
    95%
  • Other
    5%
  • Cash
    0%
  • No data
    0%

The portfolio's heavy allocation to stocks, at 95%, positions it for potential high growth but also exposes it to market volatility. The remaining 5% in 'other' assets, including commodities like gold, provides some diversification but may not significantly mitigate risk during market downturns. Diversifying across different asset classes, including bonds or real estate, could offer better risk-adjusted returns, especially for investors with a balanced risk profile.

Sectors Info

  • Technology
    32%
  • Financials
    15%
  • Industrials
    12%
  • Consumer Discretionary
    7%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    2%
  • Real Estate
    1%

The sector allocation reveals a strong emphasis on technology, financial services, and industrials, which are sectors typically associated with growth but also higher volatility. This concentration aligns with the portfolio's growth objectives but may increase susceptibility to sector-specific risks. Broadening exposure to include more defensive sectors like healthcare or consumer staples could enhance stability without drastically compromising growth potential.

Regions Info

  • North America
    57%
  • Europe Developed
    25%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Africa/Middle East
    2%
  • Japan
    1%
  • Latin America
    1%
  • Europe Emerging
    0%
  • Australasia
    0%

With 57% allocated to North America and 25% to developed Europe, the portfolio has a solid foundation in stable, developed markets. The inclusion of emerging markets at 10% introduces growth opportunities but also additional risk. Expanding geographic diversity, particularly in underrepresented areas like Asia Developed or Australasia, could provide a more balanced exposure to global economic trends and reduce regional concentration risks.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    2%
  • Micro-cap
    0%

The portfolio's emphasis on mega (43%) and big (33%) cap stocks is indicative of a preference for established, potentially less volatile companies. However, the relatively small allocation to medium (16%), small (2%), and micro (0%) cap stocks limits exposure to high-growth potential firms. Incrementally increasing investments in smaller companies could enhance growth prospects, albeit with increased risk.

Ongoing product costs Info

  • L&G Gold Mining UCITS ETF 0.65%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Lyxor UCITS Stoxx Banks C-EUR 0.30%
  • Amundi Stoxx Europe 600 UCITS ETF C EUR 0.07%
  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • VanEck Semiconductor UCITS ETF 0.35%
  • Xtrackers MSCI World Information Technology UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) of 0.14% is impressively low, which is beneficial for long-term growth as lower costs translate to higher net returns. This efficiency in cost management is commendable and should be maintained. Investors should continue to monitor fund expenses, as even small increases can significantly impact returns over time.

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 portfolio's current expected return is slightly below the optimal level identified by the Efficient Frontier analysis, which suggests there's room for improvement in the risk-return balance. Adjusting the asset allocation to achieve an expected return of 33.24% without increasing the risk level significantly could enhance portfolio efficiency. This optimization process, however, is based on historical data and should be approached with caution, as future market conditions may vary.

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