A growth-focused portfolio with strong tech and sustainable energy exposure

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 portfolio is well-suited for an investor with a growth-oriented profile, comfortable with higher risk for the potential of higher returns. The ideal investor likely has a long-term investment horizon, allowing them to weather short-term market volatility in pursuit of substantial growth. Such an investor is probably less concerned with immediate income, such as dividends, and more focused on capital appreciation. Their risk tolerance aligns with the portfolio's exposure to sector-specific and market-wide fluctuations, understanding that these risks are part of pursuing above-average growth.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    60.00%
  • First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
    GRID - US33737A1088
    10.00%
  • iShares Bitcoin Trust
    IBIT - US46438F1012
    10.00%
  • Global X Funds
    SHLD - US37960A5294
    10.00%
  • Global X Uranium ETF
    URA - US37954Y8710
    10.00%

This portfolio is characterized by a heavy emphasis on equities, particularly within the technology and sustainable energy sectors. The largest allocation is to the Vanguard S&P 500 ETF, making up 60% of the portfolio, which provides broad market exposure. The remaining 40% is divided equally among niche ETFs focusing on clean energy, smart grid infrastructure, Bitcoin, and uranium mining. This composition suggests a strategy aiming for growth through sector-specific bets alongside broad market participation.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

Historically, this portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 29.42%, with a maximum drawdown of -17.92%. Such performance indicates a high growth potential, albeit with considerable volatility. The days contributing to 90% of returns being concentrated in a small number of trading days suggest that the portfolio's gains are heavily reliant on sharp market movements, which is typical for growth-oriented investments.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The median projection suggests a significant potential for growth, with the 50th percentile at an 11,371.5% increase. However, it's crucial to note that such simulations are based on past trends and cannot predict future market shifts accurately. They serve as a useful tool for understanding potential volatility and outcomes but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    90%
  • Other
    10%
  • Cash
    0%
  • No data
    0%

The portfolio's asset allocation is heavily skewed towards stocks (90%), with a minor allocation in 'Other' (10%), likely representing the Bitcoin ETF. This high equity exposure aligns with the portfolio's growth profile but also increases its susceptibility to market volatility. The absence of fixed-income assets or cash positions may limit the portfolio's ability to hedge against downturns.

Sectors Info

  • Technology
    23%
  • Industrials
    22%
  • Financials
    8%
  • Energy
    8%
  • Consumer Discretionary
    7%
  • Health Care
    6%
  • Telecommunications
    6%
  • Utilities
    4%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Real Estate
    1%

Sector allocations reveal a strong focus on technology and industrials, which together constitute nearly half of the portfolio. This indicates a conviction in these sectors' growth prospects but also introduces sector-specific risks. Financial services, energy, and consumer cyclicals round out the top five sectors, providing some diversification. However, the portfolio may benefit from increased exposure to underrepresented sectors to enhance risk management.

Regions Info

  • North America
    77%
  • Europe Developed
    8%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Japan
    1%
  • Asia Emerging
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (77%), with minimal exposure to emerging markets and other developed regions. This concentration in a single geographic area enhances exposure to country-specific risks, such as regulatory changes or economic downturns in the U.S. Diversifying geographically could mitigate some of these risks and tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    33%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a balanced exposure across mega (34%) and big (33%) cap stocks, with a smaller presence in medium, small, and micro caps. This distribution suggests a blend of stability offered by large-cap companies and growth potential from smaller firms. However, the portfolio could explore further diversification within the small and micro-cap segments to capitalize on higher growth opportunities, albeit with increased risk.

Dividends Info

  • First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund 1.00%
  • Global X Funds 0.20%
  • Global X Uranium ETF 2.00%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.04%

The portfolio's dividend yield stands at an average of 1.04%, which is modest but expected for a growth-focused strategy. Dividends contribute to total returns and provide a passive income stream, which can be particularly beneficial during market downturns. While the current yield aligns with the portfolio's growth orientation, investors seeking income alongside growth might consider increasing exposure to higher-yielding assets.

Ongoing product costs Info

  • First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund 0.57%
  • iShares Bitcoin Trust 0.12%
  • Global X Funds 0.50%
  • Global X Uranium ETF 0.69%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.21%

The Total Expense Ratio (TER) averages to 0.21%, which is relatively low, enhancing the portfolio's return potential over the long term. Lower costs mean more of the investment's return is retained by the investor, a crucial factor in compounding growth. The portfolio's cost structure is well-managed, supporting better performance efficiency.

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.

Considering the Efficient Frontier, this portfolio could potentially be optimized for a better risk-return ratio. While it currently demonstrates strong growth potential, there might be opportunities to adjust asset allocations to achieve desired returns with lower volatility. This optimization process involves analyzing current holdings and potentially diversifying further or rebalancing asset classes and sectors to align closer with the investor's risk tolerance and return objectives.

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