A high growth concentrated portfolio with strong US tilt and significant leveraged 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 setup fits an investor with high risk tolerance, a strong focus on long‑term growth, and the emotional resilience to endure deep temporary losses. Typical goals might include building substantial wealth over 15 years or more, such as funding early retirement or maximizing capital for future projects. Such an investor accepts that sharp drawdowns of 40% or more are possible and prefers staying fully invested rather than timing markets. They are comfortable with a strong tilt to innovative, growth‑oriented companies and can stick to the plan during crises. Income needs are secondary; capital appreciation and harnessing the power of compounding are the primary objectives.
Positions
-
Lyxor PEA S&P 500 UCITS C
PSP5 - FR0011871128 60.00% -
BNP Paribas Easy Stoxx Europe 600 UCITS ETF EUR C
ETZ - FR0011550193 20.00% -
Amundi Nasdaq-100 Daily (2x) Leveraged UCITS ETF Acc
LQQ - FR0010342592 20.00%
The structure is very growth‑oriented and strongly concentrated: around three fifths in a broad US index fund, one fifth in a broad European index fund, and the final fifth in a leveraged product tied to a large US growth index. This mix delivers heavy exposure to developed equity markets, with a clear tilt toward large US companies and an extra boost from leverage. That fits a growth profile, but explains why diversification is rated low. Concentrating in just a few building blocks magnifies both upside and downside. Gradually adding a few uncorrelated building blocks, such as less growth‑sensitive assets or simple cash buffers, could smooth the ride without abandoning the growth focus.
Growth
Historically, a compound annual growth rate (CAGR) above 17% means that 10,000 euros hypothetically invested years ago would have grown more than fourfold, assuming all income was reinvested. This is a very strong result versus many broad equity benchmarks, which often delivered closer to mid‑single or low double digits over long periods. The flip side is visible in the maximum drawdown of about –40%, showing how deep the portfolio can temporarily fall during stress. Seeing that most gains came from roughly 40 strong days underlines how missing a few big upswings can hurt. Using regular monthly contributions can help capture those key days more reliably.
Projection
The Monte Carlo analysis uses many random paths based on historical patterns to estimate future outcomes. Think of it as re‑shuffling past returns 1,000 times to see many possible futures, not just one forecast. Here, the median scenario ends with more than an eight‑fold gain, and even the pessimistic 5th percentile still shows a mild loss rather than a wipe‑out. That aligns with a high‑growth, high‑risk profile. However, any simulation leans on past data, which may not repeat, especially for leveraged products whose long‑term behavior can differ from their daily targets. Treat these projections as rough weather maps, not precise timetables, and adjust exposure if future swings would feel unbearable.
Asset classes
- Other 159%
- Stocks 20%
The asset mix is almost entirely in equities and equity‑related products, with “other” mainly reflecting the leveraged structure rather than genuinely different asset types. Compared with balanced benchmarks that blend shares, bonds, and sometimes cash or property, this is a pure growth engine with little built‑in shock absorber. This alignment with an aggressive profile is coherent and supports high long‑term return potential, especially for long horizons. At the same time, it leaves the portfolio exposed to sharp equity bear markets without a defensive cushion. Introducing even a modest slice of stabilizing assets, or holding some dry powder outside the portfolio, can reduce the depth of drawdowns while still keeping a clear equity bias.
Sectors
- Financials 5%
- Industrials 4%
- Health Care 3%
- Consumer Staples 2%
- Consumer Discretionary 2%
- Technology 2%
- Basic Materials 1%
- Energy 1%
- Utilities 1%
- Telecommunications 1%
- Real Estate 0%
Sector allocation is fairly broad but still driven by a handful of cyclical and growth‑oriented segments like financial services, industrials, and technology, with smaller exposure to defensives such as healthcare and consumer staples. This mix is quite similar to common developed‑market benchmarks, which is positive because it avoids extreme bets on a single industry. However, the leveraged growth component increases the effective sensitivity to tech‑heavy and innovation‑driven businesses, which can be hit hard when interest rates rise or sentiment toward high‑growth companies turns. Keeping an eye on how much of the overall risk originates from growth industries and gradually increasing exposure to more stable, income‑producing activities can help balance cycles.
Regions
- Europe Developed 19%
- North America 0%
- Europe Emerging 0%
- Asia Developed 0%
- Latin America 0%
- Africa/Middle East 0%
On paper, the geographic breakdown shows a strong developed Europe slice and almost no North America, but the underlying indices reveal the opposite: the portfolio is heavily tilted to the United States through broad US and US‑growth indices, with Europe playing a secondary role. This US focus has been rewarding over the last decade, as US equities outperformed many regions. It also matches many global benchmarks where the US dominates. The risk is dependence on one economic region and currency. Gradually adding some exposure to other developed and possibly select emerging markets can reduce home‑bias‑type risk and cushion scenarios where US markets lag for an extended period.
Market capitalization
- Mega-cap 38%
- Large-cap 27%
- Unknown 20%
- Mid-cap 14%
- Small-cap 1%
The size breakdown shows a healthy dominance of mega and large companies, with some mid‑cap exposure and very little in small caps. This aligns reasonably well with global benchmarks and is a strength: large businesses often have stronger balance sheets, multiple revenue streams, and better access to capital, making them more resilient during downturns. The leveraged growth component, however, increases exposure to highly valued large companies whose prices can swing dramatically with changes in expectations. To fine‑tune the risk profile, one approach could be to increase the share of stable, cash‑generative large caps relative to more speculative growth names, maintaining the large‑cap tilt but moderating valuation sensitivity.
Ongoing product costs
- BNP Paribas Easy Stoxx Europe 600 UCITS ETF EUR C 0.18%
- Amundi Nasdaq-100 Daily (2x) Leveraged UCITS ETF Acc 0.60%
- Lyxor PEA S&P 500 UCITS C 0.15%
- Weighted costs total (per year) 0.25%
The total ongoing cost of around 0.25% per year is impressively low for such a growth‑oriented portfolio, especially given the inclusion of a leveraged ETF that comes with a higher expense ratio. Keeping costs below typical active fund levels (often above 1%) supports better long‑term performance because less return is lost to fees every year. Over decades, the difference compounds significantly. This cost discipline is a clear strong point and aligns well with best practice. Periodically checking that low‑fee alternatives still match the chosen strategy, and avoiding unnecessary trading that adds hidden transaction costs, can further preserve the fee advantage.
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, the current mix likely sits above the Efficient Frontier for risk but not necessarily for return. The Efficient Frontier represents the best possible trade‑off between risk and return for a fixed set of assets by adjusting only the weights between them. With three highly correlated equity building blocks, especially one leveraged, the portfolio tilts toward higher volatility than needed for its expected return. Rebalancing toward a smaller share in leveraged exposure and a slightly larger share in broad, unleveraged indices could move it closer to efficiency, delivering similar expected growth with lower swings, while still respecting the aggressive, equity‑driven profile.
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