A growth-focused portfolio with a strong emphasis on emerging markets excluding China

Report created on Oct 11, 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

This portfolio is evenly split between two ETFs: the iShares MSCI Emerging Markets ex China and the iShares Core MSCI Emerging Markets ETF, each comprising 50% of the portfolio. This composition indicates a deliberate strategy to capitalize on the growth potential of emerging markets while excluding China, a significant and often volatile player in this space. The concentration in emerging markets, coupled with a 100% allocation to stocks, underscores a growth-oriented risk profile consistent with the portfolio's risk classification.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 7.67%, with a maximum drawdown of -40.73%. These figures suggest a relatively high level of volatility, consistent with the inherent risks of emerging market investments. The performance is notably influenced by the significant days that contribute to the majority of returns, indicating that timing and market fluctuations play a crucial role in its overall success.

Projection Info

Using Monte Carlo simulation, a method that forecasts potential outcomes by varying random variables within historical ranges, the portfolio's future performance has been analyzed. This approach suggests a wide range of outcomes, from a 5th percentile loss of -32.1% to a 67th percentile gain of 230.5%, highlighting the high-risk, high-reward nature of the portfolio. It's important to note, however, that these projections are based on past data and cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks (100%) positions it within a high-risk, high-reward category. This asset class is known for its potential for significant growth but comes with considerable volatility. The absence of diversification into bonds or other asset classes means the portfolio may experience larger swings in value, especially in turbulent market conditions.

Sectors Info

  • Technology
    29%
  • Financials
    23%
  • Consumer Discretionary
    10%
  • Industrials
    8%
  • Basic Materials
    7%
  • Telecommunications
    7%
  • Energy
    4%
  • Consumer Staples
    4%
  • Health Care
    4%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation shows a heavy emphasis on Technology (29%) and Financial Services (23%), with lesser allocations spread across other sectors. This concentration in tech and financial sectors is common in emerging markets, where these industries often lead economic growth. However, such concentration can also increase vulnerability to sector-specific risks.

Regions Info

  • Asia Emerging
    39%
  • Asia Developed
    37%
  • Africa/Middle East
    12%
  • Latin America
    9%
  • Europe Emerging
    3%
  • Europe Developed
    1%

Geographically, the portfolio is heavily invested in Asia (both emerging and developed), with significant allocations in Africa/Middle East and Latin America. This distribution leverages the growth potential in these regions but also exposes the portfolio to geopolitical risks, currency fluctuations, and market volatility inherent in these areas.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    34%
  • Mid-cap
    12%
  • Small-cap
    2%

The portfolio's market capitalization breakdown, with a majority in mega (51%) and big (34%) cap stocks, suggests a focus on established companies within the emerging markets. This strategy may offer a balance between the high growth potential of emerging markets and the stability of larger, more established companies, potentially mitigating some of the volatility associated with smaller cap investments.

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 portfolio's current allocation and performance metrics, there's potential for optimization towards the Efficient Frontier, where the risk-return ratio could be maximized. Adjustments in asset allocation, perhaps by incorporating assets with lower correlation or different risk profiles, could enhance the portfolio's efficiency. However, any optimization should align with the investor's risk tolerance and investment goals.

Dividends Info

  • iShares MSCI Emerging Markets ex China 2.60%
  • iShares Core MSCI Emerging Markets ETF 2.90%
  • Weighted yield (per year) 2.75%

The portfolio offers a total dividend yield of 2.75%, which is a reasonable return in addition to potential capital gains. For investors seeking income in addition to growth, this yield contributes to the portfolio's attractiveness, although the primary focus remains on capital appreciation within the volatile emerging markets context.

Ongoing product costs Info

  • iShares MSCI Emerging Markets ex China 0.25%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • Weighted costs total (per year) 0.17%

With a total expense ratio (TER) of 0.17%, the portfolio benefits from relatively low costs, which is advantageous for long-term growth. Lower costs mean that more of the investment's return is retained by the investor, a critical factor in building wealth over time, especially in a high-growth, high-volatility environment like emerging markets.

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