A growth-oriented portfolio heavily weighted towards US equities with a focus on technology

Report created on Jul 31, 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 structured around two primary ETFs, with a significant 80% allocation to the iShares Core S&P 500 UCITS ETF and a 20% allocation to the Vanguard FTSE All-World UCITS ETF. This composition highlights a strong bias towards US equities, given the S&P 500's focus, while the All-World ETF introduces some global exposure. The portfolio's diversification is moderate, leaning heavily on stocks across a few sectors, predominantly technology. The total expense ratio (TER) is impressively low at 0.14%, enhancing its appeal for cost-conscious investors.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.90% with a maximum drawdown of -33.81%. These figures suggest a robust growth trajectory but also underline significant volatility, as evidenced by the steep drawdown. The days contributing most to returns are relatively few, indicating that timing the market plays a crucial role in achieving these returns, a strategy that carries its own set of risks.

Projection Info

Monte Carlo simulations, based on historical data, project a wide range of outcomes for this portfolio. At the 50th percentile, an impressive 486.4% return is projected, with a high likelihood of positive returns across simulations. However, it's important to note that such simulations assume past trends will continue, a premise that may not always hold true, especially in rapidly changing market environments.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, showing a clear preference for equity investments over bonds, real estate, or cash equivalents. This single-asset class focus enhances growth potential but also increases volatility and risk, particularly in market downturns. Diversifying across asset classes could provide a buffer against stock market volatility.

Sectors Info

  • Technology
    33%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation is heavily skewed towards technology, financial services, and consumer cyclicals, reflecting a growth-oriented investment strategy. While the tech sector offers high growth potential, it also comes with increased volatility, especially in response to interest rate changes or economic downturns. Balancing sector exposure could mitigate risk without significantly compromising growth potential.

Regions Info

  • North America
    93%
  • Europe Developed
    3%
  • Japan
    1%
  • Asia Emerging
    1%
  • Asia Developed
    1%

With 93% of assets in North America, primarily the US, the portfolio's geographic exposure is remarkably concentrated. This concentration has historically offered substantial growth opportunities but also exposes investors to country-specific risks. Increasing exposure to developed markets outside the US or emerging markets could enhance diversification and potentially tap into other growth avenues.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    35%
  • Mid-cap
    18%
  • Small-cap
    1%

The portfolio favors mega and large-cap stocks, which are generally considered less volatile than smaller companies. This bias towards larger companies may contribute to stability during market fluctuations but could also limit exposure to high-growth potential found in smaller, more dynamic firms.

Redundant positions Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    iShares Core S&P 500 UCITS ETF USD (Acc)
    High correlation

The portfolio's two ETFs are highly correlated, suggesting redundancy in holdings that does not contribute to diversification. While both ETFs aim to capture broad market returns, their overlap, particularly in US equities, dilutes the effectiveness of diversifying across different funds. Rebalancing to include less correlated assets could enhance portfolio 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.

Click on the colored dots to explore allocations.

The portfolio's current configuration suggests room for optimization, particularly by reducing overlap between the two ETFs. Employing the Efficient Frontier concept could identify an asset allocation that offers the best possible risk-return trade-off, considering the high correlation between the existing ETFs. This process might involve diversifying into different asset classes or less correlated equity funds to achieve a more efficient portfolio.

Ongoing product costs Info

  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.14%

The portfolio's overall cost efficiency is notable, with a combined TER of just 0.14%. Low costs are crucial for long-term investment success, as they compound over time, significantly affecting net returns. This focus on cost efficiency is commendable and should be maintained.

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