A growth-focused portfolio with heavy tech exposure and global diversification

Report created on Aug 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is primarily composed of three ETFs, focusing heavily on global equities with a significant tilt towards the technology sector. The Vanguard FTSE All-World UCITS ETF, making up over half of the portfolio, provides broad global exposure. In contrast, the iShares S&P 500 Information Technology Sector UCITS ETF and the iShares Core DAX® UCITS ETF target specific regions and sectors, emphasizing the tech sector and German equities, respectively. This composition suggests a growth-oriented strategy with a pronounced risk appetite, given the high volatility associated with tech stocks and the concentration in specific geographic regions.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.71%, with a maximum drawdown of -33.25%. These figures indicate strong growth potential tempered by significant volatility, as evidenced by the substantial drawdown. The days contributing most to returns highlight the portfolio's sensitivity to market movements, particularly within the tech sector. Comparing this performance to global equity benchmarks would provide further context, but the high growth rate is indicative of successful sector targeting, albeit with higher risk.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential future values for this portfolio. The 50th percentile outcome of a 682.9% increase is notably optimistic, indicating strong growth potential. However, the broad spread from the 5th to the 67th percentile underscores the high risk associated with this portfolio's heavy tech and geographic concentration. It's crucial to remember that these projections are speculative and depend on past market behaviors, which may not predict future movements accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, offering high growth potential but also higher risk, particularly given the absence of bonds or other diversifying asset classes that could mitigate volatility. This singular focus on equities, while beneficial in bull markets, may expose the portfolio to significant downturns during market corrections or bear phases. Including a mix of asset classes could provide a more balanced risk-return profile, especially for investors with a lower risk tolerance.

Sectors Info

  • Technology
    43%
  • Financials
    14%
  • Industrials
    10%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%

With 43% allocated to technology, the portfolio is heavily skewed towards a sector known for its high growth but also for its volatility. While this sectoral concentration has likely contributed to the portfolio's impressive historical performance, it also increases susceptibility to sector-specific downturns. Diversifying across additional sectors could reduce volatility without necessarily compromising long-term growth potential.

Regions Info

  • North America
    66%
  • Europe Developed
    21%
  • Japan
    4%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation heavily favors North America and developed European markets, with a combined total of 87%. This focus on developed markets may offer stability and access to mature companies, particularly in the tech sector. However, the minimal exposure to emerging markets limits potential growth opportunities in these rapidly developing regions. Increasing exposure to emerging markets could offer diversification benefits and access to high-growth potential areas.

Market capitalization Info

  • Mega-cap
    54%
  • Large-cap
    33%
  • Mid-cap
    13%

The portfolio's emphasis on mega and big cap stocks (87% combined) aligns with its growth and stability objectives, leveraging the potential of established companies. However, the negligible exposure to medium, small, and micro-cap stocks limits opportunities for outsized gains that these segments can offer. Incorporating a broader range of market capitalizations could enhance growth prospects and diversification.

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 current portfolio demonstrates a strong growth orientation but may benefit from optimization towards the Efficient Frontier, aiming for the best possible risk-return ratio. Adjustments in asset allocation, including diversification across more sectors, regions, and asset classes, could improve the portfolio's risk-adjusted returns. This optimization should consider the investor's risk tolerance and investment horizon to align with their financial goals.

Ongoing product costs Info

  • iShares S&P 500 USD Information Technology Sector UCITS 0.15%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.18%

The overall portfolio cost, represented by a Total Expense Ratio (TER) of 0.18%, is relatively low, which is beneficial for long-term growth as it minimizes the drag on performance. Keeping costs low is crucial for maximizing returns, especially in a growth-oriented portfolio where compound interest plays a significant role over time.

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