A tech-focused balanced portfolio with strong growth potential and moderate diversification
Report created on Jan 13, 2025Risk profile
4/7
Diversification profile
3/5
Positions
-
EU iShares Core MSCI World UCITS ETF USD (Acc)
EUNL - IE00B4L5Y983 70.00% -
QD iShares S&P 500 USD Information Technology Sector UCITS
QDVE - IE00B3WJKG14 30.00%
The portfolio is heavily weighted towards equities, with 70% in a global ETF and 30% in a tech-focused ETF. This composition aligns with a balanced risk profile, offering exposure to global markets while concentrating significantly on technology. Compared to a common benchmark, this portfolio leans heavily towards a single sector, which may impact diversification. Consider assessing whether this concentration aligns with your long-term goals and risk tolerance.
Growth
Historically, the portfolio has shown impressive performance with a CAGR of 15.66%, indicating strong growth potential. However, a max drawdown of -32.74% highlights the volatility risk associated with the tech-heavy allocation. Comparing to benchmarks, the performance is robust, but it's essential to remember that past performance doesn't guarantee future results. Regularly review performance to ensure it aligns with your risk tolerance and financial objectives.
Projection
The forward projection using Monte Carlo simulations shows a wide range of potential outcomes. With an annualized return of 19.6% across simulations, the portfolio's growth potential is significant. However, it's crucial to note that these projections are based on historical data, which may not account for future market changes. Use these projections to gauge potential risks and returns, but remain flexible to adapt to market conditions.
Asset classes
- Stocks 100%
The portfolio is predominantly composed of stocks, accounting for nearly 99.7% of the total allocation. This heavy equity focus can drive growth, but it also increases exposure to market volatility. Diversifying into other asset classes like bonds or real estate could provide stability and reduce risk. Compare this allocation to a benchmark to ensure it aligns with your risk tolerance and investment strategy.
Sectors
- Technology 49%
- Financials 11%
- Consumer Discretionary 8%
- Health Care 7%
- Industrials 7%
- Telecommunications 6%
- Consumer Staples 4%
- Energy 3%
- Basic Materials 2%
- Utilities 2%
- Real Estate 1%
With nearly 49% of the portfolio invested in technology, there is a significant sector concentration. While this has benefited from recent tech growth, it also increases vulnerability to sector-specific downturns. Compared to a diversified benchmark, this concentration is high. Consider diversifying into other sectors to mitigate risks associated with tech volatility and ensure a balanced growth approach.
Regions
- North America 83%
- Europe Developed 11%
- Japan 4%
- Australasia 1%
- Asia Developed 1%
The portfolio is heavily weighted towards North America, making up over 83% of the geographic allocation. This concentration may limit exposure to growth opportunities in other regions. Compared to global benchmarks, this is a notable overexposure. Consider increasing allocations to underrepresented regions like Europe or emerging markets to enhance diversification and capture potential growth.
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 allocation may not be fully optimized on the Efficient Frontier, which represents the best possible risk-return ratio. Adjusting the asset weights could improve efficiency. Consider rebalancing to achieve a better risk-return balance while maintaining alignment with your investment goals. Remember, optimization focuses solely on existing assets and their allocations.
Ongoing product costs
- iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
- iShares S&P 500 USD Information Technology Sector UCITS 0.15%
- Weighted costs total (per year) 0.18%
The portfolio's total expense ratio (TER) is low at 0.18%, which is favorable for long-term investment performance. Keeping costs low is crucial as it maximizes net returns. Regularly review expense ratios to ensure they remain competitive and consider replacing higher-cost assets with lower-cost alternatives to maintain efficiency.
What next?
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey