Open the Portfolio Builder Reshape your holdings and watch every metric recalculate live. Try it

A balanced tech-focused portfolio with strong historical returns and global diversification

Report created on Jan 10, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio consists of 100% equities, primarily in ETFs, with a significant focus on technology. The Vanguard FTSE All-World ETF is the largest holding at 50%, providing broad global exposure. The remaining 50% is split among tech-centric ETFs, emphasizing artificial intelligence, big data, and semiconductors. Compared to a typical balanced portfolio, this composition leans heavily towards technology, potentially increasing volatility but also offering growth opportunities. To align with a balanced risk profile, consider introducing more diverse asset classes, such as bonds, to stabilize returns during market fluctuations.

Growth Info

Historically, the portfolio has achieved an impressive CAGR of 18.29%, significantly outperforming typical benchmarks. However, it also experienced a maximum drawdown of -24.62%, indicating substantial volatility. While past performance is not a guarantee of future returns, these figures suggest a high-growth potential, albeit with notable risk. To mitigate future drawdowns, consider strategies that incorporate more defensive assets, which can help cushion against market downturns while maintaining growth objectives.

Projection Info

Forward projections using Monte Carlo simulations indicate a strong potential for future growth, with a median return of 1,377.43%. Monte Carlo simulations use historical data to model potential future outcomes, but remember that these are hypothetical and not predictive. A 5th percentile outcome still shows positive returns, indicating resilience. While encouraging, it's crucial to maintain realistic expectations, as market conditions can change. Regularly review and adjust allocations to ensure they remain aligned with your financial goals and risk tolerance.

Asset classes Info

  • Stocks
    100%

The portfolio is overwhelmingly invested in stocks, with negligible allocations to other asset classes. This high concentration in equities can lead to higher returns but also increases exposure to market volatility. Compared to a diversified portfolio, which might include bonds or alternative investments, this portfolio could benefit from reduced volatility through broader asset class diversification. Consider introducing fixed-income securities to balance risk and reward, especially if seeking more consistent returns over time.

Sectors Info

  • Technology
    57%
  • Financials
    9%
  • Telecommunications
    7%
  • Consumer Discretionary
    6%
  • Health Care
    5%
  • Industrials
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

With 57.5% of investments in the technology sector, this portfolio is notably tech-heavy. While this concentration can drive growth, it also exposes the portfolio to sector-specific risks, such as regulatory changes or tech market downturns. In contrast, a more diversified sector allocation would help mitigate these risks. To achieve a balanced sector exposure, consider reallocating some investments towards underrepresented sectors like healthcare or consumer defensives, which can provide stability during tech sector volatility.

Regions Info

  • North America
    76%
  • Europe Developed
    11%
  • Asia Developed
    5%
  • Japan
    4%
  • Asia Emerging
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%

The portfolio has a strong geographic tilt towards North America, comprising 76% of holdings, with limited exposure to other regions. This concentration can limit global diversification benefits and increase vulnerability to region-specific risks. Compared to global benchmarks, which typically have a more balanced geographic distribution, this portfolio could benefit from increased exposure to emerging markets or other developed regions. Consider diversifying geographically to reduce risk and capitalize on growth opportunities worldwide.

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.

Open the Portfolio Builder Reshape your holdings and watch every metric recalculate live. Try it

The portfolio could potentially be optimized along the Efficient Frontier, which balances risk and return. This concept involves adjusting the asset allocation to achieve the highest expected return for a given level of risk. While the current setup leans heavily on technology, optimization might involve reallocating towards more diversified sectors or asset classes. Keep in mind that optimization focuses on risk-return trade-offs and may not fully address diversification or other investment goals. Regular reviews can ensure alignment with your evolving financial objectives.

Ongoing product costs Info

  • VanEck Semiconductor UCITS ETF 0.35%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Xtrackers Artificial Intelligence &Big Data UCITS ETF 1C 0.35%
  • Xtrackers MSCI World Information Technology UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.27%

The total expense ratio (TER) of 0.27% for this portfolio is relatively low, indicating cost-efficiency. Keeping costs low is crucial for enhancing long-term returns, as high fees can erode gains over time. Compared to industry averages, this TER is competitive, supporting better net performance. To maintain cost-effectiveness, regularly review the fees associated with each ETF and explore lower-cost alternatives if available. This proactive approach can help maximize investment returns over the long haul.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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