Growth-oriented portfolio with heavy tech exposure and a focus on developed markets

Report created on Aug 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the technology sector, with over half allocated to a tech-focused ETF and significant investments in German and global equities. The emphasis on technology and developed markets, particularly North America and Europe, indicates a growth-oriented strategy. However, the concentration in these areas also introduces sector-specific risks and limits geographical diversification. The absence of exposure to emerging markets, small and micro-cap stocks, and non-equity asset classes suggests an opportunity to enhance diversification.

Growth Info

Historically, this portfolio has shown impressive growth, boasting a Compound Annual Growth Rate (CAGR) of 18.17%. This high return rate is reflective of the strong performance of the technology sector in recent years. However, the maximum drawdown of -33.55% underscores the volatility and risk associated with a tech-heavy and geographically concentrated portfolio. The days that make up 90% of returns being only 27.0 highlights the sporadic nature of gains, suggesting that timing the market plays a significant role in achieving these returns.

Projection Info

Monte Carlo simulations, which use historical data to project future performance under various scenarios, indicate a wide range of potential outcomes for this portfolio. With all simulations showing positive returns and a median projected increase of 650.3%, the analysis suggests strong growth potential. However, it's important to remember that these projections are based on past trends, which may not always predict future performance, especially in a rapidly changing tech sector.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, which aligns with a growth-focused investment strategy but also increases volatility and risk. The lack of diversification across different asset classes, such as bonds or real estate, can lead to higher fluctuations in value, especially during market downturns. Incorporating a variety of asset classes could help mitigate risk without significantly compromising growth potential.

Sectors Info

  • Technology
    60%
  • Industrials
    13%
  • Financials
    10%
  • Consumer Discretionary
    4%
  • Telecommunications
    3%
  • Health Care
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Consumer Staples
    1%
  • Real Estate
    1%

A 60% allocation to technology underscores the portfolio's aggressive growth strategy but also its vulnerability to sector-specific downturns. While the tech sector has historically provided substantial returns, it can be highly volatile. Other sectors like industrials, financial services, and consumer cyclicals are represented but to a much lesser extent. Broadening sector exposure could reduce volatility and improve resilience.

Regions Info

  • North America
    57%
  • Europe Developed
    42%

The geographic distribution is heavily skewed towards developed markets, with 57% in North America and 42% in Europe. This concentration in developed markets may limit exposure to the growth potential in emerging markets. Diversifying geographically can spread risk and tap into different economic cycles, potentially enhancing returns over the long term.

Market capitalization Info

  • Mega-cap
    63%
  • Large-cap
    31%
  • Mid-cap
    5%

With 63% in mega-cap stocks, the portfolio is positioned to benefit from the stability and lower volatility often associated with large, established companies. However, the limited exposure to medium and no exposure to small or micro-cap stocks may restrict potential for high growth rates these smaller companies can offer. Increasing exposure to smaller caps could introduce more growth opportunities, albeit with higher risk.

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 composition, there's room for optimization towards achieving a more efficient risk-return profile, as indicated by the Efficient Frontier analysis. This could involve adjusting the allocation between current assets to balance growth potential against volatility more effectively. However, such optimization should also consider the investor's risk tolerance and investment horizon.

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) 0.09%

The portfolio benefits from relatively low costs, with a total expense ratio (TER) of 0.09%. Low costs are crucial for long-term growth, as they directly enhance net returns. The selection of cost-efficient ETFs is commendable and supports the portfolio's growth strategy by minimizing the drag on performance due to fees.

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