A tech-focused portfolio with strong North American exposure and cautious risk profile

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.

What type of investor this portfolio is suitable for

Cautious Investors

This portfolio suits an investor with a cautious risk tolerance seeking long-term growth. It focuses on equities, with a significant concentration in the tech sector, offering potential for high returns. The investor should be comfortable with market volatility and have a longer investment horizon, allowing time to ride out fluctuations. This strategy is ideal for those looking to build wealth over time while maintaining a focus on global equities and low costs. The portfolio's alignment with a broadly diversified strategy makes it suitable for investors prioritizing growth over income.

Positions

  • Invesco FTSE All-World UCITS ETF USD Accumalation EUR
    FWIA
    70.00%
  • iShares S&P 500 USD Information Technology Sector UCITS
    QDVE - IE00B3WJKG14
    25.00%
  • iShares Core MSCI Emerging Markets IMI UCITS
    IS3N - IE00BKM4GZ66
    5.00%

The portfolio is composed of three ETFs with a significant focus on global equities. The Invesco FTSE All-World UCITS ETF dominates with a 70% allocation, providing broad market exposure. The iShares S&P 500 Information Technology Sector ETF holds a 25% share, emphasizing tech stocks, while the iShares Core MSCI Emerging Markets ETF accounts for 5%. This structure leans heavily toward equities, which can offer growth potential but may lack the stability of bonds. The allocation is well-aligned with a broadly diversified strategy, though the tech focus may introduce sector-specific risks.

Warning The historical data covers less than 2 years, which reduces the confidence in the calculated values.

Growth Info

Historically, this portfolio has performed exceptionally well. With a Compound Annual Growth Rate (CAGR) of 23.49%, it has outpaced many benchmarks. However, the maximum drawdown of -10.01% indicates potential volatility during downturns. The strong performance is largely driven by the tech sector's recent growth. While historical performance can be a useful gauge, it's important to remember that it doesn't guarantee future returns. Continuing to monitor sector performance and adjusting as necessary is advisable to maintain this level of success.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

The forward projection using Monte Carlo simulations suggests a promising outlook. With 1,000 simulations, the portfolio's potential outcomes show a 5th percentile return of 705.7% and a median return of 1,893.4%. This indicates a high likelihood of positive returns, with all simulations showing gains. However, it's crucial to note that Monte Carlo analysis relies on historical data and assumptions, which may not fully capture future uncertainties. Regularly reviewing these projections can help in adjusting strategies as market conditions evolve.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%
  • Bonds
    0%
  • No data
    0%

This portfolio is entirely invested in stocks, with no allocation to bonds, cash, or other asset classes. While this can maximize growth potential, it also increases exposure to market volatility. A 100% stock allocation is aggressive and may not suit all investors, especially those seeking income or lower risk. Diversifying into other asset classes, such as bonds or real estate, could provide stability and reduce risk. However, given the portfolio's cautious risk classification, the current allocation aligns well with its goals.

Sectors Info

  • Technology
    45%
  • Financials
    13%
  • Consumer Discretionary
    8%
  • Industrials
    7%
  • Health Care
    7%
  • Telecommunications
    7%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The portfolio has a strong concentration in the technology sector, which makes up 45% of the allocation. Other sectors like financial services and consumer cyclicals are represented but to a lesser extent. This tech-heavy focus can lead to higher volatility, especially in times of interest rate changes or tech sector downturns. While the tech sector has been a strong performer, diversifying into other sectors could reduce risk and provide more balanced growth. Monitoring sector trends and adjusting allocations could enhance the portfolio's resilience.

Regions Info

  • North America
    72%
  • Europe Developed
    10%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Japan
    4%
  • Africa/Middle East
    1%
  • Australasia
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America, which constitutes 72% of the allocation. Other regions like Europe and Asia have smaller representations. This strong North American focus can provide stability given the region's economic strength but may limit exposure to growth opportunities in emerging markets. Balancing geographic exposure by increasing allocations to underrepresented regions could enhance diversification and capture global growth trends. Such adjustments could mitigate risks associated with regional economic downturns.

Market capitalization Info

  • Mega-cap
    53%
  • Large-cap
    32%
  • Mid-cap
    14%
  • Small-cap
    1%
  • Micro-cap
    0%

The portfolio's market capitalization is predominantly in mega-cap and big-cap stocks, accounting for 85% of the allocation. This focus on large companies can provide stability and lower volatility compared to smaller caps. However, it may also limit growth potential found in medium and small-cap stocks. While large caps offer reliable returns, incorporating a mix of smaller companies could increase diversification and enhance growth opportunities. This balanced approach could optimize the risk-return profile and align with the portfolio's cautious risk classification.

Ongoing product costs Info

  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • iShares S&P 500 USD Information Technology Sector UCITS 0.15%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from impressively low costs, with a Total Expense Ratio (TER) of just 0.05%. This is a positive aspect, as lower costs can significantly improve long-term returns by reducing the drag on performance. Keeping expenses low is crucial for maximizing investment growth, especially in a portfolio focused on equities. Continuing to monitor and manage costs will ensure that the portfolio remains efficient. This cost-effective approach aligns well with the portfolio's objectives and enhances its overall performance potential.

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.

The portfolio's current allocation can be optimized using the Efficient Frontier concept, which seeks the best possible risk-return ratio. By adjusting the weights of the existing assets, the portfolio can potentially achieve better returns for the same level of risk. However, this optimization focuses solely on the current assets and does not consider diversification into new asset classes. Reviewing the allocation periodically and making necessary adjustments will ensure that the portfolio remains efficient and aligned with its risk profile.

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