A growth-oriented portfolio with a high concentration in technology and global equities

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 showcases a strong emphasis on technology and global equities, with significant allocations in the Vanguard FTSE All-World UCITS ETF USD Accumulation and the iShares S&P 500 USD Information Technology Sector UCITS. The inclusion of the iShares Core DAX® UCITS ETF (DE) adds a focus on German equities. This composition indicates a growth-oriented strategy, leveraging the tech sector's potential for high returns alongside a diversified global exposure. However, the heavy concentration in technology stocks and a single geographic focus may introduce higher volatility and region-specific risks.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 16.63%, which is impressive. However, the maximum drawdown of -33.06% highlights the portfolio's vulnerability to market downturns, especially within the tech sector. It's crucial to note that past performance, including periods of significant gains, does not guarantee future results. The days contributing to 90% of returns being limited to 27 indicates that a few exceptional days have driven the portfolio’s performance, emphasizing the importance of staying invested over the long term.

Projection Info

The Monte Carlo simulation, with 1,000 iterations, forecasts a wide range of outcomes. The 50th percentile suggesting a 632.4% return is optimistic, showing the portfolio's potential. However, the reliance on historical data in simulations means future market conditions, especially unprecedented ones, could lead to different outcomes. This method helps in understanding possible future scenarios, but it's vital to remember that it's not a guarantee.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, the strategy is clear: capital growth through equity investment. This aligns with the portfolio's growth profile but comes with higher volatility compared to mixed-asset portfolios. The absence of bonds or alternative investments means missing out on potential risk mitigation and income generation, which could be crucial during market downturns or for diversification purposes.

Sectors Info

  • Technology
    54%
  • Financials
    11%
  • Industrials
    9%
  • Consumer Discretionary
    6%
  • Health Care
    5%
  • Telecommunications
    5%
  • Consumer Staples
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Energy
    2%
  • Real Estate
    1%

The technology sector's dominance at 54% sets a clear growth trajectory but introduces sector-specific risks, like regulatory changes or market sentiment shifts. The diversification across other sectors like financial services and industrials, though present, is overshadowed by the tech focus. Balancing sector allocations could reduce volatility without significantly compromising growth potential.

Regions Info

  • North America
    69%
  • Europe Developed
    22%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation heavily favors North America (69%) and developed Europe (22%), with minimal exposure to emerging markets and other developed regions. This concentration benefits from the stability and growth potential in these areas but limits exposure to emerging market growth opportunities. Diversifying geographically could enhance the portfolio's resilience and growth avenues.

Market capitalization Info

  • Mega-cap
    58%
  • Large-cap
    31%
  • Mid-cap
    10%

The focus on mega (58%) and big (31%) cap stocks underpins the portfolio's growth strategy, leveraging the stability and potential of large companies. However, the minimal exposure to medium and no exposure to small or micro-cap stocks may limit opportunities for higher growth rates these segments can offer, albeit with increased 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 Efficient Frontier, this portfolio's heavy tilt towards technology and large-cap stocks may not offer the optimal risk-return balance. While it's positioned for growth, diversifying across more asset classes and sectors could achieve a similar return with lower risk. Rebalancing towards a more efficient allocation could improve the portfolio's resilience and long-term performance without sacrificing growth potential.

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) 0.16%

The portfolio's total expense ratio (TER) of 0.16% is impressively low, enhancing long-term return potential by minimizing cost drag. This efficiency is crucial for growth strategies, where compounding can significantly amplify the impact of costs over time. Maintaining low costs while adjusting the portfolio for diversification or risk management is advisable.

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