A technology and defense-focused portfolio with a balanced risk profile and moderate diversification

Report created on Nov 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is markedly concentrated in the technology and defense sectors, with a significant 60% allocation to a defense ETF and a 10% allocation to automation and robotics. This heavy emphasis on specific sectors suggests a single-focused diversification strategy. The remaining 30% is split evenly between global equities and bonds, providing a foundational balance to the portfolio. However, the overwhelming focus on two sectors raises concerns about vulnerability to sector-specific risks.

Growth Info

The portfolio has shown impressive historical performance with a Compound Annual Growth Rate (CAGR) of 27.91%. The maximum drawdown of -11.47% indicates a relatively high resilience to market downturns, considering the aggressive growth rate. However, it's crucial to remember that past performance is not indicative of future results, especially with such a sector-focused strategy. The days contributing to 90% of returns highlight the portfolio's potential for significant gains in short periods, likely due to sector-specific rallies.

Projection Info

Monte Carlo simulations offer a forward-looking projection based on historical data, providing a range of possible outcomes. For this portfolio, the simulations suggest a wide range of future performance, with a median increase of 671.8%. While the optimistic projections are appealing, it's important to approach these numbers with caution, as they are based on historical trends that may not repeat exactly in the future.

Asset classes Info

  • Stocks
    90%
  • Bonds
    10%

The portfolio's asset class allocation is heavily weighted towards stocks (90%), with a modest 10% in bonds. This allocation supports the portfolio's balanced risk profile but leans towards growth-oriented investments. The minimal bond allocation offers some cushion against stock market volatility but may not be sufficient for those seeking higher income or more conservative risk management.

Sectors Info

  • Industrials
    57%
  • Technology
    23%
  • Financials
    2%
  • Utilities
    2%
  • Consumer Discretionary
    1%
  • Basic Materials
    1%
  • Health Care
    1%
  • Telecommunications
    1%
  • Consumer Staples
    1%

The sector allocation reveals a strong focus on industrials and technology, making up 80% of the portfolio. This concentration can offer significant growth opportunities, especially in innovative and defense-related industries. However, it also exposes the portfolio to higher volatility and sector-specific risks, such as regulatory changes or shifts in government defense spending.

Regions Info

  • North America
    48%
  • Europe Developed
    25%
  • Asia Developed
    10%
  • Japan
    3%
  • Africa/Middle East
    3%
  • Asia Emerging
    1%

Geographically, the portfolio is diversified across North America, Europe, and Asia, with a dominant 48% in North America. This global exposure mitigates some risks associated with single-country investments but still leans heavily towards developed markets. The limited exposure to emerging markets may restrict potential growth opportunities in high-growth regions.

Market capitalization Info

  • Large-cap
    40%
  • Mid-cap
    25%
  • Small-cap
    14%
  • Mega-cap
    11%
  • Micro-cap
    1%

The market capitalization breakdown shows a balanced exposure across big, medium, small, and mega-cap stocks. This diversity helps spread risk and capture growth across different stages of company development. However, the relatively lower allocation to small and micro-caps suggests a cautious approach to the highest volatility segments of the market.

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 may benefit from optimization to enhance the risk-return ratio. While the current allocation has performed well historically, rebalancing towards a more diversified sector and asset class mix could reduce volatility without drastically sacrificing returns. Optimization should aim to maintain growth potential while spreading risk more evenly across different investments.

Dividends Info

  • Vanguard FTSE All-World UCITS ETF 1.10%
  • Weighted yield (per year) 0.11%

The dividend yield from the Vanguard FTSE All-World UCITS ETF contributes modestly to the portfolio's income, reflecting a focus on growth over income. In a growth-oriented strategy, reinvesting dividends to purchase additional shares could compound growth over time, aligning with the portfolio’s long-term appreciation goal.

Ongoing product costs Info

  • iShares Automation & Robotics UCITS ETF USD (Acc) 0.40%
  • iShares Global Aggregate Bond UCITS Dist 0.10%
  • Vanguard FTSE All-World UCITS ETF 0.19%
  • Rize Environmental Impact 100 UCITS ETF EUR 0.55%
  • Weighted costs total (per year) 0.12%

The portfolio's costs are relatively low, with Total Expense Ratios (TER) ranging from 0.10% to 0.55%. Keeping costs low is crucial for enhancing long-term returns, as fees can significantly erode investment gains over time. This focus on cost efficiency is a positive aspect of the portfolio's construction.

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