High-risk portfolio with a speculative profile focusing on tech and consumer cyclicals

Report created on Jun 11, 2025

Risk profile Info

7/7
Speculative
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is split equally between the iShares Core S&P 500 ETF and Microvast Holdings Inc, a common stock. This structure presents a speculative risk profile due to its low diversification and heavy reliance on a single stock. The ETF provides broad exposure to the top companies in the S&P 500, while Microvast Holdings represents a concentrated bet on a specific company's performance. This combination creates a portfolio with a high-risk, high-reward potential, but it also exposes the investor to significant volatility and sector-specific risks.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 39.55% with a maximum drawdown of -61.11%. These figures highlight the portfolio's volatile nature, where substantial gains are possible, but so are significant losses. The days contributing to 90% of returns being so few indicates that the portfolio's performance is highly dependent on sporadic, significant positive movements, emphasizing its speculative nature.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The simulations suggest a high probability of substantial losses, with the median outcome nearly wiping out the initial investment. It's crucial to understand that these projections are not guarantees but rather potential scenarios that could unfold, emphasizing the speculative and risky nature of this portfolio.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to other asset classes such as bonds or real estate. This lack of diversification across asset classes can lead to higher volatility, as stocks are generally more susceptible to market fluctuations than other asset types. Including a mix of asset classes could help mitigate risk and provide more stable returns over time.

Sectors Info

  • Consumer Discretionary
    55%
  • Technology
    17%
  • Financials
    7%
  • Telecommunications
    5%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

The sectoral allocation is heavily weighted towards consumer cyclicals and technology, comprising 72% of the portfolio. This concentration increases the portfolio's sensitivity to economic cycles and sector-specific risks, such as regulatory changes or technological shifts. Diversifying across a broader range of sectors could reduce volatility and improve the portfolio's resilience to sector-specific downturns.

Regions Info

  • North America
    100%

The geographic allocation is entirely focused on North America, with no exposure to developed or emerging markets outside this region. This geographic concentration limits the portfolio's ability to benefit from global economic growth and diversification, potentially increasing risk and reducing opportunities for higher returns.

Market capitalization Info

  • Small-cap
    50%
  • Mega-cap
    23%
  • Large-cap
    17%
  • Mid-cap
    9%

The portfolio's market capitalization exposure is skewed towards small-cap stocks, with 50% allocated to Microvast Holdings Inc. Small-cap stocks can offer high growth potential but also come with higher volatility and risk. The presence of mega and big-cap stocks, via the ETF, provides some balance but may not be sufficient to mitigate the overall 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 allocation, optimizing for the Efficient Frontier could enhance the risk-return ratio. This optimization involves adjusting asset allocations to achieve the best possible balance between risk and return. However, given the portfolio's speculative nature and concentration in a single stock, diversification across more assets and classes might be necessary to truly optimize performance.

Dividends Info

  • iShares Core S&P 500 ETF 1.30%
  • Weighted yield (per year) 0.65%

The dividend yield of the portfolio stands at 0.65%, with the iShares Core S&P 500 ETF contributing a 1.30% yield. While dividends can provide a steady income stream, the portfolio's overall yield is relatively low, reflecting its growth-oriented strategy. Investors prioritizing income might consider diversifying into assets with higher dividend yields.

Ongoing product costs Info

  • iShares Core S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.02%

The portfolio's costs are impressively low, with a Total Expense Ratio (TER) of just 0.02%. This efficiency is beneficial for long-term returns, as lower costs translate directly into higher net returns for the investor. Maintaining low costs is a good practice, especially in speculative investments where every percentage point of return is crucial.

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