A focused portfolio with strong reliance on S&P 500 and emerging markets exposure

Report created on Aug 8, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the iShares Core S&P 500 UCITS ETF, making up 90% of the allocation, with the remaining 10% in the iShares MSCI EM UCITS ETF. This composition suggests a strong belief in the performance of large-cap US equities, complemented by a smaller bet on the growth potential of emerging markets. While this setup captures a broad spectrum of the global market, its concentration in two ETFs limits diversification across asset classes, exposing the portfolio to significant market-specific risks.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.74%, with a maximum drawdown of -32.86%. These figures indicate a robust performance, likely benefiting from the long-term upward trend of the US stock market. However, the significant drawdown highlights potential vulnerability during market downturns. The days contributing to 90% of returns being so few suggests that timing the market plays a crucial role in realizing gains, a strategy fraught with risk for most investors.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 341.8% return, indicating strong growth potential. However, the reliance on past performance, which does not guarantee future results, and the narrow asset base, underscores the need for cautious optimism and consideration of broader diversification to mitigate risks.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without any allocation to bonds, real estate, or alternative assets, positions it for high growth but also high volatility. This singular focus on equities, particularly in developed and emerging markets, may not suit those seeking regular income or with a lower risk tolerance. Broadening the asset class mix could enhance stability without significantly compromising growth potential.

Sectors Info

  • Technology
    31%
  • Financials
    12%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Health Care
    8%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

With technology, financial services, and consumer cyclicals dominating the sectoral allocation, the portfolio is poised to benefit from growth in these dynamic sectors. However, this concentration also increases susceptibility to sector-specific downturns. Diversifying into underrepresented sectors could provide a buffer during tech or finance-specific market corrections.

Regions Info

  • North America
    90%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation heavily favors North America, specifically the US, with a minor stake in emerging markets. This reflects confidence in the US economy but may overlook potential opportunities in other developed and emerging markets. Increasing exposure to underrepresented regions could capture global growth trends and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    17%
  • Small-cap
    1%

The emphasis on mega and big-cap stocks underscores a preference for stability and established performance. While these companies are generally less volatile, the minimal exposure to medium and small-cap stocks may limit potential for outsized gains from faster-growing firms. A slight increase in allocation to smaller caps could enhance return potential without drastically increasing 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 may not be fully optimized for the best possible risk-return ratio given its limited diversification. Exploring a wider range of asset allocations could potentially yield a more efficient balance, enhancing returns for the same level of risk or reducing risk for the same level of expected returns.

Ongoing product costs Info

  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • Weighted costs total (per year) 0.13%

The portfolio benefits from low management costs, with a total expense ratio (TER) of 0.13%. This efficiency supports long-term growth by minimizing the drag on performance due to fees. Maintaining focus on cost-effective investment options will continue to be beneficial, especially in a low-yield environment.

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