A single-asset portfolio focused on the S&P 500 with high exposure to the US market

Report created on Jan 7, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is entirely composed of the EasyETF - BNP Paribas Easy S&P 500 UCITS ETF, representing a 100% allocation to US large-cap stocks. While this provides a focused exposure to a major equity index, it lacks diversification across asset classes. Common benchmark portfolios often include a mix of stocks, bonds, and other assets to balance risk. Consider diversifying into additional asset classes to enhance risk management and potentially smooth out returns over time.

Growth Info

Historically, the portfolio has performed well, with a Compound Annual Growth Rate (CAGR) of 15.38%. This indicates strong growth over time, outperforming many traditional balanced portfolios. However, it also experienced a maximum drawdown of -33.61%, highlighting its vulnerability during market downturns. While past performance is not indicative of future results, understanding these trends can help set realistic expectations for future returns and volatility.

Projection Info

A Monte Carlo simulation, which uses historical data to predict future outcomes, suggests a positive outlook for this portfolio. With 1,000 simulations, the median (50th percentile) outcome is a 658.9% return, and 998 simulations show positive returns. However, projections like these are based on past data and assumptions, which may not hold in the future. It’s important to use these results as one of many tools in decision-making, rather than a guaranteed forecast.

Asset classes Info

  • Stocks
    100%

The portfolio is solely invested in stocks, specifically through the S&P 500 ETF. This single asset class approach limits diversification, as it excludes bonds, real estate, and other alternatives that could provide stability during market volatility. Most balanced portfolios include a mix of asset classes to manage risk and enhance returns. Consider adding other asset types to achieve a more diversified and resilient investment strategy.

Sectors Info

  • Technology
    33%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    11%
  • Telecommunications
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    3%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation is heavily skewed towards technology, comprising over 32% of the portfolio. While tech stocks have driven significant returns recently, this concentration can lead to higher volatility, especially if the sector faces regulatory or economic challenges. Other sectors like financial services and consumer cyclicals have less representation. Balancing sector exposure could mitigate risks associated with any single sector downturn.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

The portfolio's geographic allocation is overwhelmingly concentrated in North America, at 99.42%, with minimal exposure to Europe and Asia. This lack of geographic diversification increases vulnerability to regional economic shifts and policy changes. A more globally diversified portfolio can help spread risk and capture growth opportunities in different parts of the world. Consider increasing exposure to other regions to balance this concentration.

Ongoing product costs Info

  • EasyETF - BNP Paribas Easy S&P 500 UCITS ETF 0.12%
  • Weighted costs total (per year) 0.12%

The portfolio benefits from low costs, with a Total Expense Ratio (TER) of 0.12% for the EasyETF. Low fees are advantageous as they preserve more of your returns over the long term. This cost efficiency aligns well with best practices in portfolio management, ensuring that investment gains are not eroded by high fees. Maintaining this low-cost structure is crucial for optimizing net returns, especially in a single-asset portfolio.

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