High risk high reward portfolio with a strong focus on gold and S&P 500 exposure

Report created on May 3, 2025

Risk profile Info

7/7
Speculative
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is distinctly characterized by its heavy allocation towards gold (45%) and significant investments in S&P 500 ETFs (35%) and a global consumer discretionary ETF (20%). This composition indicates a speculative approach, leaning heavily on the performance of gold and major US equities. The singular focus on stocks, with a notable absence of bonds or other asset classes, suggests an aggressive pursuit of growth, albeit with a high-risk profile.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 38.18%, the portfolio has demonstrated exceptional performance historically. However, the maximum drawdown of -48.35% underscores the high-risk nature of this investment strategy. The fact that 90% of returns were generated in just 11 days highlights the portfolio's volatility and the critical timing of market entry and exit.

Projection Info

The Monte Carlo simulation, with 1,000 iterations, projects a wide range of outcomes, from a severe loss of -94.6% to an extraordinary gain of 659.0% at the 67th percentile. This vast disparity emphasizes the speculative nature of the portfolio, with a significant portion of simulations (354 out of 1,000) resulting in negative returns, showcasing the high stakes involved.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without diversification into other asset classes like bonds or real estate, amplifies both potential returns and volatility. This approach is consistent with a speculative investment strategy but may not be suitable for all investors, especially those with a lower risk tolerance or a need for income generation through dividends or interest.

Sectors Info

  • Basic Materials
    46%
  • Consumer Discretionary
    22%
  • Technology
    12%
  • Financials
    5%
  • Health Care
    4%
  • Telecommunications
    4%
  • Industrials
    3%
  • Consumer Staples
    2%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation shows a heavy bias towards basic materials, primarily due to the gold investment, and consumer cyclicals, with technology also having a significant presence. This concentration in sectors that can be highly sensitive to economic cycles further increases the portfolio's risk profile but also its potential for high returns during bullish market phases.

Regions Info

  • Europe Developed
    48%
  • North America
    48%
  • Japan
    3%

Geographic allocation is evenly split between developed Europe and North America, with a minor exposure to Japan. This developed market focus provides some level of stability and access to mature economies but limits exposure to potentially higher growth opportunities in emerging markets.

Market capitalization Info

  • Micro-cap
    45%
  • Mega-cap
    29%
  • Large-cap
    18%
  • Mid-cap
    8%

The portfolio's market capitalization breakdown, with a surprising 45% in micro-cap stocks (likely attributed to the gold stock's classification) and a significant portion in mega and big caps, presents an unusual risk-return profile. Micro-cap stocks typically offer high growth potential but come with increased volatility and liquidity risks.

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.

While the portfolio's current setup aims for high returns, its position on the Efficient Frontier could likely be optimized for a better risk-return balance. Adjusting the asset allocation to include a broader mix of asset classes and sectors might reduce volatility without significantly compromising potential returns.

Ongoing product costs Info

  • Amundi S&P Global Consumer Discretionary ESG UCITS ETF DR EUR Acc EUR 0.18%
  • EasyETF - BNP Paribas Easy S&P 500 UCITS ETF 0.12%
  • Weighted costs total (per year) 0.08%

The overall costs, represented by the Total Expense Ratio (TER), are impressively low, enhancing the portfolio's attractiveness by minimizing the drag on returns. This cost efficiency is a positive aspect, especially important in a high-risk investment strategy where every percentage point of return matters.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey