A growth-oriented portfolio with strong tech focus and moderate risk profile

Report created on Apr 13, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is primarily composed of ETFs, with a significant 45.74% allocation to the iShares NASDAQ 100 UCITS ETF and a 35.34% allocation to the HSBC MSCI World UCITS ETF. Additionally, it includes a 9.56% allocation to the Amundi MSCI Emerging Markets ETF and a 9.36% stake in Amazon.com Inc. This composition reflects a growth-oriented strategy with a strong focus on large-cap equities, particularly in the technology sector. Compared to typical benchmarks, this portfolio leans heavily on tech stocks, which can drive higher returns but may also increase volatility. Consider balancing with more diverse asset types or sectors to mitigate risks associated with tech concentration.

Growth Info

Historically, the portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 13.54%, indicating strong past performance. However, it also experienced a maximum drawdown of -32.38%, highlighting potential volatility. This performance, when compared to a broad market benchmark, suggests the portfolio has outperformed during bull markets but may be susceptible to significant declines during downturns. While past performance is not indicative of future results, understanding these trends can guide future investment decisions. It's crucial to assess whether your risk tolerance aligns with such volatility and consider strategies to cushion potential downturns.

Projection Info

Using a Monte Carlo simulation, which analyzes potential future outcomes based on historical data, the portfolio's projected annualized return is 15.43%. This simulation shows a wide range of possible outcomes, with the 5th percentile at 28.5% and the 67th percentile at 671.2%. While the majority of simulations indicate positive returns, it's important to remember that these projections are based on past data and do not guarantee future performance. Given the optimistic projections, consider if your investment goals align with this level of risk and potential reward, and remain open to adjustments as market conditions change.

Asset classes Info

  • Stocks
    90%
  • No data
    10%

The portfolio's asset allocation is heavily weighted towards equities, with 90% in stocks and 10% in unknown assets. This high equity exposure aligns with the growth-oriented strategy but may lack the diversification benefits of including other asset classes, such as bonds or real estate. Compared to a typical balanced portfolio, which might include a mix of stocks and bonds, this allocation could lead to higher returns but also increased risk. Consider diversifying into other asset classes to reduce risk and provide more stability during market fluctuations.

Sectors Info

  • Technology
    32%
  • Consumer Discretionary
    19%
  • Telecommunications
    10%
  • No data
    10%
  • Health Care
    6%
  • Financials
    6%
  • Industrials
    5%
  • Consumer Staples
    5%
  • Basic Materials
    2%
  • Utilities
    2%
  • Energy
    2%
  • Real Estate
    1%

The portfolio's sector allocation is dominated by technology at 32%, followed by consumer cyclicals at 19% and communication services at 10%. This concentration in tech stocks could lead to higher volatility, especially during periods of interest rate hikes or tech sector downturns. While the sector composition aligns well with growth strategies, it may benefit from further diversification across more sectors to mitigate sector-specific risks. Consider exploring opportunities in underrepresented sectors like healthcare or financial services to balance potential sector-specific downturns.

Regions Info

  • North America
    80%
  • No data
    10%
  • Europe Developed
    7%
  • Japan
    2%
  • Australasia
    1%

Geographically, the portfolio is heavily skewed towards North America, with 80% exposure, and has limited exposure to other regions. This concentration may limit the diversification benefits that come from a more globally balanced portfolio. Compared to common benchmarks, which often have a more even distribution across regions, this portfolio could be vulnerable to North American market-specific risks. Consider increasing exposure to regions like Europe, Asia, or emerging markets to enhance diversification and reduce reliance on a single geographic area.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    28%
  • Mid-cap
    11%
  • No data
    10%

The portfolio's market capitalization is predominantly in mega-cap stocks at 51%, with big caps at 28% and medium caps at 11%. This focus on larger companies can provide stability and reduced volatility compared to smaller-cap stocks. However, it may also limit growth potential, as smaller companies often offer higher growth opportunities. Compared to a more diversified market cap allocation, this portfolio might miss out on the potential upside of small-cap stocks. Consider incorporating small or mid-cap stocks to capture growth opportunities and enhance diversification.

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.

The portfolio has potential for optimization using the Efficient Frontier, which seeks the best possible risk-return ratio for the current asset mix. This optimization focuses on reallocating existing assets to achieve the most efficient balance between risk and return. While the portfolio is already growth-oriented, fine-tuning the allocation could enhance performance. Consider exploring optimization opportunities to improve the risk-return profile, keeping in mind that efficiency doesn't guarantee diversification or alignment with personal investment goals.

Dividends Info

  • HSBC MSCI World UCITS ETF 0.40%
  • Weighted yield (per year) 0.14%

The portfolio's dividend yield is relatively low at 0.14%, reflecting its focus on growth rather than income. While dividends can provide a steady income stream and enhance total returns, a low yield may indicate limited income potential. For investors seeking income, this portfolio may not be ideal. However, for those prioritizing capital appreciation, the growth focus aligns well. Consider whether the current dividend yield meets your investment goals, and if necessary, explore options to increase exposure to dividend-paying stocks for added income.

Ongoing product costs Info

  • HSBC MSCI World UCITS ETF 0.15%
  • iShares NASDAQ 100 UCITS ETF USD (Acc) 0.36%
  • Weighted costs total (per year) 0.22%

The portfolio's total expense ratio (TER) is 0.22%, which is relatively low and supports better long-term performance by minimizing costs. The cost structure aligns well with industry standards and contributes positively to the portfolio's overall returns. Compared to higher-cost alternatives, this low TER is beneficial for maximizing net returns over time. Maintaining this cost efficiency is crucial for long-term success. Regularly review and compare expense ratios to ensure they remain competitive and consider low-cost alternatives if necessary to keep costs in check.

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