A growth-focused portfolio with strong US exposure and moderate diversification

Report created on Mar 24, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio consists of a mix of ETFs and individual stocks, with a significant 40% allocation to the iShares Core S&P 500 UCITS ETF. This highlights a strong focus on US large-cap equities. Other notable positions include Alphabet and NVIDIA, contributing to a tech-heavy bias. The portfolio also includes exposure to emerging markets and global real estate, providing some diversification. Compared to a typical growth portfolio, this composition leans heavily on US equities, which may limit diversification benefits. Consider evaluating the balance between ETFs and individual stocks to optimize risk and return.

Growth Info

Historically, the portfolio has delivered a robust CAGR of 17.66%, outperforming many benchmarks. However, it also experienced a significant max drawdown of -32.76%, indicating potential volatility. It's important to note that past performance doesn't guarantee future results. The portfolio's reliance on high-growth tech stocks likely contributed to both the strong returns and the volatility. To mitigate future drawdowns, consider strategies that balance growth with stability, such as including more defensive sectors or fixed-income assets.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows promising potential. With a median projected return of 769.1% and 966 out of 1,000 simulations resulting in positive returns, the outlook is optimistic. However, the 5th percentile projection of 23.4% highlights the risk of underperformance. Remember, these projections are not guarantees but provide a range of possible outcomes. Diversifying further could help manage downside risk while maintaining growth potential.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to cash or other asset classes like bonds. This 100% equity exposure aligns with a high-risk, high-reward strategy typical of growth-focused portfolios. While this can lead to substantial returns during bull markets, it also increases vulnerability during downturns. Diversifying into other asset classes could provide a buffer against market volatility and enhance long-term stability. Consider adding fixed-income securities or other asset classes to balance risk.

Sectors Info

  • Technology
    26%
  • Telecommunications
    19%
  • Consumer Discretionary
    17%
  • Real Estate
    15%
  • Financials
    8%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Basic Materials
    1%
  • Utilities
    1%

The portfolio exhibits a strong concentration in the technology sector, comprising 26% of total assets. This tech-heavy allocation can lead to higher volatility, particularly during periods of interest rate hikes or regulatory changes. Other sectors like communication services and consumer cyclicals also have significant representation. To enhance sectoral diversification, consider increasing exposure to less-represented sectors like healthcare or utilities, which can offer stability during economic fluctuations.

Regions Info

  • North America
    73%
  • Asia Emerging
    17%
  • Asia Developed
    4%
  • Europe Developed
    2%
  • Japan
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America, representing 73% of total assets. This concentration aligns with the strong performance of US markets but may expose the portfolio to regional risks. Emerging Asian markets account for 17%, providing some diversification. However, developed Europe and other regions are underrepresented. To mitigate geographic risk, consider increasing exposure to diverse regions, particularly in Europe and emerging markets, which can offer growth opportunities and reduce reliance on US performance.

Market capitalization Info

  • Mega-cap
    59%
  • Large-cap
    21%
  • Mid-cap
    17%
  • Small-cap
    2%

The portfolio is predominantly invested in mega-cap stocks, making up 59% of the allocation. While these large companies offer stability and liquidity, they may limit growth potential compared to smaller-cap stocks. The inclusion of big and medium-cap stocks adds some diversification, but small caps are notably underrepresented. Small-cap stocks can provide higher growth opportunities albeit with increased risk. Consider incorporating more small and micro-cap stocks to capture potential growth 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's current asset allocation suggests potential for optimization using the Efficient Frontier, which helps identify the best risk-return ratio. This approach focuses on maximizing returns for a given level of risk by adjusting the allocation among existing assets. While the portfolio is growth-oriented, optimizing for efficiency can improve its risk-adjusted performance. Regularly reassess the allocation to ensure it aligns with risk tolerance and investment goals, and consider using optimization tools to enhance the portfolio's efficiency.

Dividends Info

  • VanEck Vectors ETFs N.V. - VanEck Vectors Global Real Estate UCITS ETF 2.80%
  • Weighted yield (per year) 0.39%

The portfolio's overall dividend yield is low, at 0.39%, indicating a focus on capital appreciation rather than income generation. The VanEck Vectors Global Real Estate ETF contributes a notable 2.80% yield, providing some income. For investors seeking regular income, consider increasing exposure to dividend-paying stocks or ETFs. Balancing growth with income-generating assets can provide a more stable cash flow, particularly during market downturns when capital gains may be limited.

Ongoing product costs Info

  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • VanEck Vectors ETFs N.V. - VanEck Vectors Global Real Estate UCITS ETF 0.25%
  • Weighted costs total (per year) 0.10%

The portfolio's costs are impressively low, with a total expense ratio (TER) of 0.10%. This cost efficiency supports better long-term performance by minimizing the drag on returns. Low costs are particularly beneficial in growth portfolios, where compounding can significantly enhance returns over time. Maintaining this cost structure is advantageous, but it's important to regularly review and compare fees to ensure they remain competitive. Consider exploring additional cost-saving opportunities as the portfolio evolves.

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