A balanced portfolio with a strong focus on global equities and technology exposure
Report created on Sep 30, 2025Risk profile
4/7
Diversification profile
3/5
Positions
-
CS iShares Core S&P 500 UCITS ETF USD (Acc)
CSPX - IE00B5BMR087 38.00% -
VW Vanguard FTSE All-World UCITS ETF USD Accumulation
VWRA - IE00BK5BQT80 28.00% -
GO LEVERAGE SHARES PUBLIC LIMITED CO. 1X GOOG
GOOG 25.00% -
VA Vanguard Global Aggregate Bond UCITS ETF USD Hedged Accumulation
VAGU - IE00BG47KJ78 9.00%
This portfolio is structured with a significant emphasis on equities, primarily through ETFs that track major indexes and a single stock ETF focusing on Google. The equity allocation is diversified across a broad range of sectors and geographies, with a notable concentration in technology. Bonds form a smaller portion, aimed at providing some level of income and stability. The inclusion of a bond ETF, particularly one that is USD hedged, is strategic for reducing currency risk, especially for a UK-based investor.
Growth
Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.37%, which is quite impressive. The maximum drawdown indicates the largest drop from peak to trough was -23.69%, which provides insight into the portfolio's volatility during market downturns. The fact that 90% of the returns were generated on just 17 days highlights the impact of significant market movements on performance. This underscores the importance of staying invested over the long term to capture these pivotal days.
Projection
Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possible performances for this portfolio. With the 50th percentile projection at a 310.2% increase, it shows promise. However, it's important to remember that these simulations are based on past data, which doesn't guarantee future results. They offer a useful tool for understanding potential volatility and the importance of risk management.
Asset classes
- Stocks 66%
- No data 25%
- Bonds 9%
The asset allocation leans heavily towards stocks (66%), with a significant portion in a single stock ETF (25%) and a modest allocation to bonds (9%). This mix supports growth but also introduces higher volatility and risk, particularly with such a large position in one company. Diversifying more within asset classes could reduce risk without necessarily sacrificing potential returns.
Sectors
- No data 25%
- Technology 21%
- Financials 10%
- Consumer Discretionary 7%
- Telecommunications 6%
- Health Care 6%
- Industrials 6%
- Consumer Staples 3%
- Energy 2%
- Utilities 2%
- Basic Materials 2%
- Real Estate 1%
The sectoral allocation reveals a strong focus on technology, followed by financial services and consumer cyclicals. This tech-heavy approach aligns with recent market trends favoring technology stocks but also increases susceptibility to sector-specific downturns. Expanding into underrepresented sectors could offer more stability and potential for growth across different market cycles.
Regions
- North America 56%
- No data 25%
- Europe Developed 4%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 1%
Geographically, the portfolio is heavily weighted towards North America (56%), with minimal exposure to emerging markets and other developed regions. This concentration benefits from the robust performance of US markets but also exposes the portfolio to regional economic and political risks. Increasing exposure to other regions could enhance diversification and access to growth opportunities worldwide.
Market capitalization
- Mega-cap 31%
- No data 25%
- Large-cap 23%
- Mid-cap 11%
The market capitalization breakdown shows a preference for mega and big-cap stocks, which are typically more stable and less volatile than smaller companies. However, this focus may limit the portfolio's potential for high growth rates achievable through investments in smaller, more dynamic companies. Considering a more balanced allocation across different market caps could improve growth prospects and risk distribution.
Redundant positions
-
High correlationVanguard FTSE All-World UCITS ETF USD AccumulationiShares Core S&P 500 UCITS ETF USD (Acc)
The high correlation between the Vanguard FTSE All-World UCITS ETF and the iShares Core S&P 500 UCITS ETF indicates overlapping exposures, which may limit the benefits of diversification. This redundancy suggests the portfolio could be streamlined to eliminate unnecessary overlap, thereby enhancing efficiency without compromising on the diversification front.
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.
Optimizing this portfolio involves addressing the high correlation between certain assets to enhance diversification benefits. By reallocating from overlapping investments to underrepresented sectors or geographies, the portfolio could achieve a more efficient risk-return profile. This optimization process, guided by the Efficient Frontier principle, seeks to maximize returns for a given level of risk.
Ongoing product costs
- iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
- Vanguard Global Aggregate Bond UCITS ETF USD Hedged Accumulation 0.08%
- Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
- Weighted costs total (per year) 0.11%
The portfolio's total expense ratio (TER) of 0.11% is impressively low, which is advantageous for long-term growth as it minimizes the drag on performance caused by fees. This cost efficiency is a strong point, particularly in a low-yield environment where every basis point in cost savings can significantly impact net returns.
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