This portfolio has only about 1.1 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.
Open the Portfolio Builder Reshape your holdings and watch every metric recalculate live. Try it

Cautious Portfolio with High Exposure to US Stocks and Low Diversification

Report created on Jul 15, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio consists entirely of the SPDR S&P 500 UCITS ETF, which means it's heavily concentrated in US large-cap stocks. With 100% allocation to a single ETF, the portfolio lacks diversification across different asset classes or regions. This concentration means the portfolio's performance is closely tied to the S&P 500 index, which can be both a strength and a weakness. To enhance diversification and reduce risk, consider adding other asset classes like bonds or international stocks, which can provide more balance and potentially smoother returns over time.

Growth Info

Historically, the portfolio has shown impressive growth with a compound annual growth rate (CAGR) of 34.29%. A hypothetical initial investment would have experienced a maximum drawdown of -7.71%, indicating some level of risk. The concentration in the S&P 500 has contributed to this strong performance, but it's important to remember that past performance doesn't guarantee future results. To maintain such growth, it's crucial to periodically review the portfolio's alignment with long-term goals and risk tolerance, ensuring it remains suitable as market conditions evolve.

Projection Info

Using a Monte-Carlo simulation, which involves running thousands of potential future scenarios, the portfolio shows promising projections. Assuming a hypothetical initial investment, the 50th percentile indicates a potential growth of 12,514.2%, and the annualized return across all simulations is 40.5%. This suggests a strong probability of positive returns, but it's essential to consider that this is based on historical data and assumptions. To manage expectations and risk, it's advisable to regularly review and adjust the portfolio as needed, staying informed about changes in the market environment.

Asset classes Info

  • Stocks
    100%

The portfolio is invested entirely in stocks, specifically through the SPDR S&P 500 UCITS ETF. This means there is exposure to a single asset class, which can lead to higher volatility compared to a more balanced portfolio with multiple asset classes. While stocks have historically offered higher returns, they also come with increased risk. To create a more balanced risk-return profile, consider diversifying into other asset classes such as bonds, which can provide stability and income, especially during market downturns.

Sectors Info

  • Technology
    33%
  • Financials
    13%
  • Health Care
    11%
  • Consumer Discretionary
    10%
  • Telecommunications
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    3%
  • Real Estate
    2%
  • Basic Materials
    2%

The portfolio's sector allocation is dominated by Technology at 33.01%, followed by Financial Services and Healthcare. This sector concentration can lead to significant exposure to sector-specific risks. While these sectors have driven growth, they can also be volatile. Diversifying into other sectors can help mitigate risks associated with sector-specific downturns. A more balanced sector allocation can provide smoother returns and reduce the impact of adverse events affecting specific industries.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is overwhelmingly concentrated in North America, with a 99.40% allocation. This lack of geographic diversification exposes the portfolio to risks specific to the US market. While the US has been a strong performer, economic or political changes could impact returns. To reduce geographic risk, consider diversifying into other regions such as Europe or Asia, which can offer exposure to different economic cycles and growth opportunities, providing a more globally balanced portfolio.

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