This portfolio has only about 1.7 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.

A highly concentrated portfolio with significant exposure to industrials and European markets

Report created on May 29, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards Rheinmetall AG, making up over 64% of the portfolio when combining common stock and ADRs. This concentration significantly increases the portfolio's exposure to the industrial sector and European markets. While the inclusion of broad market ETFs like the Vanguard Total Stock Market Index Fund and the Vanguard Total International Stock ETF introduces some diversification, the overwhelming weight of a single company and sector poses a substantial risk.

Growth Info

Historically, this portfolio has shown an exceptionally high Compound Annual Growth Rate (CAGR) of 100.55%. However, such performance comes with high volatility, as indicated by a maximum drawdown of -16.38%. It's crucial to understand that past performance, especially over short periods, is not always indicative of future results. The days contributing most to returns suggest significant gains were likely driven by specific, short-term events, which may not repeat.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median portfolio value increase of 1,468,744.9%. While these projections are based on historical data, they underscore the portfolio's high-risk, high-reward nature. However, it's important to note that such simulations cannot predict future market conditions or specific stock performances accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes like bonds or real estate. This allocation aligns with an aggressive growth strategy but increases susceptibility to market volatility. Diversifying across different asset classes can reduce risk without necessarily compromising potential returns.

Sectors Info

  • Industrials
    73%
  • Technology
    8%
  • Financials
    4%
  • Health Care
    3%
  • Consumer Discretionary
    3%
  • Telecommunications
    2%
  • Consumer Staples
    2%
  • Energy
    1%
  • Basic Materials
    1%
  • Real Estate
    1%
  • Utilities
    1%

With 73% of the portfolio in industrials, primarily through Rheinmetall AG, the sector concentration risk is significant. While the portfolio does touch on other sectors, such as technology and financial services, the heavy reliance on industrials could lead to underperformance during sector downturns. Diversifying across a broader range of sectors could mitigate this risk.

Regions Info

  • Europe Developed
    69%
  • North America
    26%
  • Asia Developed
    1%
  • Asia Emerging
    1%
  • Japan
    1%

The geographic allocation is heavily skewed towards developed Europe, mainly due to the large position in Rheinmetall AG. While there is some exposure to North America and minimal exposure to Asia, the lack of presence in emerging markets and other global regions limits diversification benefits and exposure to global growth opportunities.

Market capitalization Info

  • Large-cap
    76%
  • Mega-cap
    12%
  • Mid-cap
    6%
  • Small-cap
    3%

The focus on big and mega-cap companies, constituting 88% of the portfolio, suggests a preference for established, potentially less volatile companies. However, the inclusion of medium, small, and micro-cap companies could offer higher growth potential, albeit with increased risk.

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.

Given the portfolio's current high-risk profile and concentration in a single company and sector, there's room for optimization towards a more efficient risk-return balance. Adjusting the asset allocation to include a wider range of sectors, asset classes, and geographic regions could enhance diversification and reduce volatility without significantly compromising potential returns.

Dividends Info

  • Roundhill Magnificent Seven ETF 0.80%
  • Rheinmetall AG 0.40%
  • Global X Funds 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 0.67%

The portfolio's overall dividend yield is modest at 0.67%. While dividends contribute to total return, the primary focus appears to be on capital appreciation. Investors seeking income in addition to growth might consider increasing exposure to higher-yielding assets.

Ongoing product costs Info

  • Roundhill Magnificent Seven ETF 0.29%
  • Global X Funds 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from low overall costs, with the Vanguard ETFs particularly contributing to cost efficiency. Lower costs directly translate to higher net returns over time, which is a positive aspect of this portfolio's construction.

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