A balanced and broadly diversified portfolio with a strong tilt towards technology and global equities

Report created on Jul 24, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is characterized by an equal-weight strategy across five ETFs, focusing on technology, space innovation, global equities, the US S&P 500, and the UK FTSE 100. Such a composition presents a blend of sector-specific and broad-market exposures. The heavy emphasis on ETFs simplifies the investment process, providing instant diversification across various sectors and geographies. However, the 40% allocation towards technology and space innovation sectors indicates a growth-oriented risk profile, potentially increasing volatility.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 18.14% and a maximum drawdown of -19.94%, the portfolio has demonstrated robust growth with relatively moderate declines. The days contributing to 90% of returns being limited to 21 suggests significant returns are concentrated on a few key days, highlighting the importance of staying invested during volatile periods. This performance, while impressive, underscores the portfolio's reliance on market highs to achieve notable gains.

Projection Info

Monte Carlo simulations, which use historical data to forecast future performance under various market conditions, indicate a wide range of potential outcomes for this portfolio. With key percentiles showing a minimum of 222.1% and a median of 942.8% growth, there's a strong likelihood of substantial long-term gains. However, it's crucial to remember that these projections are hypothetical and subject to market risks, emphasizing the need for ongoing review and adjustment.

Asset classes Info

  • Stocks
    100%

The portfolio's assets are entirely in stocks, offering high growth potential but also higher risk compared to more diversified portfolios including bonds or real estate. This allocation suits investors with a higher risk tolerance and a long-term investment horizon. While stocks have historically provided superior returns over the long term, this concentration increases exposure to market volatility and sector-specific downturns.

Sectors Info

  • Technology
    34%
  • Industrials
    17%
  • Financials
    12%
  • Telecommunications
    10%
  • Health Care
    6%
  • Consumer Staples
    6%
  • Consumer Discretionary
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation reveals a strong focus on technology and industrials, accounting for over half of the portfolio. This concentration in high-growth areas can offer significant returns but also brings higher volatility and risk, especially during economic downturns or sector-specific setbacks. Diversifying across a broader range of sectors could reduce risk without significantly compromising potential returns.

Regions Info

  • North America
    66%
  • Europe Developed
    26%
  • Japan
    3%
  • Asia Developed
    3%
  • Asia Emerging
    1%

Geographically, the portfolio is heavily weighted towards North America and developed European markets, with minimal exposure to emerging markets. This allocation benefits from the stability and growth potential of developed economies but may miss out on the higher growth rates often found in emerging markets. Expanding geographic diversification could capture global growth opportunities and reduce regional concentration risk.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    25%
  • Mid-cap
    17%
  • Small-cap
    9%
  • Micro-cap
    6%

The market capitalization breakdown shows a preference for mega and big-cap stocks, which are typically less volatile than smaller companies and offer steady growth prospects. However, this focus may limit exposure to the higher growth potential of medium, small, and micro-cap stocks. Including a wider range of market caps could enhance diversification and potential for higher returns.

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.

Considering the Efficient Frontier, this portfolio could potentially benefit from optimization to achieve a better risk-return ratio. By adjusting allocations within the existing assets or incorporating new asset classes, it may be possible to enhance returns or reduce volatility without significantly increasing risk. Regularly reviewing and adjusting the portfolio in response to changing market conditions can help maintain an optimal balance.

Ongoing product costs Info

  • iShares S&P 500 USD Information Technology Sector UCITS 0.15%
  • Invesco FTSE RAFI All World 3000 UCITS ETF 0.39%
  • Vanguard S&P 500 UCITS ETF USD Accumulation 0.07%
  • Vanguard FTSE 100 UCITS GBP Acc 0.10%
  • Weighted costs total (per year) 0.14%

The portfolio's average Total Expense Ratio (TER) of 0.14% is impressively low, enhancing long-term return potential by minimizing cost drag. This efficiency is particularly beneficial in a growth-focused portfolio where every percentage point of return can compound significantly over time. Keeping costs low is a fundamental principle of successful long-term investing.

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