A balanced portfolio with a strong emphasis on technology and developed markets

Report created on May 30, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is structured with a significant focus on ETFs and individual technology stocks, comprising 98% of the total assets, with a minor allocation to gold. The largest positions are in broad market ETFs, specifically the Vanguard S&P 500 UCITS ETF and the iShares Core MSCI Europe UCITS ETF, followed by significant stakes in technology companies like QUALCOMM and ASML Holding. This composition suggests a strategy leaning towards growth within developed markets, with a moderate approach to diversification across sectors and geographies.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 13.35%, with a maximum drawdown of -24.05%. This performance indicates a relatively strong growth trajectory when considering the balanced risk profile. However, the notable days contributing to most returns suggest volatility and the importance of timing in this portfolio's performance. Comparing these metrics to relevant benchmarks would provide further context on the portfolio's risk-adjusted returns.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a wide range of potential returns. The median simulation suggests a significant potential for growth, but it's crucial to remember that these projections are speculative and depend on past market behavior continuing into the future, which is never guaranteed.

Asset classes Info

  • Stocks
    98%
  • Other
    2%

The overwhelming focus on stocks, with a minor allocation to gold, indicates a growth-oriented strategy but raises concerns about diversification. While stocks have historically offered good returns, they come with higher volatility. A more diversified asset class mix could help mitigate risk, especially during market downturns.

Sectors Info

  • Technology
    43%
  • Financials
    11%
  • Utilities
    9%
  • Health Care
    8%
  • Industrials
    7%
  • Consumer Discretionary
    6%
  • Telecommunications
    5%
  • Consumer Staples
    5%
  • Energy
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

The technology sector's dominant 43% allocation significantly influences the portfolio's performance, likely contributing to its high growth rates. However, this concentration also increases susceptibility to sector-specific risks. Balancing this with investments in less volatile sectors could provide more stability.

Regions Info

  • North America
    62%
  • Europe Developed
    36%
  • Japan
    1%

With 62% exposure to North America and 36% to developed Europe, the portfolio is heavily weighted towards stable, developed markets. This focus may limit exposure to emerging market volatility but also to their potential higher returns. Considering a small, strategic allocation to emerging markets could enhance growth prospects and diversification.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    39%
  • Mid-cap
    11%

The portfolio's tilt towards mega and big cap stocks, constituting 87% of the allocation, aligns with its focus on stability and growth within established companies. However, incorporating medium or even small-cap stocks could offer higher growth potential, albeit with increased risk.

Redundant positions Info

  • iShares Core MSCI World UCITS ETF USD (Acc)
    Vanguard S&P 500 UCITS Acc
    High correlation

The high correlation between the iShares Core MSCI World UCITS ETF and the Vanguard S&P 500 UCITS ETF suggests redundancy, limiting diversification benefits. Reducing overlap by reallocating assets could enhance the portfolio's efficiency without necessarily increasing 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.

The analysis suggests that removing highly correlated assets could lead to a more efficient portfolio, potentially increasing the expected return to 26.60% at the same risk level. This optimization emphasizes the importance of diversification and the strategic selection of assets to improve the risk-return profile.

Ongoing product costs Info

  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • Multi Units Luxembourg - Amundi STOXX Europe 600 Utilities UCITS ETF Acc 0.30%
  • Vanguard S&P 500 UCITS Acc 0.07%
  • Weighted costs total (per year) 0.10%

The portfolio's average Total Expense Ratio (TER) of 0.10% is impressively low, maximizing the potential for net returns. This cost efficiency is a strong aspect of the portfolio, particularly important for long-term growth.

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