This portfolio has only about 4.5 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.

Moderately Diversified Growth Portfolio with Strong Historical Performance and High Correlation

Report created on Jul 26, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio consists of three ETFs: Vanguard S&P 500 UCITS Acc (48%), Vanguard FTSE All-World UCITS ETF USD Accumulation (29%), and iShares NASDAQ-100® UCITS ETF (DE) EUR (23%). This composition indicates a strong leaning towards equity investments, with a significant portion allocated to U.S. markets. The moderately diversified nature of the portfolio suggests that while there is some level of diversification, it is not extensively spread across different asset classes or sectors.

Growth Info

Historically, the portfolio has shown impressive performance with a compound annual growth rate (CAGR) of 13.6%. However, it has also experienced significant volatility, evidenced by a maximum drawdown of -32.41%. This means that while the returns have been strong, the portfolio has also faced substantial declines in value during market downturns. The fact that 90% of returns were made up in just 17 days highlights the importance of staying invested during volatile periods.

Projection Info

Using a Monte Carlo simulation with 1,000 simulations, the portfolio's future performance was projected. The 5th percentile indicates a minimal growth of 1.73%, while the median (50th percentile) suggests a potential growth of 485.22%. The 67th percentile projection shows a substantial growth of 769.78%. With an annualized return of 16.35% across all simulations, the portfolio appears to have a high probability of positive returns, though with varying degrees of success.

Asset classes Info

  • Stocks
    52%
  • No data
    48%

The portfolio is heavily weighted towards stocks, comprising approximately 51.95% of the total allocation. The remaining 48% is categorized as unknown, likely due to the nature of the ETFs which may include a mix of different asset classes. This heavy reliance on equities aligns with the growth-oriented nature of the portfolio but also introduces higher risk due to market volatility.

Sectors Info

  • No data
    48%
  • Technology
    19%
  • Consumer Discretionary
    6%
  • Telecommunications
    6%
  • Financials
    5%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Basic Materials
    2%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation reveals a strong emphasis on technology (18.96%), followed by consumer cyclicals (5.99%) and communication services (5.72%). Other sectors like financial services, healthcare, and industrials have smaller allocations. This sector distribution indicates a focus on growth sectors, which can offer substantial returns but also come with higher volatility. To reduce sector-specific risks, diversifying into more stable sectors could be beneficial.

Regions Info

  • No data
    48%
  • North America
    41%
  • Europe Developed
    5%
  • Japan
    2%
  • Asia Emerging
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographically, the portfolio is predominantly invested in North America (41%), with smaller allocations in Europe Developed (4.91%) and Japan (1.84%). The significant unknown portion (48%) likely represents the global nature of the ETFs. This geographic distribution suggests a strong reliance on the U.S. market, which can be advantageous during periods of U.S. economic growth but may also expose the portfolio to regional risks.

Dividends Info

  • iShares NASDAQ-100® UCITS ETF (DE) EUR 0.30%
  • Weighted yield (per year) 0.07%

The portfolio does not provide specific data on dividend yields. Given the growth-oriented nature of the portfolio, it is likely that the focus is more on capital appreciation rather than income generation through dividends. Investors looking for regular income might need to consider adding dividend-paying assets to the portfolio to balance growth with income.

Ongoing product costs Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.06%

The portfolio's costs are relatively low, with the Vanguard FTSE All-World UCITS ETF USD Accumulation having an expense ratio of 0.22% and the total TER being 0.06%. Low costs are beneficial as they help in maximizing net returns over the long term. Keeping investment costs low is a crucial aspect of portfolio management, especially for growth-oriented portfolios where high returns are sought.

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