A balanced and broadly diversified portfolio with a strategic focus on defense and major markets

Report created on Sep 8, 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 prominently features a significant allocation towards a defense-focused ETF, alongside substantial investments in broad market ETFs covering the S&P 500 and European equities. This composition suggests a strategic tilt towards sectors believed to offer both stability and growth, particularly in industrials and technology. The heavy weighting in a single sector ETF, however, may introduce sector-specific risks not offset by the broader market investments.

Growth Info

Historically, this portfolio has demonstrated a remarkable Compound Annual Growth Rate (CAGR) of 27.59%, with a maximum drawdown of -12.16%. These figures indicate a strong performance with relatively moderate volatility. It's vital to remember, however, that past performance is not always indicative of future results. The days contributing most to returns highlight the portfolio's potential for significant short-term gains, but also suggest a reliance on relatively few high-performing days.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 1,973.2%, underscoring the portfolio's potential for substantial growth. Nevertheless, these projections, based on historical data, carry uncertainty and should be seen as one of many tools in evaluating future possibilities, not guarantees.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without diversification into other asset classes like bonds or real estate, positions it for potentially higher returns but also higher volatility. This concentration in equities aligns with a balanced risk profile but might benefit from further diversification to mitigate risk and smooth out returns over time.

Sectors Info

  • Industrials
    46%
  • Technology
    23%
  • Financials
    8%
  • Health Care
    5%
  • Consumer Discretionary
    5%
  • Telecommunications
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

Sector allocation leans heavily towards industrials, technology, and financial services, reflecting a focus on growth-oriented and defensive sectors. While this can offer strong growth potential, especially in bullish markets, it also exposes the portfolio to sector-specific downturns. A more balanced sector distribution could help in reducing volatility.

Regions Info

  • North America
    60%
  • Europe Developed
    30%
  • Asia Developed
    8%
  • Africa/Middle East
    2%

Geographic distribution is concentrated in developed markets, with a significant emphasis on North America and Europe. This focus enhances stability and access to mature economies but limits exposure to emerging markets' growth potential. Diversifying geographically could introduce new growth opportunities and reduce region-specific risks.

Market capitalization Info

  • Large-cap
    43%
  • Mega-cap
    27%
  • Mid-cap
    19%
  • Small-cap
    11%

The mix of big, mega, and medium-cap stocks provides a balance between stability and growth potential, with a smaller allocation to small caps for added growth prospects. This cap-size distribution is appropriate for a balanced risk profile but could be fine-tuned to better align with specific risk tolerance and growth objectives.

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 current portfolio shows a well-thought-out approach to risk-return optimization, as indicated by its performance and Monte Carlo projections. However, exploring the Efficient Frontier could reveal opportunities to adjust asset allocation for an even better risk-return balance, without necessarily compromising on diversification or investment goals.

Ongoing product costs Info

  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • Weighted costs total (per year) 0.07%

With exceptionally low total expense ratios (TERs) for the ETFs, the portfolio benefits from minimized costs, enhancing net returns over time. This cost efficiency is a strong point, especially in the context of a long-term investment strategy where fees can significantly impact growth.

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