Growth-focused portfolio with heavy technology sector and developed market exposure

Report created on Aug 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is notably weighted towards technology through a 50% allocation in the Xtrackers MSCI World Information Technology UCITS ETF, complemented by significant exposure to the German market via the iShares Core DAX® UCITS ETF at 40%. The remaining 10% is invested in the Vanguard FTSE All-World UCITS ETF, providing broader global exposure. This composition suggests a growth-oriented strategy, leveraging the technology sector's potential for high returns, while the DAX exposure focuses on established German companies, and the Vanguard ETF adds a layer of global diversification.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 16.90%, with a maximum drawdown of -33.72%. These figures indicate a strong performance trend, with the high CAGR reflecting the growth potential of the technology sector. However, the significant drawdown highlights the portfolio's vulnerability to market volatility, especially within tech-dominated investments. It's crucial to balance the pursuit of high returns with the understanding that high growth sectors can lead to large fluctuations in portfolio value.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The 50th percentile outcome of a 578.6% increase is optimistic, reflecting the strong growth potential. However, the 5th percentile at 92.7% indicates there's still a risk of relatively low returns. These projections, while helpful for setting expectations, should be viewed with caution as they cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, showcasing a clear focus on growth through equity investments. This asset class is known for its potential for high returns, especially over the long term, but it also comes with higher volatility compared to bonds or cash. For investors seeking growth, a stock-heavy portfolio is common, but it's important to be comfortable with the ups and downs of the market.

Sectors Info

  • Technology
    59%
  • Industrials
    13%
  • Financials
    10%
  • Consumer Discretionary
    5%
  • Telecommunications
    4%
  • Health Care
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Consumer Staples
    1%
  • Real Estate
    1%

With 59% allocated to technology, this portfolio is heavily tilted towards one of the highest-growth sectors. While this can lead to significant returns, especially given the tech industry's recent performance, it also increases sector-specific risk. Diversifying across more sectors could help mitigate this risk, potentially smoothing out returns over time without drastically sacrificing growth potential.

Regions Info

  • North America
    53%
  • Europe Developed
    44%
  • Japan
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%

The geographic allocation is heavily skewed towards North America (53%) and developed Europe (44%), with minimal exposure to emerging markets and other developed regions. This focus on developed markets may offer stability and access to established companies but could limit exposure to high-growth potential in emerging markets. Broadening geographic diversity could enhance risk-adjusted returns by capturing growth in diverse economies.

Market capitalization Info

  • Mega-cap
    61%
  • Large-cap
    31%
  • Mid-cap
    7%

The portfolio's emphasis on mega (61%) and big (31%) cap stocks aligns with its growth and stability goals, leveraging the potential and resilience of large, established companies. However, the minimal exposure to medium and no allocation to small or micro-cap stocks means missing out on the high-growth potential these smaller companies can offer. Incorporating a wider range of market caps could enhance growth prospects and diversification.

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, which aims to maximize returns for a given level of risk, there's potential to optimize the portfolio. Adjusting the allocation to include assets with lower correlation and varying market caps could improve the risk-return profile. This doesn't necessarily mean a drastic overhaul but rather a fine-tuning to ensure the portfolio is positioned as efficiently as possible within the growth-focused strategy.

Ongoing product costs Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Xtrackers MSCI World Information Technology UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.15%

The portfolio's overall cost is relatively low, with Total Expense Ratios (TERs) for the included ETFs ranging from 0.15% to 0.25%. This efficient cost structure supports better long-term performance by minimizing the drag on returns. Investors should continue to prioritize low-cost investments, especially in sectors like technology where fund options can vary significantly in expense ratios.

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