A growth-focused portfolio with heavy emphasis on technology and significant single-stock exposure

Report created on Jul 28, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is characterized by a strong focus on technology, with nearly half of its value concentrated in a single stock, ASML Holding NV, and a significant portion in sector-specific ETFs. This composition suggests a high conviction strategy but raises concerns about concentration risk. The inclusion of broad-market ETFs like the Vanguard FTSE All-World and S&P 500 provides some diversification, yet the overall portfolio remains heavily skewed towards the technology sector and large-cap stocks.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 10.21% and a maximum drawdown of -35.48%, the portfolio has demonstrated resilience and growth potential. However, the days contributing to 90% of returns being so few indicate volatility and concentration risk. The performance, while commendable, hinges significantly on the technology sector's fortunes, which can be both a strength and a vulnerability, depending on market cycles.

Projection Info

Monte Carlo simulations, projecting a wide range of outcomes based on historical data, suggest a potential for significant growth, with a median projected increase of 180.5%. However, the wide range between the 5th and 67th percentiles (-65.6% to 395.5%) underscores the high risk associated with this portfolio. While promising, these projections should be approached with caution, as past performance is not always indicative of future results.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence of bonds, cash, or alternative investments. This allocation aligns with a growth-focused strategy but lacks the balance that other asset classes can provide, especially in mitigating volatility and providing income through market downturns. Diversifying across asset classes could enhance the portfolio's resilience without necessarily compromising its growth potential.

Sectors Info

  • Technology
    77%
  • Financials
    6%
  • Consumer Discretionary
    6%
  • Industrials
    3%
  • Health Care
    2%
  • Telecommunications
    2%
  • Consumer Staples
    1%
  • Energy
    1%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

The technology sector's dominance at 77% significantly increases the portfolio's sensitivity to sector-specific risks, such as regulatory changes or shifts in consumer behavior. While the financial services, consumer cyclicals, and other sectors provide some balance, their relatively small weightings limit their impact. A more sector-balanced approach could reduce volatility and improve long-term performance.

Regions Info

  • Europe Developed
    50%
  • North America
    38%
  • Asia Developed
    8%
  • Japan
    3%
  • Asia Emerging
    1%

The geographic distribution shows a strong bias towards developed markets, with half of the portfolio in Europe and a substantial portion in North America. While this reflects a focus on stable, high-growth regions, the minimal exposure to emerging markets and Asia Pacific outside of Japan and China suggests missed opportunities for diversification and growth in high-potential areas.

Market capitalization Info

  • Mega-cap
    71%
  • Large-cap
    19%
  • Mid-cap
    8%
  • Small-cap
    1%

The emphasis on mega and large-cap stocks (90% combined) aligns with the portfolio's growth and stability objectives. However, the minimal exposure to mid, small, and micro-caps limits opportunities for higher growth rates these segments can offer. Incorporating a broader range of market capitalizations could enhance returns and diversification.

Redundant positions Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    Vanguard S&P 500 UCITS ETF EUR
    High correlation

The high correlation between the Vanguard FTSE All-World and S&P 500 ETFs indicates redundancy, which diminishes the portfolio's diversification benefits. Reducing overlap by reallocating from one of these ETFs to underrepresented areas or asset classes could improve the portfolio's overall risk-adjusted performance.

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, while growth-oriented, could benefit from optimization to improve its risk-return profile. Removing asset overlap and diversifying across more sectors, geographies, and asset classes could achieve a more efficient portfolio. The potential for a higher expected return with the same level of risk suggests room for improvement in allocation without sacrificing growth prospects.

Dividends Info

  • Vanguard S&P 500 UCITS ETF EUR 1.10%
  • Weighted yield (per year) 0.10%

The portfolio's dividend yield is relatively low, reflecting its growth orientation. While reinvesting dividends from the Vanguard S&P 500 ETF contributes to compounding growth, the overall yield may not meet the income needs of some investors. For those seeking income, increasing exposure to higher-yielding assets or sectors could be beneficial.

Ongoing product costs Info

  • iShares Automation & Robotics UCITS ETF USD (Acc) 0.40%
  • iShares MSCI Global Semiconductors UCITS ETF USD Acc 0.35%
  • Vanguard S&P 500 UCITS ETF EUR 0.07%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.13%

The portfolio's costs are varied, with the highest expense ratios in the sector-specific ETFs. While these costs are justified by the specialized exposure they provide, the overall portfolio cost could be optimized. Considering lower-cost alternatives or rebalancing towards ETFs with lower expense ratios without compromising strategic objectives could enhance net returns over time.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey