A cautiously diversified portfolio with a strong focus on ETFs and technology

Report created on Aug 9, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is characterized by a significant allocation to ETFs, accounting for a large portion of its composition, alongside a notable position in Berkshire Hathaway. This mix suggests a strategy that leverages the diversification benefits of ETFs while also seeking the growth potential of individual stocks. The asset class distribution shows a predominant focus on stocks (80%) with a smaller but significant bond component (20%), aiming for a balance between growth and income. This structure aligns with a cautious investment approach but leans towards growth-oriented assets.

Growth Info

Historical performance, with a Compound Annual Growth Rate (CAGR) of 12.45% and a maximum drawdown of -16%, indicates a relatively strong past performance within a controlled risk framework. The days contributing to 90% of returns being limited to 11.0 suggest concentrated periods of significant gains, highlighting the portfolio's ability to capitalize on market opportunities. However, past performance is not a reliable indicator of future results, and investors should consider this when projecting forward.

Projection Info

Monte Carlo simulations, based on 1,000 iterations, offer a broad view of potential future outcomes, with a median projected growth of 520.4%. While these simulations provide valuable insights, it's crucial to remember their reliance on historical data, limiting their predictive accuracy in unprecedented market conditions. The high number of simulations with positive returns underscores the portfolio's robustness but should be balanced with an understanding of inherent uncertainties in market movements.

Asset classes Info

  • Stocks
    80%
  • Bonds
    20%

The portfolio's asset class distribution, with a heavy weighting towards stocks, positions it for growth but also exposes it to market volatility. The 20% allocation to bonds offers some income and risk mitigation, essential for a cautious investment strategy. This balance supports a diversified approach but could be adjusted based on changing risk tolerance or market outlook.

Sectors Info

  • Financials
    24%
  • Technology
    20%
  • Industrials
    13%
  • Real Estate
    5%
  • Consumer Discretionary
    5%
  • Telecommunications
    3%
  • Health Care
    3%
  • Consumer Staples
    2%
  • Basic Materials
    2%
  • Energy
    1%
  • Utilities
    1%

Sectoral allocation reveals a strong emphasis on financial services and technology, sectors known for their growth potential but also for higher volatility. This concentration might increase the portfolio's risk profile, particularly in market downturns. Diversifying across more sectors could help reduce this risk while still capturing growth opportunities across the broader economy.

Regions Info

  • North America
    37%
  • Europe Developed
    33%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is well-distributed between North America and developed Europe, with minimal allocations to emerging markets. This distribution suggests a focus on stability and developed market growth, potentially limiting exposure to the higher growth but riskier emerging markets. Considering a slight increase in emerging market exposure could enhance growth prospects while adding to the portfolio's risk.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    23%
  • Mid-cap
    11%
  • Small-cap
    2%

The portfolio's emphasis on mega and big-cap stocks indicates a preference for established, large companies likely to offer stability and consistent returns. However, the relatively small allocation to medium, small, and micro-cap stocks might limit opportunities for higher growth. Incrementally increasing exposure to smaller caps could introduce more growth potential, albeit with added 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 portfolio's current structure, compared to an optimal portfolio with a similar risk level but an expected return of 5.51%, suggests room for improvement. Adjusting the asset allocation to achieve a more efficient risk-return ratio could enhance performance. This process should consider the investor's risk tolerance, investment horizon, and market outlook to ensure alignment with personal financial goals.

Ongoing product costs Info

  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • iShares OMX Stockholm Capped UCITS 0.10%
  • iShares S&P 500 USD Information Technology Sector UCITS 0.15%
  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • Global X Data Center REITS & Digital Infrastructure UCITS ETF USD Acc 0.50%
  • Xtrackers EURO STOXX 50 UCITS ETF 1C 0.09%
  • Weighted costs total (per year) 0.10%

With a Total Expense Ratio (TER) averaging around 0.10%, the portfolio benefits from relatively low costs, supporting better net returns over the long term. Keeping costs low is crucial for enhancing investment efficiency, especially in a cautious strategy where every percentage point of return matters. Continuously monitoring and managing these costs will be key to maintaining the portfolio's cost-effectiveness.

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