A high-stakes gamble masquerading as a portfolio with a side of silver
Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Balanced Investors
This portfolio suits the adrenaline junkie of the investment world, someone who lives for the thrill of the chase and doesn't mind the occasional cliff dive. With a high tolerance for risk and a penchant for dramatic swings, this investor likely views the market as a high-stakes poker game. Their goals are fast growth and quicker gains, with a time horizon that might not extend beyond the next big win.
Positions
-
Avantis Emerging Markets ex-China Equity ETF
AVXC 40.00% -
Invesco NASDAQ 100 ETF
QQQM - US46138G6492 40.00% -
Sprott Physical Silver
PSLV - CA85207K1075 20.00%
At first glance, this portfolio looks like someone threw darts at a board labeled "Emerging Markets," "Tech," and "Precious Metals" and called it a day. Allocating a whopping 40% to both Avantis Emerging Markets ex-China Equity ETF and Invesco NASDAQ 100 ETF, then rounding it off with a 20% stake in physical silver? This isn't diversification; it's a high-wire act without a net. While it might seem bold, it's more akin to betting on red and black at the roulette table and thinking you've cracked the code.
Historical data is limited for this portfolio, which reduces the confidence in the calculated values.
Growth
Historical performance boasting a CAGR of 25.60% could make anyone's head turn, but let's remember, past performance is like that ex who promises to change—it's not a reliable indicator of future behavior. With days that make up 90% of returns totaling a mere 15, this portfolio's success hinges on fleeting moments of glory amidst what can only be described as a rollercoaster ride. The thrill might be addictive, but the -16.27% max drawdown is a sobering reminder of the potential morning-after regret.
Due to limited historical data, this may show extreme values that are not realistic.
Projection
The Monte Carlo simulation, with its optimistic 50th percentile projection of a 4,487.6% return, sounds like a get-rich-quick scheme you'd get spammed with, not a serious investment strategy. While simulations offer a glimpse into the crystal ball, they're as certain as a weather forecast in an unpredictable climate. Betting the farm on these numbers is like planning your retirement around winning the lottery.
Asset classes
- Stocks 100%
- Cash 0%
- No data 0%
Diversification across asset classes is more than just a buzzword; it's a basic tenet of intelligent investing. Here, with stocks at 100% and a peculiar fixation on physical silver, the portfolio screams of a one-trick pony. The absence of bonds, real estate, or alternative investments leaves this portfolio as exposed as a tourist on a nudist beach.
Sectors
- Technology 34%
- Financials 29%
- Consumer Discretionary 8%
- Telecommunications 8%
- Industrials 5%
- Basic Materials 4%
- Consumer Staples 3%
- Health Care 3%
- Energy 2%
- Utilities 2%
- Real Estate 1%
The sector allocation reads like a teenager's wish list: heavy on tech and financial services, with a smattering of everything else for appearance's sake. With 34% in technology alone, this portfolio is riding the Silicon Valley rollercoaster with both hands in the air. It's exciting until the ride stops, and you realize you've been upside down half the time.
Regions
- North America 59%
- Asia Developed 18%
- Asia Emerging 12%
- Latin America 5%
- Africa/Middle East 3%
- Europe Emerging 2%
- Europe Developed 1%
The geographic allocation has a clear case of homesickness, favoring North America excessively while giving a polite nod to Asia and virtually ignoring Europe's developed markets. This isn't global diversification; it's geographic myopia. Expanding horizons beyond familiar territories could prevent a portfolio equivalent of culture shock during market upheavals.
Market capitalization
- Mega-cap 36%
- Mid-cap 33%
- Large-cap 24%
- Small-cap 3%
- Micro-cap 1%
The market capitalization mix—leaning heavily on mega and medium caps—suggests a fear of commitment to either the giants or the underdogs. While it's prudent not to put all your eggs in one basket, spreading them between only the largest and medium baskets ignores the potential of small and micro caps. Diversity, in this case, seems more like indecision.
Dividends
- Avantis Emerging Markets ex-China Equity ETF 1.20%
- Invesco NASDAQ 100 ETF 0.50%
- Weighted yield (per year) 0.68%
With dividend yields that barely register a pulse, this portfolio is all growth, no cushion. It's akin to opting for a sports car without seatbelts because you enjoy the speed. Sure, growth is exhilarating, but a little income generation through dividends could soften the bumps along the way.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Weighted costs total (per year) 0.06%
The only commendable aspect here is the low cost, with a Total TER of 0.06%. It's refreshing to see a portfolio that doesn't bleed itself dry with fees. However, let's not celebrate frugality too soon; even the most cost-effective portfolio can lead to financial heartache if it's not built on a solid foundation of diversification and risk management.
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.
The concept of the Efficient Frontier seems to have been ignored here, much like dietary advice at a fast-food joint. Optimal risk versus return isn't about aiming for the stars with a cannon; it's about strategic, calculated moves. This portfolio, while adventurous, seems more like a gamble than a game plan.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
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.
