Concentrated semiconductor themed growth portfolio with strong historic returns and high equity risk
Report created on Jun 8, 2026Risk profile
5/7
Diversification profile
2/5
Positions
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SM VanEck Semiconductor UCITS ETF
SMGB - IE00BMC38736 70.00% -
VU Vanguard S&P 500 UCITS ETF USD Accumulation
VUAA - IE00BFMXXD54 30.00%
This portfolio is very simple: two equity ETFs, both growth‑oriented. Around 70% sits in a dedicated semiconductor fund, while the remaining 30% tracks a broad US large‑cap index. That means every pound is in shares, with no bonds or cash buffer built into the structure. Simplicity like this makes it easier to understand what’s driving results, because there are only two moving parts. The trade‑off is that any swings in semiconductor stocks will dominate the experience. Overall, the structure is straightforward, with a clear tilt toward a single powerful theme rather than broad diversification across many different economic areas.
Growth
From late 2020 to June 2026, £1,000 grew to about £4,576, a compound annual growth rate (CAGR) of 31.8%. CAGR is the “average yearly speed” of growth, smoothing out the bumps. That’s far ahead of both the US market (about 15.2%) and global market (about 12.9%) over the same period. The downside: the portfolio also saw a max drawdown of about –31.5%, meaning a sizeable temporary fall from peak to trough. It took around 18 months from the peak to fully recover. This pattern — very strong upside but deep, longer drawdowns — is typical of concentrated, high‑growth equity exposure.
Projection
The Monte Carlo projection uses past data to generate many randomised future paths, a bit like simulating thousands of different weather forecasts. It shows that £1,000 invested for 15 years has a median outcome of around £2,799, with a wide “most likely” band from roughly £1,826 to £4,287. The possible range is even wider, from about £994 to £7,723 in the middle 90% of simulations. The average annualised return across simulations is 8.1%, with roughly three‑quarters ending positive. This highlights that even for a historically strong portfolio, future results could vary a lot, and past returns are not a promise.
Asset classes
- Stocks 100%
Asset‑class exposure is very clear: 100% stocks. There is no allocation to bonds, cash, or alternative assets. Equities tend to offer higher long‑term growth potential, but they also swing more in the short term and can see sharp drops during market stress. Many broad “balanced” portfolios mix in other asset classes to smooth the ride; here, all risk and return comes from the stock market. The upside of this purity is that the growth objective is very focused. The downside is that there is no structural cushion from more defensive asset classes during periods when equities fall together.
Sectors
- Technology 81%
- Financials 3%
- Telecommunications 3%
- Consumer Discretionary 3%
- Health Care 3%
- Industrials 2%
- Consumer Staples 1%
- Energy 1%
- Utilities 1%
- Real Estate 1%
- Basic Materials 1%
Sector‑wise, the portfolio is heavily tilted: about 81% in technology, with small single‑digit slices across areas like financials, telecoms, consumer sectors, health care, and others. A typical global index is more mixed across sectors, so this is a clear thematic bet on one main industry. Tech‑heavy portfolios often benefit strongly when innovation and digital spending boom, but they can be more sensitive to interest‑rate moves, regulation, and changes in expectations for future growth. The limited presence of other sectors means there is less natural offset if technology faces a prolonged downturn relative to the broader market.
Regions
- North America 88%
- Asia Developed 6%
- Europe Developed 6%
Geographically, around 88% of the portfolio is tied to North America, with about 6% each in developed Asia and developed Europe. A global equity benchmark usually has a lower North American share and more spread across the rest of the world. This makes the portfolio strongly linked to one major economic region, its currency, and its policy environment. When North American markets and the US dollar are strong, that concentration can boost returns. When they lag other regions, the portfolio is less able to benefit from offsetting performance elsewhere. The modest exposure to Asia and Europe offers some, but limited, geographic diversification.
Market capitalization
- Mega-cap 54%
- Large-cap 37%
- Mid-cap 9%
By market capitalisation, the portfolio leans firmly toward larger companies: about 54% mega‑caps, 37% large‑caps, and only 9% mid‑caps. Market cap describes a company’s total value on the stock market; larger firms tend to be more established and often less volatile than smaller, more speculative ones. This tilt is quite similar to many mainstream indices, which are also dominated by mega and large‑cap names. The smaller mid‑cap slice can add some extra growth potential, but it’s not the main driver here. Overall, the portfolio’s size profile is fairly mainstream, even though its sector and theme are quite concentrated.
True holdings
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MU Micron Technology Inc 9.88%
Part of fund(s):- VanEck Semiconductor UCITS ETF
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AM Advanced Micro Devices Inc 8.33%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
NV NVIDIA Corporation 7.39%
Part of fund(s):- VanEck Semiconductor UCITS ETF
- Vanguard S&P 500 UCITS ETF USD Accumulation
-
AV Broadcom Inc 6.21%
Part of fund(s):- VanEck Semiconductor UCITS ETF
- Vanguard S&P 500 UCITS ETF USD Accumulation
-
AS ASML Holding NV ADR 5.42%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
TS Taiwan Semiconductor Manufacturing 5.37%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
IN Intel Corporation 5.25%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
LR Lam Research Corp 4.00%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
AM Applied Materials Inc 3.84%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
TX Texas Instruments Incorporated 2.68%
Part of fund(s):- VanEck Semiconductor UCITS ETF
- Top 10 total 58.37%
Looking through the ETFs’ top holdings, several semiconductor names appear as major exposures: Micron, AMD, NVIDIA, Broadcom, ASML, TSMC, Intel, Lam Research, Applied Materials, and Texas Instruments all show up with meaningful combined weights. Because some of these companies may appear in both ETFs, there is overlap that creates hidden concentration — for example, a stock counted once at the fund level may actually be held twice underneath. The data only covers ETF top‑10s, so overlap is likely understated. This means the portfolio is not just thematically concentrated, but also relies heavily on a relatively small group of individual companies.
Risk contribution
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VanEck Semiconductor UCITS ETF
Weight: 70.00% 84.5% -
Vanguard S&P 500 UCITS ETF USD Accumulation
Weight: 30.00% 15.6%
Risk contribution shows how much each holding adds to overall ups and downs, which can differ from its weight. Here, the semiconductor ETF is 70% of the portfolio but contributes about 84.5% of the total risk, so its movements dominate the experience. The S&P 500 ETF, at 30% weight, adds only around 15.5% of the risk, making it a stabilising component relative to its size. This gap highlights how a volatile holding can punch above its weight in driving portfolio swings. Position sizing matters not just for capital allocation, but for how much each piece actually moves the needle day to day.
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 risk vs. return chart shows the portfolio sitting on or very close to the efficient frontier. The efficient frontier represents the best possible return for each risk level using only the existing holdings in different weightings. The current mix has a Sharpe ratio of 1.04, while the maximum‑Sharpe mix (still only these two ETFs) reaches about 1.15 with higher risk, and the minimum‑variance mix lowers risk but also return. A Sharpe ratio compares return to volatility, adjusting for the risk‑free rate. Being near the frontier suggests the current balance between the two funds is already quite efficient for its chosen risk level.
Ongoing product costs
- VanEck Semiconductor UCITS ETF 0.35%
- Vanguard S&P 500 UCITS ETF USD Accumulation 0.07%
- Weighted costs total (per year) 0.27%
The overall ongoing fee level, measured by Total Expense Ratio (TER), is about 0.27% per year. TER is the annual percentage taken by the funds to cover management and running costs. The S&P 500 fund is very low‑cost at 0.07%, while the specialised semiconductor ETF is higher at 0.35%, which is common for more niche strategies. Blended together, the cost is still modest, especially given the heavy use of a thematic fund. Lower costs leave more of any future gains in the portfolio rather than going to fees, and this alignment with relatively low‑fee investing is a structural positive.
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