Concentrated European stock portfolio with strong defensive tilt and efficient cautious level risk profile

Report created on Mar 24, 2026

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.

Positions

The portfolio is fully invested in stocks, with a heavy tilt toward a few individual European names. One company alone sits at 35%, and the top four single stocks make up over half of the total allocation, while a handful of broad and sector ETFs fill in the rest. This structure mixes stock-picking conviction with some diversified building blocks. That kind of concentration can meaningfully boost returns if the main holdings keep doing well, but it also raises the impact of any company‑specific bad news. For someone with a cautious risk profile, keeping an eye on how comfortable they feel with one position above 30% is particularly important.

Growth Info

From mid‑2021 to early‑2026, the model €1,000 investment nearly doubled to €1,939. The Compound Annual Growth Rate (CAGR), which is like the average yearly “speed” of growth, was 19.45%—ahead of both the US and global markets. Max drawdown, the worst peak‑to‑trough fall, was around ‑16%, noticeably milder than the US and global benchmarks. That combination of higher return and shallower falls is a very positive signal, especially for a cautious risk score. Still, this period includes specific market conditions; past returns, good or bad, don’t guarantee the next five years will look similar.

Projection Info

The Monte Carlo simulation projects many possible 10‑year paths by remixing past returns in 1,000 scenarios. Think of it as running thousands of alternate futures based on how the portfolio has behaved historically. The median outcome shows roughly 7–8x growth over a decade, and even the pessimistic 5th percentile more than doubles the initial value. That’s a very strong distribution, consistent with the historical profile. Still, these are statistical what‑ifs, not promises: they assume future returns and volatility look somewhat like the past period, which may not hold if economic regimes, interest rates, or company fundamentals change materially.

Asset classes Info

  • Stocks
    100%

All assets here are in the stock category, with no bonds, cash, or alternatives included in the breakdown. Being 100% in equities usually means higher long‑term growth potential but more sensitivity to market swings, especially during recessions or rate shocks. For an investor with a cautious profile, this is an aggressive stance in asset‑class terms, even if the stocks themselves are relatively defensive. Many cautious investors prefer some stabilizers—like bonds or cash buffers—to smooth out volatility and give psychological comfort in downturns. The current setup relies entirely on stock selection and diversification within equities to manage risk.

Sectors Info

  • No data
    68%
  • Industrials
    12%
  • Financials
    7%
  • Basic Materials
    4%
  • Consumer Staples
    3%
  • Technology
    2%
  • Health Care
    1%
  • Consumer Discretionary
    1%
  • Energy
    1%
  • Utilities
    1%

Sector mapping shows a large “unknown” bucket driven by local names and classification gaps, alongside visible allocations to industrials, financials, basic materials, and consumer defensive areas. That pattern, plus the factor profile, suggests a defensive, real‑economy bias rather than a growth‑tech style portfolio. Portfolios with more industrial and financial exposure often track economic cycles and interest‑rate trends closely, while consumer defensive names can help cushion downturns. The low exposure to clearly identified tech and healthcare implies less participation if growth or innovation themes dominate future market returns, but potentially calmer behavior when high‑growth segments become volatile.

Regions Info

  • Europe Developed
    93%
  • North America
    5%
  • Asia Emerging
    2%

Geographically, this is overwhelmingly Europe‑focused: over 90% in developed Europe, around 5% in North America, and a small 2% slice in emerging Asia via India. Global market benchmarks are usually more tilted to North America, especially the US, so this is a significant home‑region bias. That can work very well if local companies continue to execute and the European market outperforms, but it also ties portfolio fortunes more closely to European economic and political developments. For investors who prefer broader diversification, gradually adding more exposure to other regions can help reduce the impact of any one area’s downturn.

Market capitalization Info

  • Small-cap
    38%
  • Large-cap
    25%
  • Mid-cap
    20%
  • Mega-cap
    12%
  • No data
    5%

By market capitalization, there’s a strong lean toward smaller companies: about 38% in small caps, with mid and large caps making up most of the rest and a modest slice in mega caps. Smaller companies can offer higher growth potential but often come with thinner trading volumes and more volatile price moves. Mixing them with big and mega caps—known for stability and liquidity—adds balance, which this portfolio does reasonably well. However, given the already high concentration in a few names, the combination of single‑stock risk and smaller size makes it even more important to be comfortable with ups and downs in those key holdings.

True holdings Info

  • Ren Redes Energeticas Nacionais SGPS SA
    35.00%
  • Sonae SGPS SA
    10.00%
  • EDP Energias de Portugal SA
    7.00%
  • Navigator Co. S/A
    6.00%
  • Berkshire Hathaway Inc
    5.00%
  • Rio Tinto Group
    3.00%
  • Nos SGPS SA
    3.00%
  • Carrefour SA
    2.00%
  • Credit Agricole SA
    2.00%
  • Legal & General Group PLC
    2.00%
  • Top 10 total 75.00%

Looking through the ETFs, the main exposures are still dominated by the direct stock positions: REN at 35%, Sonae at 10%, EDP at 7%, Navigator at 6%, and Berkshire at 5%. There is very little hidden overlap in the top‑10 ETF holdings, so the concentration you see is essentially the concentration you get. That’s helpful because it avoids the classic situation where the same big company appears in multiple funds without being obvious. The flip side is that diversification benefits from those ETFs are partly capped by the very high weights in a few local names, which drive most of the portfolio’s behavior.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 21%
Size
Exposure to smaller companies
Neutral
Data availability: 83%
Momentum
Exposure to recently outperforming stocks
Very high
Data availability: 100%
Quality
Preference for financially healthy companies
High
Data availability: 77%
Yield
Preference for dividend-paying stocks
Low
Data availability: 72%
Low Volatility
Preference for stable, lower-risk stocks
Very high
Data availability: 82%

Factor exposure shows strong tilts to low volatility, momentum, and value—three characteristics that academic research has linked to long‑term return drivers. Factor exposure is like checking which “personality traits” your stocks share: value means cheaper relative to fundamentals, momentum means recent strong performance trends, and low volatility means historically smoother price moves. Quality also scores decently, while yield (dividends) is moderate. This blend often behaves well in choppy markets, as low‑volatility and value characteristics can help cushion falls, while momentum can support returns when trends persist. The exposures are quite deliberate‑looking and align well with a cautious but return‑seeking mindset.

Risk contribution Info

  • Ren Redes Energeticas Nacionais SGPS SA
    Weight: 35.00%
    32.7%
  • Sonae SGPS SA
    Weight: 10.00%
    11.6%
  • EDP Energias de Portugal SA
    Weight: 7.00%
    8.5%
  • iShares Core MSCI Europe UCITS ETF EUR (Acc)
    Weight: 7.00%
    6.6%
  • WisdomTree Europe Defence UCITS ETF - EUR Acc EUR
    Weight: 5.00%
    6.3%
  • Top 5 risk contribution 65.6%

Risk contribution measures how much each holding adds to overall portfolio ups and downs, which can differ from its weight. REN at 35% weight contributes about 33% of total risk; Sonae and EDP together push the top three to over half of the portfolio’s risk. That means what happens to these few companies largely sets the tone for performance. Some ETFs contribute slightly less risk than their weights, which is consistent with their diversified nature and the low‑volatility tilt. For someone aiming for a cautious profile, considering whether any single stock above roughly 20–25% still feels comfortable is a useful sanity check.

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.

On the risk‑return chart, the current portfolio sits on the efficient frontier, meaning that for its mix of holdings, the weights are already arranged efficiently. The Sharpe ratio—return per unit of risk—is strong at 1.43, though an alternative weighting could push it higher. The “optimal” version of this same set of holdings shows a better Sharpe ratio with only slightly more volatility, and a minimum‑risk version would dial risk down with only a moderate hit to expected return. Since efficiency is already high, any changes would be more about adjusting comfort with concentration and equity exposure than fixing obvious structural problems.

Dividends Info

  • Legal & General Group PLC 0.10%

The recorded dividend yield line is very small for one holding, and overall this doesn’t look like a pure income‑maximizing portfolio. Instead, the emphasis is on total return—price gains plus whatever dividends come along. For cautious investors, dividends can provide a psychological buffer and a small, steady cash flow that doesn’t rely on selling shares. On the other hand, focusing only on the highest yielders can lead to concentration in slower‑growing or structurally challenged areas. Here, the moderate yield exposure within the factor profile suggests a balanced stance, allowing room for both compounding and some income contribution over time.

Ongoing product costs Info

  • iShares MSCI Europe Industrials Sector UCITS ETF 0.18%
  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • iShares MSCI India UCITS ETF USD Acc 0.65%
  • iShares VII PLC - iShares Core EURO STOXX 50 ETF EUR Acc 0.10%
  • Weighted costs total (per year) 0.04%

The ETFs used here are impressively low‑cost, with ongoing charges mostly in the 0.10–0.20% range, and the blended total expense ratio estimated around 0.04%. TER (Total Expense Ratio) is like a small annual “membership fee” charged by funds; every 0.1% saved each year compounds meaningfully over decades. Combining low‑fee core ETFs with direct stock holdings keeps structural costs very lean, which is a big plus for long‑term compounding. This is one area where the portfolio is clearly well aligned with best practices, and there’s no obvious need to squeeze costs further unless switching to even simpler or broader building blocks is desired.

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