This portfolio has only about 5.4 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Broadly Diversified Growth Portfolio with High Technology and Financial Services Exposure

Report created on Jul 24, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio consists of two ETFs: iShares Dow Jones Global Sustainability Screened UCITS ETF USD (Acc) at 80% and Invesco CoinShares Global Blockchain UCITS ETF at 20%. This allocation shows a strong emphasis on sustainability and blockchain technologies. The portfolio is broadly diversified across multiple sectors and geographies, making it relatively balanced despite its high concentration in two ETFs. This composition is relevant as it provides exposure to both stable and emerging sectors, potentially offering a mix of growth and stability.

Growth Info

Historically, the portfolio has shown a compound annual growth rate (CAGR) of 13.92%, which is quite robust. However, it has also experienced significant volatility, with a maximum drawdown of -32.68%. This means that while the portfolio has the potential for high returns, it can also suffer substantial losses. Understanding this historical performance is crucial for setting realistic expectations and preparing for potential market downturns.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio's future performance was projected. This simulation, which uses random sampling to predict outcomes, showed a median (50th percentile) end portfolio value of 701.72% of the initial investment. The 5th percentile was 57.69%, and the 67th percentile was 1,225.28%. The high number of simulations with positive returns (983 out of 1,000) indicates a strong likelihood of future gains, albeit with inherent risks.

Asset classes Info

  • Stocks
    99%

The portfolio is heavily weighted towards stocks, comprising 99.475286% of the total allocation, with minimal exposure to cash and other assets. This high concentration in equities suggests a focus on growth but also introduces significant risk. Diversifying into other asset classes like bonds or commodities could help mitigate some of this risk and provide more stability during market downturns.

Sectors Info

  • Technology
    27%
  • Financials
    26%
  • Health Care
    13%
  • Industrials
    8%
  • Telecommunications
    8%
  • Consumer Discretionary
    4%
  • Basic Materials
    4%
  • Energy
    3%
  • Consumer Staples
    2%
  • Real Estate
    2%
  • Utilities
    2%

The sector allocation is heavily tilted towards Technology (27.458384%) and Financial Services (25.88304%), followed by Healthcare and Industrials. This concentration can drive strong growth but also introduces sector-specific risks. A more balanced sector allocation could help reduce risk and provide more consistent returns. Diversifying into underrepresented sectors like Utilities or Consumer Defensive might offer additional stability.

Regions Info

  • North America
    56%
  • Europe Developed
    19%
  • Japan
    9%
  • Asia Developed
    9%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Latin America
    2%

Geographically, the portfolio is primarily invested in North America (56.3788%) and Europe Developed (18.599968%), with smaller allocations to Japan, Asia, and other regions. This geographic diversification helps spread risk but also means the portfolio is heavily influenced by the economic conditions in North America and Europe. Increasing exposure to emerging markets could add growth potential and further diversify risk.

Ongoing product costs Info

  • Invesco CoinShares Global Blockchain UCITS ETF 0.65%
  • iShares Dow Jones Global Sustainability Screened UCITS ETF USD (Acc) 0.60%
  • Weighted costs total (per year) 0.61%

The total expense ratio (TER) for the portfolio is 0.61%, which is relatively low. Lower costs mean more of the investment returns stay in the portfolio, enhancing overall performance. However, it’s always good to keep an eye on fees and consider lower-cost alternatives if available. Reducing costs where possible can significantly boost long-term returns, especially in a growth-focused portfolio.

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