A dynamic portfolio with a strong focus on emerging markets and technology sectors

Report created on Aug 10, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio predominantly invests in emerging markets through the iShares Core MSCI Emerging Markets IMI UCITS ETF, making up over 83% of the allocation, while the SPDR® MSCI World UCITS ETF constitutes the remaining portion. This heavy tilt towards emerging markets is balanced by a diversified exposure across various sectors, led by technology and financial services. The allocation suggests a strategic emphasis on growth potential in developing economies, complemented by stable, global exposure through the MSCI World ETF.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 8.07%, with a maximum drawdown of -32.29%. This performance indicates resilience and the ability to recover from market downturns, which is crucial for long-term growth. The days contributing to 90% of returns being limited to 12 suggests that timing the market plays a significant role in capturing gains, highlighting the importance of a long-term, buy-and-hold strategy.

Projection Info

Monte Carlo simulations, based on historical data, project a wide range of outcomes for this portfolio. With 963 out of 1,000 simulations showing positive returns and a median expected return of 247.1%, these projections suggest a high likelihood of substantial growth. However, it's important to remember that these simulations are not guarantees but rather hypothetical scenarios that help in understanding potential risks and rewards.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no cash or other asset classes present. This 100% equity allocation is aggressive and aims for higher returns but comes with increased volatility. For investors seeking growth, this approach is common, yet it's crucial to have a risk tolerance that aligns with the potential for significant market fluctuations.

Sectors Info

  • Technology
    24%
  • Financials
    21%
  • Consumer Discretionary
    12%
  • Industrials
    9%
  • Telecommunications
    9%
  • Basic Materials
    6%
  • Health Care
    5%
  • Consumer Staples
    5%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

With technology (24%) and financial services (21%) leading the sectoral allocation, followed by consumer cyclicals and industrials, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic shifts affecting these industries more severely than others.

Regions Info

  • Asia Emerging
    41%
  • Asia Developed
    26%
  • North America
    13%
  • Africa/Middle East
    8%
  • Latin America
    6%
  • Europe Developed
    3%
  • Europe Emerging
    2%
  • Japan
    1%

The geographic allocation underscores a strong belief in the growth potential of emerging markets, notably in Asia, which represents the bulk of the portfolio's exposure. While this can offer higher growth rates compared to developed markets, it also introduces geopolitical and currency risks. The modest allocation to developed regions provides some balance but may not fully mitigate the risks associated with emerging markets.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    31%
  • Mid-cap
    15%
  • Small-cap
    3%

The focus on mega (49%) and big (31%) cap stocks suggests a preference for established companies with a global footprint, likely to offer stability and steady growth. Medium, small, and micro caps represent a smaller portion, indicating a cautious approach to risk. However, the potential for higher returns from smaller companies is somewhat underutilized.

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 expected return is below the optimal level identified by the Efficient Frontier analysis, which suggests a potential return of 13.18% at the same risk level. This indicates room for improvement in asset allocation to achieve a better risk-return trade-off. Rebalancing the portfolio to include a wider range of asset classes or adjusting the existing weights could enhance overall performance.

Ongoing product costs Info

  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • SPDR® MSCI World UCITS ETF EUR 0.12%
  • Weighted costs total (per year) 0.17%

The Total Expense Ratio (TER) of 0.17% is impressively low, maximizing the potential for net returns. Keeping costs low is vital for long-term investment success, as even small differences in fees can significantly impact compounded returns over time.

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