A speculative portfolio with equal focus on European and US markets

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

Speculative Investors

This portfolio suits an investor with a high risk tolerance, seeking aggressive growth in developed markets. With a speculative profile, it targets substantial returns but comes with significant volatility. The absence of diversification across asset classes suggests a focus on maximizing equity exposure. It's ideal for those with a long-term horizon, willing to endure potential short-term fluctuations for the prospect of higher gains. Frequent monitoring and adjustments are necessary to align with changing market dynamics.

Positions

  • iShares STOXX Europe 600 UCITS ETF (DE)
    DJXXF
    50.00%
  • SPDR S&P 500 ETF Trust
    SPY - US78462F1030
    50.00%

The portfolio consists of two ETFs, each holding a 50% allocation. The iShares STOXX Europe 600 UCITS ETF focuses on European equities, while the SPDR S&P 500 ETF Trust targets US stocks. This structure provides exposure to developed markets but limits diversification, as it lacks other asset classes like bonds or commodities. A benchmark comparison might show a more diversified mix of asset classes. Consider adding different asset types to broaden exposure and reduce risk.

Warning The historical data covers less than 2 years, which reduces the confidence in the calculated values.

Growth Info

Historically, the portfolio's performance has been impressive, with a Compound Annual Growth Rate (CAGR) of 388.16%. However, it's essential to note that past performance doesn't guarantee future results. Compared to benchmarks, such high returns may indicate significant risk-taking. The maximum drawdown of -28.02% highlights potential volatility. Assess if this risk level aligns with your investment goals, and consider strategies to mitigate future downturns.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows an annualized return of 5,109.04%. While simulations provide a range of potential outcomes, they rely on past data and cannot predict future market conditions. The results suggest a wide range of possible returns, emphasizing the speculative nature of the portfolio. Regularly review and adjust the portfolio to align with changing market conditions and personal risk tolerance.

Asset classes Info

  • Stocks
    50%
  • Cash
    0%

The portfolio is exclusively invested in stocks, with no allocation to bonds, real estate, or other asset classes. This concentration can amplify both potential returns and risks. Diversification across asset classes is crucial for risk management, as different assets often react differently to market conditions. Consider incorporating a mix of asset classes to reduce volatility and improve long-term stability, aligning with broader investment strategies.

Sectors Info

  • Technology
    16%
  • Financials
    7%
  • Health Care
    6%
  • Consumer Discretionary
    5%
  • Telecommunications
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation shows a significant focus on technology, which represents 16% of the portfolio. While tech stocks can drive growth, they also introduce volatility, especially during market shifts like interest rate changes. Other sectors like financial services and healthcare are underrepresented compared to benchmarks. Balancing sector exposure can provide stability and reduce reliance on specific industries. Evaluate sector trends and adjust allocations to manage risk effectively.

Regions Info

  • North America
    50%
  • Europe Developed
    0%
  • Asia Developed
    0%

The geographic allocation is evenly split between North America and Europe, with no exposure to Asia or emerging markets. This distribution may limit diversification benefits, as global markets often perform differently under various economic conditions. Including other regions could enhance diversification and reduce potential risks associated with regional downturns. Consider expanding geographic exposure to capture growth opportunities in developing markets.

Market capitalization Info

  • Mega-cap
    23%
  • Large-cap
    17%
  • Mid-cap
    9%
  • Small-cap
    0%

The portfolio is tilted towards mega and big-cap stocks, comprising 23% and 17% respectively. Medium-cap stocks make up 9%, with no allocation to small-cap stocks. While large-cap companies offer stability, they may not provide the growth potential of smaller firms. A balanced approach across different market capitalizations can enhance diversification and capture a broader range of growth opportunities. Consider adding small-cap stocks to achieve this balance.

Dividends Info

  • SPDR S&P 500 ETF Trust 1.00%
  • Weighted yield (per year) 0.50%

The portfolio's dividend yield is relatively low at 0.50%, with the SPDR S&P 500 ETF Trust contributing 1.00%. Dividends can provide a steady income stream, which is particularly valuable during market volatility. For investors seeking income, higher-yielding investments may be beneficial. Consider incorporating dividend-focused assets to balance growth with income, enhancing the portfolio's overall return profile.

Ongoing product costs Info

  • SPDR S&P 500 ETF Trust 0.10%
  • Weighted costs total (per year) 0.05%

The portfolio's costs are low, with a Total Expense Ratio (TER) of 0.05% for the iShares ETF and 0.10% for the SPDR ETF. Keeping costs low is crucial for maximizing returns over the long term, as high fees can erode gains. This cost structure aligns well with best practices for cost efficiency. Continue to monitor expenses and seek cost-effective investment options to maintain this advantage.

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 portfolio's risk-return profile could be optimized using the Efficient Frontier, which identifies the best possible risk-return ratio. Currently, a more efficient portfolio with the same risk level offers a higher expected return of 474.74%. This optimization focuses on reallocating existing assets to achieve a better balance. Regularly review the portfolio's allocation and consider adjustments to enhance efficiency and meet investment objectives.

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