A highly aggressive portfolio with significant leverage and global exposure aiming for rapid growth

Report created on Dec 8, 2024

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio comprises 50% in a global ETF, 30% in a leveraged US index ETF, and 20% in a leveraged NASDAQ stock. The composition suggests a strong focus on high-risk, high-reward investments. The use of leveraged products indicates a strategy that seeks to amplify returns from market movements. This setup can lead to significant gains in rising markets but also exposes the portfolio to substantial losses during downturns. Balancing leverage with more stable investments could reduce volatility and enhance long-term stability.

Growth Info

Historically, this portfolio has shown a compound annual growth rate (CAGR) of 37.22%, with a maximum drawdown of -37.3%. This indicates strong growth potential but also highlights the risks of significant losses. Such performance suggests that while the portfolio can deliver impressive returns, it is also susceptible to market fluctuations. Investors should consider their risk tolerance and ability to withstand potential drawdowns. Diversifying with less volatile assets could mitigate some risks associated with high drawdowns.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, this portfolio shows a wide range of potential future values. The median simulation predicts a substantial return, but the distribution of outcomes is broad, reflecting the portfolio's inherent risk. While the annualized return across simulations is 54.73%, historical data's limitations mean past performance doesn't guarantee future results. Investors should remain aware of potential volatility and consider strategies to manage risk, such as periodic rebalancing or incorporating more conservative assets.

Asset classes Info

  • No data
    50%
  • Stocks
    50%

The portfolio's asset allocation is heavily skewed towards equities, with a small portion in cash. This suggests a focus on growth over income or stability. Equities typically offer higher returns over the long term but come with increased volatility. A more balanced allocation, including fixed-income or alternative investments, could reduce risk and provide more consistent returns. It's crucial to align asset allocation with investment goals and risk tolerance to ensure the portfolio meets the investor's needs.

Sectors Info

  • No data
    50%
  • Technology
    13%
  • Financials
    8%
  • Health Care
    5%
  • Consumer Discretionary
    5%
  • Industrials
    5%
  • Telecommunications
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation shows a significant concentration in technology, with smaller allocations in financial services, healthcare, and consumer cyclicals. This reflects a bias towards sectors with high growth potential. While this can drive returns, it also increases exposure to sector-specific risks. Diversifying across more sectors could reduce risk and smooth returns. Investors should consider the economic cycle and sector outlooks when evaluating sector allocation to optimize performance.

Regions Info

  • No data
    50%
  • North America
    32%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The portfolio's geographic exposure is heavily weighted towards North America, with additional exposure to Europe and Asia. This provides broad international diversification but also exposes the portfolio to regional risks. Geographic diversification can help mitigate country-specific risks and capture growth opportunities in different markets. However, currency fluctuations and geopolitical events can impact returns. Investors should monitor global economic conditions and consider adjusting geographic allocation to balance risk and opportunity.

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 could be optimized using the Efficient Frontier, which seeks the best risk-return ratio. This involves adjusting the allocation of existing assets to achieve the most efficient balance. However, optimization doesn't guarantee diversification or alignment with specific goals. Investors should focus on achieving their desired risk level while maximizing returns. Regularly reassessing and rebalancing the portfolio can help maintain optimal efficiency and ensure it remains aligned with investment objectives.

Ongoing product costs Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.11%

Portfolio costs are relatively low, with the Vanguard ETF's total expense ratio at 0.22%. Low costs are crucial for long-term success, as they can significantly impact net returns. Reducing costs by selecting low-fee funds and minimizing trading expenses can improve performance. Investors should regularly review and compare fund fees to ensure they are getting value for money. Keeping costs in check is an effective way to enhance portfolio efficiency and maximize returns.

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