A speculatively positioned portfolio with high exposure to US equities and technology

Report created on Sep 10, 2025

Risk profile Info

7/7
Speculative
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, with a significant focus on the S&P 500 and technology sectors through the iShares Core S&P 500 UCITS ETF, iShares S&P 500 Peso Hedged TRAC, and Invesco QQQ Trust Series 1. The inclusion of the Vanguard FTSE Emerging Markets ETF introduces some geographic diversification, albeit minimally at 5%. The speculative nature of this portfolio is underscored by its risk score of 7 out of 7, indicating a high tolerance for volatility and potential for substantial gains or losses.

Growth Info

With a reported Compound Annual Growth Rate (CAGR) of 106.54%, this portfolio has demonstrated extraordinary historical performance. However, such high returns come with equally high risks, as evidenced by a maximum drawdown of -29.68%. It's important to note that past performance is not indicative of future results, and the days contributing to 90% of returns being concentrated in just 36.0 days highlight the portfolio's volatility and the speculative nature of its investments.

Projection Info

The Monte Carlo simulation, with all simulations projecting a -100% return, suggests an unrealistic outcome, likely due to an error in the simulation parameters or an overly pessimistic scenario. Typically, Monte Carlo simulations are used to forecast a range of potential outcomes based on historical data, but they have limitations and cannot predict future market movements with certainty. Adjusting the simulation's assumptions might provide more realistic and varied outcomes.

Asset classes Info

  • No data
    35%
  • Stocks
    30%

The portfolio's asset allocation shows a strong preference for stocks, specifically within the technology sector, which aligns with its speculative profile. The absence of asset classes such as bonds or real estate limits its diversification, potentially increasing the portfolio's volatility. Introducing a broader range of asset classes could help mitigate risk without significantly compromising the portfolio's growth potential.

Sectors Info

  • No data
    35%
  • Technology
    14%
  • Telecommunications
    5%
  • Consumer Discretionary
    4%
  • Consumer Staples
    1%
  • Health Care
    1%
  • Industrials
    1%
  • Financials
    1%
  • Basic Materials
    1%

The sector allocation reveals a heavy concentration in technology, with other sectors like communication services and consumer cyclicals also represented but to a lesser extent. This concentration enhances the portfolio's exposure to sector-specific risks, such as regulatory changes or market sentiment shifts. Diversifying across a wider range of sectors could reduce volatility and improve the portfolio's resilience to sector-specific downturns.

Regions Info

  • No data
    35%
  • North America
    24%
  • Asia Emerging
    3%
  • Asia Developed
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic diversification is limited, with a predominant focus on North America and a minor allocation to emerging markets in Asia. This concentration increases exposure to regional economic and political risks. Expanding the portfolio's geographic exposure, particularly to developed markets in Europe and additional emerging markets, could provide a more balanced risk profile.

Market capitalization Info

  • No data
    35%
  • Mega-cap
    16%
  • Large-cap
    10%
  • Mid-cap
    3%

The portfolio's emphasis on mega and big-cap stocks suggests a preference for established companies with potentially lower volatility compared to smaller-cap stocks. However, this focus might limit opportunities for higher growth rates often associated with smaller, more agile companies. Incorporating a mix of medium and small-cap stocks could offer a balance between stability and growth potential.

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.

Given the portfolio's speculative nature and high-risk score, optimization using the Efficient Frontier could identify a more balanced asset allocation that maximizes returns for a given level of risk. However, it's important to remember that such optimizations are based on historical data, which may not accurately predict future performance. Regularly reviewing and adjusting the portfolio in response to changing market conditions and personal financial goals is essential.

Ongoing product costs Info

  • Invesco QQQ Trust Series 1 0.20%
  • Vanguard International Equity Index Funds - Vanguard FTSE Emerging Markets ETF 0.08%
  • Weighted costs total (per year) 0.05%

The portfolio's costs are relatively low, with the Invesco QQQ Trust Series 1 and Vanguard FTSE Emerging Markets ETF having expense ratios of 0.20% and 0.08%, respectively. Keeping costs low is crucial for maximizing long-term returns, and this portfolio manages that well. However, investors should always be mindful of transaction costs and potential tax implications of their investment choices.

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