Single ETF portfolio with a strong focus on US equities and technology sector

Report created on Aug 18, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is entirely composed of the iShares Core S&P 500 UCITS ETF, which tracks the performance of the S&P 500 Index. Such a composition provides broad exposure to the US equity market, representing a concentration in a single asset class and geographic region. This setup favors investors looking for simplicity and those banking on the long-term growth of US large-cap companies. However, the lack of diversification across asset classes and regions could lead to higher volatility and risk, especially during market downturns focused on the US market.

Growth Info

The historical performance of this portfolio, with a Compound Annual Growth Rate (CAGR) of 14.55% and a maximum drawdown of -33.90%, showcases the potential for significant returns alongside notable volatility. The days contributing to 90% of returns being limited to 41 indicates that a few outstanding periods largely drive performance. While past success is encouraging, it's essential to remember that past performance is not indicative of future results, and such volatility might not suit all investors.

Projection Info

The Monte Carlo simulation, a tool used to predict future outcomes by analyzing historical data, suggests a wide range of potential future performances for this portfolio. With key percentiles ranging from a 127.6% increase to a 784.2% increase, and 999 out of 1,000 simulations showing positive returns, the projection indicates optimism. However, it's crucial to understand that these projections are hypothetical and subject to the limitations of past data, which may not fully account for future market conditions.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, specifically in an ETF that mirrors the S&P 500. This concentration in a single asset class eliminates diversification benefits that could come from mixing asset types, such as bonds or real estate, which might behave differently under various economic conditions. While stocks have historically provided high returns, they also come with higher volatility, making this portfolio less suited for investors with a low tolerance for risk or those nearing retirement.

Sectors Info

  • Technology
    35%
  • Financials
    13%
  • Consumer Discretionary
    10%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation within this ETF is heavily weighted towards technology, financial services, and consumer cyclicals, reflecting the composition of the S&P 500. This sector concentration can amplify returns during bull markets, especially in tech, but it also increases vulnerability to sector-specific downturns. Diversifying across more sectors or balancing the allocation could mitigate some of this risk, providing a smoother return profile over time.

Regions Info

  • North America
    100%

The geographic exposure of this portfolio is exclusively North American, with 100% of assets allocated to the United States. This focus on a single country enhances exposure to the US economy's growth potential but also increases sensitivity to its market risks and economic downturns. Investors might consider diversifying geographically to spread risk and tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    1%

The market capitalization breakdown shows a heavy leaning towards mega and big-cap companies, which are generally considered less volatile than smaller companies. This composition is consistent with the S&P 500's focus and can provide stability during market fluctuations. However, the minimal exposure to small-cap stocks limits the portfolio's potential to benefit from the rapid growth of smaller firms.

Ongoing product costs Info

  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • Weighted costs total (per year) 0.12%

With a total expense ratio (TER) of 0.12%, the portfolio benefits from relatively low costs, which is advantageous for long-term growth. Lower costs mean more of the investment's return is retained by the investor, a critical factor in compounding returns over time. Investors should continue to monitor fees, as even small differences can have a significant impact over the long term.

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