High octane defense tilted equity portfolio with strong recent gains and concentrated risk

Report created on Apr 11, 2026

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.

Positions

This portfolio is a pure equity mix, heavily tilted toward individual defense and industrial stocks, with roughly one fifth in a broad global ETF and a smaller slice in emerging markets and thematic ETFs. That means most of the behavior is driven by a handful of specific companies rather than the wider market. Pure equity portfolios can grow faster over the long run but also swing harder in the short term. Here, the combination of sector concentration and big single‑stock positions makes it more aggressive than a typical global index portfolio. Someone using a setup like this usually needs both a strong stomach for volatility and a long investment horizon.

Growth Info

Historically, the portfolio has been a rocket: €1,000 grew to about €2,887 in just over two years, with a compound annual growth rate (CAGR) of 63.7%. CAGR is like your average speed over a long trip, smoothing out bumps along the way. That massively beats both the US and global benchmarks, which were in the low‑teens. The trade‑off is a max drawdown of around ‑25.5%, meaning a quarter of the value temporarily disappeared at one point and hasn’t fully recovered yet. Past performance like this is impressive but unusual; it often reflects a hot sector run that may not repeat.

Projection Info

The forward projection uses Monte Carlo simulation, which is basically a way of running thousands of “what if” paths using historical patterns of returns and volatility. Think of it as rolling the dice many times to see a range of possible futures, rather than betting on a single forecast. Here, €1,000 has a median outcome of around €2,724 after 15 years, with an average simulated return of about 8.1% a year. There’s still a meaningful chance of ending near where you started, or far above the median. It’s important to remember simulations lean on past data; they can’t predict regime changes, wars, policy shifts, or sector booms and busts.

Asset classes Info

  • Stocks
    100%

All of the money is in stocks, with no bonds, cash‑like instruments, or alternative assets. Equities are generally the best long‑term growth engine, but they’re also the most volatile part of most portfolios. In calmer markets, 100% equity can feel great; in deep bear markets, it can mean drawdowns of 40–50% or more are possible. Many broad benchmarks hold at least some “defensive” assets to soften those hits. Here, the upside is that you’re fully exposed to potential equity growth; the downside is that there’s no built‑in shock absorber. Anyone using a structure like this needs to be comfortable riding through full equity cycles without forced selling.

Sectors Info

  • Industrials
    58%
  • Technology
    15%
  • No data
    11%
  • Financials
    4%
  • Consumer Discretionary
    2%
  • Health Care
    2%
  • Telecommunications
    2%
  • Consumer Staples
    1%
  • Energy
    1%
  • Basic Materials
    1%
  • Utilities
    1%

Sector‑wise, the portfolio is dominated by industrials at 58%, with technology next at 15%, while everything else is in the low single digits. Broad global benchmarks are usually much more spread out, with smaller weights in any single sector and heavier representation from areas like tech, health care, consumer, and financials. A big industrial tilt, especially in defense‑related names, can turbocharge returns when that theme is in favor but also ties performance to a relatively narrow economic story, including defense budgets and geopolitical tensions. Tech exposure through the semiconductor ETF adds another cyclical layer. This is not a sector‑balanced setup; it’s a strong thematic bet.

Regions Info

  • Europe Developed
    70%
  • North America
    23%
  • Asia Developed
    3%
  • Japan
    1%
  • Asia Emerging
    1%
  • Africa/Middle East
    1%

Geographically, about 70% is in developed Europe, with roughly 23% in North America and the rest scattered thinly across other regions. Global market benchmarks are usually much more weighted toward the US, with Europe playing a smaller role. This makes the portfolio strongly linked to European economic and political developments, as well as the specific regulatory and budget environment for European defense and industry. The upside is that it aligns with a home‑region bias common for German investors, which can feel more familiar. The trade‑off is less exposure to the world’s largest market and currency, which can cut both ways depending on how Europe vs. the US performs.

Market capitalization Info

  • Large-cap
    58%
  • Mid-cap
    23%
  • Mega-cap
    14%
  • Small-cap
    5%

By market cap, there’s a solid tilt toward large‑caps at 58%, with meaningful mid‑cap exposure at 23%, plus 14% in mega‑caps and a small slice in small‑caps. Large and mega‑caps tend to be more established, with deeper liquidity and more analyst coverage, so their risk profile is usually more stable than tiny companies. The mid‑cap tilt, especially in specialized industrial names, adds extra return potential but also more idiosyncratic risk, since individual news can move these stocks sharply. Compared with a pure mega/large‑cap index, this mix leans a bit more into company‑specific stories, which is fine as long as that extra “story risk” is intentional.

True holdings Info

  • Rheinmetall AG
    32.80%
  • Renk Group AG
    12.88%
  • Thales
    6.80%
  • BAE Systems plc
    4.36%
  • Leonardo SpA
    4.20%
  • Jenoptik AG
    3.35%
  • NVIDIA Corporation
    1.45%
    Part of fund(s):
    • VanEck Semiconductor UCITS ETF
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Apple Inc
    1.00%
    Part of fund(s):
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Microsoft Corporation
    0.71%
    Part of fund(s):
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Broadcom Inc
    0.64%
    Part of fund(s):
    • VanEck Semiconductor UCITS ETF
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Top 10 total 68.20%

Looking through the ETFs, what stands out is that most of the real risk and exposure comes from the direct stock picks, especially Rheinmetall and Renk. The ETF top holdings add some mega‑cap names like NVIDIA, Apple, Microsoft, and Broadcom, but each of these only shows up as a small slice. Interestingly, overlap between direct holdings and ETF positions is minimal in the top‑10, so hidden duplication in those specific names is low. Still, overlap may be understated because only ETF top‑10 holdings are visible, so there could be more shared positions deeper in the funds. The main takeaway: this is not an “index‑dominated” portfolio; it’s a stock‑driven one with ETFs in a supporting role.

Risk contribution Info

  • Rheinmetall AG
    Weight: 32.80%
    48.5%
  • Renk Group AG
    Weight: 12.88%
    23.1%
  • Thales
    Weight: 6.80%
    5.9%
  • iShares Core MSCI World UCITS ETF USD (Acc) EUR
    Weight: 21.97%
    5.3%
  • Leonardo SpA
    Weight: 4.20%
    4.8%
  • Top 5 risk contribution 87.6%

Risk contribution really highlights the concentration under the surface. Rheinmetall is 32.8% of the portfolio by weight but contributes about 48.5% of total risk, meaning roughly half of the ups and downs are driven by a single stock. Renk adds another 23.1% of risk from only 12.9% weight. Together with Thales, the top three holdings account for 77.5% of total portfolio volatility. Risk contribution is like asking which instruments in the orchestra you actually hear; here, a couple of trumpets are drowning out everything else. When a few positions dominate risk this much, the overall outcome depends heavily on those specific names continuing to perform.

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.

On the risk‑return chart, the current portfolio sits meaningfully below the efficient frontier. The efficient frontier shows the best expected return you could get for each level of risk, using only your existing holdings but in different weights. At the same risk level, a reweighted version of these same positions could improve the Sharpe ratio — a measure of return per unit of risk — from 1.74 to around 2.08. That means better risk‑adjusted performance without adding new assets, just changing sizes. There’s also a much lower‑risk “minimum variance” mix available if smoother rides became more important. The positive takeaway: the building blocks are strong, but the current mix isn’t squeezing the most out of them yet.

Dividends Info

  • Rheinmetall AG 0.60%
  • Weighted yield (per year) 0.20%

Dividends are not a major focus here. The overall yield is around 0.2%, with even a key name like Rheinmetall yielding about 0.6%. That’s far below traditional income‑oriented equity portfolios and well under what many broad market indices offer. Low yield isn’t bad by itself — it often signals a tilt toward companies reinvesting profits for growth rather than paying them out as cash. For an aggressive, growth‑oriented investor, that can fit nicely, as the main goal is long‑term capital appreciation. Someone who needs regular cash flow from their investments, though, would likely find a setup like this too light on income.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • VanEck Semiconductor UCITS ETF 0.35%
  • Weighted costs total (per year) 0.06%

Costs are a real bright spot. The ETFs used are all low‑cost, with total expense ratios (TERs) around 0.18–0.35%, and the blended portfolio TER works out to about 0.06%, which is impressively low. TER is the yearly fee taken by funds, like a small percentage haircut on your investment; lower fees mean more of the return stays in your pocket. This level is well below what many retail investors pay and is strongly aligned with best practices for long‑term investing. Keeping costs low won’t protect against market swings, but it quietly boosts net returns year after year, which really compounds over decades.

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