A focused growth portfolio with high exposure to technology and North America
Report created on Aug 6, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VE US Vegan Climate ETF
VEGN - US26922A2978 100.00%
The portfolio is entirely allocated to the US Vegan Climate ETF, showcasing a unique focus on environmentally conscious investments within the technology, financial services, and communication sectors. This concentration indicates a strategy aimed at capitalizing on the growth of sustainable companies primarily located in North America. While such a focused approach aligns with specific ethical investment goals, it also introduces heightened risk due to the lack of diversification across asset classes, sectors, and geographies.
Growth
Historically, this portfolio has demonstrated strong performance with a Compound Annual Growth Rate (CAGR) of 16.97%. However, it's important to note the significant max drawdown of -34.13%, which underscores the volatility and risk associated with a concentrated investment in a single ETF. The days contributing to 90% of returns being limited to 17 indicates that the portfolio's gains are heavily reliant on a few high-performing periods, emphasizing the importance of timing in this investment strategy.
Projection
The Monte Carlo simulation predicts a wide range of potential outcomes, with an annualized return of all simulations at 18.87%. While the 50th percentile projection of a 688.0% increase is optimistic, the broad spread to the 5th percentile at 82.3% increase highlights the significant uncertainty and risk. This projection, based on historical data, suggests potential for substantial growth but also underscores the importance of understanding the inherent volatility.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's allocation is nearly entirely in stocks (99%), with a minimal cash position (1%). This composition is typical for growth-oriented portfolios but lacks diversification across other asset classes like bonds or real estate, which could mitigate risk. The heavy reliance on stock market performance, particularly within a niche like environmentally conscious companies, increases exposure to market volatility.
Sectors
- Technology 51%
- Financials 18%
- Telecommunications 11%
- Industrials 7%
- Consumer Discretionary 4%
- Real Estate 4%
- Health Care 4%
With over half of the portfolio in technology and significant allocations in financial services and communication services, the sector distribution reflects a bet on industries that can benefit from sustainable practices. However, the absence of sectors like utilities, basic materials, and consumer defensive indicates potential missed opportunities for diversification and exposure to industries that might also thrive within the green economy.
Regions
- North America 100%
The geographic allocation being exclusively North American presents both an opportunity and a risk. While it capitalizes on the robust US market, it misses out on potential growth and diversification benefits from developed European or Asian markets, where environmental sustainability efforts are also strong. This geographic concentration could limit the portfolio's resilience against regional economic downturns.
Market capitalization
- Large-cap 46%
- Mega-cap 31%
- Mid-cap 20%
- Small-cap 1%
- Micro-cap 1%
The market capitalization breakdown shows a balanced exposure to big (46%), mega (31%), and medium (20%) cap stocks, with minimal investment in small and micro caps. This suggests a moderate risk approach, leaning towards established companies with a track record of success. However, the limited exposure to smaller companies may restrict potential high-growth opportunities in the rapidly evolving green technology sector.
Dividends
- US Vegan Climate ETF 0.50%
- Weighted yield (per year) 0.50%
The dividend yield of 0.50% is relatively low, which is typical for growth-focused investments that reinvest profits rather than distribute them as dividends. For investors seeking income, this yield might be insufficient. However, for those prioritizing capital appreciation, especially in the context of sustainable investing, the lower yield is a reasonable trade-off.
Ongoing product costs
- US Vegan Climate ETF 0.60%
- Weighted costs total (per year) 0.60%
The Total Expense Ratio (TER) of 0.60% is within a reasonable range for specialized ETFs, particularly those focused on niche markets like sustainable investing. While keeping costs low is crucial for enhancing long-term returns, the fee is justifiable if the ETF aligns with the investor's ethical preferences and growth objectives.
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