Concentrated semiconductor growth portfolio paired with a broad US equity core foundation
Report created on Jun 8, 2026Risk profile
5/7
Diversification profile
2/5
Positions
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SM VanEck Semiconductor UCITS ETF
SMGB - IE00BMC38736 50.00% -
VU Vanguard S&P 500 UCITS ETF USD Accumulation
VUAA - IE00BFMXXD54 50.00%
This portfolio is very simple: two equity ETFs split 50/50. One ETF targets the semiconductor industry, while the other tracks a broad US large-cap index. That means the entire portfolio is invested in stocks, with no bonds or cash buffers built in. Structurally, this is a concentrated growth-oriented setup: one fund provides broad market exposure, the other layers on a focused thematic bet. Simplicity like this is easy to understand and track over time. The main implication is that portfolio behaviour will be driven heavily by equity market swings, and within that, by the ups and downs of the semiconductor industry rather than a wide mix of unrelated assets.
Growth
Over the period shown, £1,000 grew to about £3,885, giving a compound annual growth rate (CAGR) of 27.94%. CAGR is the “smooth” average yearly growth rate, like working out how fast a car went on average over a long trip. That’s a much higher return than both the US market and global market benchmarks. The trade-off is a maximum drawdown of about -29%, meaning at one point the portfolio was almost a third below a previous peak. This deeper drop and strong recovery fit a growth-heavy, sector-tilted portfolio: when conditions are favourable, it can outrun broad markets, but declines can also be more intense and emotionally challenging.
Projection
The Monte Carlo projection uses the portfolio’s historical behaviour to simulate many possible 15-year paths. It’s like running 1,000 alternate futures where returns vary randomly based on past patterns. The median outcome turns £1,000 into about £2,872, with a wide “middle band” from roughly £1,808 to £4,450. The model shows a 75.4% chance of ending with a positive return and an average simulated annual return of 8.28%. These numbers are not predictions; they’re scenario ranges based on history. Markets change, sectors rotate in and out of favour, and future volatility can differ a lot from the past, so results can end up outside these ranges.
Asset classes
- Stocks 100%
All of the portfolio is in equities, so there’s no explicit diversification across different asset classes like bonds, cash, or alternatives. Equity-only portfolios tend to move more with the economic cycle and can experience larger swings, both up and down. The benefit is clear exposure to long-term growth in company earnings. Compared with broad benchmarks that typically include some mix of defensive assets, this portfolio is more growth-tilted and sensitive to equity market conditions. The upside is potentially strong long-run returns; the flip side is that there is no built-in cushion from more stable asset classes when stock markets go through rough patches.
Sectors
- Technology 68%
- Financials 6%
- Telecommunications 6%
- Consumer Discretionary 5%
- Health Care 4%
- Industrials 4%
- Consumer Staples 2%
- Energy 2%
- Utilities 1%
- Real Estate 1%
- Basic Materials 1%
Sector-wise, technology dominates at 68%, with the rest spread quite thinly across financials, telecoms, consumer sectors, health care, and others. Many broad equity benchmarks have a much lower tech weight, so this is a clear and intentional sector tilt. Tech-heavy portfolios often benefit during periods of innovation booms, falling interest rates, or strong demand for digital infrastructure. They can also be more volatile when rates rise or when sentiment turns against growth stocks. The smaller allocations to other sectors add some balance, but the overall behaviour will primarily follow how technology — and especially semiconductor-related companies — are performing.
Regions
- North America 92%
- Asia Developed 4%
- Europe Developed 4%
Geographically, exposure is dominated by North America at 92%, with only small slices in developed Asia and Europe. That means most of the portfolio’s fortunes are tied to one major market, one currency, and one economic policy regime. Broad global benchmarks usually have more non‑US exposure, so this is a clear regional tilt. Being aligned with a large, innovative market is a positive, and historically US markets have done well, as reflected in the performance comparison. The flip side is that shocks specific to North America — economic slowdown, policy shifts, or currency moves — will flow through the portfolio more strongly than if exposure were more globally spread.
Market capitalization
- Mega-cap 52%
- Large-cap 37%
- Mid-cap 11%
- Small-cap 1%
By market size, just over half the portfolio sits in mega‑cap companies, with most of the rest in large caps and a small slice in mid and small caps. This is similar to many mainstream equity indices where the biggest global companies dominate. Large and mega‑caps often bring stronger balance sheets, established business models, and better liquidity, which can help during stressed markets compared with smaller, less established firms. The modest mid and small‑cap exposure adds some growth potential and diversification of company types. Overall, the market cap mix is fairly consistent with broad equity standards, which is a stabilising feature within this otherwise concentrated portfolio.
True holdings
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NV NVIDIA Corporation 7.53%
Part of fund(s):- VanEck Semiconductor UCITS ETF
- Vanguard S&P 500 UCITS ETF USD Accumulation
-
MU Micron Technology Inc 7.06%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
AM Advanced Micro Devices Inc 5.95%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
AV Broadcom Inc 5.35%
Part of fund(s):- VanEck Semiconductor UCITS ETF
- Vanguard S&P 500 UCITS ETF USD Accumulation
-
AS ASML Holding NV ADR 3.87%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
TS Taiwan Semiconductor Manufacturing 3.83%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
IN Intel Corporation 3.75%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
AA Apple Inc 3.23%
Part of fund(s):- Vanguard S&P 500 UCITS ETF USD Accumulation
-
LR Lam Research Corp 2.86%
Part of fund(s):- VanEck Semiconductor UCITS ETF
-
AM Applied Materials Inc 2.74%
Part of fund(s):- VanEck Semiconductor UCITS ETF
- Top 10 total 46.18%
Looking through to the biggest underlying companies, there’s meaningful concentration in a handful of semiconductor leaders. NVIDIA, Micron, AMD, Broadcom, ASML, TSMC, Intel, and others together make up a sizeable chunk of the portfolio’s effective exposure. Several of these appear across multiple ETFs, which creates “hidden” overlap — you own the same company via different funds. This can boost returns when those names are doing well but also amplifies downside if sentiment turns against them. Because only ETF top‑10 holdings are used, true overlap is likely even higher. The key takeaway is that a small group of chip-related companies meaningfully drives the overall outcome.
Risk contribution
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VanEck Semiconductor UCITS ETF
Weight: 50.00% 67.8% -
Vanguard S&P 500 UCITS ETF USD Accumulation
Weight: 50.00% 32.2%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from its weight. Here, the semiconductor ETF is 50% of the portfolio but contributes about 67.83% of total risk. The broad US ETF, also 50% by weight, adds only 32.17% of risk. This tells us the sector ETF is notably more volatile. Think of it like two equally sized instruments in a band, but one is much louder — it dominates the sound. This concentrated risk in the semiconductor sleeve is consistent with the growth‑oriented profile and helps explain both the strong returns and the larger drawdowns seen historically.
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 risk vs return chart shows the current portfolio sitting right on or very close to the efficient frontier. The efficient frontier is the curve of “best possible” return for each risk level using only these two holdings in different mixes. The current Sharpe ratio of 1.01 — a measure of risk‑adjusted return relative to a risk‑free rate — is solid and in line with an efficient allocation. The optimal Sharpe portfolio would take more risk for higher expected return, while the minimum variance option would lower both risk and return. Since the current mix is already efficient for its risk level, the main trade-off is choosing between more or less risk, not fixing any clear inefficiency.
Ongoing product costs
- VanEck Semiconductor UCITS ETF 0.35%
- Vanguard S&P 500 UCITS ETF USD Accumulation 0.07%
- Weighted costs total (per year) 0.21%
The portfolio’s total ongoing fee (TER) averages about 0.21%, combining a low‑cost broad US ETF at 0.07% and a more specialised semiconductor ETF at 0.35%. TER, or Total Expense Ratio, is the annual fee charged by the funds, taken directly from their assets. Cost levels like this are generally competitive, especially given the thematic exposure, and support better long‑term compounding because less return is lost to fees each year. Over many years, even small differences in TER can add up, so having a broad core at very low cost is a strong structural feature. Overall, the cost profile is a positive aspect of this portfolio’s design.
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