A technologically driven portfolio with a balanced approach to global and sector diversification

Report created on Aug 5, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured with a heavy focus on technology and automation, comprising 52% of the overall allocation, alongside significant investments in global and European markets. The choice of ETFs reflects a strategic emphasis on sectors poised for growth in the digital age, such as information technology, automation, and artificial intelligence. However, this concentration also introduces sector-specific risks, which are somewhat mitigated by the inclusion of broader market ETFs like the Vanguard FTSE All-World UCITS ETF. The portfolio's diversification across different geographies, particularly with a 60% allocation to North America and 29% to developed Europe, helps in spreading risk.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.02%, with a maximum drawdown of -25.08%. This performance indicates a favorable growth trajectory over the observed period, though the drawdown highlights potential volatility. The days contributing to 90% of returns being limited suggests that the portfolio's growth is significantly impacted by a few strong market days, a common characteristic of growth-focused investments. Comparing this performance against a diversified benchmark could provide further insight into the portfolio's risk-adjusted returns.

Projection Info

Monte Carlo simulations, which use historical data to project future portfolio performance, suggest a wide range of outcomes. With 928 out of 1,000 simulations showing positive returns, the median projection indicates a potential 202.2% increase, underlining the portfolio's growth potential. However, the 5th percentile outcome at -18.9% reminds investors of the inherent risks and the importance of being prepared for downturns. These projections, while insightful, are based on past performance and cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, providing high growth potential but also higher volatility compared to portfolios with a mix of asset classes like bonds or real estate. This singular focus on equities is suitable for investors with a higher risk tolerance and a longer time horizon. Diversifying across different asset classes could help in smoothing out returns and reducing overall portfolio volatility.

Sectors Info

  • Technology
    52%
  • Industrials
    14%
  • Financials
    9%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Health Care
    5%
  • Basic Materials
    2%
  • Consumer Staples
    2%
  • Real Estate
    1%
  • Utilities
    1%
  • Energy
    1%

With over half of the portfolio invested in technology-related sectors, the investor is well-positioned to benefit from the growth in these areas. However, this concentration also increases susceptibility to sector-specific downturns. Expanding into underrepresented sectors or increasing allocations to more stable, defensive sectors could provide a buffer during market corrections.

Regions Info

  • North America
    60%
  • Europe Developed
    29%
  • Japan
    4%
  • Asia Developed
    4%
  • Asia Emerging
    2%
  • Africa/Middle East
    1%
  • Australasia
    1%

The geographic distribution, heavily weighted towards North America and developed Europe, provides a solid foundation in stable, high-growth markets. However, the minimal exposure to emerging markets and other developing regions may limit potential returns from these high-growth areas. Considering a modest increase in exposure to diversified emerging market ETFs could enhance growth prospects and global diversification.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    21%
  • Small-cap
    4%

The composition favors mega and big-cap stocks, which are typically less volatile than their smaller counterparts. This aligns with the portfolio's balanced risk profile, as larger companies often have more stable earnings. However, including a small allocation to medium, small, or even micro-cap stocks could introduce higher growth potential, albeit with increased risk.

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 current portfolio has shown strong performance, but analysis suggests an optimized portfolio could potentially achieve a 20.20% expected return at the same risk level. This indicates room for improvement in the risk-return profile through strategic reallocation. It's important to note that optimization models are based on historical data and assumptions that may not fully predict future dynamics.

Ongoing product costs Info

  • iShares Automation & Robotics UCITS ETF USD (Acc) 0.40%
  • iShares S&P 500 USD Information Technology Sector UCITS 0.15%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • WisdomTree Artificial Intelligence UCITS ETF - USD Acc EUR 0.40%
  • Weighted costs total (per year) 0.22%

The portfolio's overall expense ratio is relatively low, which is beneficial for long-term growth as lower costs directly translate to higher net returns. This cost efficiency is a positive aspect, especially when considering the potential impact of fees on investment returns over time. Maintaining this focus on cost efficiency while exploring diversification options could further optimize the portfolio's performance.

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