SMH.L - Risk

Risk & Diversification Scores

Transparent evaluation of price volatility (SRI) and 4-dimensional portfolio diversification.

Volatility Risk Score

7/7 Very High

7 / 7 SRI PRIIPs Risk Class

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors.

Volatility (5Y)

34.4% p.a.

5-Year Horizon

Max Drawdown (5Y)

-45.4%

Deepest Drawdown

Sharpe Ratio

0.98

Good (0.5 - 1.0)

Rec. Holding Period

10+ Years

Investment Horizon

Speculative / High Risk: Score Basis:

Diversification Score

High Concentration (> 50%)

4 / 100 Portfolio Diversification

4 Dimensions: Holdings (30%) • Sectors (25%) • Industries (25%) • Regions (20%)

High concentration risk: A few heavyweights drive the majority of fund value.

Top 10 Holdings

82.5%

Focused

Effective Holdings

~14

of 25 holdings

Top Sector

100.0%

Technology

Top Region / Country

71.7%

United States

Elevated concentration in top individual holdings, leading sectors, or key regions.

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Stable Long-Term Volatility High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+97.5%
3 Years	34.7%	-36.3%	1.72	+62.1%
5 Years	34.4%	-45.4%	0.98	+36.3%
10 Years	—	—	—	—

Notes & Warnings

🟢 Favorable / fair valuation: Avg P/E of 29.6

🟢 Deep market liquidity & capital coverage (Tier 1)

🟢 Established large fund (> 500M € AUM)

🟢 High institutional analyst coverage (32.5 analysts)

🔴 Extreme top 10 holdings concentration: 83% of fund in top 10 positions.

🔴 Severe sector concentration risk: 100% in "Technology".

🔴 Extreme industry concentration: 77% in "Semiconductors".

⚠️ Growth estimates are concentrated: Top 3 growth drivers account for 53% of forward growth.

ℹ️ Tech-Capex Exposure: 98% in semiconductors & hardware – dependent on hyperscaler capex cycles.

🔴 Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (34.4% p.a.).

⚠️ Historical Stress Test: Maximum peak-to-trough drawdown of -45.4% in the extended horizon.