THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value)
Title: A Diversified Portfolio Strategy for the 21st Century: Embracing Technological, Economic, and Energy Security
Abstract:
This thesis examines a portfolio strategy that allocates one-third of its assets to Apple Inc. (AAPL) and Alibaba Group (BABA), each based on their strong competitive advantages or "moats" in technology and e-commerce sectors respectively. The remaining one-third of the portfolio is divided between Exxon Mobil Corporation (XOM) and Bitcoin (BTC), considering their roles in energy security and decentralized financial systems. Through a comprehensive analysis of each component, this thesis will demonstrate the benefits of a diversified portfolio that leverages the strengths of these four assets in the 21st century.
I. Introduction A. The Importance of Diversification B. Overview of the Four Portfolio Components
II. Apple Inc. (AAPL): A Strong Moat in the Technology Sector A. Historical Performance and Growth B. Competitive Advantages 1. Brand Recognition and Loyalty 2. Ecosystem and Network Effects 3. Innovation and Intellectual Property C. Risks and Challenges D. Future Outlook
III. Alibaba Group (BABA): The Dominant Moat in Chinese E-commerce and Cloud Computing A. Overview of Alibaba's Business Model B. E-commerce and Retail 1. Market Dominance in China 2. Expansion into International Markets C. Cloud Computing and Digital Infrastructure 1. Growth Potential in Cloud Services 2. Competitive Advantages in China D. Risks and Challenges E. Future Outlook
IV. Exxon Mobil Corporation (XOM): Energy Security in the Portfolio A. Importance of Energy Security B. XOM's Role in the Global Energy Market 1. Diversification of Energy Sources 2. Investments in Renewable Energy C. Risks and Challenges D. Future Outlook
V. Bitcoin (BTC): A Decentralized and Permissionless Store of Value A. Overview of Bitcoin's Properties B. Decentralization and Security 1. Blockchain Technology 2. Network Effects C. Store of Value and Hedge Against Inflation D. Risks and Challenges E. Future Outlook
VI. Portfolio Construction and Management A. Asset Allocation Strategy B. Risk Management C. Performance Evaluation
VII. Conclusion A. Summary of Findings B. Implications for Investors C. Future Research Directions
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
AAPL Apple Inc | Technology | 30% |
BABA Alibaba Group Holding Limited | Consumer Cyclical | 30% |
BTC-USD Bitcoin | 20% | |
XOM Exxon Mobil Corporation | Energy | 20% |
Performance
Performance Chart
The chart shows the growth of an initial investment of $10,000 in THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value), comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced every 3 months.
The earliest data available for this chart is Sep 19, 2014, corresponding to the inception date of BABA
Returns By Period
As of Apr 26, 2025, the THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value) returned -0.32% Year-To-Date and 48.80% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | -6.06% | -3.27% | -4.87% | 9.44% | 14.30% | 10.11% |
| THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value) | -0.32% | 6.97% | 36.18% | 43.83% | 55.77% | 48.80% |
| Portfolio components: | ||||||
AAPL Apple Inc | -16.34% | -5.53% | -9.36% | 23.77% | 24.97% | 21.79% |
BABA Alibaba Group Holding Limited | 41.86% | -9.04% | 23.47% | 61.50% | -9.67% | 3.75% |
XOM Exxon Mobil Corporation | 1.83% | -8.20% | -7.57% | -7.50% | 25.78% | 6.71% |
BTC-USD Bitcoin | 0.55% | 8.10% | 40.97% | 45.69% | 65.01% | 82.77% |
Monthly Returns
The table below presents the monthly returns of THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value), with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 8.57% | -16.02% | -2.49% | 12.12% | -0.32% | ||||||||
| 2024 | 0.18% | 38.23% | 14.84% | -13.89% | 11.25% | -5.93% | 3.33% | -7.57% | 6.95% | 9.37% | 34.16% | -2.65% | 109.08% |
| 2023 | 33.75% | -0.27% | 20.83% | 2.51% | -5.63% | 11.37% | -2.89% | -9.94% | 1.86% | 23.19% | 8.67% | 10.56% | 128.95% |
| 2022 | -14.93% | 9.84% | 5.43% | -16.24% | -14.18% | -33.31% | 16.84% | -11.79% | -4.98% | 6.21% | -12.91% | -4.93% | -59.33% |
| 2021 | 12.44% | 30.51% | 27.44% | -1.40% | -32.87% | -4.41% | 16.31% | 11.74% | -7.13% | 36.69% | -6.25% | -16.70% | 52.46% |
| 2020 | 20.31% | -7.87% | -20.43% | 27.06% | 8.23% | 0.21% | 21.28% | 7.38% | -7.18% | 18.19% | 31.50% | 38.88% | 217.11% |
| 2019 | -0.13% | 9.58% | 5.58% | 19.43% | 34.17% | 23.18% | -4.61% | -3.80% | -10.30% | 9.97% | -11.06% | -1.12% | 81.56% |
| 2018 | -22.36% | 0.65% | -26.94% | 23.46% | -12.45% | -11.40% | 15.50% | -5.54% | -4.68% | -5.46% | -27.10% | -9.33% | -64.46% |
| 2017 | 3.73% | 11.43% | -1.09% | 10.77% | 31.33% | 5.91% | 11.02% | 39.37% | -5.52% | 34.13% | 41.29% | 30.31% | 535.90% |
| 2016 | -10.48% | 5.41% | 7.36% | -2.74% | 8.60% | 5.93% | 0.07% | 2.50% | 5.94% | 2.18% | 0.09% | 9.35% | 37.75% |
| 2015 | -8.84% | 4.85% | -3.15% | -0.34% | 3.90% | -2.53% | -2.37% | -10.55% | -3.52% | 20.59% | 3.10% | -2.97% | -5.02% |
| 2014 | -2.70% | 3.45% | 8.39% | -6.92% | 1.55% |
Expense Ratio
THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value) has an expense ratio of 0.00%, meaning no management fees are charged. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
With an overall rank of 91, THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value) is among the top 9% of portfolios on our website when it comes to balancing risk and reward. Below is a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
AAPL Apple Inc | -0.30 | -0.21 | 0.97 | 0.78 | -1.01 |
BABA Alibaba Group Holding Limited | 1.39 | 2.01 | 1.26 | 0.42 | 3.88 |
XOM Exxon Mobil Corporation | -0.37 | -0.33 | 0.96 | -0.38 | -0.99 |
BTC-USD Bitcoin | 1.90 | 2.52 | 1.26 | 1.68 | 8.51 |
Dividends
Dividend yield
THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value) provided a 1.02% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 1.02% | 1.07% | 1.27% | 0.85% | 1.29% | 1.87% | 1.29% | 1.48% | 1.17% | 1.24% | 1.32% | 1.09% |
| Portfolio components: | ||||||||||||
AAPL Apple Inc | 0.48% | 0.40% | 0.49% | 0.70% | 0.49% | 0.61% | 1.04% | 1.79% | 1.45% | 1.93% | 1.93% | 1.67% |
BABA Alibaba Group Holding Limited | 0.55% | 0.78% | 1.29% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
XOM Exxon Mobil Corporation | 3.57% | 3.57% | 3.68% | 3.22% | 5.70% | 8.44% | 4.92% | 4.74% | 3.66% | 3.30% | 3.69% | 2.92% |
BTC-USD Bitcoin | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
Worst Drawdowns
The table below displays the maximum drawdowns of the THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value). A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value) was 74.70%, occurring on Dec 15, 2018. Recovery took 703 trading sessions.
The current THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value) drawdown is 11.51%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -74.7% | Dec 17, 2017 | 364 | Dec 15, 2018 | 703 | Nov 17, 2020 | 1067 |
| -71.92% | Nov 9, 2021 | 366 | Nov 9, 2022 | 481 | Mar 4, 2024 | 847 |
| -48.79% | Apr 14, 2021 | 98 | Jul 20, 2021 | 91 | Oct 19, 2021 | 189 |
| -30.96% | Nov 13, 2014 | 285 | Aug 24, 2015 | 297 | Jun 16, 2016 | 582 |
| -28.02% | Dec 18, 2024 | 112 | Apr 8, 2025 | — | — | — |
Volatility
Volatility Chart
The current THEMATIC (Wide Moat, Energy Security, Decentralised Store of Value) volatility is 15.86%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 4 assets, with an effective number of assets of 3.85, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | XOM | BABA | BTC-USD | AAPL | Portfolio | |
|---|---|---|---|---|---|---|
| ^GSPC | 1.00 | 0.46 | 0.45 | 0.18 | 0.69 | 0.36 |
| XOM | 0.46 | 1.00 | 0.21 | 0.05 | 0.23 | 0.15 |
| BABA | 0.45 | 0.21 | 1.00 | 0.09 | 0.33 | 0.25 |
| BTC-USD | 0.18 | 0.05 | 0.09 | 1.00 | 0.11 | 0.91 |
| AAPL | 0.69 | 0.23 | 0.33 | 0.11 | 1.00 | 0.28 |
| Portfolio | 0.36 | 0.15 | 0.25 | 0.91 | 0.28 | 1.00 |