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The article was first published in 2023 at the launch of Endowus satellite model portfolios and was updated on 12 February 2025, following recommended portfolio updates to Endowus Global Technology model portfolio. The update is part of Endowus’ commitment to source funds that will optimise your portfolios. Find out more about the portfolio enhancements.

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Selecting the right investment products to build a diversified portfolio can be time-consuming. The Global Technology model portfolio is built from multiple unit trusts, also known as mutual funds. Each component is curated by Endowus Investment Office. An investor can use this pre-populated template as a starting point for their portfolios; they can take this template as it is or make changes to suit their preferences and needs.

The model portfolio aims to give access to the most innovative technology and technology-related companies around the world, across various market capitalisations and sectors. 

It is allocated across six different funds managed by experienced technology investment teams from renowned asset managers, namely BlackRock, Fidelity, Franklin Templeton, Janus Henderson, and JP Morgan. Each of the funds has a distinct philosophy in the way it tackles technology investing. The resulting portfolio is cost-optimised and well-diversified to tap into various sources of returns. 

The model portfolio invests primarily in traditional technology sectors such as information technology and communications services, with allocations in non-technology sectors such as financials, consumer discretionary, and industrials, where innovative companies are increasingly adopting technology to their advantage.

Geographically, the model portfolio has most of its holdings in the US — which represents a large opportunity set in technology investing — but is also invested in other leading innovators and rising stars in geographies such as Asia and Europe.

Why invest in the Endowus Global Technology model portfolio

The Global Technology model portfolio can be an attractive investment option for the following reasons:

• To capture the growth of technology-related companies
• Access to a diverse portfolio with attractive historical performance
• Designed to be suitable for a core-satellite investment approach

1. Diverse portfolio with attractive historical performance

The Global Technology model portfolio is well-diversified across various sizes and geographies. This is by deliberate design in an attempt to smoothen out volatility in the long term, while making sure that the portfolio is still invested in the best ideas of technology investing. 

Additionally, tapping into the expertise of different managers also helps to identify the best ideas in technology through various ways. We have worked with fund managers who individually specialise in these various approaches to technology investing — be it large-cap, small-cap or private, or US-centric or more global.

2. Provides attractive risk-adjusted returns for technology investors

The model portfolio is intended to deliver attractive risk-adjusted returns in the long term, driven by the growth of large, established technology leaders, as well as the upside of incumbent industry players.

Moreover, the quality of a fund's process and management team holds significant importance, extending beyond mere performance. We also maintain a steadfast belief in these funds’ capacity to outperform over the longer term, driven by active allocations across technology themes and equities.

From the tables, we can observe:

• Attractive returns, especially during times of market dislocations where active management can contribute positively
• Attractive risk-adjusted returns over the long term
• Prudent risk management in terms of maximum drawdown, rolling 12-month worst returns, and volatility

It is also important to note the difference in the drivers of return for the portfolio compared to the broader market – as the broader market index heavily features US-based mega-cap stocks, they will outperform in periods where such stocks are favoured by investors. The Endowus Global Technology model portfolio features a more diverse set of technology stocks across regions and sizes and represents a differentiated trajectory from the broader market index.

3. Suitable for a core-satellite investment approach

The model portfolio was designed and constructed carefully by the Endowus Investment Office, from the initial conceptualisation to analysing and selecting of the underlying funds and putting them together in a portfolio.

The Endowus Global Technology model portfolio is recommended to be used as a satellite allocation to complement your core allocation. 

Technology companies represent a significant portion of global equity markets today, and chances are, you may already be invested in popular technology stocks through your core investment already.

The model portfolio is a good option for investors who would like to increase their allocation to technology-themed companies, but done in a way so that it does not meaningfully overlap with their existing technology investments on their long-term core wealth allocation. This core-satellite setup is therefore designed to provide a more holistic exposure to technology for investors’ overall investment.

What are the risks?

All in all, investors are reminded that the model portfolio, due to its inherent focus on the growth-oriented technology market, and its concentrated, active stock selection approach, may be more volatile compared to investing in the index or broader market.

Given these characteristics, it is highly recommended that the model portfolio be used as a satellite exposure to supplement a broadly diversified core investment portfolio. We rate the portfolio as Product Risk Rating 6 (riskiest).

How we built the Global Technology model portfolio

The Endowus Investment Office is a team of investment experts with more than 150 years of experience combined, across public and private market investing, family offices, and wealth management. The team screens the universe of unit trusts, also known as mutual funds, and curates a final list by implementing a strict, institutional-grade screening process that is rigorous, thorough, and continuous. 

The process, known as SMART+, vets funds across categories to bring you only those that are Best-In-Class, and the team monitors the funds regularly in terms of performance.

The model portfolio was then created using the six Best-In-Class Funds for tech. For weightings, these factors were considered:

• Whether the fund adopts a more resilient, “anchor” approach in tech investing, reduces short-term volatility and provides downside protection during risk-off environments;
• Whether the fund focuses on more emergent areas of tech investing, such as small/mid cap; and
• Whether the fund is concentrated or has a more diversified basket.

The Global Technology model portfolio is distinctive because it is independently constructed by Endowus, with the Investment Office employing a robust and holistic investment process.

How to create your own Global Technology model portfolio on Endowus

Here are a few simple steps to create the Endowus Global Technology model portfolio via Fund Smart.

Step 1: Login to your Endowus account. In the My Goals section on the sidebar, click on “+” to add a goal.

Step 2: Select a model portfolio you’re interested in, by clicking the . You will see a list of model portfolios.

Step 3: Check through the portfolio details. Click on “Continue with portfolio” if you wish to proceed.

Here, you will see details of the model portfolio such as the description, risk analysis, fees, performance, and allocations of its underlying funds. After you click on “Continue with portfolio”, you can still add funds, remove funds, and modify allocations if you want to.

Step 4: Set up your investment horizon and investment objects.

We hope investors can make investment decisions with a goal-based mindset to ensure that the investments align with their risk tolerance and to avoid frequent trading due to external factors that could ultimately affect long-term returns.

Step 5: Allocate your funds in this portfolio, and review an analysis of it. Click on “Continue” to proceed.

You can either invest in the model portfolio as it is, or modify the allocations, add funds, and remove funds to suit your preferences and needs. 

Step 6: Set up your investment.

‍Input the amount you want to invest, and decide whether this will be a one-time or recurring monthly investment. Click on either “Continue to review” or “Save goal and invest later” to proceed. After checking the final checklist, you can confirm the investment.

On these two pages, you will see the projected outcomes, historical performance, selection criteria, underlying holdings, fund fees, and warning statements. Make sure to review the warning statements carefully. You can still modify or stop any recurring monthly investments later.  

Remember that return is proportionate to risk. You should consider your risk tolerance — for example, how much money can you tolerate losing in a certain time period, in a worst-case scenario? The portfolio should then suit your risk appetite, as well as your investment timeline and financial goals.

Should you invest in the Global Technology model portfolio or in single funds?

The Endowus Investment Office has designed the asset allocation, selected the funds, and optimised the fund allocation for the Global Technology model portfolio. The model portfolio is diversified and optimised for each level of risk.

Investors can also buy single funds on the Fund Smart platform as a way to complement your existing core investments. If you want to get additional exposure to certain asset classes, geographies, sectors, themes or factors, you can select the additional funds via Fund Smart.

Whether you’re thinking of investing in a model portfolio or in single funds, you should consider your own risk tolerance level and financial circumstances.

At Endowus, wealth management for everyone

The Endowus Global Technology model portfolio offers investors a convenient and effective way to build a diversified technology-theme portfolio that can potentially help to increase returns in the long term.

With digital wealth platform Endowus, investing is now made low-cost and accessible for every season in life, investing goal, and risk appetite. Make time your biggest asset and begin your investing journey with Endowus today. Start investing towards your goals from just HK$10,000.

At a low, fair, and transparent fee, both retail and professional investors can access Best-In-Class Funds and stand on the shoulders of financial giants. With our industry-first 100% Cashback on trailer fees, save up to 50% or more on your investment fees.

Get more details about the Global Technology model portfolio here. Read about the other Endowus model portfolios in this article.

For an overview of all the funds available on the Endowus Fund Smart platform, refer to our investment funds list. Follow this link to get started with Endowus HK.

Read more:

• Introducing the Endowus HK team
• Why invest through Endowus
• What is Fund Smart?
• An overview of the Endowus model portfolios

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Risk Warnings

Investment involves risk. Past performance is not an indicator nor a guarantee of future performance or returns. Projected performance or returns is not guaranteed to materialise. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. 

Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.

General risk warnings relating to collective investment schemes 

Before making an investment decision, you are reminded to refer to the relevant prospectus/ offering document for specific risk considerations and related fees and charges.

Funds are not a bank deposit and not capital guaranteed, and is subject to investment risks, including the possible loss of the principal amount invested.  

Some of the funds also involve derivatives. Do not invest in them unless you fully understand and are willing to assume the risks associated with them.

Opinions

Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endowus HK Limited (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus HK Limited, its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider (i) whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.

No invitation or solicitation

Nothing contained [in this article] should be construed as a solicitation, an offer to buy or sale, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction in any jurisdiction in which such solicitation, offer to buy or sale would be unlawful under the securities laws in such jurisdiction. No information included [on this website/ in this article] is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any advisory product or service; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. Investors should seek independent financial and tax advice before making any investment decision.

Product Risk Rating: Please note that any product risk rating (the “PRR”) provided by us is an internal rating assigned based on our product risk assessment model, and is for your reference only. The PRR is subject to change from time to time. The PRR does not take into account your individual circumstances, objectives or needs and should not be regarded as advice or recommendation to purchase, hold or sell any fund or make any other investment decisions. Accordingly, you should not solely rely on the PRR in making your investment decision in the relevant Fund.

Complex Products

Some of the funds contained in this article are complex products and investors should exercise caution when investing in these products. Though these products have been authorised by the SFC, authorization does not imply official recommendation. SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. 

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