XLES.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)

26.3% p.a.

5-Year Horizon

Max Drawdown (5Y)

-28.6%

Deepest Drawdown

Sharpe Ratio

0.73

Good (0.5 - 1.0)

Rec. Holding Period

10+ Years

Investment Horizon

Speculative / High Risk: Score Basis:

Diversification Score

High Concentration (> 50%)

26 / 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

77%

Focused

Effective Holdings

~16

of 21 holdings

Top Sector

100.0%

Energy

Top Region / Country

100.0%

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.

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+49.9%
3 Years	21.6%	-21.4%	0.66	+16.7%
5 Years	26.3%	-28.6%	0.73	+21.6%
10 Years	28.9%	-67.5%	0.26	+9.9%

Notes & Warnings

🟢 Favorable / fair valuation: Avg P/E of 18.4

🟢 Deep market liquidity & capital coverage (Tier 1)

Solid fund volume

🟡 Moderate analyst coverage (19.5 analysts)

🔴 Extreme top 10 holdings concentration: 77% of fund in top 10 positions.

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

⚠️ Industry concentration: 38% in "Oil & Gas Integrated".

🔴 Growth estimates are hyper-concentrated: Top 3 growth drivers account for 69% of total forward growth.

🔴 High Commodity Concentration: 100% of fund depends directly on volatile energy and raw material markets.

🔴 Dominant Cyclicality: 100% in cyclical industries – higher drawdown risk in recessions.

⚠️ Elevated Regulatory & Policy Risk: 91% in heavily regulated industries (defense, regulated utilities, healthcare policy).

⚠️ Historical Stress Test: Maximum peak-to-trough drawdown of -67.5% in the extended horizon.