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2025 was a great year for my SIPP. In a year, my investment return was more than 20%. Here, I will reveal how I made that return. I will also discuss my strategy for 2026.
My focus on growth paid off
Within my SIPP, I hold a mix of index trackers, passively managed funds, exchange traded funds (ETFs), and individual stocks. My mindset is more towards growth focused investing as I have a lot of time until I retire (I’m still in my 40s).
This diversified growth focus paid off in 2025. In terms of individual stocks, the star of the show was owner Google. Alphabets. This was the biggest sum for my SIPP at the start of the year and over the course of it, it has increased by almost 60% – significantly increasing my overall balance.
One of the biggest contributors to my portfolio that did well was Nvidia. It jumped by about 40%. Bringing fully managed funds closer, Growth of the blue whale was one of the outstanding players. It has returned more than 25% annually, thanks to its focus on artificial intelligence (AI) development.
As for ETFs, the star here has been defense- and cybersecurity-focused HANetf Future of Defense UCITS ETF. This returns about 40% as the total protection is concentrated.
I will point out that when stocks pulled back in April, I invested heavily in these stocks (and others). This greatly helped my performance. When stocks rallied in Q2 and Q3, the value of my portfolio increased.
I have been able to do this as I always keep some money aside in preparation for putting it back on the market. That way, when attractive opportunities arise, I’m ready to take them.
My strategy for 2026
As for my strategy for 2026, I will still focus on long-term growth. I’m still sticking to themes like technology and AI so I’ll continue to stick with names like Alphabet and Nvidia.
But lately, I’ve been diversifying my portfolio a bit to be more tech heavy. For example, I’ve been adding to funds focused on Europe and healthcare stocks.
Given the recent market performance, I have been banking some profits to build my cash pile. This money sits in a short-term money market fund (which earns about 4%), ready to be used when the market pulls back and better buying opportunities arise.
In terms of stocks I would like to buy for my SIPP, one name I have my eye on is BWX Technologies (NYSE: BWXT), an American company specializing in nuclear power components.
All over the world today, both governments and companies are embracing nuclear power. And this stock looks like a good way to play the theme, in my opinion.
It is worth noting that in October, the company signed a multi-million deal Rolls-Royce for Small Modular Reactors (SMRs). This deal is an example of how BWX is positioned to power nuclear reactors around the world.
Today, this stock looks a little expensive. Currently, the price-to-earnings (P/E) ratio is around 40. That estimate doesn’t leave any room for error. For example, if contracts fail, the stock may underperform.
If the stock were to drop another 20% though, I’d be tempted to buy. I think it would be a good diversified portfolio for me.
