A dividend focused equity portfolio with global reach and a meaningful tilt to emerging markets
Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Balanced Investors
This setup fits an investor who is comfortable with meaningful stock‑market swings, but still values diversification and steady income. The ideal profile has a medium to high risk tolerance, a focus on long‑term wealth building, and an investment horizon of at least 10–15 years. Regular dividends and global breadth suit someone who likes visible cash flows and broad exposure rather than narrowly chasing the hottest themes. Short‑term losses of 30–40% are seen as uncomfortable but acceptable, provided the long‑term growth story stays intact. This type of investor typically maintains a separate cash reserve for emergencies so the portfolio can stay invested through market turbulence.
Positions
-
SPDR S&P Global Dividend Aristocrats UCITS
ZPRG - IE00B9CQXS71 80.00% -
SPDR S&P Emerging Markets Dividend Aristocrats UCITS ETF (Dist)
SPYV - IE00B6YX5B26 20.00%
This portfolio is very concentrated in two dividend-focused ETFs, with 80% in a global strategy and 20% in an emerging-markets strategy. Structurally, that makes it simple and easy to follow, but also fully dependent on one style: dividend aristocrats, i.e. companies that have paid and often raised dividends for many years. Compared with many balanced benchmarks, which usually mix equities and bonds, this setup is clearly more growth oriented and more volatile. For extra stability, some investors would add a separate “safety bucket” outside this portfolio, using cash or lower-risk investments to smooth the ride and provide liquidity for near‑term needs.
Growth
Historically, the portfolio has delivered a compound annual growth rate (CAGR) of 7.01%. CAGR is like measuring your average speed on a long road trip: it smooths out all the bumps. A −40.87% maximum drawdown, however, shows that during severe market stress the value can almost halve, which is a normal equity-like risk rather than “balanced” in the classic sense. Only 16 days made up 90% of returns, underlining how much performance comes from a few very strong days. Staying invested through those phases is crucial, because missing them can drag long‑term growth down significantly.
Projection
The Monte Carlo analysis runs 1,000 simulations based on historical patterns to estimate future possibilities. Monte Carlo means the computer shuffles many return paths, including good and bad phases, to see a range of outcomes. The median scenario ends at roughly +129%, while the pessimistic 5th percentile still loses −18.1%, and about 90% of runs are positive. The annualized simulated return of 7.32% lines up nicely with history, which is a good sign of consistency. Still, all simulations depend on past data and assumptions; real markets can behave very differently. Using these results as a rough weather forecast, not a promise, is the healthiest mindset.
Asset classes
- Stocks 100%
- Cash 0%
All assets sit in equities, with 100% in stocks and 0% in cash or bonds. Many standard “balanced” benchmarks would hold 40–60% in bonds to reduce swings, so this portfolio is clearly tilted toward growth and income rather than capital stability. The upside is better long-term return potential and a strong link to global corporate profits. The downside is larger temporary losses in market crashes. This pure-equity structure is well-suited to a long horizon and a separate emergency fund. For anyone with shorter-term goals, holding a dedicated buffer in cash or low‑risk assets outside this portfolio can reduce pressure during downturns.
Sectors
- Financials 26%
- Utilities 19%
- Industrials 10%
- Telecommunications 10%
- Real Estate 10%
- Health Care 7%
- Consumer Staples 6%
- Consumer Discretionary 4%
- Energy 4%
- Technology 4%
- Basic Materials 1%
Sector exposure is well spread, with financials at 26%, utilities at 19%, and reasonable stakes in industrials, communication services, real estate, healthcare, and consumer areas. This broad mix aligns nicely with diversified benchmarks and is a strong indicator of healthy diversification within equities. The bias toward financials and utilities reflects the dividend focus, as these sectors often pay steady cash flows. Tech is present but modest at 4%, which can mean less benefit if growth stocks rally hard, but also less pain in tech-led downturns or when interest rates rise. Overall, the sector mix looks balanced and consistent with an income‑oriented approach.
Regions
- North America 47%
- Europe Developed 18%
- Asia Emerging 16%
- Asia Developed 11%
- Africa/Middle East 4%
- Japan 3%
- Australasia 2%
- Latin America 0%
- Europe Emerging 0%
Geographic allocation is impressively global: 47% North America, 18% developed Europe, 27% across developed and emerging Asia, plus smaller stakes in Africa/Middle East and Australasia. This allocation is well-balanced and aligns closely with global standards, avoiding an excessive home bias. The 16% in emerging Asia and 4% in Africa/Middle East introduce extra growth potential but also higher political and currency risk, which fits the dividend‑aristocrat focus on resilient companies. Notably, exposure to Latin America and emerging Europe is very low, limiting specific regional risks there. This global spread supports diversification and reduces dependence on any single economy or policy environment.
Market capitalization
- Large-cap 36%
- Mid-cap 24%
- Micro-cap 15%
- Small-cap 14%
- Mega-cap 10%
Market capitalization is nicely mixed: roughly 10% mega caps, 36% big caps, 24% mid caps, and almost 30% in small and micro caps combined. Market cap just refers to company size on the stock market. This balance means the portfolio is not only riding on global giants but also benefiting from the nimbleness and higher growth potential of smaller firms. Smaller and micro caps can swing more heavily in crises, so they increase volatility, but they also diversify away from the usual large‑cap indices. This structure matches well with an investor who accepts short‑term noise in exchange for better long‑term return potential and breadth.
Ongoing product costs
- SPDR S&P Emerging Markets Dividend Aristocrats UCITS ETF (Dist) 0.55%
- SPDR S&P Global Dividend Aristocrats UCITS 0.45%
- Weighted costs total (per year) 0.47%
The total cost level, with a combined TER of about 0.47%, is impressively low for a global and emerging‑markets dividend strategy. TER, or Total Expense Ratio, is like the annual “service fee” for running the fund. Lower costs mean more of the returns stay in your pocket every single year, which compounds strongly over decades. Compared with many actively managed income strategies, these fees are very competitive and support better long‑term performance. Keeping this cost discipline is a big strength of the portfolio. Regularly checking that no unnecessary high-fee products sneak in is a simple ongoing task that can preserve this advantage over time.
Risk vs. return
This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.
Looking at risk versus return, this portfolio sits in a relatively efficient spot for a pure‑equity, dividend‑focused approach. The Efficient Frontier is a concept that shows the best possible risk‑return combinations for a given set of assets. Based only on the two current ETFs, efficiency would mean fine‑tuning the split between global and emerging‑markets dividends rather than adding new building blocks. Slightly reducing or increasing the emerging‑markets share could shift the balance between volatility and growth potential. Importantly, “efficient” here refers purely to the trade‑off between risk and return, not to goals like income stability, tax preferences, or personal comfort with fluctuations.
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