A conservative portfolio with strong bond focus and moderate exposure to global equities and commodities

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

Conservative Investors

This portfolio suits a conservative investor with a low-risk tolerance and a focus on capital preservation. Ideal for those with a medium to long-term investment horizon, it emphasizes stability through a significant bond allocation while capturing moderate growth from equities and commodities. Investors prioritizing steady returns over rapid growth will find this portfolio aligns with their objectives, offering a balanced approach to risk and reward. It is well-suited for individuals seeking to protect their wealth while participating in global economic trends.

Positions

  • Xtrackers II Eurozone Government Bond UCITS ETF 1C EUR
    DBXN - LU0290355717
    55.00%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    VWCE - IE00BK5BQT80
    30.00%
  • Invesco Physical Gold ETC EUR
    8PSG - IE00B579F325
    7.50%
  • iShares Diversified Commodity Swap UCITS ETF
    SXRS - IE00BDFL4P12
    7.50%

This portfolio is primarily composed of Eurozone government bonds, accounting for 55% of the total allocation, followed by a 30% investment in a global equity ETF. The remaining 15% is split equally between gold and diversified commodities ETFs. Such a composition suggests a conservative approach, with a heavy emphasis on stable, income-generating assets like bonds. The inclusion of equities and commodities adds a degree of diversification, potentially offsetting bond market fluctuations. For investors seeking to maintain capital preservation while capturing some growth, this blend offers a balanced risk profile.

Growth Info

Historically, the portfolio has achieved a compound annual growth rate (CAGR) of 4.71%, with a maximum drawdown of -14.89%. This indicates the portfolio's relative stability, as it has weathered market downturns with manageable losses. While past performance is not indicative of future results, understanding these metrics helps set realistic expectations. Investors should note that the returns were concentrated over just 22 days, highlighting the importance of staying invested to capture these gains. To improve resilience to market drops, consider diversifying further or adjusting allocations.

Projection Info

Using Monte Carlo simulations, the portfolio's potential future performance was assessed with 1,000 iterations. The median outcome suggests an annualized return of 8.49%, with a 67th percentile projection reaching 254.91% growth. While these scenarios offer a range of possible outcomes, they are based on historical data, which may not capture future market conditions. Investors should use these projections as a guide rather than a guarantee, understanding that actual results depend on market volatility and economic shifts. To align with personal goals, periodically review and adjust the portfolio.

Asset classes Info

  • Bonds
    55%
  • Stocks
    30%
  • Other
    7%
  • Cash
    0%
  • No data
    0%

The portfolio's asset allocation is heavily weighted towards bonds (approximately 55%), followed by equities (30%) and a smaller portion in commodities. This allocation reflects a conservative investment strategy, prioritizing income stability from bonds while seeking moderate growth from equities. Commodities provide a hedge against inflation and market volatility. While this mix offers a degree of diversification, the heavy bond allocation may limit growth potential. To enhance diversification, consider introducing additional asset classes such as real estate or alternative investments, depending on risk tolerance and market outlook.

Sectors Info

  • Technology
    8%
  • Financials
    5%
  • Health Care
    3%
  • Consumer Discretionary
    3%
  • Industrials
    3%
  • Telecommunications
    2%
  • Consumer Staples
    2%
  • Energy
    1%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation is relatively balanced, with technology, financial services, and healthcare leading the way. These sectors are complemented by smaller allocations in consumer cyclicals and industrials, among others. This spread provides exposure to various economic segments, reducing sector-specific risks. However, the technology sector's prominence may introduce volatility, given its sensitivity to market trends. To mitigate this, consider rebalancing the portfolio to ensure no single sector disproportionately influences performance. Regularly reviewing sector weights can help maintain a balanced risk profile aligned with market conditions.

Regions Info

  • North America
    19%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%
  • Africa/Middle East
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

The portfolio's geographic exposure is predominantly focused on North America, with smaller allocations in Europe and Asia. This concentration reflects a strategic focus on developed markets, which are generally considered more stable and predictable. However, the limited exposure to emerging markets may restrict growth opportunities. To capitalize on global economic trends, consider increasing allocations to regions with higher growth potential, such as Asia or Latin America. This diversification can help balance the portfolio, providing a hedge against regional downturns and enhancing overall return potential.

Ongoing product costs Info

  • Invesco Physical Gold ETC EUR 0.12%
  • Xtrackers II Eurozone Government Bond UCITS ETF 1C EUR 0.10%
  • iShares Diversified Commodity Swap UCITS ETF 0.19%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) is 0.14%, which is relatively low and beneficial for long-term returns. Minimizing costs is crucial, as fees can erode gains over time. Each ETF within the portfolio has a competitive expense ratio, making this a cost-efficient investment strategy. To further reduce costs, regularly review the portfolio for opportunities to switch to lower-cost alternatives. Additionally, consider the impact of trading fees and taxes on overall performance. By maintaining a focus on cost efficiency, investors can maximize their net returns.

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.

The portfolio's current allocation can be optimized using the Efficient Frontier, which aims to achieve the best possible risk-return ratio. By adjusting the weightings of existing assets, investors can potentially enhance returns without increasing risk. This process involves evaluating the expected returns and volatility of each asset, seeking a combination that maximizes efficiency. While optimization can improve performance, it should be tailored to individual risk tolerance and investment goals. Regularly revisiting the portfolio's efficiency ensures it remains aligned with market conditions and personal objectives.

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