Globally diversified multi factor portfolio with strong defensive tilt and balanced return profile

Report created on May 7, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio mixes global equities with diversifiers like government bonds cash-like exposure and gold. Around 70% sits in stocks via broad global and factor-based ETFs while 12% goes to intermediate-term government bonds and 18% to other assets including gold and an overnight-rate ETF. That blend fits well with a “balanced” risk label because it spreads exposure across growth assets and shock absorbers. Structuring things mainly through low-cost broad ETFs is efficient and keeps single-stock risk low. The key takeaway is that this setup is built for smoother participation in global growth rather than aggressive outperformance aiming to balance upside with more controlled drawdowns.

Growth Info

Over the period from March 2020 to June 2024 €1,000 grew to about €1,532 implying a compound annual growth rate (CAGR) of 11.67%. CAGR is like your average yearly speed on a long road trip smoothing out ups and downs. The portfolio lagged both the US market and the global market which returned 17.92% and 14.03% annually but it achieved this with a smaller max drawdown of -17.62% versus deeper falls for the benchmarks. That’s consistent with a more defensive design. The main message: you traded some upside for milder declines which can make it easier to stay invested during turbulence.

Asset classes Info

  • Stocks
    70%
  • Other
    18%
  • Bonds
    12%

Asset allocation is clearly equity-led with 70% in stocks supported by 12% in government bonds and 18% in “other” assets such as gold and short-term money-market style exposure. This mix is well-balanced and aligns closely with global standards for a balanced investor seeking growth with meaningful downside cushioning. The bonds and overnight-rate ETF aim to stabilize returns and provide liquidity while gold offers an additional hedge during stress or inflation spikes. A key takeaway is that the combination of growth assets and diversifiers is thoughtfully constructed to reduce the emotional rollercoaster that comes with a pure equity portfolio.

Sectors Info

  • Technology
    11%
  • Financials
    11%
  • Industrials
    9%
  • Health Care
    7%
  • Consumer Discretionary
    6%
  • Consumer Staples
    5%
  • Energy
    5%
  • Telecommunications
    4%
  • Basic Materials
    4%
  • Utilities
    4%
  • Real Estate
    4%

This breakdown covers the equity portion of your portfolio only.

Sector exposure is nicely spread with no single area dominating. Technology and financials are the largest at about 11% each but the rest is broadly distributed across industrials health-related companies consumer goods and more defensive areas like utilities and staples. This portfolio’s sector composition matches benchmark data which is a strong indicator of diversification and avoids an extreme bet on any one theme. That means performance will likely echo the overall global economy rather than hinging on whether a single hot area booms or busts helping keep risk aligned with a balanced profile over time.

Regions Info

  • North America
    53%
  • Europe Developed
    10%
  • Japan
    4%
  • Asia Developed
    1%
  • Australasia
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically the portfolio leans toward North America at 53% with more modest allocations to developed Europe Japan and other developed Asia. That tilt is fairly typical because North America makes up a large share of global stock markets and contains many of the world’s biggest companies. Being roughly in line with common global allocations is beneficial as it avoids large country or regional bets that could backfire if a specific region underperforms. The main consequence is you’re more exposed to trends in the US and Canadian economies and currencies but not so concentrated that other developed markets are irrelevant.

Market capitalization Info

  • Large-cap
    22%
  • Mega-cap
    18%
  • Mid-cap
    18%
  • Small-cap
    9%
  • Micro-cap
    4%

This breakdown covers the equity portion of your portfolio only.

Market-cap exposure spans mega large mid small and even micro-cap companies. Mega and large caps together form a meaningful core yet there is still substantial mid and small-cap exposure driven by the dedicated small-cap value ETF. Smaller companies can add long-term return potential and diversification because they often move differently than giants though they typically come with higher volatility and sharper drawdowns in crises. This blend strikes a reasonable balance: enough small-cap exposure to potentially enhance returns and factor tilts but anchored by larger more established firms that tend to be more stable and liquid.

True holdings Info

  • NVIDIA Corporation
    1.31%
    Part of fund(s):
    • Xtrackers MSCI World Momentum UCITS ETF
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Microsoft Corporation
    0.90%
    Part of fund(s):
    • Xtrackers MSCI World Momentum UCITS ETF
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Apple Inc
    0.86%
    Part of fund(s):
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Broadcom Inc
    0.69%
    Part of fund(s):
    • Xtrackers MSCI World Momentum UCITS ETF
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Alphabet Inc Class A
    0.55%
    Part of fund(s):
    • Xtrackers MSCI World Momentum UCITS ETF
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Alphabet Inc Class C
    0.46%
    Part of fund(s):
    • Xtrackers MSCI World Momentum UCITS ETF
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Amazon.com Inc
    0.45%
    Part of fund(s):
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Meta Platforms Inc.
    0.31%
    Part of fund(s):
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • JPMorgan Chase & Co
    0.30%
    Part of fund(s):
    • Xtrackers MSCI World Momentum UCITS ETF
  • Tesla Inc
    0.25%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • iShares Core MSCI World UCITS ETF USD (Acc) EUR
  • Top 10 total 6.08%

This breakdown covers the equity portion of your portfolio only.

The look-through data shows modest exposure to mega-cap names like NVIDIA Microsoft and Apple but each sits well below 2% of the total. There is some overlap across ETFs leading to repeated holdings in the same large companies yet current overlap levels don’t scream excessive single-stock risk. Because only top-10 ETF positions are visible the true overlap will be a bit higher but still diversified across dozens if not hundreds of names. This is a positive sign that most risk is driven by broad market and factor exposure rather than a few giants meaning shocks to a single company should not dominate portfolio behaviour.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 100%
Size
Exposure to smaller companies
Neutral
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Neutral
Data availability: 100%
Yield
Preference for dividend-paying stocks
Neutral
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
Very high
Data availability: 100%

Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.

Factor exposure stands out most for its very high tilt to low volatility at 96% compared with a neutral 50% market level. Factor exposure describes how much a portfolio leans into characteristics like value or momentum that help explain returns over time. A strong low-volatility tilt typically means holding steadier companies and structures which can soften drawdowns and reduce big swings. That lines up smoothly with the balanced risk score. The value factor is also mildly elevated implying a preference for cheaper stocks. Together this suggests the portfolio may lag in roaring speculative rallies but often holds up better when markets get rough.

Risk contribution Info

  • JPM Global Equity Multi-Factor UCITS ETF USD Acc
    Weight: 28.50%
    35.0%
  • SPDR® MSCI USA Small Cap Value Weighted UCITS ETF USD Acc EUR
    Weight: 14.00%
    27.4%
  • iShares Core MSCI World UCITS ETF USD (Acc) EUR
    Weight: 19.00%
    23.8%
  • Xtrackers MSCI World Momentum UCITS ETF
    Weight: 8.50%
    9.9%
  • Invesco Physical Gold ETC EUR
    Weight: 10.00%
    2.1%
  • Top 5 risk contribution 98.1%

Risk contribution shows how much each holding adds to the portfolio’s overall ups and downs regardless of its weight. Here the top three equity ETFs make up about 61.5% of the capital but contribute over 86% of the total risk. The small-cap value ETF is especially notable with 14% weight but about 27% of risk signalling a punchy exposure. In contrast gold’s 10% weight contributes only around 2% of risk acting as a stabilizer. If a smoother ride is desired over time reducing the share of the most volatile components or pairing them with more defensive assets can rebalance risk.

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.

Click on the colored dots to explore allocations.

The risk–return chart shows your current mix delivering an expected return of 11.83% with volatility of 13.07% and a Sharpe ratio of 0.75. The efficient frontier represents the best achievable trade-offs using just your existing holdings with different weights. Here the optimal allocation reaches a Sharpe of 1.09 at slightly lower risk and higher return meaning the current portfolio sits about 3.11 percentage points below the frontier at its risk level. That suggests there’s room to improve efficiency purely by reweighting what you already own without adding new products potentially achieving the same risk with better expected returns.

Ongoing product costs Info

  • Amundi ETF Govt Bond EuroMTS Broad Investment Grade 7-10 UCITS ETF 0.14%
  • Invesco Physical Gold ETC EUR 0.12%
  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • JPM Global Equity Multi-Factor UCITS ETF USD Acc 0.19%
  • Xtrackers MSCI World Momentum UCITS ETF 0.25%
  • Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C 0.10%
  • SPDR® MSCI USA Small Cap Value Weighted UCITS ETF USD Acc EUR 0.30%
  • Weighted costs total (per year) 0.19%

The weighted ongoing cost (TER) of about 0.19% per year is impressively low for a diversified multi-asset ETF portfolio. TER is like a small annual service fee taken directly from fund assets so every basis point saved boosts long-term outcomes. These costs compare favourably with many actively managed funds that often charge 0.8–1.5% or more. Over decades the gap can compound into a significant difference in final wealth. By building around broad low-cost ETFs this portfolio keeps more of the returns working for you which strongly supports better long-term performance without needing to take extra risk.

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