This portfolio has only about 7.1 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.
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Balanced Risk Portfolio with Single-Focused Diversification and High Correlation

Report created on Jul 24, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs, with 70% in the Xtrackers MSCI AC World ESG Screened UCITS ETF, 20% in the Xtrackers MSCI Emerging Markets UCITS ETF, and 10% in the SPDR MSCI ACWI UCITS ETF. This indicates a strong preference for diversified global exposure, albeit through a limited number of funds. While this setup simplifies management, it may lack the granularity to hedge against specific market downturns effectively. To improve diversification, consider adding more asset classes and sectors.

Growth Info

Historically, the portfolio has shown a compound annual growth rate (CAGR) of 9.51%, which is robust. However, it also experienced a maximum drawdown of -33.06%, indicating significant volatility. The portfolio's returns are concentrated in just 22 days, making timing crucial. This historical performance suggests that while the portfolio can generate high returns, it is also susceptible to sharp declines. Rebalancing periodically and diversifying further could help mitigate some of this risk.

Projection Info

A Monte-Carlo simulation, which uses random sampling to predict future outcomes, was conducted with 1,000 simulations. The median (50th percentile) end portfolio value is projected to be 230.96% of the initial investment, with a 5th percentile at 18.75% and a 67th percentile at 333.33%. This indicates a wide range of potential outcomes, reflecting the portfolio's balanced risk classification. Regular reviews and adjustments based on market conditions could help in staying aligned with investment goals.

Asset classes Info

  • No data
    90%
  • Stocks
    10%

The portfolio is primarily composed of unknown asset classes at 90%, with the remaining 10% spread across stocks, cash, and other minor categories. This lack of clarity in asset classification could pose a challenge in risk management and performance tracking. To address this, consider reallocating some investments into well-defined asset classes like bonds or commodities, which can provide better insights and help balance risk.

Sectors Info

  • No data
    90%
  • Technology
    3%
  • Financials
    2%
  • Health Care
    1%
  • Consumer Discretionary
    1%
  • Industrials
    1%
  • Telecommunications
    1%
  • Consumer Staples
    1%

Sector allocation is heavily skewed, with 90% categorized as unknown. The remaining 10% is diversified across technology, financial services, healthcare, and other minor sectors. This uneven distribution could lead to sector-specific risks. To improve sector diversification, consider redistributing investments to ensure a more balanced exposure across various industries, which can help in mitigating sector-specific downturns.

Regions Info

  • No data
    90%
  • North America
    7%
  • Europe Developed
    2%
  • Japan
    1%

Geographically, 90% of the portfolio is classified as unknown, with the remaining 10% spread across North America, Europe, Japan, and other regions. This lack of geographic clarity could hinder effective risk management and performance assessment. Enhancing geographic diversification by clearly defining and redistributing investments can provide better regional exposure and reduce the risk associated with any single market.

Ongoing product costs Info

  • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF 0.45%
  • Weighted costs total (per year) 0.04%

The portfolio costs are relatively low, with the SPDR MSCI ACWI UCITS ETF having an expense ratio of 0.45% and a total expense ratio (TER) of 0.04%. Keeping costs low is advantageous as it directly impacts net returns. However, always ensure that low-cost options do not compromise on diversification or performance. Regularly reviewing and comparing expense ratios can help in maintaining cost efficiency.

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