A balanced portfolio with global exposure and a focus on developed markets

Report created on Jan 1, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards equities, with 99.65% in stocks, emphasizing a strong growth strategy. A significant 60% is allocated to the Vanguard FTSE All-World UCITS ETF, providing broad global exposure. Compared to typical balanced portfolios, this one is stock-heavy, which may lead to higher volatility. A more diversified approach with bonds or other asset classes could reduce risk. Consider adjusting asset allocation to align with conventional balanced portfolios, which often include a mix of stocks and bonds.

Growth Info

Historically, the portfolio has performed well, achieving a CAGR of 10.77%. This growth rate is impressive, indicating strong returns over time. However, it's essential to note the maximum drawdown of -33.48%, which highlights potential volatility. Comparing this to benchmarks, the portfolio's performance aligns closely with global equity indices, but with higher risk. To mitigate potential downturns, consider strategies like rebalancing or diversifying across asset classes.

Projection Info

Forward projections using Monte Carlo simulations suggest a median return of 189.9% and an annualized return of 9.43%. These projections offer a range of potential outcomes, emphasizing the uncertainty of future performance. Monte Carlo simulations use historical data to model various scenarios, but they can't predict exact future results. To optimize potential returns, consider regularly reviewing and adjusting the portfolio based on changing market conditions and personal goals.

Asset classes Info

  • Stocks
    100%

The portfolio's asset class distribution is heavily skewed towards stocks, with minimal exposure to other classes like bonds or cash. This allocation provides potential for high returns but comes with increased risk. Compared to balanced benchmarks, the portfolio lacks the typical diversification found in mixed asset classes. To enhance stability, consider incorporating bonds or other fixed-income assets, which can act as a buffer during market volatility.

Sectors Info

  • Technology
    22%
  • Financials
    17%
  • Industrials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    5%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation shows a concentration in Technology (22.15%) and Financial Services (16.78%), which may lead to sector-specific risks. While this focus aligns with current market trends, it could result in higher volatility, especially during sector downturns. Compared to benchmarks, the sector distribution is relatively balanced, but consider monitoring for overexposure. Diversifying into less represented sectors could stabilize returns and reduce risk.

Regions Info

  • North America
    40%
  • Europe Developed
    38%
  • Asia Emerging
    9%
  • Asia Developed
    5%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Geographically, the portfolio has substantial exposure to North America (39.62%) and Europe Developed (38.49%). This concentration may limit diversification benefits, especially if these regions face economic challenges. Compared to global benchmarks, this allocation is typical but could benefit from increased exposure to emerging markets. Consider gradually increasing allocations to underrepresented regions for enhanced diversification and potential growth opportunities.

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 portfolio has room for optimization using the Efficient Frontier, potentially increasing expected returns to 12.68% at the same risk level. The Efficient Frontier represents the best risk-return trade-off. By adjusting asset weights, you can achieve a more efficient portfolio. Regularly reviewing and rebalancing your portfolio ensures it remains aligned with optimal risk-return dynamics, maximizing potential gains.

Ongoing product costs Info

  • iShares MSCI Europe ESG Enhanced UCITS ETF EUR Acc 0.12%
  • iShares EURO Total Market Growth Large UCITS 0.40%
  • iShares EURO STOXX Mid UCITS 0.40%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.24%

The portfolio's total expense ratio (TER) of 0.24% is commendably low, supporting better long-term performance. Low costs are crucial as they reduce the drag on returns, allowing more of your money to grow. Compared to typical ETF portfolios, these costs are competitive. Continue to monitor for any changes in fees and consider replacing high-fee assets with lower-cost alternatives to maintain cost efficiency.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey