A balanced and broadly diversified portfolio with a strong focus on stocks across major regions

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equities, with a 45% allocation in a global ETF, 25% in European small-cap ETFs, and the remaining 30% split between emerging markets and developed Asia Pacific equities. This composition showcases a strategic focus on diversification across geographies and market capitalizations. The heavy reliance on ETFs simplifies portfolio management and provides broad market exposure. However, the absence of other asset classes such as bonds or real estate investments suggests a higher risk tolerance, aligning with the portfolio's balanced risk profile.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.75%, with a maximum drawdown of -35.93%. These figures suggest a strong performance in favorable market conditions but also indicate potential vulnerability during market downturns. The days contributing to 90% of returns being limited to 23 highlights the impact of significant market movements on performance. Comparing this to benchmark indices could provide further insight into risk-adjusted returns.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possible performances for this portfolio. With the majority of simulations (979 out of 1,000) showing positive returns and a median projected increase of 289.5%, the outlook seems optimistic. However, it's crucial to remember that these projections are speculative and should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without allocation to bonds, real estate, or cash equivalents, positions it for potentially higher returns but also exposes it to greater market volatility. While this asset class allocation supports the portfolio's growth objectives, incorporating other asset classes could provide a cushion against market downturns, thereby enhancing overall risk management.

Sectors Info

  • Financials
    20%
  • Technology
    19%
  • Industrials
    15%
  • Consumer Discretionary
    11%
  • Telecommunications
    7%
  • Health Care
    7%
  • Basic Materials
    6%
  • Consumer Staples
    5%
  • Real Estate
    4%
  • Energy
    4%
  • Utilities
    3%

Sector allocations within this portfolio are well-diversified, with significant investments in financial services, technology, and industrials. This diversification helps mitigate sector-specific risks. However, the heavy weighting towards technology and financial services, sectors known for their volatility, could influence the portfolio's overall risk profile. Balancing these with more defensive sectors like healthcare or consumer staples may offer additional stability.

Regions Info

  • North America
    34%
  • Europe Developed
    32%
  • Asia Developed
    13%
  • Australasia
    8%
  • Asia Emerging
    8%
  • Japan
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

The geographic distribution of this portfolio, with a substantial allocation to North America and Europe, followed by developed and emerging Asian markets, reflects a strategic approach to capturing global growth opportunities while managing geopolitical and currency risks. This broad geographic exposure is commendable for diversification purposes, though the minimal exposure to Latin America and Africa/Middle East suggests potential areas for further diversification.

Market capitalization Info

  • Mega-cap
    37%
  • Mid-cap
    27%
  • Large-cap
    26%
  • Small-cap
    9%
  • Micro-cap
    1%

The mix of mega, big, medium, small, and micro-cap stocks in the portfolio indicates a balanced approach to market capitalization diversification. This blend allows for capturing the growth potential of smaller companies while relying on the stability of larger firms. However, the relatively lower allocation to small and micro-cap stocks limits exposure to high-growth opportunities in these segments.

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 current portfolio's expected return is robust, yet optimization analysis suggests that a more efficient portfolio with the same risk level could achieve an expected return of 13.89%. This indicates room for improvement in the portfolio's composition to enhance its risk-return profile. Investors should consider adjusting asset allocations to move closer to the Efficient Frontier, where the portfolio's risk-return ratio is optimized.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Vanguard FTSE Developed Asia Pacific ex Japan UCITS 0.15%
  • SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc 0.30%
  • Weighted costs total (per year) 0.21%

The portfolio's total expense ratio (TER) of 0.21% is impressively low, especially given the broad diversification and international exposure it offers. Keeping costs low is crucial for enhancing long-term returns, as even small differences in fees can significantly impact investment outcomes over time. This portfolio exemplifies how strategic ETF selection can manage costs effectively.

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