A balanced portfolio with a strong tilt towards global equities and low costs

Report created on Aug 23, 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 highly concentrated in two ETFs, with 80% in the Vanguard FTSE All-World UCITS ETF USD Accumulation and 20% in the iShares Core MSCI Europe UCITS ETF EUR (Acc). This composition indicates a strong preference for equity investments, with a significant weighting towards global markets, excluding a minor regional focus on Europe. The allocation across just two ETFs simplifies the portfolio but also ties its performance closely to the broader stock market movements. The broad diversification across sectors and geographies within these ETFs aligns with best practices for risk mitigation.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 11.53% with a maximum drawdown of -33.80%. These figures suggest a resilient performance over time, with the potential for significant volatility. The days contributing to 90% of returns being concentrated in just 20 days highlights the impact of short-term significant market movements on overall performance. This volatility level is consistent with the portfolio's balanced risk profile, indicating that while the portfolio has the potential for strong returns, it also faces substantial risk from market fluctuations.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possible returns for this portfolio. With key percentiles showing a 5th percentile at a 44.1% return and a 67th percentile at a 439.2% return, there's a notable spread, indicating uncertainty in future performance. However, the fact that 979 out of 1,000 simulations resulted in positive returns is encouraging. It's important to remember that these simulations are not guarantees but rather hypothetical scenarios that can help in understanding potential risks and returns.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, offering no exposure to other asset classes like bonds or real estate. This allocation supports higher potential returns but also increases the portfolio's volatility and risk. Diversifying across different asset classes can help reduce risk without significantly compromising potential returns, as different asset classes often perform differently under various market conditions.

Sectors Info

  • Technology
    22%
  • Financials
    19%
  • Industrials
    12%
  • Health Care
    10%
  • Consumer Discretionary
    10%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sector allocation shows a heavy emphasis on Technology and Financial Services, making up 41% of the portfolio. This concentration in sectors that can be highly volatile and sensitive to market changes increases the risk profile. However, these sectors also offer the potential for high returns. Balancing sector exposure can help manage risk, especially during sector-specific downturns.

Regions Info

  • North America
    52%
  • Europe Developed
    32%
  • Japan
    5%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (52%) and Developed Europe (32%), with minimal exposure to emerging markets. This geographic distribution provides stability and access to mature markets but may limit growth potential from faster-growing emerging markets. Incorporating a measured exposure to emerging markets could enhance growth prospects while adding some risk.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    35%
  • Mid-cap
    16%

The portfolio's market capitalization breakdown, with a focus on Mega (49%) and Big (35%) cap stocks, suggests a conservative approach, favoring established, large companies known for their stability and potential for steady growth. However, the absence of Small and Micro cap stocks limits exposure to potentially higher-growth companies, which could offer diversification benefits and enhance returns over the long term.

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 shows a well-considered balance between risk and return, as indicated by its performance and risk metrics. However, exploring optimization through the Efficient Frontier could reveal opportunities to adjust the asset allocation for an improved risk-return profile. This process might suggest slight adjustments in asset class, sector, or geographic exposure to enhance overall portfolio efficiency.

Ongoing product costs Info

  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.22%

With total portfolio costs averaging 0.22%, the portfolio is efficiently managed in terms of expenses. Low costs are crucial for long-term investment performance, as they directly impact net returns. The selected ETFs offer broad market exposure at competitive costs, aligning with best practices for cost-effective portfolio management.

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