This portfolio has only about 5.4 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.

Cautious Yet Highly Diversified Portfolio with Moderate Costs and Strong Geographic Spread

Report created on Jul 23, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is composed of six ETFs, with a significant allocation to the iShares Core MSCI World UCITS ETF USD (Acc) at 47.04%. This is complemented by the Amundi Stoxx Europe 600 UCITS ETF C EUR at 18.05% and the Invesco US Treasury Bond 1-3 Year UCITS ETF USD Dist at 18.05%. The portfolio also includes smaller allocations to the Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C, iShares Core MSCI Emerging Markets IMI UCITS, and VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF. This mix indicates a diversified approach with a cautious risk profile, balancing global equity exposure with bonds and other assets.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 9.1%, which is quite robust for a cautious portfolio. However, it has experienced a maximum drawdown of -25.34%, indicating vulnerability during market downturns. The days that make up 90% of returns are just 21, suggesting that the portfolio's gains are concentrated in a few high-performing days. This historical performance highlights the importance of staying invested to capture these critical days.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, we project the portfolio's future performance. Monte Carlo simulations use random sampling to predict future returns based on historical data. The median (50th percentile) projection shows an end portfolio value increase of 154.69%, while the 67th percentile indicates a potential 235.11% growth. The 5th percentile shows a minimal return of 0.37%, reflecting the cautious nature of the portfolio. With an annualized return across all simulations at 7.98%, the portfolio shows a promising outlook.

Asset classes Info

  • Stocks
    72%
  • Bonds
    18%
  • Other
    9%

The portfolio's asset class allocation is heavily weighted towards stocks at 72.27%, with bonds making up 17.97% and other assets at 9.38%. A small portion is held in cash at 0.38%. This allocation aligns with a cautious investor's profile, aiming to balance growth potential with stability. The high equity allocation provides growth opportunities, while bonds and other assets add a layer of risk mitigation. To maintain this balance, periodic rebalancing is recommended.

Sectors Info

  • Technology
    14%
  • Financials
    12%
  • Health Care
    9%
  • Industrials
    9%
  • Consumer Discretionary
    8%
  • Consumer Staples
    5%
  • Telecommunications
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    1%

The sector allocation is quite diversified, with the largest exposure in Technology (14.33%), Financial Services (12.17%), and Healthcare (8.86%). Other notable sectors include Industrials, Consumer Cyclicals, and Consumer Defensive. This spread across various sectors helps in mitigating sector-specific risks and capturing growth from multiple industries. Regularly reviewing sector performance and adjusting allocations can help optimize returns and manage risks effectively.

Regions Info

  • North America
    35%
  • Europe Developed
    27%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is well-diversified with significant allocations in North America (35.32%) and Europe Developed (26.73%). Smaller exposures include Asia Emerging, Japan, and other regions. This geographic spread reduces the risk associated with any single market and captures growth opportunities globally. Maintaining this geographic diversification is crucial for mitigating regional risks and benefiting from global economic growth.

Dividends Info

  • VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF 4.40%
  • Weighted yield (per year) 0.06%

The portfolio includes dividend-yielding ETFs, such as the VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF, which contributes to income generation. This is beneficial for investors seeking regular income in addition to capital appreciation. Reinvesting dividends can further enhance the portfolio's growth over time. Keeping track of dividend yields and distributions can help in managing cash flows and reinvestment strategies.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Amundi Stoxx Europe 600 UCITS ETF C EUR 0.07%
  • Invesco US Treasury Bond 1-3 Year UCITS ETF USD Dist 0.06%
  • VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF 0.38%
  • Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C 0.10%
  • Weighted costs total (per year) 0.14%

The total expense ratio (TER) of the portfolio is 0.14%, which is relatively low and favorable for long-term growth. Lower costs mean more of the investment returns are retained. The individual ETFs have varying costs, with the highest being the VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF at 0.38%. Keeping investment costs low is crucial for maximizing net returns. Periodically reviewing and optimizing costs can help in improving overall portfolio performance.

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