A cautious portfolio leaning heavily on the S&P 500 and gold with limited global exposure

Report created on Nov 17, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is predominantly invested in two asset classes: stocks (55%) and gold (45%). The stock allocation is significantly concentrated in the SPDR S&P 500 UCITS ETF, which makes up half of the portfolio. The gold investment, represented by the iShares Physical Gold ETC, comprises nearly the other half. The remaining 5% is allocated to the SPDR MSCI ACWI UCITS ETF, offering a slight touch of global equity exposure. This composition suggests a cautious approach, balancing the growth potential of equities with the traditional safety of gold.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 25.52%, with a maximum drawdown of -13.22%. These figures indicate a strong performance, particularly for a cautious investment profile. However, it's crucial to note that past performance is not indicative of future results. The days contributing most to returns highlight the portfolio's vulnerability to market volatility, underscoring the importance of understanding risk alongside return.

Projection Info

Forward projections based on Monte Carlo simulations, which use historical data to estimate future outcomes, suggest a wide range of potential portfolio values. While all simulations returned positive outcomes, the variance between the 5th and 67th percentiles is significant, indicating a high level of uncertainty. This underscores the importance of maintaining a diversified portfolio to mitigate risk.

Asset classes Info

  • Stocks
    55%
  • Other
    45%

The portfolio's asset allocation, with a heavy emphasis on stocks and gold, reflects a defensive strategy aimed at balancing growth with protection against market downturns. While stocks offer the potential for high returns, gold is often seen as a hedge against inflation and economic uncertainty. However, the lack of diversification across more asset classes could limit the portfolio's ability to capitalize on different market conditions.

Sectors Info

  • Technology
    20%
  • Financials
    7%
  • Consumer Discretionary
    6%
  • Telecommunications
    6%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation within the stock component is diverse, with technology, financial services, and consumer cyclicals leading. This sector spread is beneficial for capturing growth across different areas of the economy. However, the heavy weighting towards technology may increase volatility, as this sector can be more sensitive to market shifts. Balancing sector exposure could help stabilize portfolio performance over time.

Regions Info

  • North America
    53%
  • Europe Developed
    1%

Geographic exposure is heavily skewed towards North America, primarily through the S&P 500 ETF. This concentration in a single region, while potentially reducing complexity, limits exposure to global growth opportunities and diversification benefits. Increasing allocations to other developed markets or emerging economies could offer broader exposure to global economic trends and reduce region-specific risks.

Market capitalization Info

  • Mega-cap
    26%
  • Large-cap
    19%
  • Mid-cap
    10%
  • Small-cap
    1%

The portfolio's market capitalization exposure leans towards mega and big-cap companies, which are typically less volatile than their smaller counterparts. This is consistent with the portfolio's cautious profile, as larger companies often have more stable revenues and dividends. However, including a broader range of market caps could enhance growth potential and diversification.

Redundant positions Info

  • SPDR S&P 500 UCITS ETF USD Acc EUR
    SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
    High correlation

The high correlation between the SPDR S&P 500 UCITS ETF and the SPDR MSCI ACWI UCITS ETF suggests redundancy, as both track large-cap equities, with significant overlap in holdings. This limits diversification benefits and exposes the portfolio to concentrated market risk. Reducing overlap by reallocating assets could improve diversification and risk management.

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.

Before optimizing, it's essential to address the portfolio's overlapping assets. The high correlation between certain ETFs suggests an opportunity to streamline the portfolio for better diversification. Employing the Efficient Frontier concept could help identify an optimal mix of assets that maximizes returns for a given level of risk, though it's important to remember that this model relies on historical data, which may not predict future performance accurately.

Ongoing product costs Info

  • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF 0.45%
  • Weighted costs total (per year) 0.02%

The overall cost structure, highlighted by the Total Expense Ratio (TER) of the SPDR MSCI ACWI UCITS ETF, is relatively low. Keeping costs down is crucial for long-term investment success, as high fees can erode returns over time. The portfolio's focus on cost-efficient ETFs aligns with best practices for maximizing net returns.

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