A highly diversified portfolio with a cautious risk profile focusing on global equities and technology.

Report created on Dec 18, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio comprises primarily ETFs, with a significant allocation to global equities. The iShares Core MSCI World UCITS ETF USD (Acc) holds the largest share at 50%, providing broad exposure to developed markets. The Amundi Stoxx Europe 600 UCITS ETF C EUR and iShares Core MSCI Emerging Markets IMI UCITS add European and emerging market diversification. A small allocation to physical gold offers a hedge against market volatility. The iShares S&P 500 Information Technology Sector ETF emphasizes tech investments, while individual stocks in industrials offer niche exposure. This structure supports diversification, balancing growth with risk management.

Growth Info

Historically, the portfolio has shown a robust compound annual growth rate (CAGR) of 13.18%, indicating solid returns over time. With a maximum drawdown of -13.1%, it has demonstrated resilience during market downturns. This performance suggests a well-balanced approach that mitigates significant losses while capturing market gains. However, it's essential to note that past performance doesn't guarantee future results, as market conditions can change. Maintaining a diversified strategy can help manage risk and capitalize on growth opportunities.

Projection Info

Using Monte Carlo simulations, which analyze potential future returns based on historical data, the portfolio shows a wide range of possible outcomes. With 1,000 simulations, the portfolio's annualized return is projected at 22.91%. While the 5th percentile indicates a 48.69% return, the 67th percentile projects a 1,611.6% return. This range highlights the uncertainty inherent in forecasting, emphasizing the importance of a diversified approach to manage risk and optimize potential gains.

Asset classes Info

  • Stocks
    90%
  • Other
    10%

The portfolio's asset allocation is heavily weighted towards stocks, comprising approximately 89.7% of the total. This concentration reflects a growth-oriented strategy, leveraging equities' potential for higher returns. The small allocation to gold (10.1%) provides a hedge against inflation and market volatility. While this mix supports growth, it may expose the portfolio to stock market fluctuations. A more balanced allocation could enhance stability, particularly for risk-averse investors seeking consistent returns.

Sectors Info

  • Technology
    27%
  • Industrials
    14%
  • Financials
    13%
  • Consumer Discretionary
    8%
  • Health Care
    8%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation shows a notable emphasis on technology, which comprises 27% of the portfolio. This focus aligns with the sector's growth potential but may increase vulnerability to sector-specific risks. The industrials and financial services sectors also hold significant shares, providing diversification across economic cycles. While this allocation supports growth, investors should consider the potential impact of sector volatility on overall portfolio performance. Balancing sector exposure can help mitigate risks and enhance stability.

Regions Info

  • North America
    48%
  • Europe Developed
    27%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Japan
    3%
  • Africa/Middle East
    1%
  • Australasia
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily tilted towards North America, accounting for 48.4% of assets. This focus capitalizes on the region's economic strength but may limit exposure to growth opportunities in other areas. Europe and Asia provide additional diversification, though emerging markets are underrepresented. Expanding geographic exposure could reduce regional risk and capture growth in developing markets. Balancing regional allocations can enhance diversification and optimize returns.

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.

Portfolio optimization using the Efficient Frontier suggests potential improvements. The analysis indicates that a more efficient portfolio could achieve a higher expected return of 31.54% at the same risk level. This involves reallocating existing assets to optimize the risk-return ratio. While optimization doesn't guarantee diversification, it enhances efficiency by maximizing returns for the given risk. Investors should consider periodic reviews to adjust allocations, ensuring alignment with financial goals and market conditions.

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%
  • iShares S&P 500 USD Information Technology Sector UCITS 0.15%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) is relatively low at 0.14%, reflecting cost-effective management. Lower costs can significantly enhance long-term returns, as fees compound over time. The iShares Core MSCI World UCITS ETF and Amundi Stoxx Europe 600 UCITS ETF contribute to this efficiency with low expense ratios. Investors should continue to monitor costs, seeking opportunities to reduce fees further. Cost management is a crucial aspect of optimizing portfolio performance.

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