A one-trick pony with a global flair but a questionable diversification strategy
Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Balanced Investors
This portfolio is a dream for the investor who loves simplicity above all else, possibly to their own detriment. It suggests a personality that's drawn to clear, straightforward strategies, potentially at the cost of missing out on nuanced opportunities. This investor likely has a medium to high-risk tolerance, given the all-stock composition, and is focused on long-term growth, banking on the global economy's upward trajectory. They're the type who would wear a raincoat in a storm, optimistic it'll keep them dry, but perhaps not fully prepared for the deluge.
Positions
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Vanguard FTSE All-World UCITS ETF USD Accumulation
VWRA - IE00BK5BQT80 100.00%
Sticking your entire investment into a single ETF is like betting all your money on red because it's your favorite color. Sure, the Vanguard FTSE All-World UCITS ETF USD Accumulation screams global diversification with its worldwide coverage, but let's not kid ourselves. This "broadly diversified" portfolio is as thinly spread as butter on too much bread. It's great that you're not putting all your eggs in one basket, but when the basket itself is your whole investment, you've just moved the risk from the eggs to the basket.
Growth
Historically, with a CAGR of 12.72%, it seems like your one-basket strategy might have been onto something. But remember, past performance is like relying on yesterday's weather forecast to dress for today — occasionally helpful but often misleading. That -33.66% max drawdown is a stark reminder that even global ETFs can take you on a rollercoaster ride. Betting the farm on one ETF is like riding a unicycle; it's all fun and games until you hit a bump.
Projection
Monte Carlo simulations suggest a future brighter than a disco ball, with a median projection of 405% growth. But let's not forget, Monte Carlo is essentially a sophisticated casino game for your portfolio. It prepares you for many outcomes but guarantees none. With 993 out of 1,000 simulations positive, it sounds fantastic, but remember, the house always has an edge — market volatility. Relying solely on these simulations is like planning your retirement based on lottery odds.
Asset classes
- Stocks 100%
- Other 0%
- No data 0%
An asset class distribution with 100% stocks is like a diet consisting entirely of steak — thrilling but hardly balanced. While stocks have historically provided strong returns, they also bring volatility to the table. It's like riding a bike downhill with no brakes; exhilarating until you need to stop. A touch of bonds or real estate might not sound as sexy, but it could save you from financial road rash during market downturns.
Sectors
- Technology 25%
- Financials 18%
- Consumer Discretionary 11%
- Industrials 11%
- Health Care 9%
- Telecommunications 9%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
Your sector allocation has a heavy tech tilt, making your portfolio look like a Silicon Valley fan club. While tech has led the charge in market gains, it's also prone to dramatic swings. Banking so heavily on financial services and consumer cyclicals alongside it means you're riding the high waves of market trends. But remember, what goes up with the hype can come crashing down just as fast. It's like being on a diet that's all sugar and caffeine; the crash is inevitable.
Regions
- North America 65%
- Europe Developed 15%
- Japan 6%
- Asia Emerging 6%
- Asia Developed 4%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
- Europe Emerging 0%
With 65% in North America, your portfolio seems to have a case of home bias on steroids, despite aiming for global diversification. Europe, Asia, and the rest of the world apparently only exist to make up the numbers. While the US market is a behemoth, ignoring the potential in emerging markets and other developed economies is like eating only from the top shelf of a buffet — you miss out on a lot of good stuff.
Market capitalization
- Mega-cap 48%
- Large-cap 35%
- Mid-cap 17%
- Small-cap 0%
- Micro-cap 0%
Your mega and big-cap fetish means you're missing out on the growth potential of smaller companies. Sure, giants like Apple and Amazon can seem like safe bets, but they don't always offer the growth spurts of their smaller, nimbler counterparts. It's like always betting on the heavyweight in a fight; sometimes, the lightweight has more fight in them.
Ongoing product costs
- Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
- Weighted costs total (per year) 0.22%
At least you're not bleeding money on fees with a total TER of 0.22%. It's a silver lining in a strategy that otherwise feels like gambling. Keeping costs low is like making sure the casino's edge is as thin as possible; it doesn't guarantee you'll win, but at least you won't lose as fast.
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