A balanced ETF portfolio with strong global exposure and a focus on large-cap stocks

Report created on Mar 7, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is composed entirely of the SPDR MSCI ACWI UCITS ETF, which provides broad exposure to global equities. The ETF covers a wide range of sectors and geographies, offering a diversified investment approach. The portfolio's risk classification is balanced, with a risk score of 4 out of 7, indicating moderate risk. The diversification score of 4 out of 5 suggests a strong alignment with best practices. This composition reflects a strategic choice to maintain simplicity while achieving global diversification, which is beneficial for long-term growth.

Growth Info

Historically, the portfolio has delivered a compound annual growth rate (CAGR) of 11.71%, demonstrating robust performance. The maximum drawdown of -25.40% indicates a significant, but not uncommon, level of volatility for a globally diversified equity portfolio. The portfolio's performance is impressive when compared to many global benchmarks. However, it's crucial to remember that past performance does not guarantee future results. The historical data suggests that the portfolio has been effective in capturing market upswings, while also experiencing typical equity market downturns.

Projection Info

The Monte Carlo simulation, which ran 1,000 scenarios, projects a 50th percentile return of 379.4%, with an annualized return of 12.55%. The simulation uses historical data to estimate potential future outcomes, but it's important to note that these are not predictions. The high number of positive simulations (998 out of 1,000) suggests a favorable outlook. However, investors should be aware that these projections are based on past market conditions and may not account for future economic changes or unexpected events.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, focusing on global equities. This singular asset class allocation can offer substantial growth potential but also comes with increased volatility compared to a more diversified asset class mix. While the portfolio benefits from equity market growth, it may be more susceptible to equity market downturns. Investors might consider introducing other asset classes, like bonds, to reduce volatility and enhance stability, especially if nearing financial goals or requiring income.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    10%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The portfolio has a notable concentration in technology (27%), followed by financial services (16%) and consumer cyclicals (11%). This sector allocation is common in global equity funds, reflecting current market trends. While tech-heavy portfolios can capitalize on innovation and growth, they may also face increased volatility during market corrections or interest rate hikes. The balance across other sectors provides some diversification, but investors should monitor sector trends and shifts to ensure alignment with their risk tolerance and investment goals.

Regions Info

  • North America
    69%
  • Europe Developed
    14%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation shows a strong focus on North America (69%), with Europe Developed (14%) and Asia Emerging (5%) following. This allocation aligns with many global benchmarks, reflecting the economic dominance of these regions. However, the substantial North American exposure can lead to regional risk, particularly if the U.S. market experiences downturns. Investors might consider increasing exposure to underrepresented regions, such as emerging markets, to enhance diversification and potentially capture growth opportunities outside of North America.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    16%

The portfolio is heavily weighted towards mega-cap (48%) and big-cap (35%) stocks, with minimal exposure to medium-cap (16%) and no small or micro-cap stocks. This focus on larger companies typically offers stability and established market presence, which can be advantageous during market volatility. However, it may limit exposure to the growth potential of smaller companies. Investors seeking higher growth opportunities might consider diversifying into small or mid-cap stocks to balance stability with growth potential.

Ongoing product costs Info

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

The portfolio's total expense ratio (TER) of 0.45% is competitive for a globally diversified ETF, supporting cost-effective investing. Keeping costs low is crucial for maximizing long-term returns, as high fees can erode gains over time. This cost efficiency aligns well with best practices in portfolio management. Investors should regularly review the TER and compare it with similar funds to ensure continued cost-effectiveness, contributing to better net returns.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey