A globally diversified single-ETF portfolio with a balanced risk profile

Report created on Sep 21, 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 entirely composed of the Vanguard FTSE All-World UCITS ETF USD Accumulation, offering broad diversification across 11 sectors and a wide geographic spread. This ETF encompasses a 100% allocation to stocks, reflecting a growth-oriented strategy within a single investment vehicle. The absence of other asset classes, such as bonds or commodities, indicates a focused approach to equity investing. Despite this concentration, the ETF's global reach across developed and emerging markets ensures a level of diversification, mitigating the risk associated with single-market exposure.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.07%, with a maximum drawdown of -33.45%. These figures underscore a strong performance trend, albeit with significant volatility as evidenced by the drawdown. The days contributing most to returns highlight the portfolio's susceptibility to market swings. When compared to a balanced benchmark, these figures suggest a competitive return profile, with the understanding that past performance is not indicative of future results.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The median simulation suggests a potential 345% increase, highlighting substantial growth opportunities. However, the range from the 5th to the 67th percentile underscores the inherent uncertainty in these projections. Investors should note that while Monte Carlo provides a spectrum of possible futures, it cannot predict unexpected market shifts.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks positions it for potential high returns, aligned with a higher risk tolerance. This allocation to a single asset class lacks the risk mitigation benefits that come with a more diversified asset mix, such as the inclusion of bonds or real estate. For investors seeking growth and comfortable with volatility, this approach is suitable. However, those with a lower risk tolerance might consider diversifying across different asset classes.

Sectors Info

  • 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%

Sector allocation within this ETF is well-diversified, with technology, financial services, and consumer cyclicals leading. This sectoral spread is reflective of the global market composition, positioning the portfolio to capitalize on broad economic growth. However, the heavy weighting in technology and financial services sectors may introduce sector-specific risks, including higher volatility during economic downturns or regulatory changes.

Regions Info

  • North America
    65%
  • Europe Developed
    15%
  • Japan
    6%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution shows a strong bias towards North America (65%), followed by developed Europe and emerging Asian markets. This allocation benefits from the stability and growth potential in these regions but may underrepresent opportunities in emerging markets. Investors might consider the implications of such geographic concentration, especially regarding geopolitical risks and regional economic cycles.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    17%

With a focus on mega (48%) and big (35%) cap stocks, the portfolio leans towards companies with large market capitalizations, known for their stability and potential for steady growth. This allocation can offer a buffer during market volatility but might miss out on the high growth potential of smaller companies. A more balanced market cap distribution could provide a better risk-return trade-off.

Ongoing product costs Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.22%

With a Total Expense Ratio (TER) of 0.22%, the portfolio is efficiently managed in terms of costs. Low costs are crucial for long-term investment success, as they directly impact net returns. This TER is competitive, particularly for a globally diversified ETF, ensuring that more of the investment's growth remains with the investor.

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