This portfolio has only about 2.4 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced Portfolio with Strong US Equity Focus and Moderate Diversification

Report created on Jul 27, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is composed of three main ETFs: Invesco EQQQ NASDAQ-100 UCITS ETF Acc (44.12%), Vanguard S&P 500 UCITS Acc (27.97%), and iShares Global Aggregate Bond UCITS Dist (27.91%). This composition indicates a balanced approach with a significant tilt towards US equities and a substantial allocation to global bonds. The portfolio's diversification is moderate, with exposure to different asset classes and sectors, but heavily concentrated in US markets.

Growth Info

Historically, the portfolio has shown a solid performance with a compound annual growth rate (CAGR) of 9.39%. The maximum drawdown, or the peak-to-trough decline, stands at -17.53%, indicating moderate risk. The data suggests that a small number of days (10) account for the majority of the returns, highlighting the importance of staying invested during volatile periods. This historical performance underscores the potential for growth balanced with periods of significant downturns.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio's future performance was projected. This statistical model helps estimate the range of possible outcomes for the portfolio. Assuming a hypothetical initial investment, the results showed a median (50th percentile) end value growth of 181.87%, with the lower 5th percentile at 10.16% and the upper 67th percentile at 256.45%. The annualized return across all simulations was 8.6%, indicating a favorable long-term growth potential with some variability.

Asset classes Info

  • Stocks
    44%
  • No data
    28%
  • Bonds
    27%
  • Cash
    1%

The portfolio is diversified across three primary asset classes: stocks (44.09%), bonds (27.30%), and a smaller allocation to cash (0.60%). The significant allocation to stocks suggests potential for higher returns but also higher risk, while the bond allocation provides a stabilizing effect. This mix is suitable for a balanced risk profile, aiming for growth with some level of capital preservation. However, the small cash allocation might limit liquidity in times of market stress.

Sectors Info

  • No data
    28%
  • Technology
    23%
  • Telecommunications
    7%
  • Consumer Discretionary
    5%
  • Health Care
    3%
  • Consumer Staples
    3%
  • Industrials
    2%
  • Basic Materials
    1%
  • Utilities
    1%

Sector allocation is skewed towards Technology (22.98%), followed by Communication Services (6.89%), and Consumer Cyclicals (5.28%). This sector concentration reflects a growth-oriented strategy, leveraging high-performing industries. While this can drive significant returns, it also exposes the portfolio to sector-specific risks. Diversifying further across more sectors could mitigate these risks and provide a more stable performance.

Regions Info

  • North America
    43%
  • No data
    28%
  • Europe Developed
    1%

Geographically, the portfolio is heavily weighted towards North America (42.77%), with minimal exposure to other regions like Europe Developed (0.81%) and Asia Emerging (0.30%). This concentration in the US market can benefit from its economic strength but also exposes the portfolio to regional risks. Increasing geographic diversification could help spread risk and capture growth opportunities in other global markets.

Dividends Info

  • iShares Global Aggregate Bond UCITS Dist 1.50%
  • Weighted yield (per year) 0.42%

The portfolio does not provide specific dividend yield data. However, the inclusion of bond ETFs typically suggests some level of income generation. Dividends can offer a steady income stream and contribute to total returns, especially in low-interest-rate environments. Ensuring a balanced mix of growth and income-producing assets could enhance the portfolio's overall performance and provide additional stability.

Ongoing product costs Info

  • Invesco EQQQ NASDAQ-100 UCITS ETF Acc 0.35%
  • iShares Global Aggregate Bond UCITS Dist 0.10%
  • Weighted costs total (per year) 0.18%

The portfolio has a total expense ratio (TER) of 0.18%, which is relatively low. The Invesco EQQQ NASDAQ-100 ETF has the highest individual TER at 0.35%, while the iShares Global Aggregate Bond ETF is the lowest at 0.1%. Keeping costs low is crucial as high fees can erode returns over time. The current expense ratio is competitive, reflecting efficient cost management, which is beneficial for long-term growth.

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