Balanced portfolio with a strong focus on large-cap equities and moderate global diversification
Report created on Jul 24, 2025Risk profile
4/7
Diversification profile
3/5
Positions
-
CS iShares Core S&P 500 UCITS ETF USD (Acc)
CSPX - IE00B5BMR087 41.50% -
VW Vanguard FTSE All-World UCITS ETF USD Accumulation
VWRA - IE00BK5BQT80 30.00% -
GO LEVERAGE SHARES PUBLIC LIMITED CO. 1X GOOG
GOOG 25.00% -
VA Vanguard Global Aggregate Bond UCITS ETF USD Hedged Accumulation
VAGU - IE00BG47KJ78 3.50%
The portfolio is primarily composed of two large ETFs that track major equity indices, constituting 71.5% of the portfolio, alongside a significant position in a single-stock ETF focused on Google, and a small allocation to global bonds. This structure indicates a strong tilt towards equity, particularly large-cap stocks, with minimal exposure to fixed income. The heavy weighting towards a single company, albeit a tech giant, introduces a specific concentration risk that is somewhat mitigated by the diversified nature of the ETF holdings.
Growth
Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.06%, with a maximum drawdown of -23.98%. These figures suggest a resilient performance through market cycles, with the ability to recover from downturns effectively. However, the days contributing to 90% of returns being so few indicate that the portfolio's performance is heavily dependent on significant market movements, which can introduce volatility and risk.
Projection
The Monte Carlo simulation, which uses historical data to project future outcomes, suggests a wide range of potential portfolio values. With the 50th percentile at a 198% increase, it demonstrates the portfolio's potential for substantial growth. However, the presence of a 5th percentile at -6.4% also highlights the risk of loss. This projection underscores the balance of risk and reward inherent in this portfolio, emphasizing the importance of long-term investment horizons.
Asset classes
- Stocks 71%
- No data 25%
- Bonds 3%
The allocation across asset classes with a dominant 71% in stocks, 25% in an unspecified category likely tied to the single-stock ETF, and a modest 3.5% in bonds, indicates a clear growth-oriented strategy. This mix, while aggressive, is suitable for investors with a higher risk tolerance. The low bond allocation suggests minimal interest rate risk exposure but also implies limited downside protection in market downturns.
Sectors
- No data 25%
- Technology 22%
- Financials 11%
- Consumer Discretionary 8%
- Health Care 7%
- Telecommunications 7%
- Industrials 6%
- Consumer Staples 4%
- Energy 2%
- Utilities 2%
- Basic Materials 2%
- Real Estate 2%
Sectoral allocation reveals a tech-heavy tilt, alongside significant exposure to financial services and consumer cyclicals. This composition suggests a portfolio poised to benefit from growth in technology and consumer spending but also exposes it to sector-specific downturns. Diversifying across more sectors or reducing the tech concentration may reduce volatility and improve resilience against sector-specific risks.
Regions
- North America 61%
- No data 25%
- Europe Developed 5%
- Japan 2%
- Asia Emerging 2%
- Asia Developed 1%
- Australasia 1%
With 61% of assets in North America and a notable 25% classified as unknown, likely due to the single-stock ETF, the portfolio has a strong U.S. bias. This concentration in developed markets offers stability but may limit exposure to emerging market growth opportunities. Increasing allocations to developed Europe, Asia, or emerging markets could offer broader global exposure and potential for higher returns.
Market capitalization
- Mega-cap 34%
- No data 25%
- Large-cap 25%
- Mid-cap 12%
- Small-cap 1%
The focus on mega and big-cap companies, making up 59% of the portfolio, aligns with a conservative approach to equity investment, favoring established, stable companies over smaller, potentially higher-growth firms. This strategy may reduce volatility but could also limit upside potential. Considering a slight increase in medium or small-cap exposure could introduce growth opportunities with manageable risk.
Redundant positions
-
High correlationVanguard FTSE All-World UCITS ETF USD AccumulationiShares Core S&P 500 UCITS ETF USD (Acc)
The high correlation between the two major ETFs indicates overlapping holdings, reducing the diversification benefits of holding both. This redundancy can magnify risks associated with specific sectors or geographic exposures. Evaluating the holdings of each ETF and considering replacing one with an option offering complementary exposure could enhance portfolio diversification.
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.
Optimizing the portfolio using the Efficient Frontier could further improve the risk-return ratio. The current allocation suggests potential inefficiencies, particularly in terms of diversification and exposure to correlated assets. Rebalancing to include assets with lower correlations and considering different asset classes or sectors could achieve a more optimal balance between risk and return.
Ongoing product costs
- iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
- Vanguard Global Aggregate Bond UCITS ETF USD Hedged Accumulation 0.10%
- Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
- Weighted costs total (per year) 0.12%
The portfolio benefits from relatively low costs, with Total Expense Ratios (TER) ranging from 0.10% to 0.22%, contributing to its efficiency. Lower costs directly translate to higher net returns over time, making this an advantageous aspect of the portfolio. Continuously monitoring and minimizing investment costs remains a vital strategy for enhancing long-term gains.
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