A globally diversified single-ETF portfolio with a balanced risk profile
Report created on Jun 14, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
VW Vanguard FTSE All-World UCITS ETF USD Accumulation
VWCE - IE00BK5BQT80 100.00%
The portfolio is fully invested in the Vanguard FTSE All-World UCITS ETF USD Accumulation, providing broad diversification across global equities. This ETF encompasses a wide range of sectors and geographic regions, making it a comprehensive choice for global exposure with a single investment. The diversification score reflects a well-rounded approach to capturing global market returns, while the risk score indicates a balanced risk-reward trade-off suitable for moderate investors.
Growth
With a Compound Annual Growth Rate (CAGR) of 11.29% and a maximum drawdown of -33.45%, the portfolio has demonstrated strong performance with significant volatility. The days contributing most to returns highlight the impact of short-term market movements on overall performance. While past performance is encouraging, it's important to remember that it doesn't guarantee future results, and investors should be prepared for periods of market downturns.
Projection
Monte Carlo simulations, which project potential outcomes using historical data, suggest a wide range of future performance possibilities. With a median projected increase of 318.5% and 990 out of 1,000 simulations showing positive returns, the outlook appears optimistic. However, these projections are based on past market behavior and cannot predict future market movements with certainty.
Asset classes
- Stocks 100%
The portfolio's allocation is entirely in stocks, which offers high growth potential but also comes with increased volatility compared to portfolios that include bonds or other asset classes. For investors seeking growth and who are comfortable with short-term market fluctuations, this allocation is appropriate. Diversifying across different asset classes could provide a smoother investment journey, especially during stock market downturns.
Sectors
- Technology 24%
- Financials 18%
- Consumer Discretionary 10%
- Industrials 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector allocation is concentrated in Technology, Financial Services, Consumer Cyclicals, Industrials, and Healthcare, which are sectors that can offer growth but may also face significant volatility. The technology sector's large weighting could increase susceptibility to sector-specific risks. Balancing sector exposure can help mitigate this risk and capitalize on growth opportunities across the economy.
Regions
- North America 64%
- Europe Developed 15%
- Asia Emerging 6%
- Japan 6%
- Asia Developed 4%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is heavily weighted towards North America, with significant exposure to developed Europe and smaller allocations to emerging markets and other regions. This distribution captures a wide swath of the global economy but may underrepresent the growth potential in emerging markets. Considering a slight adjustment to increase exposure to underrepresented regions could enhance growth prospects and diversification.
Market capitalization
- Mega-cap 48%
- Large-cap 34%
- Mid-cap 17%
The focus on mega and big-cap stocks (82% combined) aligns with the portfolio’s balanced risk profile, as these companies typically offer stability and resilience. However, the absence of small and micro-cap stocks limits exposure to high-growth potential segments of the market. Introducing a measured allocation to smaller companies could enhance returns while adding a manageable level of risk.
Ongoing product costs
- 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 benefits from relatively low costs, which is crucial for enhancing long-term returns. Lower costs mean more of the investment's return is retained by the investor, a key factor in building wealth over time. Continuously monitoring and managing investment costs remains an essential practice for all investors.
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