A globally diversified ETF portfolio with a balanced risk profile and strong tech focus

Report created on Aug 3, 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 comprised entirely of ETFs, focusing on global equities with significant allocations to Vanguard FTSE All-World, iShares MSCI ACWI, and Xtrackers MSCI Emerging Markets, among others. Its structure reflects a balanced risk approach, leaning towards broad diversification across geographies and sectors. However, the heavy emphasis on ETFs might limit exposure to alternative asset classes, potentially affecting the portfolio's ability to hedge against market volatility effectively.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.63%, with a maximum drawdown of -32.52%. These figures indicate a relatively high return potential, albeit with significant volatility. The days contributing most to returns highlight the portfolio's sensitivity to market highs and lows. Comparing these metrics against benchmarks would help assess performance relative to peers and market averages.

Projection Info

Using Monte Carlo simulations, the portfolio's future performance shows a wide range of outcomes, with a median projected increase of 341.2%. While simulations suggest a strong likelihood of positive returns, the wide variance underscores the inherent uncertainty in markets. It's crucial to understand that these projections are based on historical data, which may not always predict future trends accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, missing out on diversification benefits that bonds, real estate, or commodities could offer. While stocks are known for their growth potential, incorporating other asset classes could reduce volatility and provide income through different market cycles, enhancing the portfolio's risk-adjusted returns.

Sectors Info

  • Technology
    29%
  • Financials
    17%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

With technology stocks making up 29% of the portfolio, there's a pronounced sectoral concentration. While tech has been a strong performer, this concentration increases vulnerability to sector-specific risks. Financial Services and Consumer Cyclicals follow, contributing to a diversified but still somewhat concentrated sectoral exposure.

Regions Info

  • North America
    59%
  • Asia Emerging
    12%
  • Europe Developed
    11%
  • Asia Developed
    8%
  • Japan
    4%
  • Africa/Middle East
    2%
  • Latin America
    2%
  • Australasia
    1%
  • Europe Emerging
    1%

The geographic allocation is heavily skewed towards North America (59%), with significant but lesser exposures to emerging Asia (12%) and developed Europe (11%). This distribution suggests a strong reliance on the performance of the US and Canadian markets, potentially overlooking opportunities in other regions or exposing the portfolio to regional risks.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    34%
  • Mid-cap
    14%

The focus on mega (50%) and big (34%) cap stocks positions the portfolio towards more established, potentially less volatile companies. While this may offer stability, the minimal exposure to medium and smaller cap stocks could limit opportunities for higher growth, which these segments occasionally present.

Redundant positions Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    SPDR® MSCI World UCITS ETF EUR
    iShares MSCI ACWI UCITS ETF USD (Acc) EUR
    High correlation

The high correlation among the Vanguard FTSE All-World, SPDR MSCI World, and iShares MSCI ACWI ETFs indicates redundancy, which could dilute diversification benefits. Removing or reducing exposure to overlapping assets could enhance portfolio efficiency by lowering redundancy without sacrificing performance.

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 involves addressing the high correlation among certain ETFs to enhance diversification. By reallocating funds from overlapping ETFs to underrepresented sectors, geographies, or asset classes, the portfolio could achieve a more efficient risk-return profile, potentially moving closer to the Efficient Frontier.

Ongoing product costs Info

  • Invesco EQQQ NASDAQ-100 UCITS ETF 0.35%
  • iShares MSCI ACWI UCITS ETF USD (Acc) EUR 0.20%
  • SPDR® MSCI World UCITS ETF EUR 0.12%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Xtrackers MSCI Emerging Markets UCITS ETF 1C 0.18%
  • Weighted costs total (per year) 0.21%

The portfolio's total expense ratio (TER) averages to 0.21%, which is relatively low, especially for a globally diversified ETF portfolio. Keeping costs low is crucial for long-term investment success, as fees can significantly erode returns over time. This aspect of the portfolio is well-managed and aligns with best practices for maximizing investor 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