Balanced and highly diversified portfolio with strong tech and global exposure

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a mix of global equity ETFs, with a significant emphasis on technology and emerging markets. The inclusion of both broad-market and specific sector ETFs, alongside geographic diversification, suggests a strategy aimed at capturing global growth while mitigating risk through diversification. The asset allocation heavily favors stocks, with a minimal bond presence, aligning with a balanced risk profile that seeks growth.

Growth Info

With a historical CAGR of 10.36%, the portfolio has demonstrated strong performance. The maximum drawdown of -21.72% indicates a moderate level of risk, consistent with the balanced risk classification. The concentration of returns in a limited number of days highlights the impact of short-term volatility and the importance of staying invested over the long term to capture key market movements.

Projection Info

Monte Carlo simulations, projecting 1,000 possible outcomes based on historical data, show a wide range of potential future values. With 988 simulations yielding positive returns, the likelihood of growth is high. However, the significant variation between the 5th and 67th percentiles underscores the uncertainty inherent in all investments and the importance of maintaining a diversified portfolio to manage risk.

Asset classes Info

  • Stocks
    98%
  • Bonds
    2%

The portfolio's 98% allocation to stocks, with a minimal bond presence, positions it for growth but also exposes it to higher volatility. This allocation is suitable for investors with a medium to long-term horizon who can tolerate short-term market fluctuations. Diversifying across more asset classes could reduce volatility without significantly compromising potential returns.

Sectors Info

  • Technology
    29%
  • Financials
    18%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    7%
  • Telecommunications
    6%
  • Basic Materials
    5%
  • Consumer Staples
    5%
  • Real Estate
    3%
  • Energy
    3%
  • Utilities
    2%

The sectoral allocation, with a strong emphasis on technology, financial services, and industrials, aligns with a growth-oriented strategy. However, the heavy weighting towards technology, at 29%, increases susceptibility to sector-specific risks. Balancing sector exposures can help mitigate these risks while still capturing growth opportunities across the broader economy.

Regions Info

  • North America
    52%
  • Asia Developed
    12%
  • Europe Developed
    10%
  • Asia Emerging
    10%
  • Australasia
    8%
  • Japan
    5%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, the portfolio is well-diversified, with a notable emphasis on North America and developed Asian markets. This reflects a strategy focused on mature economies known for innovation and stability. However, the 10% allocation to emerging Asian markets introduces growth potential from faster-growing economies, albeit with increased risk.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    28%
  • Mid-cap
    17%
  • Small-cap
    8%
  • Micro-cap
    2%

The market capitalization breakdown shows a preference for larger companies, which tend to be more stable and less volatile than their smaller counterparts. However, the inclusion of small and micro-cap stocks, although minimal, introduces higher growth potential and risk. A balanced approach to market capitalization can contribute to both stability and growth.

Redundant positions Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR
    Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating
    High correlation

The high correlation between the iShares Core MSCI World UCITS ETF and the Vanguard LifeStrategy 80% Equity UCITS ETF suggests redundancy, limiting the diversification benefits. Reducing overlap by reallocating assets from highly correlated positions to underrepresented areas or asset classes can enhance portfolio efficiency.

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.

The portfolio appears well-positioned on the risk-return spectrum but could benefit from optimization to reduce overlap and enhance diversification. Utilizing the Efficient Frontier concept to reassess asset allocation could identify opportunities to achieve a more favorable risk-return tradeoff by adjusting the current mix without increasing overall risk.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • iShares MSCI World Small Cap UCITS ETF USD (Acc) EUR 0.35%
  • Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating 0.25%
  • Vanguard FTSE Emerging Markets UCITS 0.22%
  • Vanguard FTSE Developed Asia Pacific ex Japan UCITS 0.15%
  • Xtrackers MSCI World Information Technology UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.23%

The portfolio's average Total Expense Ratio (TER) of 0.23% is relatively low, which is favorable for long-term growth as costs can significantly erode returns over time. Continuously monitoring and minimizing investment costs remains crucial for enhancing net returns.

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