This portfolio has only about 7.1 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 Risk Portfolio with Single-Focused Diversification and Strong Historic Performance

Report created on Jul 24, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio consists of two main ETFs: Xtrackers MSCI AC World ESG Screened UCITS ETF 1C at 70% and Xtrackers MSCI Emerging Markets UCITS ETF 1C at 30%. This composition indicates a strong focus on global equities with an ESG screening component and a significant allocation to emerging markets. While this setup can offer growth potential, it lacks diversification across different asset classes, which can increase risk during market downturns.

Growth Info

Historically, the portfolio has performed well with a compound annual growth rate (CAGR) of 8.9%. However, it has also experienced significant volatility, with a maximum drawdown of -32.85%. This means that during the worst period, the portfolio lost nearly a third of its value. The majority of returns were concentrated in just 20 days, indicating high volatility and the importance of staying invested to capture these gains.

Projection Info

Using a Monte Carlo simulation, which models a wide range of possible future outcomes based on historical data, the portfolio's future performance was analyzed. With 1,000 simulations, the median (50th percentile) end portfolio value showed a return of 178.22%, while the 5th percentile indicated a potential loss of -2.65%. This suggests that, while the portfolio has a high likelihood of positive returns, there is still a risk of loss, highlighting the importance of a balanced risk approach.

Asset classes Info

  • No data
    100%

The portfolio is solely invested in equities, specifically through ETFs that cover global and emerging markets. This single asset class focus can limit the portfolio's ability to hedge against market volatility and economic downturns. Diversifying into other asset classes, such as bonds or real estate, could help mitigate risk and provide more stable returns.

Sectors Info

  • No data
    100%

Sector allocation data is unavailable, but given the ETFs' broad market focus, the portfolio likely spans multiple sectors. However, without specific sector data, it's challenging to assess whether there is overexposure to any particular sector. Ensuring a balanced sector allocation can help reduce risk and increase resilience against sector-specific downturns.

Regions Info

  • No data
    100%

The geographic allocation is unknown, but the ETFs suggest a mix of global developed and emerging markets. This geographic spread can provide exposure to diverse economic growth opportunities. However, without precise data, it's difficult to determine if the portfolio is overly concentrated in any particular region, which could impact performance due to regional economic issues.

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