Balanced global equity portfolio with strong momentum tilt and low costs but limited performance history
Report created on Sep 1, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VW Vanguard FTSE All-World UCITS ETF USD Accumulation
VWRA - IE00BK5BQT80 80.00% -
IW iShares MSCI World Momentum Factor UCITS
IWMO - IE00BP3QZ825 10.00% -
AV Avantis Global Small Cap Value UCITS ETF USD Acc
AVGS - IE0003R87OG3 10.00%
This portfolio is a three‑fund, 100% equity mix, dominated by a broad global stock ETF at 80%, with two 10% satellite positions targeting momentum and small-cap value. Structurally, it’s a “core and satellites” approach: one diversified core holding plus two more focused style funds. That keeps the overall structure simple while still adding distinct return drivers. Because everything is in shares rather than including bonds or cash-like assets, the day‑to‑day ups and downs will be driven entirely by stock markets. With only about 1.9 years of live data, the behaviour seen so far should be treated as an early snapshot, not a full picture of how this mix might act across a full market cycle.
Growth
Over the short 1.9‑year window, £1,000 grew to about £1,400, a compound annual growth rate (CAGR) of 19.54%. CAGR is like your average speed on a road trip, smoothing out the bumps. This comfortably beat both the US market (15.03%) and global market (16.73%) over the same period. The worst peak‑to‑trough fall was -16.73%, which is meaningful but smaller than the benchmarks’ drawdowns. Interestingly, just 13 days produced 90% of total returns, underlining how a handful of strong days can drive outcomes. Because this period is short and unusually strong for certain styles, it’s risky to assume this level of outperformance will persist over longer horizons.
Projection
The Monte Carlo projection uses the limited historical returns to simulate 1,000 different 15‑year paths for £1,000. Think of it as re‑rolling past patterns in many different orders to see a range of plausible futures, not a prediction. The median result of about £2,741 implies roughly 8.05% per year, with a wide “likely range” from roughly £1,767 to £4,189 and a 74.3% chance of ending positive. There are also scenarios where value barely grows or falls, shown by the £950 lower band. Because these simulations are built on less than two years of data, they may over‑ or understate long‑term risk and return, so they are best read as rough guideposts.
Asset classes
- Stocks 100%
All of this portfolio sits in one asset class: stocks. That makes it straightforward to understand but means there is no built‑in buffer from bonds or cash when markets fall. Relative to many “balanced” mixes that blend shares and fixed income, this is more growth‑oriented in structure despite the moderate risk score. Being 100% equity can work well in strong markets, as gains are not diluted by lower‑risk assets. However, the same structure exposes the portfolio fully to equity bear markets, when declines can be steep and recoveries take time. With only 1.9 years of history, we haven’t yet seen how this all‑equity setup behaves in a prolonged downturn.
Sectors
- Technology 30%
- Financials 16%
- Industrials 11%
- Consumer Discretionary 9%
- Health Care 8%
- Telecommunications 7%
- Energy 5%
- Consumer Staples 4%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
The sector split shows a clear tilt toward technology at 30%, with financials, industrials, and consumer areas making up much of the rest. This is more tech‑heavy than a typical broad global index, which often has a slightly lower tech share. Tech‑tilted portfolios can benefit when innovation and growth stocks are in favour, but they can also be more sensitive to interest rate changes and shifts in investor sentiment toward high‑growth companies. The remaining sectors are reasonably spread, which helps avoid putting all risk into a single industry. Still, sector leadership can rotate over time, and less than two years of data does not capture full cycles where different sectors take turns leading and lagging.
Regions
- North America 65%
- Europe Developed 14%
- Japan 7%
- Asia Developed 6%
- Asia Emerging 4%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 65% is in North America, with Europe Developed at 14%, Japan 7%, and the rest spread across other regions. That North American share is slightly higher than many global indices but not dramatically so, and is common in world equity funds because US markets represent a large slice of global stock value. This alignment with global weights helps diversification: returns aren’t overly tied to any single smaller region. At the same time, it does mean a lot of the portfolio is driven by one major economy and currency. Because the period analysed is short and US equities have been relatively strong, the recent performance may partially reflect that regional skew.
Market capitalization
- Mega-cap 42%
- Large-cap 32%
- Mid-cap 17%
- Small-cap 5%
- Micro-cap 4%
By market size, the portfolio leans strongly to mega‑ and large‑cap stocks, which together make up about 74%. Mid‑caps hold 17%, while small and micro‑caps total around 9%, mainly introduced by the global small‑cap value ETF. Larger companies tend to be more established and sometimes less volatile than tiny firms, which can smooth returns a bit. The small‑cap slice, however, adds exposure to businesses that can behave very differently from giants, creating another source of diversification within equities. With less than two years of history, it’s hard to see whether the small‑cap value sleeve has had a full opportunity to show its typical long‑term behaviour relative to the large‑cap core.
True holdings
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NV NVIDIA Corporation 3.58%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
AA Apple Inc. 3.20%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
MS Microsoft Corporation 2.12%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
GO Alphabet Inc Class A 1.85%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares MSCI World Momentum Factor UCITS
-
AM Amazon.com Inc 1.77%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
MU Micron Technology Inc 1.57%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares MSCI World Momentum Factor UCITS
-
GO Alphabet Inc Class C 1.49%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- iShares MSCI World Momentum Factor UCITS
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.41%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
AV Broadcom Inc 1.34%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
ME Meta Platforms Inc. 0.95%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
- Top 10 total 19.27%
Looking through ETF top‑10 holdings, a noticeable share of risk is tied to a handful of big names like NVIDIA, Apple, Microsoft, Alphabet, Amazon, and other large technology‑related firms. Because these appear across multiple funds, their combined exposure (for example, NVIDIA at 3.58%) is higher than any single ETF’s weighting would suggest. This is a classic example of “overlap,” where owning several diversified funds still leads back to the same underlying companies. Overlap is probably higher than the 21.7% coverage suggests, since we only see top‑10 positions. This overlapping exposure helps explain the portfolio’s strong recent results and tech orientation, but also concentrates some risk in a relatively small group of giants.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
On factors, the portfolio shows a high momentum tilt (75%) and high low‑volatility tilt (70%), plus very low size (11%) and very low yield (10%). Factor exposure is like checking which “traits” your holdings share. High momentum means the portfolio leans toward stocks that have done well recently, which can help in trending markets but may hurt in sharp reversals. Very low size confirms the bias to larger companies, with less exposure to small firms that sometimes lead during early recovery phases. Very low yield means income from dividends is not a big focus. These tilts have supported recent returns, but with only 1.9 years of data, it’s early to judge how they behave across different economic environments.
Risk contribution
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Vanguard FTSE All-World UCITS ETF USD Accumulation
Weight: 80.00% 78.2% -
iShares MSCI World Momentum Factor UCITS
Weight: 10.00% 12.6% -
Avantis Global Small Cap Value UCITS ETF USD Acc
Weight: 10.00% 9.2%
Risk contribution shows how much each holding drives overall portfolio ups and downs, which can differ from its weight. Here, the 80% global ETF contributes about 78.19% of total risk, very close to its size, so it behaves like a true core. The 10% momentum ETF contributes 12.59% of risk, more than its weight, suggesting it is a bit more volatile or differently correlated to the others. The small‑cap value ETF contributes slightly less risk than its 10% weight at 9.21%. Overall, risk is not dominated by a single aggressive satellite; instead, it’s largely in line with weights. That’s a sign of a relatively balanced risk structure within an all‑equity context.
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 risk vs. return chart shows the current portfolio with a Sharpe ratio of 1.03, compared to 1.32 for the optimal mix and 1.27 for the minimum variance mix. The Sharpe ratio measures risk‑adjusted return, like how much “extra” return you get per unit of volatility above a risk‑free rate. The current portfolio sits about 1.48 percentage points below the efficient frontier at its risk level, meaning that—using only these same three funds—different weightings could, in theory, achieve better risk/return trade‑offs. The gap is not huge, so the existing mix is already reasonably efficient. Because all of this is derived from a short history, it’s best seen as a rough indication, not a precise optimisation blueprint.
Ongoing product costs
- Vanguard FTSE All-World UCITS ETF USD Accumulation 0.14%
- Weighted costs total (per year) 0.11%
The portfolio’s costs are impressively low, with an overall TER around 0.11%. TER, or Total Expense Ratio, is the annual fee charged by the funds, similar to a service charge for running the portfolio. Low costs matter because they come off returns every year, and small differences can compound into large amounts over decades. Here, the broad global ETF at 0.14% helps anchor the fee level, while the satellites have not pushed the blended cost up much. This cost profile aligns well with best practices for passive and factor‑based investing, giving more of the portfolio’s gross returns a chance to reach the end investor, especially over long horizons.
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