This portfolio has only about 6.2 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.

Stable and Broadly Diversified Portfolio with Moderate Risk and Low Costs

Report created on Jul 27, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of six ETFs, providing exposure to a mix of geographies and asset classes. With notable allocations to the S&P 500 VIX Futures, MSCI Emerging Markets, and North America, it ensures a broad diversification. This diversification is crucial for mitigating risks and capturing growth from different market segments. However, the portfolio's cautious risk classification indicates a preference for stability over high returns. To optimize, it's essential to maintain this balance while potentially exploring further diversification to cover any overlooked areas.

Growth Info

Historically, the portfolio has shown a CAGR of 4.23%, with a maximum drawdown of -17.46%. This performance reflects a conservative approach, balancing growth and risk. The drawdown indicates the worst peak-to-trough decline, showcasing the portfolio's resilience during market downturns. While the returns are modest, they align with a cautious investment strategy. To enhance performance, consider periodic rebalancing and reviewing asset allocations to ensure they align with long-term financial goals without significantly increasing risk.

Projection Info

Using a Monte Carlo simulation, which runs numerous hypothetical scenarios to predict potential outcomes, the portfolio shows a varied range of future returns. Assuming a hypothetical initial investment, the 5th percentile projects a -70.6% return, while the 50th percentile projects a 41.63% return, and the 67th percentile projects a 110.28% return. These projections highlight the importance of diversification and risk management. To improve future outcomes, regularly assess the portfolio's risk exposure and adjust allocations to align with changing market conditions and personal financial goals.

Asset classes Info

  • Stocks
    38%
  • Other
    36%
  • No data
    25%

The portfolio's asset class distribution includes 38.47% in stocks, 36.38% in other assets, 24.75% unknown, 0.30% in bonds, and 0.10% in cash. This allocation emphasizes equities and other assets, which can provide growth but also come with volatility. The low bond and cash allocations indicate a higher risk tolerance within the cautious classification. To enhance stability, consider increasing allocations to bonds or other fixed-income assets, which can provide a buffer during market downturns.

Sectors Info

  • No data
    25%
  • Technology
    8%
  • Financials
    6%
  • Health Care
    5%
  • Industrials
    5%
  • Consumer Discretionary
    4%
  • Consumer Staples
    3%
  • Telecommunications
    3%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation within the portfolio shows a significant portion (24.75%) as unknown, with notable exposures to technology (8.18%), financial services (5.88%), and healthcare (5.07%). This distribution ensures coverage of key economic sectors, which is vital for capturing broad market growth. However, the high percentage of unknown sectors could indicate a need for better transparency and understanding of underlying holdings. To optimize, consider reviewing sector allocations regularly and ensuring they align with market trends and personal investment goals.

Regions Info

  • No data
    25%
  • North America
    20%
  • Europe Developed
    15%
  • Japan
    4%

Geographically, the portfolio is diversified across North America (19.76%), Europe Developed (14.85%), Japan (3.96%), and smaller allocations in other regions. The significant unknown allocation (24.75%) suggests a need for better clarity on geographic exposure. Geographic diversification is essential for capturing global growth and mitigating regional risks. To improve, ensure a balanced geographic distribution and consider increasing exposure to underrepresented regions to enhance global diversification.

Dividends Info

  • iShares MSCI Europe UCITS Dist 2.80%
  • Weighted yield (per year) 0.42%

The portfolio's dividend yield data is not provided, which makes it challenging to assess its income-generating potential. Dividends can be a crucial component of total returns, especially for cautious investors seeking steady income. To enhance the portfolio's income potential, consider incorporating dividend-paying assets and regularly reviewing dividend yields to ensure they meet income needs and align with overall investment objectives.

Ongoing product costs Info

  • iShares MSCI North America UCITS 0.40%
  • iShares MSCI Europe UCITS Dist 0.12%
  • Lyxor Core MSCI Japan (DR) UCITS ETF 0.22%
  • iShares Diversified Commodity Swap UCITS ETF 0.19%
  • Lyxor S&P 500 VIX Futures Enhanced Roll UCITS ETF - C-EUR 0.60%
  • Weighted costs total (per year) 0.28%

The portfolio's total expense ratio (TER) is 0.28%, which is relatively low. Keeping investment costs low is essential for maximizing net returns over time. High costs can erode returns, especially in a cautious portfolio where growth is moderate. The low TER indicates efficient cost management, which is beneficial for long-term performance. To maintain this advantage, continue to monitor and compare expense ratios of current and potential investments to ensure cost efficiency.

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