Balanced growth-oriented portfolio with a focus on ETFs and moderate risk exposure

Report created on Jul 6, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio predominantly consists of equity ETFs, with a significant allocation towards the Vanguard S&P 500 UCITS ETF and the iShares Core MSCI World UCITS ETF, together comprising 65% of the portfolio. The inclusion of bonds and niche sectors like automation, robotics, and real estate, alongside a small position in physical gold, suggests an attempt to balance growth with diversification and risk management. The portfolio's composition reflects a cautious approach, aiming to capture global equity market growth while mitigating volatility through fixed-income securities and alternative investments.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 8.52%, with a maximum drawdown of -19.89%. This performance, characterized by significant growth tempered by periods of notable declines, underscores the portfolio's moderate risk profile. The days contributing most to returns highlight the impact of short-term market movements on performance. Comparing this to benchmark indices would provide further context, indicating whether the portfolio's risk-adjusted returns align with or exceed market averages.

Projection Info

Monte Carlo simulations, utilizing historical data to forecast future outcomes, project a wide range of potential portfolio values. With key percentiles indicating a possible annualized return of 6.50%, the simulations suggest a reasonable expectation of positive growth. However, the broad spread between the 5th and 67th percentiles underscores the inherent uncertainty in these projections, emphasizing the need for ongoing risk management and possibly a reevaluation of asset allocation to ensure alignment with investment goals and risk tolerance.

Asset classes Info

  • Stocks
    81%
  • Bonds
    14%
  • Other
    5%

The portfolio's asset allocation leans heavily towards stocks (81%), with a smaller portion in bonds (14%) and a minimal allocation to other assets (5%). This composition is typical of a growth-oriented strategy but might carry higher volatility, especially in market downturns. The bond allocation provides some income and stability, though the overall effectiveness of this diversification depends on the correlation between these asset classes under different market conditions.

Sectors Info

  • Technology
    25%
  • Financials
    10%
  • Industrials
    8%
  • Consumer Discretionary
    7%
  • Health Care
    7%
  • Real Estate
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Basic Materials
    2%

Sector diversification is broad, with technology taking a significant 25% slice, followed by financial services and industrials. This sectoral distribution suggests a growth tilt, given technology's prominent role in driving market performance in recent years. However, the heavy concentration in technology also introduces sector-specific risks, including volatility from regulatory changes or market sentiment shifts. Balancing sectors more evenly could mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    72%
  • Europe Developed
    5%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographic allocation is heavily skewed towards North America (72%), with minimal exposure to other developed and emerging markets. This concentration enhances exposure to the robust U.S. economy and its leading technology sector but also increases vulnerability to region-specific economic downturns or policy changes. Expanding into more diverse geographic areas could reduce this risk and potentially unlock additional growth opportunities in emerging markets.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    26%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    3%

The portfolio's market capitalization exposure is diversified across mega (32%), big (26%), and medium (17%) cap stocks, with smaller allocations to small (4%) and micro (3%) caps. This distribution suggests a focus on stability and growth potential, as larger companies typically offer more resilience during market volatility. However, the relatively lower allocation to small and micro caps may limit opportunities for outsized gains from these higher-risk, higher-reward segments.

Redundant positions Info

  • Vanguard S&P 500 UCITS ETF EUR
    iShares Core MSCI World UCITS ETF USD (Acc) EUR
    High correlation

The high correlation between the Vanguard S&P 500 UCITS ETF and the iShares Core MSCI World UCITS ETF indicates overlapping exposures, reducing the portfolio's diversification benefits. This redundancy suggests that the portfolio might not be as diversified as intended, potentially increasing risk during market downturns. Reassessing the need for both ETFs could lead to a more efficient allocation, enhancing diversification without sacrificing growth potential.

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 this portfolio involves addressing the high correlation between certain assets, particularly the major equity ETFs, to improve diversification. The Efficient Frontier analysis could help in this regard, identifying an asset mix that potentially offers the best risk-return ratio. However, it's important to remember that optimization based on historical data does not guarantee future performance. Regularly reviewing and adjusting the portfolio in response to changing market conditions and investment objectives remains essential.

Dividends Info

  • iShares Developed Markets Property Yield UCITS 3.50%
  • Weighted yield (per year) 0.18%

The portfolio's dividend yield, driven primarily by the iShares Developed Markets Property Yield UCITS at 3.50%, contributes to its total yield of 0.18%. While dividends provide a steady income stream and can offer some cushion during market downturns, the overall low yield suggests that income generation is not the portfolio's primary focus. Investors seeking higher income might consider increasing allocations to higher-yielding assets, though this could alter the portfolio's risk profile.

Ongoing product costs Info

  • iShares Automation & Robotics UCITS ETF USD (Acc) 0.40%
  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • iShares Developed Markets Property Yield UCITS 0.59%
  • Vanguard Global Aggregate Bond UCITS ETF EUR Hedged Accumulation 0.10%
  • Vanguard S&P 500 UCITS ETF EUR 0.07%
  • SPDR® Russell 2000 US Small Cap UCITS ETF EUR 0.30%
  • Weighted costs total (per year) 0.15%

The portfolio's total expense ratio (TER) of 0.15% is impressively low, enhancing long-term return potential by minimizing cost drag. This efficiency is crucial for maximizing compounding growth over time, especially in a moderately diversified portfolio where every basis point in cost savings can contribute to overall performance. Maintaining this focus on cost efficiency while adjusting the portfolio for better diversification and risk management could further optimize returns.

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