A highly diversified cautious portfolio with significant exposure to global equities and technology.

Report created on Dec 18, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is composed primarily of ETFs, with the iShares Core MSCI World UCITS ETF making up 55%. The remaining assets include European equities, emerging markets, gold, and a technology sector-specific ETF. This composition indicates a strong bias towards global equities, with a smaller allocation to emerging markets and gold for diversification. The high weighting in global equities suggests a focus on broad market exposure, aiming for steady returns. Consider balancing the allocation to reduce concentration in any single ETF, potentially enhancing diversification and managing risk more effectively.

Growth Info

Historically, the portfolio has delivered a compound annual growth rate (CAGR) of 11.97%, with a maximum drawdown of -14.65%. This performance suggests resilience and growth potential, albeit with some volatility. The drawdown indicates the largest peak-to-trough decline, reflecting the potential downside risk. It's important to remember that past performance doesn't guarantee future results. To mitigate downside risk, consider diversifying further or incorporating defensive assets that historically perform well during downturns.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, suggest a median return of 372% over the investment horizon. However, the 5th percentile shows a potential downside of 79.45%, highlighting the risks involved. While simulations provide a range of possible outcomes, they rely on historical data and assumptions, which can limit their accuracy. Regularly reviewing and adjusting the portfolio based on market conditions and personal goals can help align with desired outcomes.

Asset classes Info

  • Stocks
    90%
  • Other
    10%

The portfolio is heavily weighted towards equities, accounting for approximately 89.7% of the total allocation, with a smaller allocation to gold and cash. This equity-heavy allocation suggests a focus on growth, with gold providing a hedge against market volatility. While equities offer potential for higher returns, they also come with increased risk. To balance growth and stability, consider incorporating additional asset classes such as bonds or real estate, which can provide income and reduce overall portfolio volatility.

Sectors Info

  • Technology
    28%
  • Financials
    14%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

The portfolio's sector allocation is notably concentrated in technology, making up 28.37% of the total. Other sectors include financial services, industrials, and consumer cyclicals. This concentration in technology suggests a bet on innovation and growth, but it also increases sector-specific risk. Diversifying across more sectors can help mitigate this risk and reduce the impact of sector downturns. Consider reallocating some funds to underrepresented sectors like utilities or healthcare to achieve a more balanced sector exposure.

Regions Info

  • North America
    52%
  • Europe Developed
    23%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Japan
    3%
  • Africa/Middle East
    1%
  • Australasia
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America, with over 52% exposure, followed by developed Europe and emerging Asia. This geographic allocation provides exposure to developed markets, which tend to offer stability, but also limits exposure to potentially higher-growth regions. Balancing geographic exposure can reduce risk and capture growth opportunities in emerging markets. Consider increasing allocations to underrepresented regions like Latin America or Africa to enhance diversification and potential returns.

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 Efficient Frontier suggests that the portfolio could achieve a higher expected return of 17.98% with the same risk level by adjusting the asset allocation. This optimization involves reallocating existing assets to achieve the best possible risk-return ratio. While optimizing for efficiency can enhance returns, it may not align with all investment goals, such as income or specific sector exposure. Regularly reviewing the portfolio and adjusting allocations based on market conditions and personal objectives can help maintain alignment with investment goals.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Amundi Stoxx Europe 600 UCITS ETF C EUR 0.07%
  • iShares S&P 500 USD Information Technology Sector UCITS 0.15%
  • Weighted costs total (per year) 0.15%

The portfolio's total expense ratio (TER) is 0.15%, which is relatively low and advantageous for long-term growth. Lower costs mean more of your investment returns are retained, enhancing compounding effects over time. Monitoring and minimizing costs is crucial, as high fees can erode returns. Consider periodically reviewing the portfolio's expense ratios and exploring lower-cost alternatives if available. This strategy can improve net returns without altering the portfolio's risk profile significantly.

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