Balanced portfolio with a strong focus on North American and European equities

Report created on Aug 19, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio comprises two ETFs: 60% in the iShares Core S&P 500 UCITS ETF USD (Acc) and 40% in the iShares Core MSCI Europe UCITS ETF EUR (Acc), making it entirely invested in stocks. This allocation reflects a strategic emphasis on developed markets, particularly North America and Europe. The absence of investments in emerging markets, other asset classes like bonds or commodities, and the limited exposure to small-cap stocks highlight a moderate approach to diversification.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.92%, with a maximum drawdown of -34.18%. These figures suggest a resilient performance through various market cycles, considering the high concentration in equities. The days contributing to 90% of returns being limited to 33 indicate that the portfolio's gains are concentrated in specific periods, emphasizing the importance of staying invested through market volatility.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential performances for this portfolio. With 992 out of 1,000 simulations showing positive returns, the portfolio's median projected growth is substantial. However, the significant spread between the 5th and 67th percentiles underscores the inherent uncertainties in market performance and the value of maintaining a long-term perspective.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks positions it for potentially higher returns compared to more diversified portfolios including bonds or alternative assets. This concentration in equities, while offering growth opportunities, also exposes the portfolio to higher volatility, aligning with the investor's balanced risk profile but limiting defensive mechanisms against market downturns.

Sectors Info

  • Technology
    24%
  • Financials
    17%
  • Industrials
    13%
  • Health Care
    11%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation reveals a heavy emphasis on technology and financial services, followed by industrials and healthcare. This composition is reflective of the broader market trends, particularly the significant weight of technology in driving market performance. However, the concentration in these sectors may increase susceptibility to sector-specific risks.

Regions Info

  • North America
    61%
  • Europe Developed
    39%

Geographic exposure is heavily tilted towards North America (61%) and developed Europe (39%), offering a solid foundation in stable, high-growth economies. This focus enhances the portfolio's potential for steady growth, though it may miss out on the higher growth prospects offered by emerging markets.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    35%
  • Mid-cap
    15%
  • Small-cap
    1%

The portfolio's bias towards mega (49%) and big-cap (35%) stocks suggests a preference for established, large companies likely to offer stable returns and lower volatility compared to smaller companies. This composition supports the balanced risk profile but may limit exposure to high-growth opportunities in the small-cap segment.

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.

Considering the Efficient Frontier, this portfolio appears to be positioned for a balanced risk-return ratio, given its current assets and allocations. However, exploring diversification into other asset classes or regions could potentially offer a more optimized risk-return profile without significantly altering the portfolio's fundamental characteristics.

Ongoing product costs Info

  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • Weighted costs total (per year) 0.15%

With a total expense ratio (TER) of 0.15%, the portfolio benefits from relatively low costs, supporting better net returns over the long term. This cost efficiency is a positive aspect, particularly in a low-yield environment where excessive fees can significantly erode returns.

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