This portfolio has only about 4.8 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.
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Balanced and Broadly Diversified Portfolio with Strong Historical Performance

Report created on Jul 24, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of 80% iShares Dow Jones Global Sustainability Screened UCITS ETF and 20% iShares MSCI World Energy Sector UCITS ETF. This mix provides a balance between sustainable investments and the energy sector. The high allocation to a sustainability-focused ETF suggests a preference for socially responsible investing. The 20% allocation to the energy sector adds an element of sector-specific exposure, which can offer growth potential but also introduces sector-specific risks.

Growth Info

Historically, the portfolio has performed well with a compound annual growth rate (CAGR) of 12.38%. This indicates strong growth over time. However, it has also experienced a significant maximum drawdown of -36.49%, which underscores the inherent risks. The fact that 90% of returns are concentrated in just 16 days suggests that timing the market could be challenging. This level of volatility is typical for a balanced portfolio and should be considered when evaluating overall performance.

Projection Info

Using a Monte Carlo simulation with 1,000 scenarios, the portfolio shows a wide range of potential outcomes. The median (50th percentile) projection is a return of 416.46%, while the 5th percentile is 16.2%, and the 67th percentile is 672.59%. This simulation provides a probabilistic view of future performance, assuming a hypothetical initial investment. The annualized return of all simulations is 15.58%, indicating a generally positive outlook but with considerable variation.

Asset classes Info

  • Stocks
    99%

The portfolio is heavily weighted towards stocks, comprising 99.43% of the total allocation. This high concentration in equities suggests a growth-oriented approach but also implies higher volatility. The small allocations to cash (0.42%) and other assets (0.16%) provide minimal diversification. For balanced portfolios, having a mix of asset classes like bonds or real estate can help mitigate risk and provide more stability during market downturns.

Sectors Info

  • Energy
    23%
  • Technology
    23%
  • Financials
    13%
  • Health Care
    13%
  • Industrials
    8%
  • Telecommunications
    7%
  • Basic Materials
    4%
  • Consumer Discretionary
    3%
  • Consumer Staples
    2%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is quite diverse, with significant exposure to energy (22.86%) and technology (22.71%). Financial services (13.46%) and healthcare (13.29%) also have notable allocations. This diversification across multiple sectors can help reduce sector-specific risks. However, the high concentration in energy and technology could expose the portfolio to volatility if these sectors underperform. A more evenly distributed sector allocation might provide better risk management.

Regions Info

  • North America
    59%
  • Europe Developed
    22%
  • Asia Developed
    6%
  • Japan
    6%
  • Asia Emerging
    3%
  • Australasia
    3%
  • Latin America
    1%

The geographic composition is predominantly North American (59.14%), followed by Europe Developed (21.93%) and Asia Developed (5.90%). This indicates a strong bias towards developed markets, which can offer stability and growth. However, the relatively low exposure to emerging markets (3.15%) suggests limited potential for capturing higher growth opportunities. A more balanced geographic allocation could enhance diversification and potentially improve returns.

Dividends Info

  • iShares MSCI World Energy Sector UCITS ETF USD Inc 3.60%
  • Weighted yield (per year) 0.72%

Dividend yield information is not provided, but given the ETFs involved, the portfolio likely generates some level of dividends. Dividends can provide a steady income stream and help cushion against market volatility. Reinvesting dividends can also contribute to compounding growth over time. It's essential to consider the role of dividends in overall portfolio performance and whether they align with income needs or growth objectives.

Ongoing product costs Info

  • iShares MSCI World Energy Sector UCITS ETF USD Inc 0.25%
  • iShares Dow Jones Global Sustainability Screened UCITS ETF USD (Acc) 0.60%
  • Weighted costs total (per year) 0.53%

The portfolio has a total expense ratio (TER) of 0.53%, which is relatively low and indicative of cost-effective management. Lower costs can significantly impact long-term returns by reducing the drag on performance. It's crucial to keep investment costs in check, as high fees can erode gains over time. Regularly reviewing and comparing expense ratios can help ensure the portfolio remains cost-efficient.

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