Balanced euro hedged growth mix with strong yield tilt and efficient risk allocation
Report created on Mar 24, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
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IB iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
IBCH - IE00B441G979 64.00% -
IS iShares Core MSCI Emerging Markets IMI UCITS
IS3N - IE00BKM4GZ66 11.00% -
EU iShares € High Yield Corp Bond UCITS ETF EUR (Dist) EUR
EUNW - IE00B66F4759 7.50% -
IB iShares Inflation Linked Government Bond UCITS
IBCI - IE00B0M62X26 7.50% -
SP SPDR® Bloomberg Emerging Markets Local Bond UCITS ETF (Acc)
SPFA - IE00BFWFPY67 7.50% -
XE Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C
XEON - LU0290358497 2.50%
The portfolio is built around one main growth engine: a global developed equity ETF hedged to the euro at 64%. That’s complemented by 11% in emerging markets stocks, and about 22% in bonds spread across high yield, emerging market local currency, and inflation-linked government debt. A small 3% sits in an overnight-rate money market–style ETF, acting as a liquidity and stability buffer. This mix explains the “Balanced” risk profile: mostly growth assets, with a meaningful slice in income and stabilisers. For someone wanting long-term growth but not an all‑equity rollercoaster, this structure is broadly sensible and relatively straightforward to maintain over time.
Growth
Historically, a €1,000 example investment grew to €1,726 since mid‑2018, a Compound Annual Growth Rate (CAGR) of 7.96%. CAGR is the “average yearly speed” of growth over the full period. The portfolio’s max drawdown of -28.66% shows the worst peak‑to‑trough decline, which is significant but in line with a balanced equity‑heavy mix. Compared with benchmarks, it lagged the global market’s 10.47% CAGR but had a slightly smaller worst drawdown than the global reference. The US benchmark here looks oddly low-return and low-drawdown relative to reality, underlining that specific backtest choices matter. Past performance is useful context, but not a promise.
Projection
The Monte Carlo simulation projects many possible 10‑year futures using the portfolio’s historical return and volatility pattern. Think of it as rolling the dice 1,000 times while keeping the same odds each time. The median outcome is about +72% after 10 years, with the 67th percentile at roughly +107% and the 5th percentile at about -16%. That means most paths are positive, but there’s still meaningful downside risk even over a decade. The average simulated annualized return of 4.53% is more conservative than historical results, which is a sensible way to set expectations. Still, all simulations rely on past data, so real markets can behave very differently.
Asset classes
- Stocks 76%
- Bonds 22%
- Other 3%
Asset allocation is 76% stocks, 22% bonds, and 3% cash‑like exposure. For a “balanced” profile, this leans clearly toward growth, which fits a long investment horizon but will feel volatile in sharp equity sell‑offs. The bond slice is nicely diversified across credit risk, inflation protection, and emerging market local currency, which helps smooth returns in different macro conditions. Compared with a very conservative blend, this is more growth‑oriented, but compared with an all‑equity portfolio, it has meaningful downside dampeners. This allocation is well-balanced and aligns closely with common global practices for investors willing to tolerate medium risk in pursuit of higher long‑term returns.
Sectors
- Technology 21%
- Financials 12%
- Industrials 8%
- Consumer Discretionary 7%
- Telecommunications 7%
- Health Care 7%
- Consumer Staples 4%
- Energy 3%
- Basic Materials 3%
- Utilities 2%
- Real Estate 1%
Sector-wise, the biggest share is in technology at 21%, followed by financials, industrials, consumer cyclicals, communication services, and healthcare, with smaller allocations across defensives like consumer staples, utilities, and energy. This is a modern, equity‑index‑like sector mix, where tech and communication names tend to dominate. Tech‑heavy exposure can power strong growth when innovation is rewarded and interest rates are stable or falling, but it can also mean sharper drawdowns when rates rise or sentiment shifts away from high‑growth names. The good news is you’re not all‑in on any single sector; there’s a decent spread that helps cushion shocks limited to one specific industry.
Regions
- North America 55%
- Europe Developed 11%
- Asia Developed 5%
- Asia Emerging 4%
- Japan 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, around 55% sits in North America, with smaller slices in developed Europe, Japan, developed Asia, and emerging regions such as Asia, Latin America, and Africa/Middle East. This is quite typical, as global equity indices are dominated by North American markets. The tilt toward North America has been beneficial over the last decade, but it does tie your fortunes somewhat to that region’s economic and policy environment. The emerging markets equity and bond positions add a growth kicker and diversification, though they can be more volatile. Overall, the global spread is broad and sensible, and the allocation aligns well with widely used global benchmarks.
Market capitalization
- Mega-cap 37%
- Large-cap 26%
- Mid-cap 12%
- Small-cap 1%
By market capitalization, the portfolio is dominated by mega and large companies: 37% mega‑cap, 26% big, 12% mid, and only 1% small. That’s a classic cap‑weighted index profile and explains why those well‑known global giants dominate the look‑through holdings. Large companies typically have more stable earnings, better access to financing, and more diversified business lines than small firms, so they often show lower volatility and shallower drawdowns. The downside is less exposure to the potential higher long‑term growth of small‑cap segments. Still, for a balanced risk profile, this large‑cap bias is very much in line with standard practice and helps keep risk manageable.
True holdings
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NV NVIDIA Corporation 3.21%
Part of fund(s):- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
-
AA Apple Inc 2.90%
Part of fund(s):- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
-
MS Microsoft Corporation 2.06%
Part of fund(s):- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
-
AM Amazon.com Inc 1.51%
Part of fund(s):- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
-
GO Alphabet Inc Class A 1.35%
Part of fund(s):- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.28%
Part of fund(s):- iShares Core MSCI Emerging Markets IMI UCITS
-
GO Alphabet Inc Class C 1.13%
Part of fund(s):- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
-
AV Broadcom Inc 1.08%
Part of fund(s):- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
-
ME Meta Platforms Inc. 1.05%
Part of fund(s):- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
-
TS Tesla Inc 0.85%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
- Top 10 total 16.41%
Looking through ETF top holdings, the largest underlying exposures are very familiar mega‑cap names: NVIDIA, Apple, Microsoft, Amazon, Alphabet, TSMC, Broadcom, Meta, and Tesla. This shows a tilt to large global growth companies even though you only hold broad index funds. Because these stocks appear in multiple ETFs, they create hidden concentration: if one of them moves sharply, it can drive portfolio swings more than the headline ETF list suggests. Overlap is probably higher than shown because we only see top‑10 positions. The upside is strong exposure to dominant global businesses; the trade‑off is higher sensitivity to the fortunes of a relatively small group of giants.
Factors
Factor exposure data shows dominant tilts to Yield and Momentum. Factors are like “personality traits” of investments — characteristics such as value, size, quality, or momentum that research links to long‑run returns. A strong Yield tilt means a good portion of the portfolio is in higher‑income assets, like high yield bonds or income‑paying equities, supporting total return and smoother cash flow. Momentum exposure suggests holdings that have performed strongly recently, which can boost returns in trending markets but may hurt when trends reverse. Signal coverage is relatively low overall, so these readings are indicative rather than precise, yet they still highlight a growth‑plus‑income style profile.
Risk contribution
-
iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR
Weight: 64.00% 80.9% -
iShares Core MSCI Emerging Markets IMI UCITS
Weight: 11.00% 12.9% -
iShares € High Yield Corp Bond UCITS ETF EUR (Dist) EUR
Weight: 7.50% 3.2% -
SPDR® Bloomberg Emerging Markets Local Bond UCITS ETF (Acc)
Weight: 7.50% 2.0% -
iShares Inflation Linked Government Bond UCITS
Weight: 7.50% 1.0% - Top 5 risk contribution 100.0%
Risk contribution shows how much each holding drives overall portfolio ups and downs, which can differ a lot from simple weights. Here, the hedged global equity ETF is 64% of the weight but contributes about 81% of total risk, giving it a risk‑to‑weight ratio of 1.26. The emerging markets equity ETF contributes nearly 13% of risk from an 11% weight, while each bond ETF contributes far less risk than its size suggests. In fact, the top three holdings drive 97% of portfolio risk. This is typical of a balanced equity‑heavy mix, but it means any change to that main equity ETF has an outsized impact on your overall volatility.
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.
On the risk‑return chart, the current portfolio has expected return of 7.89% with 12.91% volatility, giving a Sharpe ratio of 0.46. The Sharpe ratio measures return per unit of risk, after adjusting for a risk‑free rate. The good news is your allocation sits on the efficient frontier, meaning that for its current risk level, it’s already using the existing holdings in a very efficient way. There is an “optimal” version with higher risk and expected return (Sharpe 0.56), but that would mean accepting noticeably more volatility. For a balanced risk profile, being on the frontier at a moderate risk point is a strong indicator that the structure is well‑tuned.
Ongoing product costs
- iShares € High Yield Corp Bond UCITS ETF EUR (Dist) EUR 0.55%
- iShares MSCI World EUR Hedged UCITS ETF (Acc) EUR 0.55%
- iShares Inflation Linked Government Bond UCITS 0.09%
- iShares Core MSCI Emerging Markets IMI UCITS 0.18%
- SPDR® Bloomberg Emerging Markets Local Bond UCITS ETF (Acc) 0.60%
- Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C 0.10%
- Weighted costs total (per year) 0.47%
Total ongoing product costs (TER) average about 0.47%, which is impressively low for a portfolio that includes hedged global equity, emerging markets, high yield credit, and emerging market bonds. The most expensive funds are the emerging market and high yield bond ETFs, which is normal given the added complexity of those markets. Low costs matter because they’re one of the few things you can control: every 0.1% saved each year compounds significantly over decades. This cost level is competitive against many managed solutions and supports better long‑term performance, especially when combined with the broad diversification you’ve already achieved.
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