A globally diversified portfolio with a balanced risk profile and a tech sector tilt

Report created on Aug 2, 2025

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 five ETFs, focusing on a broad range of global equities with a 100% allocation to stocks. This composition reflects a deliberate choice for growth, leveraging diversification across developed and emerging markets, as well as sectoral variety. The significant weight in the iShares Core MSCI World UCITS ETF, at 40%, anchors the portfolio in a wide array of global equities, while the allocations to emerging markets, Asia Pacific ex Japan, European small cap, and specifically the tech sector, suggest a strategic tilt towards areas with potential for higher growth. This structure is well-suited for investors seeking balanced exposure with a slight preference for technology and geographical spread.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.99%, with a maximum drawdown of -35%. The days contributing most significantly to returns are relatively few, indicating that performance peaks are concentrated in specific periods. This historical performance suggests resilience and the potential for strong returns, albeit with periods of significant volatility. When compared to benchmarks, this performance indicates a competitive return profile, particularly attractive to investors comfortable with the inherent risks of stock market investments.

Projection Info

Monte Carlo simulations, which project future outcomes based on historical data, show a wide range of potential portfolio values. With 972 out of 1,000 simulations predicting positive returns and a median projected annualized return of 12.62%, the portfolio demonstrates a strong likelihood of favorable outcomes. However, it's important to remember that these simulations are based on past data, which is not a guaranteed predictor of future performance. The range of outcomes underscores the portfolio's risk and return characteristics, suitable for investors with a balanced risk tolerance.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks showcases a focused approach towards capital growth. This single-asset class strategy simplifies the investment thesis but also concentrates risk. Diversification within the asset class, through geographic and sectoral spread, mitigates this risk to some extent. However, the absence of bonds, commodities, or alternative investments means the portfolio may be more susceptible to market volatility. Investors might consider whether introducing other asset classes could enhance the portfolio's resilience without significantly diluting its growth potential.

Sectors Info

  • Technology
    25%
  • Financials
    19%
  • Industrials
    12%
  • Consumer Discretionary
    10%
  • Telecommunications
    7%
  • Health Care
    6%
  • Basic Materials
    6%
  • Consumer Staples
    4%
  • Real Estate
    4%
  • Energy
    3%
  • Utilities
    3%

With technology representing 25% of the portfolio, there's a clear emphasis on a sector known for its high growth potential but also for its volatility. The balanced allocation across other sectors like financial services, industrials, and consumer cyclicals suggests an attempt to harness growth across the economic spectrum. This sectoral distribution aligns with the portfolio's balanced risk profile, aiming to capture upside while mitigating sector-specific risks. However, the tech sector's weight may warrant periodic review to manage concentration risk.

Regions Info

  • North America
    37%
  • Europe Developed
    24%
  • Asia Developed
    13%
  • Asia Emerging
    11%
  • Australasia
    9%
  • Japan
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

The geographic distribution of the portfolio, with significant allocations to North America, Europe, and both developed and emerging Asian markets, underscores a strategic approach to global diversification. This spread is designed to capture growth across different economies and market conditions, reducing the impact of regional downturns. The minimal exposure to Latin America and the absence of Europe Emerging markets highlight areas for potential diversification or rebalancing, depending on evolving global economic trends.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    28%
  • Mid-cap
    22%
  • Small-cap
    7%

The portfolio's emphasis on mega and big-cap stocks, constituting 71% of the allocation, suggests a preference for stability and established market players. This is balanced by a meaningful allocation to medium and small-cap stocks, introducing growth potential and higher volatility. This market capitalization distribution is indicative of a balanced approach, aiming to harness the stability of large caps and the growth potential of smaller companies. Investors should consider how this balance aligns with their risk tolerance and growth objectives.

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, the portfolio appears well-positioned for a balanced risk-return trade-off, assuming current market conditions persist. However, continuous optimization could further enhance its position on the Efficient Frontier, potentially offering a better risk-return ratio. This might involve rebalancing between asset classes, sectors, or geographic allocations to align more closely with the investor's changing risk tolerance and market outlook. Regular reviews and adjustments are essential to maintain optimal portfolio performance over time.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • Vanguard FTSE Emerging Markets UCITS ETF USD Accumulation 0.22%
  • Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF USD Accumulation 0.15%
  • Xtrackers MSCI World Information Technology UCITS ETF 1C 0.25%
  • SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc 0.30%
  • Weighted costs total (per year) 0.22%

With a Total Expense Ratio (TER) averaging 0.22%, the portfolio is efficiently managed in terms of costs. This low cost structure is beneficial for long-term growth, as lower fees directly translate to higher net returns for investors. While the portfolio's cost efficiency is commendable, investors should continuously monitor expense ratios and consider them in the context of overall performance and value delivered by each ETF.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey