A globally diversified balanced portfolio with strong Europe tilt and low costs for long term growth
Risk 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.
What type of investor this portfolio is suitable for
Balanced Investors
This portfolio suits someone with a moderate‑to‑higher risk tolerance who still wants a safety cushion. The ideal holder is focused on long‑term wealth building over at least 8–15 years and is comfortable seeing market ups and downs without panicking. Growth is a clear priority over current income, and there is a willingness to accept temporary drops in value in exchange for better long‑run potential. A Euro‑based saver who likes a familiar home‑region tilt but still wants global exposure fits well here. This type of investor generally prefers simple, low‑cost, rules‑based investing instead of constant trading or trying to outguess short‑term market moves.
Positions
-
iShares OMX Stockholm Capped UCITS
OM3X - IE00BD3RYZ16 24.00% -
iShares Core MSCI World UCITS ETF USD (Acc) EUR
EUNL - IE00B4L5Y983 22.00% -
iShares Core MSCI EM IMI UCITS ETF
IBC3 - IE00BD45KH83 12.00% -
Vanguard EUR Eurozone Government Bond UCITS ETF EUR Accumulation
VGEA - IE00BH04GL39 12.00% -
Berkshire Hathaway Inc
BRYN - US0846707026 11.00% -
Xtrackers EURO STOXX 50 UCITS ETF 1C
XESC - LU0380865021 11.00% -
Xtrackers MSCI Nordic UCITS ETF
XMN1 8.00%
The portfolio is clearly equity-led at 88%, with 12% in high‑quality government bonds and no cash drag. Core holdings are broad global equity funds, complemented by focused allocations to Europe, the Nordics, and a single large business owner stock. This structure gives a good mix of wide diversification and a few targeted tilts. Compared with a typical balanced benchmark, this setup runs slightly more equity risk but stays within a moderate range. Keeping this general structure makes sense; any tweaks would mainly be about fine‑tuning the equity‑bond split and checking that the focused European and single‑stock tilts match the intended risk comfort.
Historical data is limited for this portfolio, which reduces the confidence in the calculated values.
Growth
Historically, the portfolio delivered a compound annual growth rate (CAGR) of 6.72%. CAGR is like average speed on a long car trip: it smooths out all the bumps to show your “typical” progress per year. A drawdown of -15.89% means the worst historical drop from a previous peak stayed clearly below typical stock‑only crashes, which often exceed -30%. That’s a reassuring sign for a balanced profile. If someone had invested 10,000 units of currency, it would have grown to roughly 13,800 over ten years at this rate. Still, past numbers only describe what happened in specific market conditions and can’t guarantee the same pattern in the future.
Due to limited historical data, this may show extreme values that are not realistic.
Projection
The forward‑looking Monte Carlo analysis uses 1,000 random simulations based on historical behaviour to create a range of possible futures. Think of it as replaying history thousands of different ways to see many “what if” paths. The 5th percentile outcome of about -23.8% shows a tough but survivable scenario, while the median (50th percentile) of about +109.8% more than doubling suggests attractive growth potential. An annualized simulated return of 6.65% lines up nicely with historical data, which is a positive consistency check. Still, simulations are only educated guesses; they rely on the past being at least somewhat similar to the future, which is never guaranteed, especially around rare crises or regime shifts.
Asset classes
- Stocks 88%
- Bonds 12%
- Cash 0%
- Other 0%
- No data 0%
The split of 88% stocks and 12% bonds lines up with a growth‑oriented balanced approach, leaning more toward appreciation than capital preservation. Equities are the main driver of long‑term returns, while bonds act as a cushion in tough markets and can reduce overall portfolio swings. This mix is slightly more aggressive than a classic 60/40 profile, but still more tempered than pure equity. For someone with a long horizon, that can be a good balance: enough risk to grow, but with some stabilizing ballast. Fine‑tuning the bond share over time might be useful, especially ahead of known life events or as the investment horizon gets shorter.
Sectors
- Financials 28%
- Industrials 19%
- Technology 13%
- Consumer Discretionary 6%
- Health Care 6%
- Telecommunications 5%
- Basic Materials 4%
- Consumer Staples 3%
- Energy 2%
- Real Estate 2%
- Utilities 1%
Sector exposure is broad, with meaningful weights in financials, industrials, and technology, plus smaller positions in healthcare, consumer areas, and real assets. This spread closely resembles common global benchmarks, which is a strong indicator of healthy diversification. A relatively high share in financials can do well when economies are stable and interest rates are favourable, while tech exposure supports long‑term innovation‑driven growth but can be volatile when rates rise. Having several sectors each in the mid‑single to high‑teens percentage range helps avoid overreliance on a single economic story. It’s worth occasionally checking whether any sector drift (for example after strong rallies) begins to dominate more than intended and trimming or adding accordingly.
Regions
- Europe Developed 46%
- North America 28%
- Asia Emerging 5%
- Asia Developed 5%
- Africa/Middle East 1%
- Japan 1%
- Latin America 1%
- Australasia 0%
- Europe Emerging 0%
Geographically, there is a clear tilt toward developed Europe at 46%, above typical global‑market weights, with North America at 28% and smaller slices across Asia and other regions. This Europe focus is understandable for a Euro‑based investor and still broadly diversified, but it does mean outcomes will be more sensitive to European economic and political cycles. The global ETFs bring in North America and emerging markets, which is excellent for spreading currency and growth‑driver risk. Keeping this Europe tilt is perfectly valid if intentional; just be aware that global benchmarks are usually more weighted to North America, so long‑term performance may differ meaningfully from world indices in certain decades.
Market capitalization
- Mega-cap 43%
- Large-cap 29%
- Mid-cap 13%
- Small-cap 2%
- Micro-cap 0%
The portfolio is dominated by mega and large‑cap companies (around 72%), with modest exposure to mid caps and only a small slice in smaller firms. Large caps tend to be more stable, better researched, and more resilient in crises, which fits nicely with a balanced risk profile. Smaller companies can offer higher growth but usually swing more, especially in stressed markets. This structure is therefore quite conservative within the equity bucket, which helps offset the relatively high overall equity share. Over time, deliberately adding or reducing mid/small‑cap tilt could be a way to fine‑tune growth potential versus volatility without changing the overall equity percentage dramatically.
Dividends
- iShares Core MSCI EM IMI UCITS ETF 2.10%
- Weighted yield (per year) 0.25%
The overall dividend yield of about 0.25% is quite low, reflecting the use of accumulating ETFs and growth‑oriented holdings. One emerging‑markets fund yields around 2.1%, but its weight is modest, so income remains a small part of total return. This setup is well‑suited to investors who care more about compounding than current cash flow, since reinvested income quietly boosts long‑term growth. For someone not relying on portfolio income to pay living expenses, this low yield is actually a strength. If future goals change and regular payouts become important, it would be easy to tilt gradually toward more distributing or income‑focused holdings without abandoning the core structure.
Ongoing product costs
- iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
- iShares Core MSCI EM IMI UCITS ETF 0.18%
- iShares OMX Stockholm Capped UCITS 0.10%
- Vanguard EUR Eurozone Government Bond UCITS ETF EUR Accumulation 0.07%
- Xtrackers EURO STOXX 50 UCITS ETF 1C 0.09%
- Weighted costs total (per year) 0.11%
Total ongoing costs (TER) around 0.11% are impressively low and a major strength of this setup. TER, or total expense ratio, is like an annual “membership fee” charged as a small percentage of assets. Every 0.1% saved in fees compounds in your favour over decades, much like avoiding constant small leaks from a water tank. Being mostly in large, low‑cost index funds means more of the market’s return stays in the portfolio instead of going to product providers. This cost advantage is entirely under your control and already optimized very well; the main task going forward is simply to maintain this discipline when making any future adjustments.
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.
On a risk‑return chart, this portfolio likely sits close to an “efficient frontier” for its current building blocks. The efficient frontier is the set of combinations that offer the best possible return for each level of risk using only the chosen ingredients. Within this set, shifting the balance slightly between equities and bonds, or adjusting the intensity of regional tilts, could nudge the portfolio toward a somewhat better risk‑return ratio. Efficiency here is about squeezing more return from each unit of volatility, not about maximizing diversification, ethics, or other goals. Whatever adjustments are made, keeping the low costs and broad indexing core is key to staying near that efficient zone.
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