A balanced and highly diversified portfolio with strong global exposure and low costs

Report created on Jun 12, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in stocks (90%) with a significant emphasis on the Vanguard FTSE Developed World UCITS ETF, which accounts for 80% of the allocation. This ETF provides broad exposure to developed markets, aligning with a balanced risk profile. The inclusion of the Amundi Smart Overnight Return ETF and the Vanguard FTSE Emerging Markets ETF adds a layer of diversification, balancing the developed world exposure with emerging markets and cash-equivalent assets. The overall composition suggests a strategic approach to achieving global diversification while maintaining a balanced risk level.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.15%, with a maximum drawdown of -22.56%. The performance metrics indicate a resilient portfolio capable of delivering strong returns while managing downside risks effectively. It's important to note, however, that past performance is not indicative of future results. This historical performance, especially the days contributing most to returns, underscores the importance of staying invested over the long term to capture key market movements.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential returns for this portfolio. With 94.6% of simulations showing positive returns and a median projected increase of 138.7%, the forward-looking outlook appears optimistic. However, it's crucial to remember that these projections are hypothetical and do not guarantee future performance. They serve as a tool for understanding potential volatility and outcomes based on historical trends.

Asset classes Info

  • Stocks
    90%
  • Other
    10%

The asset class distribution, with a heavy weighting towards stocks (90%) and a smaller allocation to cash equivalents (10%), is designed to optimize growth while providing a buffer against market volatility. This allocation supports a balanced investment strategy, aiming for long-term capital appreciation with a moderate level of risk. The limited exposure to other asset classes, such as bonds or real estate, might be an area to consider for further diversification.

Sectors Info

  • Technology
    22%
  • Financials
    16%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is well-diversified, with technology, financial services, and consumer cyclicals leading. This sector spread is reflective of the current global economic landscape, where technology and financial services are significant drivers of growth. However, the heavy weighting in technology (22%) could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts. Balancing sector exposure can help mitigate these risks.

Regions Info

  • North America
    57%
  • Europe Developed
    14%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is heavily skewed towards North America (57%), with meaningful exposure to Europe and emerging markets. This global diversification helps spread risk across different economic and political environments. However, the relatively low exposure to emerging markets (10%) and specific regions like Latin America and Africa/Middle East might limit potential growth opportunities in these high-growth areas.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    15%

The focus on mega (43%) and big (31%) cap stocks suggests a preference for stability and lower volatility associated with large, established companies. While this can offer a level of protection in turbulent markets, the portfolio's limited exposure to medium, small, and micro-cap stocks could mean missing out on higher growth potential offered by smaller companies.

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.

The portfolio's current allocation is closely aligned with an efficient balance of risk and return, as indicated by the portfolio optimization analysis. While the optimal portfolio suggests a slightly higher expected return at a similar risk level, the difference is minimal. This indicates that the current allocation is already well-optimized for the investor's risk tolerance and return expectations. However, investors should regularly review their portfolio to ensure it remains aligned with their financial goals and market conditions.

Ongoing product costs Info

  • Multi Units Luxembourg - Amundi Smart Overnight Return GBP Hedged UCITS ETF Acc 0.10%
  • Weighted costs total (per year) 0.01%

With exceptionally low total portfolio costs (0.01% TER for the Amundi ETF), this portfolio is positioned to maximize net returns. Keeping costs low is crucial for long-term investment success, as fees can significantly erode earnings over time. This portfolio's cost efficiency is a notable strength, supporting better performance relative to more expensive alternatives.

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