This portfolio has only about 6.1 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.

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 consists predominantly of ETFs, with the Xtrackers MSCI World ESG UCITS ETF 1C making up 75%, the Xtrackers MSCI Emerging Markets UCITS ETF 1C at 20%, and the Amundi Index Solutions - Amundi MSCI Europe ESG Broad CTB UCITS ETF DR EUR C at 5%. This composition indicates a strong emphasis on global equity exposure with a tilt towards ESG (Environmental, Social, and Governance) criteria. This mix provides a good balance between developed and emerging markets, ensuring broad diversification across various economies and industries.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 11.77%, which is quite robust. However, it has also experienced a significant maximum drawdown of -32.92%, highlighting periods of substantial volatility. The fact that 90% of the returns are concentrated in just 22 days indicates the importance of staying invested and not trying to time the market. This historical performance suggests that while the portfolio has the potential for strong returns, it also comes with notable risks during market downturns.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio's future performance was projected. This simulation, which models a range of possible outcomes based on historical data, shows a median (50th percentile) end portfolio value of 199.12% of the initial investment, with an annualized return of 9.55%. The 5th percentile indicates a potential downside of -4.51%, while the 67th percentile suggests an upside of 297.48%. The high number of simulations with positive returns (944 out of 1,000) indicates a favorable outlook for the portfolio.

Asset classes Info

  • Stocks
    80%
  • No data
    20%

The portfolio is primarily composed of stocks, which make up approximately 79.81% of the allocation. There is also a significant portion categorized as "Unknown" at 20%, which likely represents the emerging markets exposure. The remaining small fractions are in other asset classes and cash. This heavy tilt towards equities suggests a growth-oriented strategy, which is suitable for investors with a moderate risk tolerance seeking capital appreciation over the long term.

Sectors Info

  • Technology
    25%
  • No data
    20%
  • Financials
    13%
  • Health Care
    11%
  • Telecommunications
    8%
  • Industrials
    8%
  • Consumer Discretionary
    8%
  • Consumer Staples
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    1%

The sector allocation is well-diversified, with the largest exposure being to Technology at 24.59%, followed by Financial Services at 12.81%, and Healthcare at 11.33%. Other sectors like Communication Services, Industrials, and Consumer Cyclicals also have notable allocations. This diversity helps mitigate sector-specific risks and provides exposure to various economic segments, which can be beneficial in different market conditions. The recommendation is to periodically review sector allocations to ensure they align with overall market trends and personal investment goals.

Regions Info

  • North America
    56%
  • No data
    20%
  • Europe Developed
    17%
  • Japan
    5%
  • Australasia
    1%
  • Asia Developed
    1%

Geographically, the portfolio has a strong bias towards North America, which constitutes 56.25% of the allocation. Europe Developed follows with 16.93%, and Japan with 4.75%. The "Unknown" category at 20% likely includes emerging markets exposure. This geographical mix offers a good balance between developed and emerging markets, providing exposure to different economic cycles and growth opportunities. It's advisable to monitor the geographic allocation to ensure it remains aligned with global economic developments and personal risk tolerance.

Ongoing product costs Info

  • Amundi Index Solutions - Amundi MSCI Europe ESG Broad CTB UCITS ETF DR EUR C 0.12%
  • Xtrackers MSCI World ESG UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.19%

The portfolio's total expense ratio (TER) is 0.19%, which is relatively low and beneficial for long-term growth. Lower costs mean that more of the portfolio's returns are retained by the investor, rather than being eroded by fees. This cost efficiency is particularly important for ETFs, which are generally designed to be low-cost investment vehicles. Keeping investment costs low is a key principle for maximizing net returns over time.

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