A balanced and highly diversified portfolio with a global focus and low costs

Report created on May 5, 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 features a strategic mix of 79% stock ETFs and 20% bond ETFs, complemented by a minimal cash position. The Vanguard FTSE All-World UCITS ETF and the Xtrackers MSCI Europe UCITS ETF are the most significant components, indicating a strong emphasis on global equities, particularly from developed markets. The inclusion of bonds through the Xtrackers II - Global Aggregate Bond Swap UCITS ETF provides a cushion against equity market volatility, enhancing the portfolio's overall balance.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 7.37% and a maximum drawdown of -27.64%, this portfolio demonstrates a solid balance between growth and risk management. The drawdown figure suggests that while the portfolio has experienced significant short-term losses, its long-term growth trajectory remains intact. This performance is reflective of a diversified investment approach that captures global market movements.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, show a wide range of possible performances for this portfolio. With a median projected growth of 113.5% and 87.4% of simulations resulting in positive returns, the analysis underscores the portfolio's robustness. However, it's crucial to remember that these simulations are hypothetical and cannot guarantee future results.

Asset classes Info

  • Stocks
    79%
  • Bonds
    20%
  • Cash
    1%

The portfolio's allocation to stocks and bonds is well-tailored to a balanced investment strategy, with a slight lean towards equities for growth. This allocation aligns with the needs of investors seeking moderate growth while maintaining a cushion against market volatility. The minimal cash holding suggests an active investment approach, utilizing most of the available capital for growth opportunities.

Sectors Info

  • Technology
    15%
  • Financials
    15%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    6%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    1%

With technology and financial services each constituting 15% of the portfolio, followed by industrials and consumer cyclicals, the sectoral allocation supports a growth-oriented strategy while maintaining diversification. This sector spread mitigates sector-specific risks and leverages growth opportunities across the economy, aligning well with a balanced investment philosophy.

Regions Info

  • Europe Developed
    27%
  • North America
    27%
  • Japan
    10%
  • Asia Emerging
    8%
  • Asia Developed
    4%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

The geographic distribution emphasizes developed markets in Europe and North America, complemented by exposure to Japan and emerging markets in Asia. This global reach ensures the portfolio benefits from growth in different economic cycles and diversifies geopolitical risks. However, the limited exposure to emerging markets outside of Asia might be a missed opportunity for higher growth.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    28%
  • Mid-cap
    11%

The focus on mega and big-cap companies, constituting 67% of the portfolio, suggests a preference for stability and lower volatility associated with larger, well-established companies. While this supports the portfolio's balanced nature, incorporating more medium-cap companies could offer additional growth potential and diversification benefits.

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 Efficient Frontier analysis suggests there might be room to optimize the risk-return profile by adjusting asset allocations. While the current setup is solid, exploring slight shifts towards underrepresented sectors or regions could enhance returns without significantly increasing risk. This optimization process seeks to fine-tune the balance between risk and return, aiming for the most efficient portfolio composition.

Ongoing product costs Info

  • Xtrackers MSCI Europe UCITS ETF 1C 0.12%
  • iShares VII PLC - iShares Nikkei 225 ETF JPY Acc 0.48%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Xtrackers II - Global Aggregate Bond Swap UCITS ETF 0.10%
  • Xtrackers MSCI Emerging Markets UCITS ETF 1C 0.18%
  • Weighted costs total (per year) 0.19%

With an average Total Expense Ratio (TER) of 0.19%, the portfolio is cost-efficient, maximizing the potential for net returns. Lower costs are particularly beneficial over the long term as they compound alongside investment returns, making this portfolio an attractive option for cost-conscious investors.

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