Well-diversified cautious portfolio with strong historical performance and low costs suitable for risk-averse investors

Report created on Jun 14, 2024

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.

Positions

The portfolio is composed of three ETFs with a focus on global diversification. Vanguard FTSE All-World UCITS ETF USD Accumulation dominates with 60%, providing broad exposure across global markets. Amundi Stoxx Europe 600 UCITS ETF C EUR contributes 30%, focusing on European equities, while Xtrackers Nikkei 225 UCITS ETF 1C EUR adds 10% exposure to Japanese stocks. This blend offers a comprehensive mix of developed market equities. Such a diversified setup can help mitigate risks associated with regional market downturns. To optimize, maintaining this balanced allocation while monitoring global economic trends is advisable.

Growth Info

Historically, the portfolio has shown impressive performance with a CAGR of 13.94%. Despite a maximum drawdown of -16.39%, the portfolio has demonstrated resilience, recovering quickly and achieving significant returns. This performance highlights the benefits of diversification and a well-structured portfolio. Understanding past performance is crucial as it provides insights into potential future returns and risks. Continuing to track historical performance can help in making informed decisions about future adjustments, ensuring alignment with investment goals and risk tolerance.

Projection Info

A Monte-Carlo simulation, used for projecting future performance, considers a hypothetical initial investment and runs 1,000 simulations. With a 50th percentile end value of 401.32% and a 67th percentile of 535.4%, the projections suggest a strong potential for future returns. The simulation assumes a broad range of market conditions, providing a comprehensive view of possible outcomes. While projections are not guarantees, they can guide expectations. Regularly reviewing these projections can help in adjusting strategies to stay aligned with financial goals.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted towards stocks, with 99.74% in equities. This concentration in a single asset class suggests a focus on capital appreciation. While equities can offer higher returns, they also come with increased volatility. Understanding the asset class distribution helps in assessing risk exposure. To balance risk, consider diversifying into other asset classes like bonds or real estate, which can provide stability and income, especially during market downturns.

Sectors Info

  • Technology
    20%
  • Financials
    16%
  • Industrials
    13%
  • Health Care
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    7%
  • Consumer Staples
    7%
  • Basic Materials
    5%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sector allocation is diverse, with significant exposure to technology, financial services, and industrials. Technology leads with nearly 20%, reflecting its growth potential and market influence. Sector diversification is crucial for managing risk and capitalizing on different economic cycles. A well-rounded sector allocation can help buffer against sector-specific downturns. Continually evaluating sector performance and trends can ensure the portfolio remains aligned with market dynamics and investment objectives.

Regions Info

  • North America
    39%
  • Europe Developed
    39%
  • Japan
    14%
  • Asia Emerging
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is well-diversified, with North America and Europe Developed making up the largest portions. Japan also holds a significant share, providing exposure to the Asian market. Geographic diversification reduces the risk of regional economic downturns impacting the entire portfolio. Understanding geographic allocation helps in assessing exposure to different economic environments. Regularly reviewing geographic distribution can ensure the portfolio remains balanced and responsive to global market shifts.

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 is already well-diversified, so optimization should focus on aligning with risk tolerance and financial goals. Moving along the efficient frontier can help achieve a riskier or more conservative stance. A more aggressive approach could involve increasing equity exposure, while a conservative strategy might incorporate more bonds. However, given the existing balance, the focus should be on maintaining diversification and cost efficiency. Regularly reviewing the portfolio against the efficient frontier can ensure it remains optimized for the investor's objectives.

Ongoing product costs Info

  • Amundi Stoxx Europe 600 UCITS ETF C EUR 0.07%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Xtrackers Nikkei 225 UCITS ETF 1C EUR 0.09%
  • Weighted costs total (per year) 0.16%

With a total expense ratio (TER) of 0.16%, the portfolio is cost-efficient. Low costs are crucial for maximizing net returns, as high fees can erode gains over time. Understanding cost structures helps in evaluating investment efficiency. Maintaining a focus on low-cost investments can enhance overall performance. Regularly reviewing and optimizing costs ensures that the portfolio remains competitive and aligned with financial goals.

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