A cautious portfolio with strong ESG focus and broad diversification across developed markets

Report created on Oct 3, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio consists of four ETFs, heavily weighted towards North America with a 60% allocation. The remaining 40% is split among Europe, Emerging Markets, and Asia Pacific. The focus on ETFs suggests a preference for passive management and broad market exposure. Such a composition is beneficial for investors seeking simplicity and cost-effectiveness. However, the high North American concentration may limit exposure to other growth opportunities. Consider rebalancing to ensure diversification aligns with your objectives and risk tolerance, possibly increasing allocations to underrepresented regions.

Growth Info

Historically, this portfolio has performed impressively, with a compound annual growth rate (CAGR) of 19.67%. This strong performance indicates resilience and the potential for significant returns. However, past performance is not indicative of future results, and market conditions can change. The maximum drawdown of -8.29% suggests moderate volatility, which is acceptable for a cautious investor. To maintain this performance, continuously monitor market trends and adjust allocations to mitigate potential risks and capitalize on emerging opportunities.

Projection Info

The Monte Carlo simulation, using 1,000 scenarios, suggests a wide range of potential outcomes for this portfolio. The median projected return is 840.97%, with a 5th percentile outcome of 311.18%, indicating a high likelihood of positive returns. Monte Carlo simulations use historical data to model future possibilities, but they can't predict specific outcomes. They provide a framework for understanding potential risks and returns. Regularly review your portfolio to ensure it aligns with your risk tolerance and financial goals, considering both optimistic and pessimistic scenarios.

Asset classes Info

  • Stocks
    100%

This portfolio is predominantly composed of stocks, accounting for nearly 100% of the allocation. While this can drive growth, it also introduces higher volatility compared to a more diversified asset class mix. Including bonds or alternative assets could enhance stability and provide a buffer during market downturns. Assess your risk tolerance and consider introducing non-equity asset classes to balance growth potential with risk management, particularly if your investment horizon is short or if you prefer a more conservative approach.

Sectors Info

  • Technology
    27%
  • Financials
    18%
  • Health Care
    13%
  • Consumer Discretionary
    12%
  • Telecommunications
    8%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Real Estate
    3%
  • Basic Materials
    3%

The portfolio is heavily weighted towards the technology sector, representing over 27% of the allocation. This concentration can lead to higher volatility, as tech stocks can be more sensitive to market changes. Diversifying across sectors such as healthcare, financial services, and consumer cyclicals can reduce risk and improve stability. Evaluate sector performance and economic trends to adjust your allocations accordingly, ensuring a balanced approach that aligns with market conditions and your investment objectives.

Regions Info

  • North America
    60%
  • Europe Developed
    20%
  • Japan
    6%
  • Asia Emerging
    6%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation is primarily focused on developed markets, with North America and Europe accounting for 79.59% of the portfolio. This provides stability but may limit exposure to high-growth regions. Emerging markets only make up 10% of the allocation, which could be increased to capture potential growth opportunities. Consider diversifying geographically by increasing exposure to underrepresented regions, which can enhance returns and provide a hedge against regional economic downturns.

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 can be optimized using the Efficient Frontier, a concept that focuses on achieving the best possible risk-return ratio. This involves adjusting the current asset allocation to find the optimal balance between risk and return. By reallocating funds among existing assets, you can potentially enhance returns without significantly increasing risk. Consider using portfolio optimization tools to identify the most efficient allocation, ensuring that your investment strategy aligns with your financial goals and risk tolerance.

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