Balanced and highly diversified portfolio with a strategic focus on technology and global equities

Report created on Aug 2, 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 structured around a core of global equity ETFs, with a significant allocation towards technology and emerging markets. The largest position is in a broad world ETF, complemented by targeted investments in emerging markets, European small-cap value stocks, a blend of 80% equities via a life strategy fund, and a specific technology sector ETF. This composition reflects a strategic balance between growth potential and risk management, with a tilt towards technology and global diversification.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.18%, with a maximum drawdown of -20.22%. This performance suggests resilience and the ability to recover from market downturns. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance. Compared to benchmarks, this historical performance indicates a well-managed risk-return balance, though individual investor experience may vary.

Projection Info

Monte Carlo simulations, using historical data to forecast potential outcomes, suggest a wide range of future performance scenarios for this portfolio. With a median projected growth of 329% and a high degree of simulations showing positive returns, the analysis supports the portfolio's potential for robust long-term growth. However, it's crucial to remember that these projections are hypothetical and subject to the limitations of past data predicting future results.

Asset classes Info

  • Stocks
    98%
  • Bonds
    2%

The portfolio's allocation is heavily skewed towards stocks (98%), with a minimal bond presence (2%), reflecting a growth-oriented strategy. This high equity exposure is suitable for achieving long-term capital appreciation but comes with increased volatility. The lack of significant investments in other asset classes like real estate or commodities suggests an opportunity to further diversify and potentially reduce risk.

Sectors Info

  • Technology
    29%
  • Financials
    16%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    7%
  • Health Care
    7%
  • Basic Materials
    5%
  • Consumer Staples
    5%
  • Energy
    3%
  • Real Estate
    3%
  • Utilities
    2%

With technology making up 29% of the portfolio, there's a clear emphasis on growth sectors. Financial services and industrials also have substantial allocations, supporting a balanced approach to sector diversification. However, the heavy weighting in technology could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts. Balancing this with more defensive sectors could mitigate some volatility.

Regions Info

  • North America
    46%
  • Europe Developed
    28%
  • Asia Emerging
    10%
  • Asia Developed
    7%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    2%
  • Australasia
    1%
  • Europe Emerging
    1%

The geographic allocation underscores a strong bias towards North America and developed European markets, combined with meaningful exposure to emerging markets. This global spread aids in capturing growth across different economic cycles and regions. Nonetheless, the underrepresentation of regions like Latin America and Africa/Middle East might limit exposure to potentially high-growth markets.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    25%
  • Mid-cap
    24%
  • Small-cap
    8%

The portfolio's market capitalization breakdown shows a preference for mega and big-cap stocks, which tend to be more stable but may offer lower growth potential compared to smaller caps. The presence of medium, small, and a negligible amount of micro-cap exposure adds to diversification and growth prospects, though increasing small and micro-cap allocations could enhance potential returns at the cost of higher volatility.

Redundant positions Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR
    Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating
    High correlation

The high correlation observed between the world ETF and the life strategy fund suggests redundancy, potentially diminishing the portfolio's diversification benefits. This overlap indicates that both assets tend to move in tandem during market fluctuations, which could amplify losses during downturns. Reducing exposure to one of these correlated assets could improve the portfolio's overall risk profile.

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.

Optimizing the portfolio using the Efficient Frontier could focus on adjusting the current asset allocation to achieve the best possible risk-return ratio. The emphasis should be on reducing overlap between highly correlated assets, which currently do not add diversification value. By reallocating these funds into underrepresented sectors or regions, the portfolio could potentially enhance its performance and risk profile.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating 0.25%
  • Xtrackers MSCI World Information Technology UCITS ETF 1C 0.25%
  • SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc 0.30%
  • Weighted costs total (per year) 0.23%

The portfolio's average Total Expense Ratio (TER) of 0.23% is impressively low, which is beneficial for long-term growth as costs can significantly erode returns over time. This cost efficiency is a strong aspect of the portfolio, ensuring that more of the investment's returns are retained by the investor. However, continuously monitoring and comparing costs remains crucial as the investment landscape evolves.

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