Balanced global portfolio with a focus on high dividend yield and emerging markets

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio emphasizes a balanced approach with a 50% allocation to high-dividend-yielding global stocks, 25% to emerging markets, and 25% to European small-cap value stocks. Such a composition suggests a strategic blend aimed at capturing growth in developing regions and value in smaller European companies, while seeking income through dividends. The portfolio's diversification across geographies and sectors, alongside a single asset class focus on stocks, positions it for potential growth with moderate risk.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 7.42%, with a maximum drawdown of -35.85%. The days contributing most significantly to returns are relatively few, indicating that performance peaks are driven by specific market events. This performance metric, when compared to a balanced benchmark, suggests that the portfolio has navigated market volatility with resilience, benefiting from its diversified approach.

Projection Info

Monte Carlo simulations, employing 1,000 scenarios, project a wide range of outcomes with a median increase of 133.3% and a 67th percentile performance potentially reaching 211.6%. Notably, 91.3% of simulations predict positive returns. While these projections offer insight, they are based on historical data and assumptions, and actual future performance may vary, highlighting the importance of regular portfolio reviews.

Asset classes Info

  • Stocks
    100%

The portfolio's 100% allocation to stocks across various geographies and sectors signifies a growth-oriented strategy with no direct allocation to bonds, cash, or other asset classes. This singular focus increases exposure to equity market volatility but also allows for potentially higher returns. Diversifying across different asset classes could provide a buffer against market fluctuations.

Sectors Info

  • Financials
    25%
  • Industrials
    14%
  • Consumer Discretionary
    11%
  • Technology
    10%
  • Consumer Staples
    7%
  • Health Care
    7%
  • Energy
    6%
  • Basic Materials
    6%
  • Telecommunications
    6%
  • Utilities
    4%
  • Real Estate
    3%

Sector allocation is broadly diversified, with significant positions in financial services, industrials, and consumer cyclicals. This distribution reflects a balanced approach, aiming to capture growth across different economic cycles. However, the allocation towards technology and healthcare, sectors known for innovation and growth, could be optimized to enhance future growth prospects.

Regions Info

  • Europe Developed
    38%
  • North America
    23%
  • Asia Emerging
    18%
  • Asia Developed
    8%
  • Japan
    5%
  • Africa/Middle East
    4%
  • Latin America
    3%
  • Australasia
    2%
  • Europe Emerging
    1%

Geographic allocation underscores a strong emphasis on developed Europe and North America, combined with meaningful exposure to emerging markets in Asia and other regions. This global footprint enhances diversification, reducing the portfolio's vulnerability to regional economic downturns. However, the modest allocation to Asia Developed and Japan suggests potential for increased exposure to these innovation-driven economies.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    30%
  • Mid-cap
    28%
  • Small-cap
    9%
  • Micro-cap
    1%

The spread across mega, big, medium, small, and micro-cap stocks indicates a comprehensive market capitalization strategy, balancing stability with growth potential. This diversity helps mitigate risk, as larger companies typically offer stability, while smaller companies provide growth opportunities. Adjusting the balance between these categories could further optimize risk and return.

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 current portfolio, with an expected return of 7.42%, is close to the optimal portfolio's expected return of 7.94% at a similar risk level. This slight difference suggests that while the portfolio is well-positioned, minor adjustments could potentially enhance returns without significantly increasing risk. Exploring different asset allocations or rebalancing strategies could help in achieving this optimization.

Ongoing product costs Info

  • Vanguard FTSE Emerging Markets UCITS 0.22%
  • Vanguard FTSE All-World High Dividend Yield UCITS USD 0.29%
  • SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc 0.30%
  • Weighted costs total (per year) 0.28%

With a total expense ratio (TER) averaging 0.28%, the portfolio benefits from relatively low costs, which supports net returns over the long term. Cost efficiency is crucial in maximizing investment growth, especially in a diversified portfolio where expenses can erode returns. Continuous monitoring of fund costs and considering even lower-cost options could further enhance profitability.

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