A balanced approach with a strong tilt towards emerging markets and technology

Report created on Jul 24, 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 is significantly weighted towards emerging markets with an 80% allocation to the iShares Core MSCI Emerging Markets IMI UCITS ETF, complemented by a 20% stake in the Vanguard S&P 500 UCITS ETF. This composition reflects a strategic bet on the growth potential of emerging markets, balanced by the stability of the US equity market. The portfolio's diversification is broad, spanning multiple sectors and geographies, though it is heavily concentrated in stocks, with no allocation to other asset classes like bonds or real estate.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 9.38%, experiencing a maximum drawdown of -31.50%. The performance is characterized by significant volatility, as indicated by the drawdown, but the overall growth rate suggests a rewarding outcome for the risk taken. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements, underscoring the importance of a long-term investment horizon.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 327.3% in portfolio value, suggesting substantial growth potential. However, the broad spread of results, from the 5th to the 67th percentile, underscores the high level of uncertainty and risk associated with this portfolio. Investors should be prepared for significant fluctuations and have a long-term perspective to weather potential volatility.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive allocation to stocks enhances its growth potential but also increases its volatility and risk. The absence of other asset classes like bonds or commodities limits opportunities for risk mitigation through diversification. Incorporating different asset classes can provide a buffer against stock market downturns and reduce overall portfolio volatility.

Sectors Info

  • Technology
    25%
  • Financials
    21%
  • Consumer Discretionary
    12%
  • Telecommunications
    9%
  • Industrials
    8%
  • Basic Materials
    6%
  • Health Care
    5%
  • Consumer Staples
    5%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sectoral allocation is heavily skewed towards technology and financial services, which together make up nearly half of the portfolio. This concentration enhances exposure to sectors with high growth potential but also increases susceptibility to sector-specific risks. Diversifying across a broader range of sectors could help mitigate these risks and stabilize returns.

Regions Info

  • Asia Emerging
    39%
  • Asia Developed
    24%
  • North America
    20%
  • Africa/Middle East
    8%
  • Latin America
    6%
  • Europe Emerging
    2%
  • Europe Developed
    1%

With 39% of assets in Asia Emerging and 24% in Asia Developed, the portfolio's geographic exposure is heavily tilted towards Asian markets. This focus on emerging and developed Asian economies offers high growth potential but also carries higher political and economic risk compared to more developed markets. The 20% allocation to North America provides some balance, though further diversification across global regions could reduce risk.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    3%

The portfolio's emphasis on mega and big cap stocks, which constitute 79% of the allocation, suggests a preference for established, large-scale companies. This bias towards larger companies may offer stability and lower volatility compared to smaller caps, but it could also limit exposure to high-growth opportunities in the small and micro-cap sectors.

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's current expected return is below the potential identified by optimization analysis, which suggests a more efficient portfolio could achieve a 14.96% return at the same risk level. This indicates room for improvement in asset allocation to enhance risk-adjusted returns without increasing the portfolio's overall risk profile.

Ongoing product costs Info

  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Vanguard S&P 500 UCITS ETF 0.07%
  • Weighted costs total (per year) 0.16%

With a total expense ratio (TER) of 0.16%, the portfolio benefits from relatively low costs, which can significantly enhance net returns over the long term. The low-cost structure is commendable and aligns with best practices for maximizing investment efficiency.

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