A globally diversified equity portfolio with a balanced risk profile and low costs

Report created on Aug 20, 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 comprised entirely of equity ETFs, focusing on major global indices. The Vanguard FTSE All-World UCITS ETF USD Accumulation, SPDR® MSCI World UCITS ETF EUR, and Vanguard S&P 500 UCITS Acc collectively cover a broad spectrum of the global stock market. This allocation suggests a strategy aimed at capturing the growth potential of global equities while maintaining a balanced risk profile. The overlap among these ETFs could lead to a concentration in certain sectors and geographies, potentially affecting diversification.

Growth Info

The historical performance, with a Compound Annual Growth Rate (CAGR) of 12.34% and a maximum drawdown of -33.59%, indicates a strong upward trend tempered by significant volatility. The days contributing to 90% of returns being limited to 18 suggests that portfolio gains are highly concentrated in short periods, underscoring the importance of staying invested through market cycles for long-term growth.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with the median scenario suggesting a 392.9% increase over an unspecified period. While this tool provides valuable insights into possible future states, it's crucial to remember that these projections are based on historical data and cannot guarantee future performance. The high number of simulations with positive returns reinforces the portfolio's growth potential but also highlights the need for risk management.

Asset classes Info

  • Stocks
    100%

The portfolio is invested 100% in stocks, offering high growth potential but also higher risk compared to more diversified portfolios including bonds or other asset classes. This asset class allocation aligns with an investor aiming for capital appreciation over the long term but may not be suitable for those with a lower risk tolerance or nearing the need for liquidity.

Sectors Info

  • Technology
    29%
  • Financials
    16%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

The sector allocation is heavily weighted towards technology, financial services, and consumer cyclicals. While these sectors can offer significant growth opportunities, they also expose the portfolio to sector-specific risks, such as regulatory changes or economic cycles. Diversifying across a broader range of sectors could help mitigate these risks.

Regions Info

  • North America
    80%
  • Europe Developed
    11%
  • Japan
    4%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

With 80% exposure to North America and limited presence in emerging markets, the portfolio is heavily reliant on the performance of developed economies. This concentration enhances exposure to the stability and growth of mature markets but may limit potential gains from the faster growth of emerging markets.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    35%
  • Mid-cap
    17%
  • Small-cap
    1%

The focus on mega and big cap stocks suggests a preference for established companies with potentially more stable returns but possibly lower growth rates compared to smaller companies. This allocation supports the portfolio's balanced risk profile but may limit exposure to high-growth opportunities in the small and micro-cap segments.

Redundant positions Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    Vanguard S&P 500 UCITS Acc
    SPDR® MSCI World UCITS ETF EUR
    High correlation

The high correlation among the ETFs indicates overlapping exposures, which can reduce the benefits of diversification. By holding highly similar assets, the portfolio may not be fully leveraging the risk-reducing advantages of diversification, suggesting a need to reassess asset selection to enhance portfolio efficiency.

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 risk-return profile could benefit from optimization. Reducing overlap among the ETFs could enhance diversification without necessarily sacrificing returns. By reallocating towards less correlated assets, the portfolio might achieve a more efficient position on the Efficient Frontier, potentially offering a better balance of risk and return.

Ongoing product costs Info

  • SPDR® MSCI World UCITS ETF EUR 0.12%
  • Vanguard S&P 500 UCITS Acc 0.07%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.14%

The overall cost structure, with a Total Expense Ratio (TER) of 0.14%, is impressively low, enhancing net returns over time. Keeping costs minimal is crucial for long-term investment success, as even small differences in fees can significantly impact compound growth.

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