This portfolio has only about 6.2 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced and Broadly Diversified Portfolio with a Focus on Emerging Markets

Report created on Jul 27, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of five ETFs, with the largest allocation to the Xtrackers MSCI Emerging Markets UCITS ETF at 32.89%. This is followed by iShares MSCI North America UCITS at 26.32% and iShares MSCI Europe UCITS Dist at 19.74%. The remaining positions include iShares Diversified Commodity Swap UCITS ETF at 15.79% and Lyxor Core MSCI Japan (DR) UCITS ETF at 5.26%. This composition suggests a balanced approach with a significant focus on emerging markets, which can offer high growth potential but also comes with higher volatility.

Growth Info

Historically, the portfolio has performed well with a compound annual growth rate (CAGR) of 8.5%. However, it has experienced a maximum drawdown of -30.96%, indicating significant volatility during market downturns. On the brighter side, only 17 days account for 90% of the returns, suggesting that the portfolio has benefited from some strong, concentrated performance periods. This kind of performance is typical for a balanced yet globally diversified portfolio, where both growth and risk are present.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio shows a wide range of potential future outcomes. Assuming a hypothetical initial investment, the 5th percentile outcome is a modest 2.16% return, while the median (50th percentile) outcome is a robust 195.28% return. The 67th percentile outcome even suggests a 293.5% return. The annualized return across all simulations is 9.21%, and 951 out of 1,000 simulations resulted in positive returns, indicating a high likelihood of future gains.

Asset classes Info

  • Stocks
    51%
  • No data
    33%
  • Other
    15%

The portfolio is diversified across multiple asset classes, with 51.12% in stocks, 32.89% in unknown assets (likely emerging markets), 15.45% in other assets, and minimal allocations to bonds and cash. This allocation leans heavily towards equities, which can drive higher returns but also introduces more risk. A small allocation to bonds and cash could help in cushioning against market volatility, but the current allocation is minimal in these safer asset classes.

Sectors Info

  • No data
    33%
  • Technology
    11%
  • Financials
    8%
  • Health Care
    7%
  • Industrials
    7%
  • Consumer Discretionary
    5%
  • Consumer Staples
    4%
  • Telecommunications
    3%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation is fairly broad, with significant exposure to technology (10.87%), financial services (7.81%), and healthcare (6.74%). Other sectors like industrials, consumer cyclicals, and defensive sectors also have notable allocations. However, 32.89% of the portfolio is classified as unknown, likely tied to the emerging markets ETF. This broad sector diversification helps in spreading risk, but the high unknown allocation could introduce sector-specific risks that are not immediately apparent.

Regions Info

  • No data
    33%
  • North America
    26%
  • Europe Developed
    20%
  • Japan
    5%

Geographically, the portfolio is well-diversified but has a significant 32.89% allocation to unknown regions, likely emerging markets. North America makes up 26.26%, Europe Developed 19.74%, and Japan 5.26%. There are minimal allocations to Latin America, Asia Developed, and Europe Emerging. This global spread helps in mitigating region-specific risks but also introduces currency and geopolitical risks, especially with the high emerging markets exposure.

Dividends Info

  • iShares MSCI Europe UCITS Dist 2.80%
  • Weighted yield (per year) 0.55%

The portfolio's dividend yield data is not provided, but given the mix of ETFs, it likely receives some level of dividend income. Generally, ETFs like those in this portfolio distribute dividends from their underlying holdings. While dividends can provide a steady income stream and contribute to total returns, the focus here seems to be more on capital appreciation through diversified global exposure rather than high dividend yields.

Ongoing product costs Info

  • iShares MSCI North America UCITS 0.40%
  • iShares MSCI Europe UCITS Dist 0.12%
  • Lyxor Core MSCI Japan (DR) UCITS ETF 0.22%
  • iShares Diversified Commodity Swap UCITS ETF 0.19%
  • Weighted costs total (per year) 0.17%

The total expense ratio (TER) of the portfolio is 0.17%, which is relatively low. The iShares MSCI North America UCITS ETF has the highest individual TER at 0.4%, while the iShares MSCI Europe UCITS Dist ETF has the lowest at 0.12%. Lower costs help in maximizing net returns, making this portfolio cost-efficient. Keeping expense ratios low is crucial, especially for long-term investors, as high costs can erode returns over time.

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