Balanced global ETF portfolio with a focus on diversified market exposures and low costs

Report created on Sep 4, 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 showcases a well-considered mix of geographical and sectoral exposures, primarily through ETFs that cover emerging markets, the U.S., and Europe. The equal weightage of Vanguard's FTSE Emerging Markets and S&P 500 ETFs, complemented by significant allocations to European markets, indicates a strategic balance between growth and stability. This broad diversification aligns with the portfolio's balanced risk profile, aiming to mitigate volatility while capturing global growth opportunities.

Growth Info

With a historical CAGR of 9.63%, the portfolio has demonstrated strong performance, outpacing many global benchmarks. This return rate is commendable, especially considering the maximum drawdown of -32.59%, which reflects the portfolio's resilience during market downturns. The concentration of returns in a limited number of days suggests significant market timing risk, highlighting the importance of maintaining a long-term investment horizon.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential portfolio values. With a median increase of 204.1% and 95.1% of simulations showing positive returns, the outlook appears optimistic. However, it's crucial to understand that these projections are hypothetical and subject to the limitations of past performance as an indicator of future results.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without allocation to bonds, real estate, or alternative asset classes, indicates a growth-oriented strategy. While this concentration in equities enhances potential returns, it also increases volatility and risk. Diversifying across different asset classes could provide a buffer during stock market downturns, enhancing the portfolio's risk-return profile.

Sectors Info

  • Financials
    21%
  • Technology
    20%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sectoral allocation shows a well-rounded exposure, with emphasis on financial services and technology, followed by industrials and consumer cyclicals. This sector mix captures both the cyclical and growth aspects of the economy. However, the heavy tilt towards technology and financial services sectors might expose the portfolio to sector-specific risks, suggesting a review to ensure alignment with the investor's risk tolerance.

Regions Info

  • Europe Developed
    36%
  • North America
    32%
  • Asia Emerging
    19%
  • Asia Developed
    6%
  • Africa/Middle East
    4%
  • Latin America
    2%
  • Europe Emerging
    1%

The geographic distribution is broadly diversified, with a significant emphasis on developed markets in Europe and North America, complemented by meaningful exposure to emerging markets in Asia and smaller allocations to Africa/Middle East and Latin America. This global exposure positions the portfolio to benefit from both the stability of developed economies and the growth potential of emerging markets.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    34%
  • Mid-cap
    14%
  • Small-cap
    1%

The focus on mega and big-cap stocks (84% combined) underscores the portfolio's preference for large, established companies likely to offer stability and reliable growth. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities these segments can offer, suggesting a potential area for diversification to enhance returns.

Redundant positions Info

  • Amundi Stoxx Europe 600 UCITS ETF C EUR
    Vanguard FTSE Developed Europe ex UK UCITS ETF Accuimulation
    High correlation

The high correlation between the Amundi Stoxx Europe 600 and Vanguard FTSE Developed Europe ex UK ETFs indicates overlapping exposures, which may dilute diversification benefits. Reducing redundancy by reallocating assets could enhance portfolio efficiency without significantly altering the risk profile, potentially improving overall performance.

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 asset allocation, while broadly diversified, shows room for optimization, especially in reducing highly correlated assets. Adjusting the portfolio to eliminate overlaps and potentially diversify into different asset classes or sectors could improve the risk-return profile. Employing the Efficient Frontier concept could identify an allocation that offers the highest expected return for a given level of risk.

Ongoing product costs Info

  • Amundi Stoxx Europe 600 UCITS ETF C EUR 0.07%
  • Vanguard FTSE Developed Europe ex UK UCITS ETF Accuimulation 0.10%
  • Vanguard FTSE Emerging Markets UCITS ETF USD Accumulation 0.22%
  • Vanguard S&P 500 UCITS Acc 0.07%
  • Weighted costs total (per year) 0.12%

With a total expense ratio (TER) of 0.12%, the portfolio benefits from relatively low costs, which is crucial for long-term growth. Lower costs translate directly into higher net returns, making the portfolio's focus on cost-efficient ETFs a commendable strategy. Periodic review of expense ratios and considering even lower-cost options could further enhance returns.

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