Balanced and broadly diversified portfolio with a strong focus on global equities

Report created on Aug 25, 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 predominantly invests in global equities via ETFs, with a significant 70% allocation to a core MSCI World ETF, supplemented by targeted exposures to momentum and value factors, emerging markets, and small-cap stocks. The composition reflects a strategic approach to capturing broad market returns while seeking additional growth through factor investing and geographical diversification. The portfolio's single-asset class focus on stocks, however, means it lacks direct exposure to bonds, real estate, or commodities, which could offer further diversification benefits.

Growth Info

Historically, this portfolio has delivered a compound annual growth rate (CAGR) of 12.07%, with a maximum drawdown of -25.56%. These figures indicate a strong performance relative to the inherent market risks, as evidenced by the portfolio's balanced risk classification. The days contributing to 90% of returns being concentrated in just 28.0 days highlight the portfolio's susceptibility to significant market movements, underscoring the importance of a long-term investment horizon to navigate volatility.

Projection Info

Monte Carlo simulations, which project future performance by analyzing historical data to generate a range of possible outcomes, suggest a median annualized return of 10.75% for this portfolio. While past performance is not indicative of future results, these simulations provide a useful tool for setting realistic expectations. Investors should consider the wide range of outcomes, from the lower 5th percentile to the higher 67th percentile, to understand potential risk and return profiles.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, reflecting a high growth potential but also a higher risk profile compared to more diversified portfolios that include bonds or other asset classes. This concentration in equities is suitable for investors with a higher risk tolerance and a longer investment horizon. Diversifying across different asset classes could reduce volatility and provide a more stable return profile, especially during market downturns.

Sectors Info

  • Technology
    24%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

With significant allocations to technology and financial services, followed by industrials and consumer cyclicals, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks. Diversifying more evenly across sectors, including those with defensive characteristics like healthcare and consumer defensive, can help mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    66%
  • Europe Developed
    17%
  • Japan
    7%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is heavily weighted towards North America (66%), with meaningful exposures to developed Europe and a modest allocation to emerging markets and Asia. This distribution captures the growth potential of major developed markets while offering some exposure to the faster-growing, albeit riskier, emerging markets. Increasing exposure to underrepresented regions could enhance diversification and potentially tap into higher growth rates abroad.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    35%
  • Mid-cap
    17%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's exposure leans heavily towards mega and big-cap stocks, which tend to be more stable and less volatile than smaller companies. However, the inclusion of a small-cap ETF adds potential for higher growth, albeit with increased risk. A balanced approach to market capitalization can provide a mix of stability and growth, catering to investors seeking moderate risk with the potential for above-average returns.

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.

Optimizing this portfolio using the Efficient Frontier could identify allocations that offer the best possible risk-return trade-off based solely on the current assets. While the portfolio is well-diversified across sectors and geographies, considering alternative assets could further enhance its efficiency. Rebalancing towards assets with lower correlation may improve the portfolio's overall risk-adjusted returns without significantly sacrificing growth potential.

Ongoing product costs Info

  • iShares Edge MSCI World Momentum Factor UCITS ETF 0.30%
  • iShares MSCI World Value Factor UCITS 0.30%
  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • iShares MSCI World Small Cap UCITS ETF USD (Acc) 0.35%
  • Weighted costs total (per year) 0.22%

The portfolio's total expense ratio (TER) of 0.22% is impressively low, which supports better long-term performance by minimizing the drag on returns caused by fees. Keeping costs low is crucial for maximizing investment growth, especially in a globally diversified portfolio where transaction and management fees can quickly accumulate. This focus on cost efficiency is commendable and should be maintained.

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