A balanced global portfolio with strong diversification and a moderate risk profile

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor seeking a balanced approach with moderate risk tolerance and a long-term horizon. It offers global diversification, with a focus on growth through equities while maintaining some stability through bonds. Ideal for those aiming to build wealth over time, it balances growth potential with risk management. Investors comfortable with market fluctuations and focused on long-term gains will find this portfolio aligned with their objectives.

Positions

  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    VWRA - IE00BK5BQT80
    80.00%
  • iShares Global Aggregate Bond UCITS Dist
    AGGG - IE00B3F81409
    10.00%
  • iShares Developed Markets Property Yield UCITS ETF USD (Dist) GBP
    IWDP - IE00B1FZS350
    10.00%

This portfolio is composed primarily of the Vanguard FTSE All-World UCITS ETF, occupying 80% of holdings. Complemented by 10% each in global bonds and property ETFs, it offers a broad market exposure. Compared to a typical balanced benchmark, this composition leans heavily into equities, reflecting a growth-oriented approach. The allocation aligns with a balanced risk profile, offering a mix of growth and income potential. Consider if this equity-heavy tilt matches your investment goals, especially if seeking stability.

Growth Info

The portfolio's historical performance shows a CAGR of 9.55%, indicating strong growth over time. However, it also experienced a significant max drawdown of -30.95%, highlighting potential volatility. This performance is above average for balanced portfolios, suggesting effective diversification. While past performance doesn't guarantee future results, it provides a useful benchmark. Regularly review performance against your financial goals, considering both returns and risks.

Projection Info

Forward projections through Monte Carlo simulations, using historical data, suggest varied outcomes. The 50th percentile indicates a potential 34.8% return, while the 5th percentile shows a possible -43.5% loss. These simulations highlight the inherent uncertainty in investing and the range of possible future results. While 725 out of 1,000 simulations showed positive returns, it's crucial to remember that these projections are hypothetical. Regularly reassess your risk tolerance and adjust your strategy as needed.

Asset classes Info

  • Stocks
    90%
  • Bonds
    10%
  • Cash
    0%
  • Other
    0%
  • No data
    0%

With 90% in stocks and 10% in bonds, this portfolio leans towards equities, offering growth potential but with increased risk. Compared to balanced benchmarks, this allocation is more aggressive, potentially leading to higher returns but also greater volatility. Bonds provide some stability, cushioning against market downturns. Evaluate if this asset class distribution aligns with your risk tolerance and long-term objectives, and consider adjusting if seeking more stability.

Sectors Info

  • Technology
    21%
  • Financials
    13%
  • Real Estate
    12%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Industrials
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%

The portfolio is well-diversified across sectors, with technology (21%), financial services (13%), and real estate (12%) as the top allocations. This sector composition aligns with global benchmarks, ensuring broad market exposure. However, the tech concentration may lead to higher volatility during market fluctuations. Keep an eye on sector trends and consider rebalancing if certain sectors become overly dominant, ensuring alignment with your risk appetite.

Regions Info

  • North America
    61%
  • Europe Developed
    12%
  • Japan
    5%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (61%), with moderate exposure to Europe and Asia. This allocation reflects global market capitalization norms, yet it may expose you to regional risks. The limited exposure to emerging markets might reduce growth potential but also limits volatility. Consider whether this geographic distribution aligns with your investment goals and risk tolerance, and adjust if seeking more international diversification.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    30%
  • Mid-cap
    19%
  • Small-cap
    2%
  • Micro-cap
    0%

The portfolio's market capitalization distribution is skewed towards mega (38%) and big-cap stocks (30%), providing stability and reduced volatility. Medium and small caps, though less represented, offer growth potential. This allocation aligns with typical global indices, ensuring exposure to established companies. Regularly review market cap distribution, considering shifts in economic conditions, and rebalance if seeking greater exposure to smaller, potentially higher-growth companies.

Ongoing product costs Info

  • iShares Global Aggregate Bond UCITS Dist 0.10%
  • iShares Developed Markets Property Yield UCITS ETF USD (Dist) GBP 0.59%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.24%

With a Total Expense Ratio (TER) of 0.24%, the portfolio's costs are impressively low, supporting better long-term performance. Low costs mean more of your returns stay invested, compounding over time. This efficient cost structure aligns with best practices, enhancing net returns. Continue monitoring fees, ensuring they remain competitive, and explore opportunities to reduce costs further without sacrificing 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.

The portfolio could potentially be optimized along the Efficient Frontier, aiming for the best risk-return ratio. This involves adjusting current asset allocations to achieve maximum returns for a given risk level. However, optimization is based on historical data, which doesn't predict future performance. Regularly review and adjust allocations, ensuring they align with your evolving risk tolerance and financial goals.

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.