Balanced portfolio with a strong focus on North American and European equities

Report created on Aug 16, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equities, with 80% allocated to the iShares Core S&P 500 UCITS ETF and 20% to the iShares Core MSCI Europe UCITS ETF. This composition reflects a focus on developed markets, particularly in North America and Europe. The allocation between these two ETFs suggests a strategy that seeks to balance exposure to the robust U.S. market with diversification into European equities. The portfolio's classification as "Moderately Diversified" is supported by its broad sectoral and geographic coverage, though it is concentrated in stock asset classes.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 13.86%, with a maximum drawdown of -32.75%. These figures indicate a strong historical performance, though the significant drawdown highlights potential volatility. The days contributing to 90% of returns are notably few, emphasizing the impact of short-term gains. Comparatively, these performance metrics underscore the portfolio's ability to generate robust returns, albeit with periods of notable risk.

Projection Info

The Monte Carlo simulation, utilizing 1,000 scenarios, forecasts a wide range of outcomes with a median increase of 399.7% in portfolio value. This method, which projects future performance based on historical data, suggests a high likelihood of positive returns (992 out of 1,000 simulations). However, it's important to remember that these projections are hypothetical and subject to the limitations of past performance as a predictor of future results.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, there's a clear emphasis on equity investment. This singular focus on one asset class reduces exposure to other asset types that could offer different risk-return profiles or act as hedges against market volatility. While stocks are known for their potential for high returns, diversifying across different asset classes could help mitigate risk.

Sectors Info

  • Technology
    30%
  • Financials
    15%
  • Industrials
    10%
  • Health Care
    10%
  • Consumer Discretionary
    10%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    3%
  • Basic Materials
    2%
  • Real Estate
    2%

The sector allocation is heavily weighted towards technology, financial services, and industrials, which collectively comprise 55% of the portfolio. This concentration in high-growth and cyclical sectors may contribute to the portfolio's overall performance, especially in bullish market conditions. However, it might also increase volatility and risk during economic downturns or sector-specific shocks.

Regions Info

  • North America
    80%
  • Europe Developed
    20%

The geographic distribution is largely focused on North America (80%) and developed Europe (20%), offering a solid foundation in stable, developed markets. However, this allocation might limit exposure to emerging markets and their potential for higher growth. Expanding geographic diversity could introduce new opportunities and risks, potentially enhancing returns and spreading risk.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    34%
  • Mid-cap
    16%
  • Small-cap
    1%

The portfolio's exposure is predominantly in mega (48%) and big (34%) cap stocks, with a smaller allocation to medium (16%) and minimal to small (1%) cap stocks. This skew towards larger companies may provide stability and lower volatility but could also limit potential high-growth opportunities found in smaller cap stocks.

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.

Considering the portfolio's current allocation and performance metrics, there's room for optimization towards the Efficient Frontier, which aims for the best possible risk-return ratio. Adjusting the allocation could potentially enhance returns for a given level of risk. This might involve diversifying across more asset classes or adjusting sector and geographic exposures.

Ongoing product costs Info

  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • Weighted costs total (per year) 0.14%

The portfolio benefits from relatively low costs, with a Total Expense Ratio (TER) of 0.14%. This efficiency is advantageous for long-term growth, as lower costs directly translate to higher net returns. The choice of low-cost ETFs is a prudent strategy for maintaining cost efficiency.

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