A globally diversified equity portfolio with a focus on dividends and major market exposure

Report created on Aug 3, 2025

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 entirely of equities, with an 80% allocation in the Vanguard FTSE All-World UCITS ETF USD Accumulation and a 20% allocation in the Vanguard FTSE All-World High Dividend Yield UCITS USD. This structure indicates a strong preference for global equity markets, leveraging the diversification benefits of investing across a wide range of countries and sectors. The heavy weighting towards the All-World ETF underscores a growth-oriented strategy, while the significant portion in the High Dividend Yield ETF suggests an additional focus on income generation through dividends.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.78%, with a maximum drawdown of -32.39%. This performance is indicative of a balanced risk-return profile, suitable for investors with a moderate risk tolerance. The fact that 90% of returns came from just 19 days highlights the importance of staying invested over the long term, as significant gains can occur sporadically and are difficult to predict.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio has a wide range of potential outcomes. The 50th percentile forecast suggests a 293.4% increase, while the 5th and 67th percentiles indicate a 43.9% increase and a 410.8% increase, respectively. It's important to note that while these simulations provide a spectrum of possible outcomes, they cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio is invested 100% in stocks, demonstrating a clear focus on equity as the primary asset class for growth. This allocation reflects a higher risk tolerance, as equities tend to offer greater potential returns but with increased volatility compared to bonds or other asset classes. Investors should ensure this level of risk aligns with their long-term goals and risk tolerance.

Sectors Info

  • Technology
    22%
  • Financials
    20%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sectoral distribution spans technology, financial services, industrials, consumer cyclicals, and healthcare as the top five sectors, together accounting for over 70% of the portfolio. This sectoral spread is indicative of a strategy aimed at capturing growth across diverse economic segments, though the heavy weighting in technology and financial services may introduce sector-specific risks.

Regions Info

  • North America
    61%
  • Europe Developed
    17%
  • Japan
    7%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (61%), followed by developed Europe (17%) and Japan (7%). This distribution reflects a concentration in developed markets, offering stability and mature investment opportunities. However, the relatively low exposure to emerging markets (6% in Asia Emerging) suggests potential for greater geographic diversification to tap into faster-growing economies.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    36%
  • Mid-cap
    18%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a preference for large-cap stocks (Mega 45%, Big 36%), with medium-cap stocks making up 18%, and minimal exposure to small and micro-cap stocks. This tilt towards larger companies may contribute to lower volatility and steadier returns, albeit potentially at the expense of the higher growth rates sometimes found in smaller companies.

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.

When considering risk vs. return optimization, the current allocation suggests a well-thought-out balance between growth (via the All-World ETF) and income (via the High Dividend Yield ETF). This balance is crucial for achieving a portfolio that sits efficiently on the Efficient Frontier, indicating an optimal risk-return trade-off given the current market conditions and the investor's risk tolerance.

Dividends Info

  • Vanguard FTSE All-World High Dividend Yield UCITS USD 2.90%
  • Weighted yield (per year) 0.58%

The dividend yield from the high dividend yield ETF contributes to the portfolio's income, with a total portfolio yield of 0.58%. This approach balances growth and income, providing a steady stream of cash flows which can be reinvested or used as income, depending on the investor's needs.

Ongoing product costs Info

  • Vanguard FTSE All-World High Dividend Yield UCITS USD 0.29%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.23%

With a Total Expense Ratio (TER) of 0.23%, the portfolio benefits from relatively low costs, which is crucial for enhancing long-term returns. Lower costs mean more of the investment's return is retained by the investor, compounding over time to significantly impact overall portfolio growth.

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