Factor-obsessed stock junkie portfolio that forgot bonds but somehow still pulls off great returns
Report created on Apr 23, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
IS iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
IS3S - IE00BD45HH35 55.00% -
CE iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc)
CEMR - IE00BQN1K786 20.00% -
5M iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD
5MVL - IE00BG0SKF03 15.00% -
SP SPDR S&P 500 UCITS ETF USD Acc EUR
SPYL - IE000XZSV718 10.00%
This portfolio looks like someone discovered factor ETFs and then never looked at anything else ever again. Four funds, all equity, all factor-tilted, with over half the money crammed into a single global value ETF. Then there’s a big side bet on European momentum, a chunk of emerging markets value, and a token “normal” S&P 500 slice like a decorative garnish. It’s concentrated not in names, but in style: factor soup with no other asset classes in sight. The structure screams “equity thesis cosplay,” not “balanced investor.” The result is a portfolio that talks a big diversification game by region but is basically one idea repeated four times: stocks, but quirkier.
Growth
The historic performance is annoyingly good for something this single-minded. Turning €1,000 into €1,748 in under three years with a 25.39% CAGR is monster territory, outpacing both US and global markets by about 6 percentage points a year. Max drawdown at -17.64% was actually milder than the benchmarks, so it even handled a slap in the face reasonably well. But CAGR (compound annual growth rate) is like averaging your speed on a road trip: it hides the potholes and near-crashes. Past data is yesterday’s weather – impressive sunshine, yes, but pretending it guarantees future blue skies would be pure fantasy.
Projection
The Monte Carlo simulation takes this past behavior and throws it into 1,000 alternate futures, like running the same movie with slightly different endings. Median result: €1,000 grows to about €2,742 after 15 years, which is nice, but the range is wild — from roughly “barely above water” at €936 (p5) to “lottery win vibes” at €7,686 (p95). An 8.04% average annualized return across simulations sounds reasonable, but the 75.6% chance of a positive outcome also means roughly one in four universes has this doing nothing or worse. This is what happens when everything is equities: upside looks pretty, the downside is just… not cancelled.
Asset classes
- Stocks 100%
Asset class breakdown is brutally simple: 100% in stocks, 0% in literally anything else. Bonds? Cash buffer? Alternatives? Not invited. Calling this “balanced” is generous; it’s a one-food-group diet dressed up with fancy ETF labels. When the equity market behaves, this looks smart and efficient. When it doesn’t, everything in here gets punched in the same general direction. Asset classes are like different engine types in a garage — this has only sports cars. Fun to drive, terrible when the road ices over. It’s a high-conviction equity bet wearing a slightly misleading risk label.
Sectors
- Technology 27%
- Financials 20%
- Industrials 14%
- Health Care 8%
- Consumer Discretionary 8%
- Telecommunications 6%
- Basic Materials 5%
- Energy 4%
- Consumer Staples 4%
- Utilities 4%
- Real Estate 2%
Sector spread looks civilized at first glance, but the tech tilt is unmistakable: 27% in technology, with financials next in line at 20%. That’s a portfolio that worships chips, code, and balance sheets. Industrials, health care, and consumer names show up enough to avoid total caricature, but nothing screams true sector neutrality. The top positions in look-through holdings — Micron, Cisco, TSMC, Intel, Qualcomm — confirm the subtle addiction to semis and old-school tech. This isn’t pure tech mania, but if those areas sneeze, this portfolio will catch a cold. It’s diversified enough to pass casual inspection, not enough to dodge a tech-centered hit.
Regions
- Europe Developed 36%
- North America 36%
- Japan 11%
- Asia Developed 9%
- Asia Emerging 5%
- Latin America 2%
- Africa/Middle East 1%
- Europe Emerging 1%
Regionally, this thing is basically “Europe and US holding hands” with each at 36%, then a smattering of Japan and other Asia to look worldly. Emerging markets manage just 8% combined, which is hilarious given there’s an explicit EM value ETF in there. Europe momentum plus big developed world value means the portfolio has serious home-continent energy with a side of global respectability. It’s not “America or bust,” but it is heavily anchored in developed markets comfort zones. The geographic map looks more balanced than the actual underlying style risks, which are far less global and far more ideological.
Market capitalization
- Large-cap 48%
- Mega-cap 35%
- Mid-cap 15%
Market cap exposure is firmly in the big-kid camp: 83% in mega and large caps, with mid-caps tossed in like seasoning at 15%. There’s no attempt to go hunting in the small-cap wilderness — this portfolio clearly prefers companies with real investor relations departments and too many conference calls. That tilt generally means smoother trading, more analyst coverage, and less “surprise, we went bankrupt” energy, but it also cuts out one of the classic equity risk/return levers. For something that loves factors, the size factor is suspiciously underused; it’s like signing up for spice but refusing anything hotter than black pepper.
True holdings
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MU Micron Technology Inc 3.00%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
CS Cisco Systems Inc 1.93%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.55%
Part of fund(s):- iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD
-
IN Intel Corporation 1.53%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
VZ Verizon Communications Inc 1.31%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
BA British American Tobacco PLC 1.21%
Part of fund(s):- iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc)
- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
T AT&T Inc 1.08%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
SA Banco Santander S.A. 0.97%
Part of fund(s):- iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc)
-
72 Toyota Motor Corp 0.93%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
QC Qualcomm Incorporated 0.91%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
- Top 10 total 14.41%
The look-through holdings reveal a predictable pattern: big, boring-ish value and tech names showing up across multiple ETFs. Micron at 3%, Cisco near 2%, plus TSMC, Intel, Verizon, AT&T, and British American Tobacco — this is the who’s-who of “we’re not glamorous growth, but we still matter.” Overlap is probably higher than reported because we only see ETF top-10s, so hidden concentration is lurking beyond the visible slice. It’s less “one stock dominates everything” and more “the same gang keeps appearing at every party.” Not disastrous, just a reminder that owning multiple funds here doesn’t equal totally different underlying bets.
Risk contribution
-
iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
Weight: 55.00% 54.3% -
iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc)
Weight: 20.00% 21.0% -
iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD
Weight: 15.00% 15.6% -
SPDR S&P 500 UCITS ETF USD Acc EUR
Weight: 10.00% 9.1%
Risk contribution is where the illusion of four equal buddies completely dies. The 55% world value ETF contributes 54.28% of total portfolio risk — it’s basically the main character. Europe momentum and EM value add another ~36.6% between them, so the top three positions are responsible for over 90% of the portfolio’s mood swings. The S&P 500 ETF is just along for the ride, contributing less risk than its weight. Risk contribution shows who’s really shaking the boat, not just who’s sitting where, and here the story is simple: one big value engine, two strong side-kicks, one polite passenger.
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.
On the risk–return chart, this portfolio actually shows up looking… competent. Sharpe ratio of 1.47 with 23.66% return at 13.36% risk, and it’s basically sitting on the efficient frontier. The efficient frontier is the curve of best possible returns for each risk level using just these holdings; being on it means the mix isn’t obviously dumb. Yes, an alternative weighting of the same funds could hit a Sharpe of 1.81 with higher return and slightly more risk, but we’re not talking clown show inefficiency here. For a factor-tilted, all-equity cocktail, it’s surprisingly well-assembled — almost like someone knew what they were doing.
Ongoing product costs
- iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD 0.40%
- iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc) 0.25%
- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR 0.30%
- Weighted costs total (per year) 0.28%
Costs are one of the few areas where this portfolio doesn’t embarrass itself. A total TER of 0.28% is perfectly reasonable for factor-flavored ETFs; you’re not paying champagne fees for tap water. Could it be cheaper with plainer vanilla funds? Almost certainly. But for this kind of style-tilted setup, the pricing is more “mid-range restaurant” than “Michelin-starred robbery.” Over decades, 0.28% still quietly siphons money out of returns, but at least the meter isn’t spinning like a taxi stuck in traffic. Fees are under control — you must have clicked these funds on purpose, not by pure accident.
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