This portfolio has only about 6.1 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced and Diversified Portfolio with Strong ESG Focus and Moderate Costs

Report created on Jul 24, 2024

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 of three ETFs: Xtrackers MSCI World ESG UCITS ETF (70%), Xtrackers MSCI Emerging Markets UCITS ETF (20%), and Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF (10%). This setup indicates a strong emphasis on globally diversified equities with a notable focus on ESG (Environmental, Social, and Governance) criteria. The allocation is balanced but leans heavily toward developed markets, which can provide stability while the emerging markets component adds growth potential. To enhance diversification, consider incorporating additional asset classes like bonds or real estate.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 11.23%, with a maximum drawdown of -33.62%. This performance suggests a robust return over time but also highlights significant volatility during downturns. The portfolio’s ability to recover from drawdowns is crucial for long-term growth. To mitigate such risks, consider strategies like rebalancing or adding less volatile assets. This would help in smoothing out the performance during market turbulence.

Projection Info

Using a Monte-Carlo simulation with 1,000 scenarios, the portfolio shows a median expected return of 166.67% over the investment horizon. The 5th percentile scenario projects a -13.76% return, while the 67th percentile projects 265.68%. This simulation provides a range of potential outcomes, helping in understanding the portfolio’s risk and reward trade-offs. To improve the likelihood of achieving higher returns, maintaining a diversified and balanced asset allocation is essential.

Asset classes Info

  • Stocks
    80%
  • No data
    20%

The portfolio is primarily invested in stocks (79.8%), with a small portion in cash and other assets. The heavy weighting in equities aligns with a growth-focused strategy but also introduces higher volatility. To balance risk, consider allocating a portion of the portfolio to bonds or other fixed-income assets. This would provide a cushion during market downturns and contribute to a more stable overall performance.

Sectors Info

  • Technology
    23%
  • No data
    20%
  • Financials
    13%
  • Health Care
    11%
  • Industrials
    9%
  • Consumer Discretionary
    8%
  • Telecommunications
    8%
  • Real Estate
    3%
  • Consumer Staples
    3%
  • Basic Materials
    2%
  • Utilities
    1%
  • Energy
    1%

Sector allocation is diverse, with significant investments in Technology (23.41%), Financial Services (12.80%), and Healthcare (10.69%). This broad sector exposure helps in spreading risk and capturing growth across various industries. However, the high concentration in Technology could expose the portfolio to sector-specific risks. To mitigate this, periodically review and rebalance sector allocations to ensure they align with long-term investment goals and risk tolerance.

Regions Info

  • North America
    53%
  • Europe Developed
    21%
  • No data
    20%
  • Japan
    4%
  • Australasia
    1%
  • Asia Developed
    1%

Geographically, the portfolio is well-diversified with significant exposure to North America (52.60%) and Europe Developed (21.00%). This geographic spread helps in mitigating region-specific risks and capitalizing on global growth opportunities. However, the portfolio has minimal exposure to emerging markets outside of the dedicated ETF. To enhance geographic diversification, consider increasing allocations to underrepresented regions, which could offer additional growth potential and risk mitigation.

Dividends Info

  • Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF 1.90%
  • Weighted yield (per year) 0.19%

The portfolio's dividend yield data is not provided, but given the focus on ESG and growth-oriented ETFs, it’s likely to be modest. Dividends can provide a steady income stream and enhance total returns, especially in volatile markets. To increase dividend income, consider incorporating high-dividend ETFs or stocks. This would not only provide regular income but also add a layer of stability to the portfolio’s overall performance.

Ongoing product costs Info

  • Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF 0.23%
  • Xtrackers MSCI World ESG UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.20%

The portfolio’s costs are moderate, with a Total Expense Ratio (TER) of 0.2%. This is relatively low for a diversified portfolio and helps in maximizing net returns. Keeping investment costs low is crucial for long-term growth, as high fees can erode returns over time. Regularly review and compare the TER of current holdings with other available options to ensure the portfolio remains cost-efficient.

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