A balanced and highly diversified portfolio with a strong focus on technology and global equities

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is structured around a core of globally diversified ETFs, emphasizing equities with a 94% allocation, complemented by a modest 6% in bonds. This mix underlines a strategy aiming for growth while maintaining a cushion against market volatility. The selection includes broad market ETFs, a specific tilt towards technology, and exposure to both developed and emerging markets. This composition aligns with a balanced risk profile, seeking to capitalize on global equity markets' growth potential while mitigating risks through diversification and a bond allocation.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 8.91%, with a maximum drawdown of -21.25%. These figures suggest a resilient performance through various market conditions, with the portfolio's diversified nature contributing to its ability to recover from downturns. The days contributing most to returns indicate significant gains can be concentrated in relatively short periods, emphasizing the importance of staying invested over the long term to capture these spikes.

Projection Info

Using Monte Carlo simulations, which forecast future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a potential 207.9% return, with a high degree of variability indicated by the 5th and 67th percentiles. While these simulations provide a broad sense of possible future scenarios, it's crucial to note that they cannot predict market movements with certainty. Investors should consider these projections as one of many tools in making informed decisions.

Asset classes Info

  • Stocks
    94%
  • Bonds
    6%

The portfolio's asset class distribution, with a heavy tilt towards stocks (94%), is designed for investors seeking growth. The 6% allocation in bonds offers a modest buffer against stock market volatility. This allocation is typical for a balanced growth-oriented portfolio, where the primary aim is capital appreciation, supplemented by the stability bonds can offer during market dips.

Sectors Info

  • Technology
    31%
  • Financials
    18%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    7%
  • Telecommunications
    6%
  • Basic Materials
    5%
  • Consumer Staples
    4%
  • Real Estate
    4%
  • Energy
    3%
  • Utilities
    2%

With 31% allocated to technology, the portfolio is positioned to benefit from the sector's potential for high growth. However, this concentration also introduces sector-specific risks, such as higher volatility and sensitivity to market cycles. The diversification across other sectors like financial services and industrials helps mitigate this risk, but investors should be aware of the potential for significant fluctuations in the technology sector.

Regions Info

  • North America
    46%
  • Asia Developed
    14%
  • Asia Emerging
    12%
  • Australasia
    9%
  • Europe Developed
    9%
  • Japan
    5%
  • Africa/Middle East
    3%
  • Latin America
    2%

The geographic allocation showcases a strong emphasis on North America (46%) and significant investments in both developed and emerging markets in Asia. This global exposure is beneficial for diversification, reducing the impact of regional downturns on the overall portfolio. However, the underrepresentation of Europe Emerging markets suggests a potential area for increased exposure to enhance diversification further and tap into emerging market growth.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    24%
  • Mid-cap
    16%
  • Small-cap
    10%
  • Micro-cap
    3%

The portfolio's market capitalization breakdown, with a focus on mega (40%) and big (24%) cap stocks, suggests a preference for established, large-scale companies known for their stability and potential for steady growth. While this may provide a solid foundation, incorporating a higher percentage of small and micro-cap stocks could introduce more growth potential, albeit with increased risk.

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.

The portfolio's current setup, with an expected return of 8.91%, is solid. However, portfolio optimization suggests that with the same level of risk, an adjusted allocation could potentially increase the expected return to 19.45%. This indicates room for improvement in the risk-return balance, possibly by adjusting asset allocations or diversifying further within underrepresented sectors or geographies.

Ongoing product costs Info

  • iShares MSCI World Small Cap UCITS ETF USD (Acc) EUR 0.35%
  • Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating 0.25%
  • Vanguard FTSE Emerging Markets UCITS 0.22%
  • Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF USD Accumulation 0.15%
  • Xtrackers MSCI World Information Technology UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.25%

The portfolio's overall cost, indicated by a total expense ratio (TER) of 0.25%, is relatively low, which is advantageous for long-term growth. Keeping costs low is crucial in maximizing returns, as even small differences in fees can compound significantly over time. This efficient cost management is a strong aspect of the portfolio's construction.

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