Balanced global equity portfolio with a focus on factor-based ETFs and broad geographic coverage

Report created on Aug 25, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio predominantly comprises global equity ETFs, emphasizing both broad market and factor-specific strategies. The allocation includes 60% in a global ETF, 15% each in European value and global momentum factor ETFs, and 10% in a small-cap world ETF. This composition suggests a strategic tilt towards capturing broad market returns while seeking additional alpha through factor investing, particularly value and momentum. The portfolio's exclusive focus on equities, without fixed income or alternative assets, aligns with a growth-oriented strategy but may exhibit higher volatility.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.76%, with a significant maximum drawdown of -26.62%. This performance metric, alongside the days contributing to 90% of returns, underscores the portfolio's growth potential and its susceptibility to market swings. The historical performance, while robust, highlights the inherent risks in a fully equity-based strategy. Investors should weigh the portfolio's growth achievements against their risk tolerance and capacity for drawdowns.

Projection Info

Monte Carlo simulations, using 1,000 iterations, project a wide range of outcomes with a median increase of 324.4% and a 5th percentile at a modest 41.5% growth. The simulations underscore the portfolio's potential for significant growth while also highlighting the risk of lower-than-expected returns. This forward-looking tool, while informative, bases its projections on past performance, which is not a reliable indicator of future results. Investors should consider these projections as one of many tools in evaluating potential future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is solely invested in stocks, reflecting a high growth potential strategy. While this asset class has historically offered superior long-term returns compared to bonds or cash, it also comes with higher volatility. The lack of diversification across different asset classes can increase the portfolio's susceptibility to market fluctuations. Introducing fixed income or alternative investments could provide a buffer during equity market downturns, enhancing the portfolio's risk-adjusted returns.

Sectors Info

  • Technology
    21%
  • Financials
    20%
  • Industrials
    13%
  • Health Care
    9%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocations are well-diversified, with technology and financial services making up over 40% of the portfolio. This concentration in high-growth and cyclical sectors could amplify the portfolio's performance during economic expansions but also increase its vulnerability in downturns. The presence of defensive sectors like healthcare and consumer staples provides some balance, mitigating risk during market volatility. Investors should periodically review sector weightings to ensure alignment with their investment strategy and market outlook.

Regions Info

  • North America
    57%
  • Europe Developed
    28%
  • Japan
    5%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution is heavily weighted towards North America and developed Europe, comprising 85% of the portfolio. This focus on developed markets may offer stability and access to mature companies but limits exposure to the higher growth potential of emerging markets. Including more assets from Asia Emerging, Latin America, or Africa/Middle East could enhance diversification and tap into growth in these regions, potentially improving the portfolio's risk-adjusted returns.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    34%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's market capitalization exposure leans heavily towards mega and big-cap stocks, totaling 76%. This skew towards larger companies may offer stability and lower volatility but can also limit growth potential compared to smaller caps. The inclusion of a small-cap ETF (10% of the portfolio) introduces some balance, potentially capturing higher growth rates of smaller firms. Periodic rebalancing to adjust the cap-size mix could optimize the growth-stability trade-off.

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 current portfolio's expected return is below the optimal level suggested by Efficient Frontier analysis, which indicates a potential return of 13.40% at a similar risk level. This analysis suggests room for improvement in the allocation to achieve better risk-adjusted returns. Adjusting the asset mix to include a broader range of asset classes or rebalancing within the equity allocation could move the portfolio closer to the Efficient Frontier, optimizing its performance potential.

Ongoing product costs Info

  • iShares MSCI Europe Value Factor UCITS 0.25%
  • iShares Edge MSCI World Momentum Factor UCITS ETF 0.30%
  • iShares MSCI ACWI UCITS ETF USD (Acc) GBP 0.20%
  • iShares MSCI World Small Cap UCITS ETF USD (Acc) 0.35%
  • Weighted costs total (per year) 0.24%

The portfolio's total expense ratio (TER) of 0.24% is impressively low, enhancing its long-term return potential by minimizing cost drag. This cost efficiency is crucial in maximizing net returns, especially in a fully equity portfolio where transaction and management fees can erode gains. Regularly reviewing and minimizing costs remains a best practice for maintaining portfolio efficiency.

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