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 Broadly Diversified Portfolio with Strong ESG Focus and Emerging Markets Exposure

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 two main ETFs: Xtrackers MSCI World ESG UCITS ETF 1C, which constitutes 70% of the portfolio, and Xtrackers MSCI Emerging Markets UCITS ETF 1C, making up the remaining 30%. This composition indicates a balanced approach with a significant focus on global equities, including both developed and emerging markets. This broad diversification helps mitigate risk by spreading investments across various regions and sectors. However, with a heavy emphasis on equities, the portfolio may still experience volatility in turbulent market conditions. Regularly reviewing the asset allocation can ensure it remains aligned with financial goals.

Growth Info

Historically, the portfolio has performed well, achieving a compound annual growth rate (CAGR) of 11.12%. However, it has also experienced a maximum drawdown of -32.75%, indicating significant volatility during market downturns. This performance suggests that while the portfolio has potential for high returns, it is also subject to substantial risk. It's essential to consider the maximum drawdown and be prepared for periods of significant losses. Diversifying further or incorporating more stable assets can help reduce this volatility.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the forward projection of the portfolio shows a median return of 206.18% and an annualized return of 9.76%. The 5th percentile indicates a possible loss of -2.19%, while the 67th percentile suggests a return of 318.14%. This simulation provides a range of potential outcomes, illustrating the inherent uncertainty in future returns. While the median and higher percentiles are promising, the possibility of negative returns highlights the importance of maintaining a balanced and diversified approach to mitigate risks.

Asset classes Info

  • Stocks
    70%
  • No data
    30%

The portfolio primarily consists of stocks, making up approximately 69.86% of the total allocation, with the remaining 30% categorized as unknown. The small percentages allocated to cash and other categories suggest a focus on equity investments. This allocation is suitable for investors seeking growth but can lead to higher volatility. Including a mix of asset classes, such as bonds or other fixed-income instruments, can provide stability and reduce overall risk. Regularly reviewing and adjusting the asset allocation can help maintain a balanced risk profile.

Sectors Info

  • No data
    30%
  • Technology
    23%
  • Financials
    11%
  • Health Care
    10%
  • Telecommunications
    7%
  • Consumer Discretionary
    7%
  • Industrials
    6%
  • Consumer Staples
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

The portfolio covers a wide range of sectors, with the highest allocations in technology (22.53%), financial services (11.02%), and healthcare (9.80%). Other sectors include communication services, consumer cyclicals, and industrials. This broad sector diversification helps mitigate sector-specific risks. However, the significant exposure to technology could lead to higher volatility given the sector's sensitivity to market changes. Balancing the sector allocation by increasing exposure to more stable sectors, such as utilities or consumer defensives, can help reduce overall risk.

Regions Info

  • North America
    52%
  • No data
    30%
  • Europe Developed
    11%
  • Japan
    4%
  • Australasia
    1%
  • Asia Developed
    1%

Geographically, the portfolio is heavily weighted towards North America (52.47%), followed by Europe Developed (11.16%), and Japan (4.43%). The 30% unknown allocation likely corresponds to the emerging markets ETF. This geographic diversification reduces region-specific risks but also exposes the portfolio to global economic fluctuations. Increasing exposure to underrepresented regions, such as emerging markets in Asia or Latin America, could enhance diversification. Regularly monitoring the geographic allocation ensures it aligns with global economic trends and investment goals.

Ongoing product costs Info

  • Xtrackers MSCI World ESG UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.18%

The portfolio's costs are relatively low, with the Xtrackers MSCI World ESG UCITS ETF 1C having a total expense ratio (TER) of 0.25%. Keeping investment costs low is crucial for maximizing net returns over time. High costs can erode returns, especially in the long term. Regularly reviewing and comparing the expense ratios of investment options can help maintain cost efficiency. Opting for low-cost ETFs or index funds can provide broad market exposure while minimizing fees. Keeping costs low is a fundamental principle of effective portfolio management.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey