This portfolio has only about 1.6 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.

A well-diversified conservative portfolio with a low-risk score and strong historical performance

Report created on Feb 13, 2025

Risk profile Info

2/7
Conservative
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is structured with a 25% allocation to the Invesco S&P 500 ETF, providing significant exposure to large-cap US equities. Other notable allocations include 13% to Vanguard FTSE Emerging Markets and 10% to iShares FTSE 100. This blend offers a mix of developed and emerging market exposure, aligning with a conservative risk profile. Compared to benchmarks, this portfolio maintains a balanced approach with a focus on established markets, which can provide stability and consistent returns over time.

Growth Info

Historically, the portfolio has achieved an impressive CAGR of 18.12%, indicating strong growth over time. The maximum drawdown of -4.87% suggests limited downside risk, which is favorable for conservative investors. Compared to a typical benchmark, this performance is robust, offering reassurance of the portfolio's resilience. However, it's important to remember that past performance does not guarantee future results, and market conditions can change.

Projection Info

Using Monte Carlo simulations, the portfolio's future performance was projected with 1,000 iterations. The median (50th percentile) outcome suggests a potential growth of 1,187.3%, with all simulations showing positive returns. This indicates a strong likelihood of continued growth. However, projections are based on historical data, which may not account for future market changes. Investors should remain aware of these limitations when setting expectations.

Asset classes Info

  • Stocks
    89%
  • Other
    6%
  • No data
    5%

The portfolio is heavily weighted towards stocks, comprising 89% of the total allocation, with a modest 6% in other assets like gold. This allocation supports diversification and aligns with the conservative risk classification. Compared to benchmarks, the absence of bonds might reduce income stability but enhances growth potential. Consideration of adding bonds could provide balance and reduce volatility, especially in uncertain market conditions.

Sectors Info

  • Technology
    17%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Consumer Staples
    8%
  • Telecommunications
    6%
  • No data
    5%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    1%

Sectoral allocation is well-balanced, with technology and financial services leading at 17% and 16%, respectively. This spread across sectors helps mitigate risks associated with sector-specific downturns. While tech-heavy portfolios can be volatile, their potential for high returns is appealing. The inclusion of consumer defensive and healthcare sectors offers stability, ensuring the portfolio can withstand economic shifts.

Regions Info

  • North America
    40%
  • Europe Developed
    36%
  • Asia Emerging
    8%
  • No data
    5%
  • Asia Developed
    3%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is predominantly in North America (40%) and Europe Developed (36%), with emerging markets making up 8%. This allocation reflects a conservative approach, focusing on stable regions. Compared to benchmarks, this balance offers a strong foundation for steady returns. However, diversifying further into Asia or Latin America could enhance growth potential and reduce reliance on developed markets.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    30%
  • Mid-cap
    14%
  • No data
    11%
  • Small-cap
    4%

The portfolio is primarily invested in mega (40%) and big (30%) market capitalization stocks, which typically offer stability and lower volatility. This focus aligns with conservative investment goals, providing a solid base of well-established companies. The limited exposure to small and micro-cap stocks suggests a cautious approach, minimizing the risk associated with smaller, less predictable companies.

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 could be optimized using the Efficient Frontier, potentially increasing expected returns from 20.68% to 29.12% at a risk level of 9.30%. This optimization focuses on achieving the best risk-return ratio with current assets, though it may not align with all investor goals. Adjusting allocations within the existing assets could enhance efficiency, but it's important to balance risk tolerance and investment objectives.

Ongoing product costs Info

  • iShares VII PLC - iShares FTSE 100 ETF GBP Acc 0.07%
  • WisdomTree Issuer ICAV - WisdomTree US Quality Dividend Growth UCITS ETF 0.33%
  • SPDR® MSCI Europe Value UCITS ETF EUR Acc 0.20%
  • HSBC EURO STOXX 50 UCITS ETF 0.05%
  • Amundi Stoxx Europe 600 UCITS ETF C GBP 0.07%
  • iShares Physical Gold ETC 0.25%
  • Invesco S&P 500 UCITS ETF 0.05%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) of 0.09% is impressively low, supporting better long-term performance by minimizing costs. Keeping expenses low is crucial, as high costs can erode returns over time. This efficient cost structure aligns with best practices and contributes positively to the portfolio's overall performance, allowing more capital to remain invested and compounding.

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