A well-structured portfolio focused on global equities with a lean towards US markets

Report created on Aug 9, 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 is heavily weighted in equities, with a significant emphasis on US and global stocks, as evidenced by its allocations in the Vanguard S&P 500 UCITS ETF (45%) and the iShares Core MSCI World UCITS ETF (43%). The inclusion of the iShares Core MSCI Emerging Markets IMI UCITS ETF (12%) introduces exposure to developing economies, aiming for broader diversification. The portfolio's composition reflects a strategic balance between capturing the growth potential of the US market and leveraging global diversification to mitigate risk.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 13.87%, with a maximum drawdown of -32.85%. These figures indicate a robust performance, particularly given the balanced risk profile. The fact that 90% of returns came from just 23 days highlights the importance of staying invested over the long term, as significant gains can be concentrated in brief, unpredictable periods.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of potential outcomes, with the median scenario indicating a 377.6% return. This method, which runs numerous simulations to forecast future performance, underscores the inherent uncertainties in investing. While past performance and simulations can guide expectations, they cannot guarantee future results, emphasizing the need for ongoing portfolio review and adjustment.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is solely in stocks, which, while offering the potential for high returns, also carries a higher risk compared to portfolios that include bonds or other asset classes. This singular focus on equities is suitable for investors with a higher risk tolerance and a longer time horizon, as it may experience significant volatility in the short term.

Sectors Info

  • Technology
    30%
  • Financials
    16%
  • Consumer Discretionary
    10%
  • Telecommunications
    9%
  • Industrials
    9%
  • Health Care
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation is heavily weighted towards technology (30%), with substantial investments in financial services (16%) and a balanced spread across consumer cyclicals, communication services, industrials, and healthcare. This sector distribution reflects a growth-oriented strategy but also exposes the portfolio to sector-specific risks, such as regulatory changes or economic downturns affecting these industries.

Regions Info

  • North America
    77%
  • Europe Developed
    7%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Japan
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Australasia
    1%

Geographic allocation is predominantly in North America (77%), with smaller exposures to developed Europe, emerging Asia, and other regions. This concentration in the US market is aligned with the portfolio's growth objectives but may benefit from increased diversification to mitigate geopolitical and currency risks.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    34%
  • Mid-cap
    17%
  • Small-cap
    1%

The portfolio's market capitalization breakdown, with a focus on mega (47%) and big (34%) cap stocks, suggests a preference for established, large-scale companies. This can offer stability and lower volatility compared to smaller caps, but may also limit exposure to high-growth potential firms.

Redundant positions Info

  • iShares Core MSCI World UCITS ETF USD (Acc)
    Vanguard S&P 500 UCITS ETF USD Accumulation
    High correlation

The high correlation between the Vanguard S&P 500 UCITS ETF and the iShares Core MSCI World UCITS ETF indicates overlapping exposures, reducing the diversification benefits of holding both. Simplifying the portfolio by consolidating similar positions could enhance efficiency without sacrificing performance.

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.

Optimization efforts should focus on reducing overlap between the Vanguard S&P 500 UCITS ETF and the iShares Core MSCI World UCITS ETF to improve diversification. Leveraging the Efficient Frontier could identify an allocation that offers the best possible risk-return trade-off within the existing asset mix.

Ongoing product costs Info

  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • Vanguard S&P 500 UCITS ETF USD Accumulation 0.07%
  • Weighted costs total (per year) 0.14%

With a total expense ratio (TER) averaging 0.14%, the portfolio benefits from relatively low costs, supporting better net returns over the long term. Keeping costs low is crucial for maximizing investment growth, particularly in a low-yield environment.

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