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 Portfolio with Broad Diversification and Moderate Risk

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 three main ETFs, with the Xtrackers MSCI World ESG UCITS ETF 1C making up 80%, the Xtrackers MSCI Emerging Markets UCITS ETF 1C at 15%, and the Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF at 5%. This mix provides exposure to global equities with a focus on ESG criteria and a small allocation to European small caps. The high weighting in the MSCI World ETF ensures a broad diversification across developed markets, while the emerging markets ETF adds growth potential.

Growth Info

Historically, the portfolio has shown a compound annual growth rate (CAGR) of 12.14%, which is quite robust. However, it also experienced a maximum drawdown of -33.31%, indicating significant volatility during market downturns. The concentration of returns in just 23 days suggests high sensitivity to market movements. This performance indicates that while the portfolio has the potential for strong growth, it also comes with considerable risk during market corrections.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio's future performance was projected. The simulation assumes a hypothetical initial investment. The results show a median (50th percentile) end portfolio value of 159.32%, with a 5th percentile outcome of -18.2% and a 67th percentile outcome of 261.24%. The annualized return across all simulations is 8.76%, with 912 out of 1,000 simulations yielding positive returns. This indicates a favorable probability of achieving positive returns over the investment horizon.

Asset classes Info

  • Stocks
    85%
  • No data
    15%

The portfolio is primarily invested in stocks, making up 84.81% of the allocation. There is a 15% allocation classified as unknown, which likely corresponds to the emerging markets ETF, and negligible amounts in other asset classes and cash. This heavy stock allocation aligns with a balanced risk profile but could benefit from some diversification into other asset classes like bonds to reduce volatility.

Sectors Info

  • Technology
    26%
  • No data
    15%
  • Financials
    13%
  • Health Care
    12%
  • Industrials
    9%
  • Telecommunications
    8%
  • Consumer Discretionary
    8%
  • Consumer Staples
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    1%

The sector allocation is fairly diversified, with a significant weighting in Technology (26.19%), followed by Financial Services (13.49%) and Healthcare (11.64%). Smaller allocations are spread across various other sectors. This sector diversification helps mitigate risks associated with sector-specific downturns but also means the portfolio is heavily influenced by the performance of the tech sector.

Regions Info

  • North America
    60%
  • Europe Developed
    18%
  • No data
    15%
  • Japan
    5%
  • Australasia
    1%
  • Asia Developed
    1%

Geographically, the portfolio is heavily weighted towards North America (60.03%), with additional exposure to Europe Developed (17.67%) and Japan (5.06%). The 15% classified as unknown likely pertains to the emerging markets ETF. This geographic distribution provides substantial exposure to developed markets, which can offer stability, while the emerging markets allocation introduces growth potential.

Dividends Info

  • Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF 1.90%
  • Weighted yield (per year) 0.10%

The dividend yield data is not provided, but given the high allocation to global equities, the portfolio likely generates some level of dividend income. Dividends can provide a steady income stream and contribute to total returns, especially important during periods of market volatility when capital gains may be harder to achieve.

Ongoing product costs Info

  • Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF 0.23%
  • Xtrackers MSCI World ESG UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.21%

The portfolio's costs are relatively low, with a total expense ratio (TER) of 0.21%. The individual ETFs have TERs ranging from 0.23% to 0.25%. Keeping costs low is crucial for maximizing net returns over the long term. Low-cost ETFs are an effective way to maintain a diversified portfolio without eroding returns through high fees.

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