Two fund world tour with a secret value crush hiding under the index hoodie
Report created on Apr 28, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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IS iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
IS3S - IE00BD45HH35 50.00% -
SP SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
SPYY - IE00B44Z5B48 50.00%
This portfolio is the definition of “I diversified” with about five minutes of effort: two funds at 50/50 and done. Under the hood though, it’s basically one plain global tracker welded to a world value factor fund, so the second position mostly exists to drag the first one back toward normal. It looks balanced on the surface but it’s more like a tug-of-war between “own everything” and “own the cheap stuff.” That kind of binary structure means there’s zero nuance: if value has a moment, you shine; if it doesn’t, you just underperform quietly for years. Elegant in its laziness, slightly clumsy in its design.
Growth
Historically this thing did fine in absolute terms and mildly disappointing in relative terms: turning €1,000 into €2,947 is solid, but the US market did it faster and with basically the same pain. CAGR at 11.42% vs 14.58% for the US is a noticeable lag, and even the global market beat it. Max drawdown at -34% is right in line with the carnage elsewhere, so you took the hit but didn’t get extra reward for your trouble. Classic value-flavored outcome: plenty of patience required, not much applause. And as always, past performance is yesterday’s weather forecast, not divine prophecy.
Projection
The Monte Carlo projection basically says, “You’ll probably be fine, but don’t get cocky.” A model like this just reruns history with random twists, generating many alternate universes for the next 15 years. Median outcome is about €2,682 from €1,000, with a wide range from “barely above cash” to “nice champagne.” The average simulated return of 7.96% is less glamorous than your backtest, which is the model’s way of rolling its eyes at your historical luck. About three-quarters of simulations end positive, meaning there’s still a decent chunk where you put in the time and don’t get rewarded much.
Asset classes
- Stocks 100%
In asset class terms this portfolio is 100% stocks and exactly 0% subtlety. Calling it “balanced” while holding no bonds, no alternatives, no cash ballast is ambitious marketing at best. It’s a pure equity roller coaster dressed up with a moderate risk score, which is like calling a roller coaster “family friendly” because the seats have cushions. All-in equity can work out over long stretches, but the ride can be brutal along the way. There’s no second engine here to smooth things out, so when stocks decide to sulk, the whole portfolio just sits there and sulks with them.
Sectors
- Technology 29%
- Financials 16%
- Industrials 11%
- Consumer Discretionary 9%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
Sector-wise, this is a tech-led world index with a slight “grown-up” tilt. Around 29% in tech means you still worship at the usual temple of chips and software, but the value factor nudges more toward boring names than the usual growth darlings. Financials and industrials also show up meaningfully, which is classic for any value-ish global mix. The result is a portfolio that’s modern enough not to look like it’s stuck in the 1990s, but still a bit addicted to the usual cyclical suspects. When the economy stumbles, several of these big sectors tend to trip over the same furniture at the same time.
Regions
- North America 56%
- Europe Developed 22%
- Japan 13%
- Asia Developed 4%
- Asia Emerging 2%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, this portfolio screams “US is home base, everywhere else is a day trip.” With 56% in North America, then 22% Europe and a polite sprinkling of Japan and the rest, it’s basically the global market with a standard US lean. You do get exposure across continents, so it’s not a total home-country hostage situation, but the pattern is obvious: big developed markets first, everything else as garnish. If the US underperforms for a long stretch, this portfolio is not magically protected. It just suffers slightly less while still firmly tied to the same main engine.
Market capitalization
- Large-cap 46%
- Mega-cap 35%
- Mid-cap 17%
On market caps this is a classic “big kids only” party: 35% mega-cap, 46% large-cap, 17% mid-cap, and small caps barely matter. That’s standard for global indexes, but paired with a value tilt it means you’re mostly fishing among the giants that got cheap, not the scrappy underdogs. You’re heavily reliant on the mood swings of the world’s biggest companies, which can be slow to move in good times and uncomfortably synchronized in bad times. It’s efficient, but not exactly adventurous. If small caps have a decade in the sun, this portfolio will mostly be watching from the shade.
True holdings
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MU Micron Technology Inc 2.72%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
NV NVIDIA Corporation 2.36%
Part of fund(s):- SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
-
AA Apple Inc 2.07%
Part of fund(s):- SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
-
CS Cisco Systems Inc 1.76%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
MS Microsoft Corporation 1.45%
Part of fund(s):- SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
-
IN Intel Corporation 1.39%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
VZ Verizon Communications Inc 1.19%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
AM Amazon.com Inc 1.11%
Part of fund(s):- SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
-
T AT&T Inc 0.98%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
GO Alphabet Inc Class A 0.92%
Part of fund(s):- SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
- Top 10 total 15.95%
The look-through holdings tell a funny story: you bought a value factor fund and an ACWI tracker, and still ended up with the usual celebrity tech names at the top. Micron, NVIDIA, Apple, Microsoft, Amazon, Alphabet – they all sneak in anyway via the ACWI side, even though value is trying to drag the portfolio toward cheaper names. That’s the downside of the “index plus factor” combo: overlap is real, and the coverage here is only 23%, so the true duplication is probably higher. You think you’re diversified, but your top drivers still rhyme a lot with a standard global tech-heavy benchmark.
Risk contribution
-
iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
Weight: 50.00% 51.0% -
SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
Weight: 50.00% 49.0%
Risk contribution is almost boringly symmetrical: each fund is 50% weight and contributes about 50% of the total risk. No secret villain, no tiny position hogging the drama — just two co-stars sharing the volatility spotlight. Risk contribution basically shows which holdings are really driving the ups and downs, and here the answer is simply “both of them equally.” That symmetry is tidy but also means any issue with either fund fully bleeds into the portfolio. There’s nowhere for trouble to hide, but also nowhere to shove risk off to something that behaves differently.
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 efficient frontier chart politely exposes the joke: this portfolio is actually pretty efficient, just not especially inspiring. The Sharpe ratio of 0.53 sits below both the max-Sharpe and min-variance versions that could be built with the exact same two funds. Translation: even with this tiny toolkit, different weights could squeeze out better risk-adjusted returns. The good news is you’re basically sitting on the curve already, not way below it. So, structurally it’s competent; the trade-off between risk and return is not wildly off. It’s just slightly suboptimal — like buying a decent bike, then never quite adjusting the seat.
Ongoing product costs
- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR 0.30%
- SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF 0.45%
- Weighted costs total (per year) 0.38%
Costs are where this portfolio shows its slightly lazy side. A blended TER of 0.38% for two massive ultra-plain global funds is… not a bargain. It’s not daylight robbery, but it’s definitely “paying a brand tax to own the world.” Fees work like a slow leak in your returns — tiny each year, annoying over decades. The structure is simple enough that cheaper near-clones definitely exist, so you’re not paying for complexity or magic here, just for the specific labels. On the plus side, at least you didn’t stack a dozen overlapping active funds on top of each other. Low bar, but cleared.
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