A single ETF portfolio focusing on global stocks with a balanced risk profile

Report created on Aug 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is entirely invested in the iShares Core MSCI World UCITS ETF USD (Acc), offering a broad exposure to global equities. With 100% of the portfolio allocated to stocks, it is positioned for growth but lacks asset class diversification. This concentration in one ETF simplifies the investment strategy but puts a significant emphasis on the performance of global stock markets. The ETF's sectoral and geographic diversification helps mitigate some risks, but the absence of investments in other asset classes like bonds or real estate may increase volatility.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.05%, with a maximum drawdown of -25.61%. These figures suggest a strong performance, with the portfolio capable of significant growth while experiencing periods of notable volatility. The days that make up 90% of returns indicate that a few exceptional days largely drive the portfolio's performance. This underscores the importance of staying invested over the long term to capture these critical periods of gain.

Projection Info

The Monte Carlo simulation, using 1,000 iterations, projects a wide range of outcomes with a median increase of 471.5% and a 5th percentile at 120.2%, indicating that even in lower-performing scenarios, the portfolio is expected to grow. The simulations show a consistent possibility of positive returns, with an annualized return across all simulations at 14.10%. However, it's important to remember that these projections are based on historical data, which is not a guaranteed predictor of future performance.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is solely in stocks, providing significant growth potential but also higher volatility compared to more diversified portfolios that include bonds or other asset classes. This concentration in equities aligns with a growth-focused investment strategy but may not be suitable for investors with a lower risk tolerance or those nearing retirement who might prefer a more conservative asset mix to protect against market downturns.

Sectors Info

  • Technology
    28%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

The sector distribution within the ETF is heavily weighted towards technology (28%) and financial services (16%), reflecting the current global market trends. This sectoral allocation can offer high growth potential but may also expose the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting these industries more significantly than others. Diversifying across a broader range of sectors could help mitigate these risks.

Regions Info

  • North America
    76%
  • Europe Developed
    16%
  • Japan
    5%
  • Australasia
    2%
  • Asia Developed
    1%

Geographically, the portfolio is predominantly invested in North America (76%), with smaller exposures to developed Europe (16%) and Japan (5%). This distribution reflects the global economic landscape but may underrepresent emerging markets, potentially missing out on their growth opportunities. Considering a slight increase in exposure to emerging markets could provide additional growth potential and further diversification benefits.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    35%
  • Mid-cap
    17%

The market capitalization breakdown shows a strong preference for mega (47%) and big (35%) cap stocks, with medium cap stocks making up the remainder. This indicates a conservative approach within the equity allocation, favoring established companies with potentially lower volatility than smaller companies. However, incorporating a small allocation to small-cap stocks could enhance growth prospects and diversification.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • Weighted costs total (per year) 0.20%

With a total expense ratio (TER) of 0.20%, the portfolio is efficiently managed in terms of costs. Keeping investment costs low is crucial for enhancing long-term returns, as even small differences in fees can significantly impact wealth accumulation over time. This portfolio aligns well with best practices for cost management in investment portfolios.

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