Balanced and moderately diversified portfolio with a strong focus on global equities

Report created on Aug 6, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is entirely allocated to the iShares Core MSCI World UCITS ETF USD (Acc) EUR, signifying a 100% exposure to global equities. This ETF encompasses a broad range of sectors and geographic regions, making it a moderately diversified investment. The concentration in a single asset class (stocks) and reliance on one ETF, however, limits diversification across asset types and increases susceptibility to market volatility inherent to equities.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 10.88%, with a significant maximum drawdown of -33.64%. These figures highlight the portfolio's ability to generate strong returns over time, albeit with considerable risk, as evidenced by the deep drawdown. The performance underscores the importance of a long-term investment horizon and tolerance for short-term market fluctuations.

Projection Info

Utilizing Monte Carlo simulations, which forecast future performance based on historical data, the portfolio shows a wide range of outcomes. With 988 out of 1,000 simulations predicting positive returns, the median projected growth stands at 297.7%. It's crucial to remember, though, that these simulations are speculative and cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in equities offers the potential for high returns but comes with increased risk. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer against stock market volatility and contribute to a more stable performance over time.

Sectors Info

  • Technology
    28%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation is heavily weighted towards Technology, Financial Services, and Industrials, which can drive growth but also expose the portfolio to sector-specific risks. A more balanced sector distribution could mitigate these risks and capitalize on opportunities across the broader market.

Regions Info

  • North America
    75%
  • Europe Developed
    16%
  • Japan
    5%
  • Australasia
    2%
  • Asia Developed
    1%

Geographically, the portfolio is predominantly invested in North America (75%), with lesser exposures to Europe Developed and Japan. This concentration may overlook potential growth in emerging markets and other developed regions, suggesting an opportunity to enhance global diversification.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    17%

The focus on Mega and Big cap stocks (83% combined) aligns with the portfolio's balanced risk profile, providing stability and potential for growth. However, incorporating Medium or even Small cap stocks could introduce more growth potential, albeit with higher risk.

Ongoing product costs Info

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

With a Total Expense Ratio (TER) of 0.20%, the portfolio is cost-efficient, which is crucial for maximizing long-term returns. Lower costs allow more of the investment's return to compound over time, underscoring the importance of cost-conscious investment choices.

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