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Factor soup with index closet duplication pretending to be clever diversification

Report created on Apr 22, 2026

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio looks like someone started building a simple index core and then panic-bought a factor ETF bundle. Two big broad market funds eat 70% of the pie, then three separate 10% factor slices are sprinkled on like toppings no one coordinated. The result is less “finely tuned machine” and more “ETF sampler platter.” Structurally it’s still basically a global equity index with a couple of style levers pulled at random. The balanced risk label is technically fine, but with 100% in stocks this is “balanced” only by marketing standards, not by what happens in a proper crash.

Growth Info

Historically this mix has actually crushed it: ~22.5% CAGR versus ~19% for both US and global markets. CAGR is just the smoothed yearly growth rate, like averaging your speed over a chaotic road trip. Max drawdown around -21% was slightly less ugly than the benchmarks’ deeper dips, which is at least polite. But this period is short, tech-heavy, and weird — not exactly a neutral test environment. Outperformance over a couple of hot years often says more about coincidence and factor luck than genius. This backtest is basically a highlight reel, not a full career review.

Projection Info

The Monte Carlo projection throws this portfolio into 1,000 alternate futures and asks, “How bad could this get and how lucky could you be?” Median outcome is €1,000 turning into about €2,754 over 15 years, but the range runs from “barely above water” at ~€1,015 to “lottery-ticket lucky” near €7,738. Monte Carlo is like weather forecasting: it runs lots of storms but can’t predict the exact hurricane. The 72.7% chance of a positive outcome just means equities usually go up over long stretches, not that this particular mix has any special magic.

Asset classes Info

  • Stocks
    100%

Asset class breakdown: 100% stocks, zero of literally anything else. For something labeled “balanced,” this is basically an all-gas-no-brakes setup. Asset classes are like food groups — this is the all-protein diet of portfolios. No bonds, no cash buffer, no diversifiers beyond “different flavors of equities.” That’s fine if everyone understands it’s a pure risk asset portfolio, but the label will make some people think it behaves softer than it actually will when markets really slam. In reality, when stocks fall together, this thing has nowhere to hide and no brakes to pull.

Sectors Info

  • Technology
    28%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector tilt screams tech worship: 28% in technology with financials limping along at 17% and everything else getting table scraps. This is what happens when broad indexes and factors collide in a world where mega-cap tech drives most of the show. It’s less “sector strategy” and more “copying whatever the benchmark currently loves.” If tech takes a nap, this portfolio catches a cold; if tech catches a cold, this thing gets the flu. A more even sector spread would look less like a momentum fan club and more like an actual diversified business mix.

Regions Info

  • North America
    63%
  • Europe Developed
    18%
  • Asia Developed
    7%
  • Asia Emerging
    5%
  • Japan
    4%
  • Latin America
    2%
  • Africa/Middle East
    1%
  • Australasia
    1%

Geographically, this is “US first, everyone else gets the leftovers”: 63% North America, 18% developed Europe, modest crumbs to Asia and the rest. It’s exactly what you’d expect when you stack S&P 500 and ACWI on top of each other, then try to be fancy with factors that still lean heavily on developed markets. The result is home-country creep via the global benchmark, not an intentional worldwide view. This isn’t global exploration; it’s more like flying out of Europe just to end up heavily tied to the US market like everyone else.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    38%
  • Mid-cap
    15%

Market cap exposure is a love letter to the giants: 47% mega-cap, 38% large-cap, and a token 15% mid-cap. Small caps are basically missing, like they didn’t get the invite. This is what happens when indices and factor products all fish in the same big-stock pond. On paper that looks “safer,” but it also means a handful of massive companies quietly steer the whole ship. When the big names sneeze, this portfolio gets whiplash, and the supposed diversification across dozens of ETFs and regions turns into “whatever the top 50 global stocks are doing.”

True holdings Info

  • NVIDIA Corporation
    4.29%
    Part of fund(s):
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Apple Inc
    3.78%
    Part of fund(s):
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Microsoft Corporation
    2.73%
    Part of fund(s):
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Amazon.com Inc
    2.04%
    Part of fund(s):
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Alphabet Inc Class A
    1.69%
    Part of fund(s):
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    1.56%
    Part of fund(s):
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
    • iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD
  • Broadcom Inc
    1.46%
    Part of fund(s):
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Alphabet Inc Class C
    1.39%
    Part of fund(s):
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Meta Platforms Inc.
    1.27%
    Part of fund(s):
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Tesla Inc
    1.06%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • SPDR S&P 500 UCITS ETF USD Acc EUR
    • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
  • Top 10 total 21.26%

The look-through holdings are just a who’s-who of usual suspects: NVIDIA, Apple, Microsoft, Amazon, Alphabet, TSMC, Meta, Tesla — basically the global megacap fan club. Because overlap is only measured using top-10 positions, the real duplication is likely worse under the surface. This is index closet duplication at its finest: pretend diversification via multiple funds that all worship the same dozen names. Hidden concentration means this portfolio’s fate is heavily tied to a small tech-heavy clique, even though it’s dressed up as a sophisticated mix of global and factor funds.

Risk contribution Info

  • SPDR S&P 500 UCITS ETF USD Acc EUR
    Weight: 35.00%
    36.9%
  • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
    Weight: 35.00%
    34.9%
  • iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD
    Weight: 10.00%
    9.7%
  • iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc)
    Weight: 10.00%
    9.5%
  • iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
    Weight: 10.00%
    8.9%

Risk contribution shows who’s really driving the portfolio’s mood swings, and surprise: the big two core funds dominate. The S&P 500 piece is 35% of weight but about 37% of risk; ACWI is another 35% of weight and 35% of risk. Together with one more chunk, the top three positions contribute over 81% of total risk. Risk contribution is basically “who’s hogging the drama?” Despite the factor satellites, the risk story is mostly just “what are US and global large caps doing today?” The fancy tilts barely nudge the dial relative to those two anchors.

Redundant positions Info

  • SPDR S&P 500 UCITS ETF USD Acc EUR
    SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF
    High correlation

The S&P 500 ETF and the ACWI ETF are so correlated they basically move in lockstep. That means holding both is emotionally comforting but mathematically redundant. Correlation is just how often things move together — 1.0 is “twins,” 0 is “strangers,” -1 is “perfect opposites.” These two are in the “sharing a brain” category. In a proper crash, they’re both diving together, not taking turns cushioning the fall. So the 70% split between them is more like putting two identical engines on the same car and hoping that somehow makes the ride smoother.

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.

On the risk vs. return chart, this portfolio sits a solid 3.49 percentage points below its own efficient frontier. The efficient frontier is just the best possible trade-off between risk and return using the same ingredients but smarter proportions. Sharpe ratio — return per unit of risk — is 1.27 for the current mix versus 1.81 for the optimal combo and 1.53 for the min-variance version. Translation: with exactly these holdings, the current setup is leaving a noticeable chunk of risk-adjusted performance on the table. Same groceries, slightly chaotic recipe.

Ongoing product costs Info

  • iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD 0.40%
  • iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc) 0.25%
  • 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) 0.25%

Costs are surprisingly reasonable for such a busy-looking setup: a blended TER around 0.25%. That’s not rock-bottom, but it’s firmly in the “you didn’t get fleeced” zone. Still, paying 0.45% for the ACWI slice while stacking it with another broad index and factor funds is slightly rich for what’s basically overlapping exposure. TER is just the annual fee skimmed by the funds — like a quiet subscription cost you can’t cancel individually. Overall, the portfolio manages to complicate things without blowing up the fee budget, which is a minor miracle.

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