A globally diversified ESG-focused portfolio with a balanced risk profile and strong growth potential

Report created on Dec 15, 2024

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 composed of the Amundi MSCI World ESG Leaders UCITS ETF, representing a 100% allocation to this single ETF. This indicates a significant focus on environmental, social, and governance (ESG) criteria, which is becoming increasingly important for many investors. A single asset allocation simplifies management but may lack the diversification benefits multiple assets provide. To enhance diversification, consider including other asset types or funds with different risk-return profiles. This can help spread risk and potentially improve returns over time.

Growth Info

Historically, this portfolio has shown a compound annual growth rate (CAGR) of 15.61%, indicating strong performance. A hypothetical investment of €10,000 would have grown significantly over the years. However, it also experienced a maximum drawdown of -18.16%, highlighting the potential for significant short-term losses. Understanding past performance is crucial, but it's important to remember that it does not guarantee future results. To manage risk, consider maintaining a balanced approach and regularly reviewing the portfolio's alignment with your financial goals.

Projection Info

The forward projection for this portfolio uses a Monte Carlo simulation, which ran 1,000 simulations to predict potential future outcomes. This method uses historical data to estimate a range of possible returns, with a 5th percentile return of 236.97% and a median (50th percentile) return of 709.87%. While these projections provide insights into potential future performance, they are not predictions and carry inherent uncertainties. Consider them as part of a broader decision-making process, incorporating other factors like market trends and personal financial goals.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted towards stocks, with 99.87% allocated to this asset class. This skew towards equities suggests a focus on growth, but it also increases exposure to market volatility. Diversifying across different asset classes, such as bonds or alternative investments, can help mitigate risks associated with stock market fluctuations. A more balanced allocation can provide stability and potentially smoother returns over time, especially during market downturns. Consider your risk tolerance when deciding on the appropriate asset mix.

Sectors Info

  • Technology
    24%
  • Financials
    16%
  • Consumer Discretionary
    12%
  • Health Care
    12%
  • Industrials
    10%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Real Estate
    2%
  • Energy
    2%
  • Utilities
    2%

The sector allocation within this portfolio shows a notable concentration in technology (24.11%) and financial services (16.43%). While these sectors have been strong performers, overexposure can increase vulnerability to sector-specific downturns. A more balanced sector allocation can reduce risk and improve resilience. Consider diversifying into underrepresented sectors like utilities or consumer defensive, which may offer stability during economic uncertainty. Regularly review sector weightings to ensure they align with your investment strategy and risk tolerance.

Regions Info

  • North America
    75%
  • Europe Developed
    16%
  • Japan
    6%
  • Australasia
    2%
  • Asia Developed
    1%

Geographically, the portfolio is predominantly exposed to North America (74.57%), with lesser allocations to Europe Developed (16.22%) and Japan (6.45%). This concentration in North America may limit exposure to growth opportunities in emerging markets. While developed markets can offer stability, diversifying geographically can capture growth potential in other regions. Consider increasing exposure to underrepresented areas like Asia or Latin America to enhance geographical diversification and reduce country-specific risks.

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