This portfolio has only about 5.1 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Cautious and Highly Diversified Portfolio with Balanced Global Exposure and Low Costs

Report created on Jul 23, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is composed of a variety of ETFs that provide exposure to both bonds and stocks, with a notable 30% allocation in bonds via the Vanguard Global Aggregate Bond UCITS ETF. The remaining 70% is diversified across various equity markets, including North America, Emerging Markets, Europe, and Asia. This highly diversified structure helps mitigate risks and offers a balanced approach to potential returns. The allocation reflects a cautious investment strategy, suitable for those looking to preserve capital while achieving moderate growth.

Growth Info

Historically, this portfolio has performed quite well, with a Compound Annual Growth Rate (CAGR) of 7.26%. The maximum drawdown, or the largest peak-to-trough decline, was -25.42%, which indicates the portfolio has experienced significant downturns but has also shown resilience. The fact that 90% of the returns are made up in just 16 days highlights the importance of staying invested to capture these key growth periods. Overall, the historical performance suggests a steady, albeit cautious, growth trajectory.

Projection Info

Using a Monte-Carlo simulation with 1,000 iterations, the future projection of this portfolio shows a median (50th percentile) end value of 145.98% of the initial investment, with a 67th percentile value of 232.49%. The 5th percentile, representing a more pessimistic scenario, shows a potential loss of -9.88%. This method, which uses random sampling to model potential outcomes, suggests that the portfolio has a high probability of positive returns, with 918 out of 1,000 simulations showing gains. The annualized return from all simulations is projected to be 8.08%.

Asset classes Info

  • Stocks
    70%
  • Bonds
    30%

The portfolio is well-diversified across asset classes, with approximately 70% in stocks and 30% in bonds. This mix provides a balance between growth potential and income stability. Bonds typically offer lower risk and steady returns, which can cushion the portfolio during market volatility. The stock allocation, spread across various global markets, aims to capture growth opportunities. This blend is ideal for cautious investors looking for a mix of capital preservation and growth.

Sectors Info

  • Technology
    15%
  • Financials
    12%
  • Industrials
    8%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Basic Materials
    4%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation within this portfolio is spread across multiple industries, with the highest concentration in Technology (14.53%), Financial Services (12.08%), and Industrials (8.05%). This diversified sector exposure helps mitigate risks associated with market fluctuations in any single industry. By not being overly concentrated in one sector, the portfolio is better positioned to weather economic cycles and capitalize on growth across different areas of the economy. Regularly reviewing sector performance can help maintain this balanced approach.

Regions Info

  • North America
    34%
  • Europe Developed
    13%
  • Asia Emerging
    8%
  • Asia Developed
    4%
  • Japan
    4%
  • Africa/Middle East
    2%
  • Australasia
    2%
  • Latin America
    2%

Geographically, the portfolio has significant exposure to North America (34.22%), followed by Europe Developed (13.49%), and various regions in Asia. This global diversification helps spread risk across different economic environments and political landscapes. By investing in multiple regions, the portfolio can benefit from growth in emerging markets while maintaining stability through developed markets. This geographical mix is essential for reducing the impact of localized economic downturns and capturing global growth opportunities.

Dividends Info

  • Vanguard FTSE Emerging Markets UCITS 2.50%
  • Vanguard FTSE Developed Asia Pacific ex Japan UCITS 3.50%
  • Vanguard FTSE Developed Europe UCITS 3.00%
  • Vanguard FTSE Japan UCITS 1.70%
  • Weighted yield (per year) 0.89%

The portfolio does not explicitly focus on high dividend-yielding assets, as evidenced by the lack of significant dividend yield data. While dividends can provide a steady income stream, this portfolio seems to prioritize growth and capital appreciation through its diversified equity and bond holdings. Investors looking for income might consider incorporating more dividend-focused investments. However, the current structure supports a long-term growth strategy with reinvested earnings.

Ongoing product costs Info

  • iShares MSCI World Small Cap UCITS ETF USD (Acc) 0.35%
  • Vanguard Global Aggregate Bond UCITS ETF EUR Hedged Accumulation 0.10%
  • Vanguard FTSE Emerging Markets UCITS 0.22%
  • Vanguard FTSE Developed Asia Pacific ex Japan UCITS 0.15%
  • Vanguard FTSE Developed Europe UCITS 0.10%
  • Vanguard FTSE Japan UCITS 0.15%
  • Vanguard FTSE North America UCITS 0.10%
  • Weighted costs total (per year) 0.14%

The portfolio boasts a low total expense ratio (TER) of 0.14%, which is excellent for keeping investment costs down. Low costs are crucial for maximizing net returns over time, as high fees can significantly erode gains. The individual ETFs within the portfolio also have relatively low expense ratios, ranging from 0.1% to 0.35%. This cost efficiency aligns well with a cautious investment strategy, ensuring that more of the portfolio’s returns are retained by the investor.

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