A globally diversified equity portfolio with strong tech exposure and low costs

Report created on Aug 10, 2025

Risk profile Info

4/7
Balanced
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Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio predominantly invests in global equities through three iShares ETFs, focusing 80% on a broad MSCI World index, 10% on the S&P 500, and 10% on emerging markets. This allocation reflects a strategy aimed at capturing global market returns while balancing exposure between developed and emerging markets. The heavy weighting towards the MSCI World ETF suggests a preference for diversification across developed countries, complemented by targeted exposure to the U.S. and emerging markets for growth potential.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.98%, with a maximum drawdown of -26.14%. These figures indicate robust growth over time, albeit with significant volatility, as evidenced by the drawdown. The days contributing most to returns highlight the portfolio's sensitivity to market highs and lows, underscoring the importance of staying invested through market cycles to capture peak performance days.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, suggest a wide range of scenarios for this portfolio. With a median projected growth of 395.3% and 989 out of 1,000 simulations showing positive returns, the outlook appears generally positive. However, the range from the 5th to the 67th percentile underscores the inherent uncertainty in these projections, emphasizing the need for risk tolerance and a long-term perspective.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, reflecting a high-growth, high-risk strategy. This singular focus on equities provides no buffer against stock market volatility through fixed income or alternative investments. While this can lead to higher returns, it also increases the portfolio's risk profile, particularly in market downturns.

Sectors Info

  • Technology
    26%
  • Financials
    14%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

With 26% allocated to technology, the portfolio is heavily tilted towards a sector known for its high growth potential but also for its volatility. Financial services and industrials follow, creating a diversified yet growth-oriented sectoral exposure. This composition is reflective of a bullish outlook on tech and finance, sectors that have historically driven market gains but can be sensitive to economic cycles.

Regions Info

  • North America
    71%
  • Europe Developed
    13%
  • Asia Emerging
    5%
  • Japan
    4%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation heavily favors North America with 71%, primarily through the S&P 500 and MSCI World ETFs, followed by developed Europe and a modest allocation to emerging markets. This distribution suggests a confidence in the stability and growth potential of North American and European markets, while still seeking to capture the higher growth rates often found in emerging economies.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    16%
  • Small-cap
    1%

With 48% in mega-cap and 35% in large-cap stocks, the portfolio is skewed towards companies with large market capitalizations, indicating a preference for established, stable companies over smaller, potentially higher-growth firms. This can provide a degree of stability and resilience in volatile markets, though it may limit exposure to rapid growth opportunities found in smaller companies.

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.

The current portfolio's expected return is slightly below the optimal level suggested by Efficient Frontier analysis, which indicates a potential return of 13.73% at a similar risk level. This suggests room for optimization, perhaps by adjusting the allocation among the existing assets to achieve a better risk-return balance without increasing overall portfolio risk.

Ongoing product costs Info

  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • Weighted costs total (per year) 0.19%

The portfolio benefits from low total expense ratios (TER) across its holdings, averaging 0.19%. This cost efficiency supports long-term growth by minimizing the drag on returns. Given the competitive costs of these ETFs, the portfolio is well-positioned to capitalize on market gains without being significantly eroded by fees.

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