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A cautious and highly diversified portfolio with exposure to global equities and alternative assets

Report created on Dec 27, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is composed of 45% iShares Core MSCI World, 20% SPDR MSCI USA Small Cap, 15% iShares Core MSCI Emerging Markets, 10% Xtrackers Eurozone Bonds, 5% iShares Physical Gold, and 5% VanEck Bitcoin ETN. This mix offers a broad exposure to global equities, bonds, and alternative assets like gold and bitcoin. Compared to a typical cautious portfolio, this one has a higher equity exposure, which could increase potential returns while maintaining diversification through bonds and alternative assets.

Growth Info

The portfolio's historical performance shows a Compound Annual Growth Rate (CAGR) of 11.05%, with a maximum drawdown of -18.31%. This indicates a robust return with moderate risk over the period analyzed. Comparing this to broader market indices, the performance aligns well with global equity trends. However, it's important to note that past performance does not guarantee future results, and the market conditions can change.

Projection Info

Using Monte Carlo simulations, which project potential future outcomes based on historical data, the portfolio shows promising results. The median outcome suggests a potential growth of 369.48%, while the 5th percentile indicates a downside risk of -14.27%. This method helps in understanding the range of possible future returns, although it's based on historical patterns and doesn't account for unforeseen market changes.

Asset classes Info

  • Stocks
    80%
  • Other
    10%
  • Bonds
    10%

The asset allocation is 79.78% in stocks, 9.97% in bonds, and 10.03% in other assets, including gold and bitcoin. This distribution provides a solid foundation for growth while offering some stability through bonds and alternative assets. Compared to typical benchmarks, the portfolio leans heavily on equities, which can enhance growth but may also increase volatility.

Sectors Info

  • Technology
    17%
  • Financials
    15%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    4%
  • Basic Materials
    4%
  • Real Estate
    3%
  • Utilities
    2%

Sector allocation shows a notable concentration in technology (17.39%) and financial services (14.72%), with other sectors like consumer cyclicals and industrials also well-represented. This balanced sector exposure aligns with global benchmarks, suggesting a diversified approach that can benefit from various economic cycles. However, technology-heavy portfolios may experience higher volatility during interest rate hikes.

Regions Info

  • North America
    54%
  • Asia Emerging
    8%
  • Europe Developed
    7%
  • Asia Developed
    5%
  • Japan
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

The geographic exposure is predominantly in North America (54.11%), with smaller allocations in Asia, Europe, and other regions. This North American focus aligns with global equity benchmarks but may expose the portfolio to regional risks. Diversifying further into underrepresented areas could enhance resilience against regional economic downturns.

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.

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The Efficient Frontier analysis suggests that a more optimal portfolio could achieve a higher expected return of 17.26% with a similar risk level. This involves reallocating assets to balance risk and return more effectively. However, optimization is based on current assets and doesn't guarantee diversification or other investment goals.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Xtrackers II Eurozone Government Bond 7-10 UCITS ETF 1C 0.15%
  • SPDR® MSCI USA Small Cap Value Weighted UCITS ETF USD Acc EUR 0.30%
  • Weighted costs total (per year) 0.19%

The portfolio's total expense ratio (TER) is 0.19%, which is impressively low. This cost efficiency supports better long-term performance as lower fees mean more of your returns stay in your pocket. Regularly reviewing and managing costs is crucial to maximizing net returns, especially in a cautious investment strategy.

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