A cautious and highly diversified portfolio with a strong global equity focus

Report created on Dec 11, 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 predominantly composed of ETFs, with a significant 60% allocation to the Vanguard FTSE All-World UCITS ETF. This suggests a strong emphasis on global equity exposure. The remaining assets are diversified across various ETFs, including bonds, commodities, and gold. This composition indicates a balanced approach aiming to capture global market growth while managing risk through diversification. It's important to maintain this balance to reduce potential volatility. Regularly reviewing the allocation to ensure it aligns with personal risk tolerance and investment goals is advisable.

Growth Info

Historically, the portfolio has shown a compound annual growth rate (CAGR) of 9.86%, with a maximum drawdown of -24.74%. This indicates that while the portfolio has delivered solid returns over time, it has also experienced significant fluctuations. Understanding past performance helps set realistic expectations for future returns, but it's not a guarantee of future success. Consider maintaining a diversified approach and regularly reviewing the portfolio to manage potential risks and capitalize on growth opportunities.

Projection Info

The Monte Carlo simulation, which uses historical data to project potential future outcomes, suggests an annualized return of 7.41% with 956 out of 1,000 simulations showing positive returns. This indicates a favorable probability of achieving gains, although it's essential to remember that simulations rely on past data, which may not predict future market conditions. Diversification and regular portfolio reviews can help mitigate risks and adapt to changing market dynamics.

Asset classes Info

  • Stocks
    65%
  • Bonds
    27%
  • Other
    3%

The portfolio is diversified across asset classes, with 64.93% in stocks, 26.87% in bonds, and a small portion in other assets. This allocation reflects a balanced approach, aiming to capture equity market growth while providing stability through bonds. Diversification across asset classes can help mitigate risks associated with market volatility. Regularly assess the allocation to ensure it aligns with personal risk tolerance and investment objectives.

Sectors Info

  • Technology
    16%
  • Financials
    11%
  • Consumer Discretionary
    7%
  • Health Care
    7%
  • Industrials
    7%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation shows a notable concentration in technology (16.06%) and financial services (10.58%), with smaller allocations across various other sectors. This distribution suggests a focus on growth-oriented sectors, which may offer higher returns but also come with increased risk. Balancing sector exposure can help manage potential risks and capture opportunities across different economic environments. Regularly evaluate sector allocations to ensure they align with personal investment goals.

Regions Info

  • North America
    40%
  • Europe Developed
    9%
  • Asia Emerging
    5%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The portfolio's geographic exposure is heavily weighted towards North America (40.42%), with smaller allocations to Europe, Asia, and other regions. This reflects a strong focus on developed markets, which can provide stability but may limit exposure to higher-growth emerging markets. Geographic diversification can help manage risks associated with regional economic fluctuations. Consider evaluating geographic exposure to ensure it aligns with personal risk tolerance and growth objectives.

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 portfolio can potentially be optimized using the Efficient Frontier, which seeks the best possible risk-return ratio by adjusting asset allocations. This optimization focuses solely on the current assets and aims to maximize returns for a given level of risk. It's important to note that efficiency doesn't necessarily equate to diversification. Regularly assess the portfolio's efficiency to ensure it aligns with personal risk tolerance and investment goals.

Dividends Info

  • Vanguard FTSE All-World UCITS ETF 1.20%
  • Weighted yield (per year) 0.72%

The portfolio's overall dividend yield is 0.72%, with the Vanguard FTSE All-World UCITS ETF contributing a 1.2% yield. Dividends can provide a steady income stream, enhancing total returns. While the yield is modest, it complements the growth potential of the portfolio. Consider reinvesting dividends to compound returns over time, or utilizing them for income, depending on personal financial goals.

Ongoing product costs Info

  • iShares Core Corporate Bond UCITS 0.20%
  • iShares $ Corp Bond UCITS ETF USD (Dist) 0.25%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • iShares MSCI World Small Cap UCITS ETF USD (Acc) 0.35%
  • iShares Diversified Commodity Swap UCITS ETF 0.19%
  • Vanguard FTSE All-World UCITS ETF 0.22%
  • Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C 0.10%
  • Weighted costs total (per year) 0.18%

The portfolio's total expense ratio (TER) is 0.18%, which is relatively low and helps preserve long-term returns. Keeping costs low is crucial, as high fees can erode investment gains over time. Regularly review and compare the expense ratios of portfolio holdings to ensure they remain competitive. Consider reallocating to lower-cost alternatives if necessary to enhance overall returns.

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