A balanced and cautious investment portfolio focusing on diversification and global exposure

Report created on Aug 2, 2025

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 strategically composed of three ETFs, with a 40% allocation each to iShares Edge MSCI World Minimum Volatility UCITS ETF and Vanguard LifeStrategy 80% Equity UCITS ETF, and a 20% allocation to Xtrackers MSCI Emerging Markets UCITS ETF. This composition reflects a cautious approach, balancing between minimizing volatility and seeking growth through diversified global equity exposure. The emphasis on ETFs that focus on minimum volatility and a mix of developed and emerging markets indicates a preference for steady growth with managed risk levels.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 7.54%, with a maximum drawdown of -14.70%. This performance suggests resilience during market fluctuations, attributed to its diversified nature and cautious asset allocation. The days contributing to 90% of returns being limited to 15 indicate that while the portfolio has stable growth, significant gains can occur on relatively few days, highlighting the importance of long-term holding.

Projection Info

Utilizing a Monte Carlo simulation, which forecasts future performance based on historical data, the portfolio shows a median projected growth of 151.3% in the 50th percentile of outcomes. However, it's crucial to understand that such projections have limitations and cannot guarantee future results. The simulation's wide range of outcomes underscores the uncertainty inherent in investing and the importance of maintaining a diversified portfolio to manage risk.

Asset classes Info

  • Stocks
    92%
  • Bonds
    8%

With 92% of its allocation in stocks and the remaining 8% in bonds, the portfolio leans heavily towards equities for growth potential, while the bond allocation provides a buffer against market volatility. This asset class distribution is typical for investors seeking a balance between growth and risk management, aligning well with the portfolio's cautious risk profile.

Sectors Info

  • Technology
    22%
  • Financials
    18%
  • Health Care
    11%
  • Telecommunications
    10%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Consumer Staples
    8%
  • Utilities
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    1%

The portfolio's sector allocation is broadly diversified, with technology (22%) and financial services (18%) being the most prominent. This sectoral spread is beneficial for mitigating sector-specific risks and capitalizing on growth across different industries. However, the heavy weighting in technology and financial services may expose the portfolio to sector-specific volatilities, which should be monitored.

Regions Info

  • North America
    54%
  • Asia Emerging
    13%
  • Europe Developed
    13%
  • Asia Developed
    9%
  • Japan
    6%
  • Africa/Middle East
    3%
  • Latin America
    2%
  • Australasia
    1%
  • Europe Emerging
    1%

Geographic distribution is well-diversified, with a significant portion in North America (54%) and meaningful exposures to emerging Asia (13%) and developed Europe (13%). This global exposure enhances the portfolio's growth potential while spreading geopolitical and currency risks. However, investors should be aware of the concentration in North American markets, as it may influence the portfolio's performance relative to global economic shifts.

Market capitalization Info

  • Large-cap
    37%
  • Mega-cap
    34%
  • Mid-cap
    19%

The portfolio's focus on big (37%) and mega-cap (34%) companies, with a smaller allocation to mid-caps (19%), suggests a preference for stability and lower volatility associated with larger, more established companies. While this may limit exposure to the high growth potential of smaller firms, it aligns with the portfolio's cautious risk profile.

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 analysis suggests that an optimized portfolio with the same risk level could potentially achieve a higher expected return of 8.29%, compared to the current expected return. This indicates room for improvement in asset allocation to enhance returns without increasing risk substantially. Investors should consider rebalancing strategies that could move the portfolio closer to the efficient frontier, where the highest possible return for a given level of risk is achieved.

Ongoing product costs Info

  • iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc) EUR 0.30%
  • Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating 0.25%
  • Xtrackers MSCI Emerging Markets UCITS ETF 1C 0.18%
  • Weighted costs total (per year) 0.26%

With a total expense ratio (TER) averaging 0.26%, the portfolio is efficiently managed in terms of costs. Lower costs can significantly enhance long-term returns by reducing the drag on performance. This cost efficiency is a positive aspect, especially for a portfolio designed to minimize risk and pursue steady growth.

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