Balanced global exposure with a focus on growth and minimal cash holdings

Report created on Jun 12, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio primarily consists of a global equity ETF (90%) and a cash alternative ETF (10%). The global equity ETF offers comprehensive exposure to worldwide markets, while the cash alternative aims to provide stable, albeit low, returns. This structure indicates a balanced approach, leaning towards growth through significant equity exposure. The diversification across multiple sectors and geographic regions, as highlighted by the allocation to the SPDR® MSCI ACWI UCITS ETF, aligns well with a balanced risk profile.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 9.75%, with a maximum drawdown of -31.27%. This performance suggests resilience in varied market conditions, albeit with periods of significant value decline. The few days contributing disproportionately to returns highlight the impact of short-term market movements on overall performance. Comparing this to benchmarks, the growth is commendable, indicating a well-chosen asset mix that capitalizes on market upswings.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median annualized return of 6.27%. This variance underscores the inherent uncertainties in predicting market movements but suggests a positive outlook. The simulations offer a realistic expectation of future performance, considering historical volatility and returns. Investors should interpret these projections cautiously, as past performance is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    90%
  • Other
    10%

The portfolio's asset allocation—90% in stocks and 10% in other (essentially cash alternatives)—is typical of a balanced growth strategy. This allocation supports a higher growth potential through equity investments while maintaining a small buffer in more stable, low-return assets. The absence of direct cash holdings and minimal allocation to low-risk alternatives indicate a preference for maintaining market exposure.

Sectors Info

  • Technology
    22%
  • Financials
    16%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral distribution reveals a heavy emphasis on Technology and Financial Services, followed by balanced exposure to Consumer Cyclicals, Industrials, and Healthcare. This sectoral spread is indicative of a growth-oriented strategy, capitalizing on the sectors' potential for higher returns. However, the significant weight in Technology and Financial Services could introduce sector-specific risks, warranting periodic review to ensure alignment with the overall risk tolerance.

Regions Info

  • North America
    60%
  • Europe Developed
    14%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (60%), with meaningful exposure to developed Europe and a modest presence in emerging markets and other regions. This distribution reflects a conservative approach to international diversification, favoring established markets over potentially higher-growth but riskier emerging markets. While this may reduce volatility, it could also limit exposure to high-growth opportunities abroad.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    31%
  • Mid-cap
    14%

The focus on Mega and Big cap stocks (75% combined) suggests a preference for stability and established companies, likely to offer consistent returns and lower volatility compared to smaller companies. Medium cap stocks add a layer of growth potential, albeit with increased risk. The absence of small cap investments further underscores the portfolio's balanced risk posture, prioritizing steady growth over speculative gains.

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.

Considering the Efficient Frontier, this portfolio appears well-positioned for its risk profile, balancing potential returns against volatility. However, ongoing review and adjustment could further optimize its position on the Frontier, ensuring that the portfolio continues to offer the best possible risk-return trade-off within the constraints of its asset allocation and investor's risk tolerance.

Ongoing product costs Info

  • SPDR® MSCI ACWI UCITS ETF 0.45%
  • Multi Units Luxembourg - Amundi Smart Overnight Return GBP Hedged UCITS ETF Acc 0.10%
  • Weighted costs total (per year) 0.42%

The portfolio's total expense ratio (TER) of 0.42% is relatively low, enhancing its appeal by minimizing the drag on returns due to costs. This efficiency is crucial for long-term growth, as even small differences in fees can significantly impact compounded returns over time. The careful selection of cost-effective ETFs demonstrates a strategic approach to maximizing net returns.

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