Balanced global portfolio with a strong tilt towards technology and North America

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around four ETFs, focusing heavily on equities with a 50% allocation in a S&P 500 tracker, 30% in a global ETF, 15% in an Asian emerging markets ETF, and a modest 5% in European stocks. This composition indicates a preference for global diversification with a significant emphasis on the US market. The absence of bonds, commodities, or alternative investments suggests a purely equity-driven growth strategy, albeit with a balanced risk profile given the spread across different regions and sectors.

Growth Info

Historically, this portfolio has seen a Compound Annual Growth Rate (CAGR) of 12.20%, with a maximum drawdown of -32.67%, highlighting its resilience and potential for recovery after market downturns. The fact that 90% of returns came from just 20 days underscores the volatility and the importance of staying invested through market cycles. Comparing this performance to benchmarks, it's evident that the portfolio's heavy equity orientation has contributed to both its higher growth potential and its risk.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest a median increase of 261.7% in portfolio value, with a significant majority (976 out of 1,000) of simulations predicting positive returns. This forward-looking analysis supports the portfolio's potential for substantial growth, though it's crucial to remember that such projections are speculative and depend on past market behavior continuing into the future.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, which, while offering higher potential returns, also come with increased volatility compared to portfolios that include bonds or other asset classes. This single-class focus aligns with a growth-oriented strategy but lacks the cushion against market downturns that fixed-income investments can provide. Diversifying across asset classes could reduce volatility and improve the risk-adjusted return of the portfolio.

Sectors Info

  • Technology
    30%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Industrials
    9%
  • Health Care
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral allocation is heavily weighted towards technology, financial services, and consumer cyclicals, which may lead to higher volatility, especially in tech-heavy market environments. This concentration aligns with the pursuit of growth but exposes the portfolio to sector-specific risks. Balancing sector exposure could mitigate this risk while still capturing growth opportunities in other areas.

Regions Info

  • North America
    69%
  • Asia Emerging
    11%
  • Europe Developed
    10%
  • Asia Developed
    7%
  • Japan
    2%
  • Australasia
    1%

The geographic distribution shows a strong bias towards North America, particularly the US, with significant but lesser exposure to emerging Asian markets and developed European countries. This geographic spread provides a mix of stability from developed markets and growth potential from emerging markets. However, the portfolio could benefit from increased exposure to other regions to enhance global diversification and reduce dependency on any single market's performance.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    34%
  • Mid-cap
    15%
  • Small-cap
    1%

The portfolio's emphasis on mega and big-cap stocks (84% combined) suggests a preference for established, large-scale companies, likely reflecting a strategy that balances growth with a degree of stability. However, the minimal exposure to small and micro-cap stocks limits opportunities for outsized growth from smaller companies, which could be especially relevant in emerging markets or innovative sectors.

Redundant positions Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    iShares Core S&P 500 UCITS ETF USD (Acc)
    High correlation

The high correlation between the S&P 500 and the global ETF indicates overlapping exposures, particularly to US equities, which may limit the portfolio's diversification benefits. Identifying and reducing such overlaps can help in achieving a more efficient distribution of assets, potentially lowering risk without sacrificing expected returns.

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.

Optimizing for the Efficient Frontier could involve reducing the overlap between highly correlated assets, thereby enhancing diversification without necessarily compromising expected returns. This process might include reassessing the allocation to the S&P 500 and global ETFs to ensure that each investment contributes uniquely to the portfolio's risk-return profile.

Ongoing product costs Info

  • iShares MSCI EM Asia UCITS ETF 0.20%
  • Amundi Stoxx Europe 600 UCITS ETF C EUR 0.07%
  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.16%

The portfolio's total expense ratio (TER) of 0.16% is impressively low, enhancing long-term returns by minimizing cost drag. This efficient cost structure is a strong point, ensuring that a greater portion of investment returns contributes to portfolio growth rather than being consumed by fees.

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