A well-diversified investment portfolio with a strong emphasis on North American equities

Report created on Aug 15, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio predominantly consists of equities, with a significant 80% allocation to the iShares Core S&P 500 UCITS ETF, which tracks the performance of large-cap U.S. equities. The remaining 20% is evenly split between the iShares MSCI EM UCITS ETF and iShares Core MSCI Europe UCITS ETF, providing exposure to emerging markets and developed European markets, respectively. This composition suggests a strategy focused on capturing the growth potential of U.S. equities while maintaining a degree of international diversification.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.93%, with a maximum drawdown of -32.21%. This performance reflects the robust growth of the U.S. stock market, particularly large-cap stocks, over the past decade. However, the significant drawdown indicates potential vulnerability during market downturns, emphasizing the importance of understanding the balance between risk and return.

Projection Info

Monte Carlo simulations, utilizing historical data to project future portfolio outcomes, suggest a wide range of potential returns. With 983 out of 1,000 simulations showing positive returns, the median projection indicates a potential increase of 326.3% in portfolio value, highlighting the portfolio's growth potential. However, it's crucial to remember that these projections are hypothetical and do not guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, lacking exposure to other asset classes such as bonds or real estate. This singular focus on equities contributes to both its high growth potential and its risk level. Diversifying across asset classes can help mitigate risk by reducing the portfolio's sensitivity to stock market fluctuations.

Sectors Info

  • Technology
    29%
  • Financials
    13%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Telecommunications
    8%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

With a strong emphasis on technology (29%) and financial services (13%), the portfolio mirrors the sectoral composition of the broader U.S. stock market. While this sectoral allocation has historically driven strong returns, it also exposes the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting these industries.

Regions Info

  • North America
    80%
  • Europe Developed
    10%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is heavily weighted towards North America (80%), with modest exposure to Europe (10%) and Asia (8%). This geographic distribution reflects a confidence in the U.S. economy but may underrepresent the growth potential in emerging markets and other developed economies, potentially limiting diversification benefits.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    34%
  • Mid-cap
    16%
  • Small-cap
    1%

The portfolio's emphasis on mega (48%) and big (34%) cap stocks aligns with its focus on stability and growth within established companies. However, the limited exposure to medium (16%) and small (1%) cap stocks suggests missed opportunities for higher growth potential, albeit with increased volatility.

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, the portfolio appears to be positioned for growth, albeit with a level of risk associated with its heavy equity concentration. An optimization analysis could explore rebalancing towards a more diversified asset mix to achieve an optimal risk-return trade-off, potentially improving the portfolio's efficiency.

Ongoing product costs Info

  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • Weighted costs total (per year) 0.13%

The portfolio benefits from relatively low total expense ratios (TERs) across its holdings, averaging 0.13%. Lower costs can significantly enhance long-term returns by minimizing the drag on performance, indicating a cost-efficient approach to portfolio construction.

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