Globally diversified equity portfolio with strong US tilt and low cost index based structure
Report created on Aug 10, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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SP State Street SPDR S&P 500 UCITS ETF (Acc)
SPYL - IE000XZSV718 70.00% -
EX Xtrackers MSCI World ex USA UCITS ETF 1C USD
EXUS - IE0006WW1TQ4 20.00% -
EI iShares Core MSCI Emerging Markets IMI UCITS
EIMI - IE00BKM4GZ66 10.00%
The portfolio is a simple three‑fund, 100% equity mix tilted heavily to one broad US index fund. The US fund holds 70%, a developed ex‑US global fund holds 20%, and a broad emerging markets fund holds 10%. Everything is in diversified ETFs, so there are no single‑stock bets held directly. This kind of structure is easy to understand because each holding represents a wide basket of companies rather than narrow themes. In practice, that means the portfolio’s behaviour is mainly driven by global stock markets, especially the US, rather than bonds or cash. The clarity of this composition makes it straightforward to see what is driving returns and risk over time.
Growth
Over the period shown, £1,000 in this portfolio grew to about £1,498, with a compound annual growth rate (CAGR) of 18.30%. CAGR is like your average yearly “speed” over the whole journey, smoothing out bumps along the way. This slightly beat both the US market and the broader global market benchmarks on a return basis. The worst drop, or max drawdown, was about -20%, similar to the benchmarks and recovered in around six months. That shows the portfolio moved broadly in line with world equities. The fact that a small handful of days drove most returns also highlights how missing brief market surges can significantly change long‑term outcomes.
Projection
The Monte Carlo projection uses past data and volatility to simulate many possible future paths for £1,000 over 15 years. Think of it as running the market 1,000 different “what if” scenarios, then looking at the distribution of outcomes. The median result of around £2,770 implies a moderate expected growth rate, with a wide possible range from roughly £1,035 to £7,493 between the 5th and 95th percentiles. That spread reflects the inherent uncertainty in stock markets. About three‑quarters of simulations end positive, but none of these paths are guarantees. Monte Carlo results are tools for illustrating risk and variability, not promises about where the portfolio will actually land.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with no allocation to bonds, cash, or alternatives. Asset classes are the broad buckets like equities, bonds, and real estate that tend to behave differently in various market conditions. A 100% stock allocation usually means higher long‑term growth potential but also larger swings along the way compared with mixed stock‑bond portfolios. Relative to a “balanced” multi‑asset mix that might include meaningful bond exposure, this portfolio is more growth‑oriented. The absence of stabilising assets means short‑term portfolio value is tightly linked to equity markets, especially during periods of stress or rapid rallies.
Sectors
- Technology 33%
- Financials 15%
- Industrials 10%
- Consumer Discretionary 9%
- Telecommunications 8%
- Health Care 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector exposure is tilted toward technology at about one‑third of the equity allocation, with financials and industrials the next largest groups. Sectors are clusters of companies that share similar business activities, and different sectors react differently to interest rates, economic growth, and regulation. A tech‑heavy profile often brings higher growth potential along with sensitivity to changes in rates and investor sentiment about innovation. The presence of meaningful weights in financials, industrials, and consumer areas helps round out the picture, so this is not a single‑theme portfolio. The sector mix broadly resembles global equity benchmarks, which is a strong indicator of healthy diversification across the main parts of the economy.
Regions
- North America 72%
- Europe Developed 11%
- Asia Developed 5%
- Japan 4%
- Asia Emerging 4%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, around 72% of the portfolio sits in North America, with Europe and other developed regions making up most of the rest and a small slice in emerging markets. Geography matters because different regions face distinct economic cycles, currencies, and political environments. The strong North America tilt is common in global equity portfolios, partly reflecting the large weight of US markets in global indices. At the same time, having allocations across Europe, Japan, developed Asia, and emerging areas adds diversification beyond a single economy. This regional mix is broadly aligned with global equity standards, which helps spread country‑specific risk while still reflecting the dominance of US markets.
Market capitalization
- Mega-cap 47%
- Large-cap 34%
- Mid-cap 16%
- Small-cap 1%
By market capitalisation, the portfolio leans heavily toward mega‑cap and large‑cap companies, with mid‑caps making up most of the rest and only a tiny small‑cap exposure. Market cap size matters because larger firms often have more stable earnings and access to capital, while smaller companies can be more volatile but sometimes faster growing. This tilt toward the biggest companies is typical of index‑based portfolios and global benchmarks. It generally leads to smoother trading and lower liquidity concerns. At the same time, the modest mid‑cap slice adds some diversification in business profiles without materially increasing overall small‑company risk within the portfolio.
True holdings
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NV NVIDIA Corporation 5.26%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
AA Apple Inc. 4.62%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
MS Microsoft Corporation 3.01%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
AM Amazon.com Inc 2.54%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
GO Alphabet Inc Class A 2.28%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
AV Broadcom Inc 1.94%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
GO Alphabet Inc Class C 1.81%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
MU Micron Technology Inc 1.41%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
ME Meta Platforms Inc. 1.34%
Part of fund(s):- State Street SPDR S&P 500 UCITS ETF (Acc)
-
TS Tesla Inc 1.29%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- State Street SPDR S&P 500 UCITS ETF (Acc)
- Top 10 total 25.50%
Looking through the ETFs, the largest underlying holdings include big technology and platform companies like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, and Tesla. These names appear repeatedly across the index funds, which creates overlap and concentrates some exposure in a relatively small group of global giants. Look‑through analysis helps reveal this hidden clustering even when everything is owned via diversified ETFs. Because only ETF top‑10 holdings are included, the real overlap is probably somewhat understated. This pattern is very typical for global index portfolios where the largest companies naturally dominate. It means portfolio behaviour can be meaningfully influenced by how this group performs.
Risk contribution
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State Street SPDR S&P 500 UCITS ETF (Acc)
Weight: 70.00% 74.3% -
Xtrackers MSCI World ex USA UCITS ETF 1C USD
Weight: 20.00% 15.9% -
iShares Core MSCI Emerging Markets IMI UCITS
Weight: 10.00% 9.8%
Risk contribution shows how much each holding adds to overall portfolio ups and downs, which can differ from its simple weight. Here, the US ETF at 70% weight contributes about 74% of total risk, slightly more than its share by size. The developed ex‑US ETF contributes around 16% of risk on a 20% weight, while emerging markets contribute roughly 10% of risk on 10% weight. This pattern indicates the US holding is the main driver of volatility, with the other two adding smaller but still meaningful influences. When one position accounts for most of the risk, portfolio behaviour naturally tracks that holding’s market very closely.
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 risk‑return chart plots the current portfolio against an efficient frontier — the set of mixes that offer the best possible return for each risk level using the same funds. The current Sharpe ratio of 1.04, which measures return per unit of volatility, sits below both the maximum Sharpe and minimum variance portfolios. Being about 1 percentage point below the frontier at this risk level suggests that a different weighting of the same three ETFs could, in theory, deliver better risk‑adjusted results. The key point is that efficiency here is about mix, not adding new products. Historical inputs drive this analysis, so it is a guide, not a guarantee.
Ongoing product costs
- State Street SPDR S&P 500 UCITS ETF (Acc) 0.03%
- iShares Core MSCI Emerging Markets IMI UCITS 0.18%
- Weighted costs total (per year) 0.04%
The total expense ratio (TER) across the portfolio is very low at about 0.04% per year, with the largest holding priced at only 0.03% and the emerging markets fund at 0.18%. TER is the ongoing fee charged by funds to cover management and operating costs, taken directly out of performance. Even small differences in TER can compound significantly over decades. Here, costs are impressively low by industry standards, especially for global exposure, which supports better long‑term net returns. Put simply, more of the market’s return stays in the portfolio rather than being paid away in fees, which is a solid structural advantage.
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