Balanced portfolio with a strong focus on developed markets and a blend of sector exposures

Report created on Jun 24, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is evenly split between the iShares Core MSCI World UCITS ETF and the Amundi Stoxx Europe 600 UCITS ETF, indicating a strategic focus on developed markets across Europe and globally. This composition suggests a preference for stability and moderate growth potential inherent in developed economies. The exclusive investment in ETFs simplifies the portfolio management process, offering broad market exposure and diversification within a single asset class: stocks.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.47% and a maximum drawdown of -28.73%, the portfolio has demonstrated strong growth potential alongside significant volatility. The days contributing to 90% of returns highlight the impact of short-term market movements on performance. This historical performance, while impressive, underscores the importance of understanding market cycles and the potential for wide fluctuations in portfolio value.

Projection Info

Using Monte Carlo simulation, a tool that forecasts potential outcomes based on historical data, the portfolio's future performance has been explored through 1,000 simulations. Results show a wide range of outcomes, with the median projection suggesting a 405.1% increase, highlighting the portfolio's growth potential. However, this method assumes historical market conditions will repeat, which may not always hold true, stressing the importance of cautious optimism in investment planning.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is 100% in stocks, offering high growth potential but also higher volatility compared to portfolios with bonds or other asset classes. This allocation suits investors with a moderate risk tolerance and a long-term investment horizon. Diversifying across different asset classes could provide a buffer against stock market volatility, potentially smoothing out returns over time.

Sectors Info

  • Financials
    20%
  • Technology
    17%
  • Industrials
    15%
  • Health Care
    12%
  • Consumer Discretionary
    9%
  • Consumer Staples
    8%
  • Telecommunications
    6%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sectoral allocation covers a broad spectrum, with significant investments in Financial Services, Technology, and Industrials. This diversified sector exposure reduces the risk of significant losses from downturns in any single sector. However, the heavy weighting towards Technology and Financial Services sectors, known for their volatility, aligns with the portfolio's moderate risk profile.

Regions Info

  • Europe Developed
    57%
  • North America
    38%
  • Japan
    3%
  • Australasia
    1%
  • Asia Developed
    1%

The geographic allocation heavily favors developed markets in Europe and North America, with minimal exposure to emerging markets. This strategy emphasizes stability and reduces geopolitical and currency risks associated with emerging markets. However, it may limit growth potential and diversification benefits that emerging markets can offer.

Market capitalization Info

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

The focus on Mega and Big cap stocks (82% combined) aligns with the portfolio's preference for established, less volatile companies. This allocation supports the goal of achieving stable returns, though it may limit exposure to high-growth opportunities in smaller companies.

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 Efficient Frontier analysis suggests an optimal portfolio with the same risk level could achieve a slightly higher expected return of 12.74%. This indicates room for optimization, potentially through adjusting asset allocation or diversification strategies. However, the current portfolio already performs near this optimized level, suggesting it is well-constructed for its risk profile.

Ongoing product costs Info

  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • Weighted costs total (per year) 0.10%

The total expense ratio (TER) of 0.10% is impressively low, enhancing long-term returns by minimizing costs. In the world of investing, lower costs can significantly impact net returns, especially over extended periods. This cost efficiency is a strong aspect of the portfolio, aligning with best practices for long-term investment success.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey