A conservative euro focused portfolio with strong bond core and modest global equity and real asset tilt

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Conservative Investors

This structure fits an investor with low to moderate risk tolerance who still wants their money to grow meaningfully over the long term. Typical goals might include building retirement savings, preserving purchasing power against inflation, or steadily growing a safety buffer without large swings. The time horizon is best measured in years or decades rather than months, accepting some temporary ups and downs in exchange for better long term outcomes. Such an investor values capital preservation, appreciates seeing lower drawdowns in crises, and is comfortable with a globally diversified mix that includes stabilizing bonds, broad equities, and some protection from gold and commodities rather than chasing maximum returns.

Positions

  • Xtrackers II Eurozone Government Bond UCITS ETF 1C EUR
    DBXN - LU0290355717
    55.00%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    VWCE - IE00BK5BQT80
    30.00%
  • Invesco Physical Gold ETC EUR
    8PSG - DE000A1MECS1
    7.50%
  • iShares Diversified Commodity Swap UCITS ETF
    SXRS - IE00BDFL4P12
    7.50%

This portfolio is clearly structured around a strong bond core at 55 percent, supported by 30 percent global equities and 15 percent in gold and broad commodities. Compared to many global benchmarks that often hold more equities, this setup is noticeably more cautious and stability oriented. That matters because the overall mix largely determines how much the portfolio can swing in value during turbulent markets. The current combination already looks well aligned with a conservative profile. If more stability is desired, a slightly higher bond share could be an option, while a marginally higher equity share would suit someone seeking a bit more long term growth without fully changing the risk character.

Growth Info

Historically, this mix achieved a compound annual growth rate, or CAGR, of 4.83 percent, meaning an initial 10,000 euros would have grown to roughly 16,000 euros over ten years if returns were smooth. In reality, markets move unevenly, and the portfolio’s maximum drawdown of about minus 12 percent indicates the worst peak to trough fall in the period. That is relatively mild compared to more stock heavy strategies, which can fall 30 percent or more. This aligns well with a conservative risk score. While this history gives a useful reference, it cannot predict future returns; conditions like inflation, interest rates, and growth can shift the outcome significantly.

Projection Info

The Monte Carlo analysis simulates 1,000 different future paths based on historical data, a bit like replaying market history with slight variations to see many possible outcomes. In these simulations, almost all runs were positive, with a median outcome of about 235 percent of the starting value and an average simulated annual return near 9.68 percent, which is much higher than the historical 4.83 percent. This highlights a key limitation: simulations can be very sensitive to underlying assumptions and may look overly optimistic. They are best seen as a range of what could happen, not a promise. Aligning expectations closer to historic returns plus some safety margin is usually more realistic.

Asset classes Info

  • Bonds
    55%
  • Stocks
    30%
  • Other
    15%
  • Cash
    0%
  • No data
    0%

The asset class split of 55 percent bonds, 30 percent equities, and 15 percent “other” (gold and commodities) gives a conservative but still moderately diversified structure. Many global balanced benchmarks hold around 60 percent equities, so this mix is clearly more defensive, which fits a low risk score of 2 out of 7. The allocation to gold and commodities can act as a partial hedge against inflation and currency issues, which is a thoughtful addition to the bond heavy base. This allocation is well balanced and aligns closely with global standards for cautious investors. Fine tuning could involve small gradual shifts based on changing comfort with risk rather than large moves.

Sectors Info

  • Technology
    9%
  • Financials
    5%
  • Consumer Discretionary
    3%
  • Industrials
    3%
  • Telecommunications
    3%
  • Health Care
    3%
  • Consumer Staples
    1%
  • Energy
    1%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

The equity sleeve is diversified across multiple sectors: technology, financials, consumer areas, healthcare, communication services, and more. Technology at 9 percent of the total portfolio is noticeable but not extreme, especially compared to many global equity indices that lean even more towards tech. This spread across sectors helps reduce the impact if one industry suffers, for example if higher interest rates temporarily hurt growth oriented companies. Your portfolio’s sector composition matches benchmark data, which is a strong indicator of diversification. Someone wanting to smooth sector ups and downs even more could occasionally check whether any single sector drifts far above others and rebalance back to the original structure if needed.

Regions Info

  • North America
    20%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    0%
  • Africa/Middle East
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographically, roughly 20 percent of the portfolio sits in North America and smaller portions in Europe, Japan, and Asia. This is less internationally diversified than many global equity benchmarks, which naturally tilt more towards the US but still hold broader regional weights. At the same time, the eurozone government bond core makes the overall portfolio strongly aligned with a euro based investor, which reduces currency risk on the bond side. This balance between home currency stability and global equity exposure is generally helpful. For someone wanting more global spread, gradually increasing non domestic equity exposure over time could further reduce reliance on any single region’s economic cycle while still keeping the conservative framework.

Market capitalization Info

  • Mega-cap
    14%
  • Large-cap
    12%
  • Mid-cap
    7%
  • Micro-cap
    3%
  • Small-cap
    0%

The portfolio’s equity part leans towards larger companies, with meaningful exposure to mega and big caps, plus some mid and micro caps. Large capitalization companies are usually more established and can be less volatile than very small firms, which fits a conservative profile. The presence of mid and micro caps adds some growth potential and diversification because smaller companies can sometimes grow faster, even if they are more volatile individually. This structure is broadly in line with global index norms, which is positive. If volatility feels uncomfortable in stressed markets, gradually tilting a bit more towards larger companies over time can soften swings while still keeping exposure to the broader market.

Ongoing product costs Info

  • Invesco Physical Gold ETC EUR 0.12%
  • Xtrackers II Eurozone Government Bond UCITS ETF 1C EUR 0.10%
  • iShares Diversified Commodity Swap UCITS ETF 0.19%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
  • Weighted costs total (per year) 0.14%

The total ongoing cost of about 0.14 percent per year is impressively low, especially given the diversification across bonds, global equities, gold, and commodities. Costs matter because they are deducted every year, and over long periods even small percentage differences can meaningfully impact the final value, like a small leak in a water tank. This level of cost is well below many actively managed products and supports better long term performance. The costs are impressively low, supporting better long term performance. Ongoing actions here are mostly about maintenance: occasionally confirming that no new, significantly cheaper but equally robust alternatives exist, and avoiding unnecessary trading that could add extra fees or taxes.

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.

Risk versus return can be visualized with the Efficient Frontier, which shows the best possible trade off between volatility and expected return using only the existing building blocks. In this context, “efficient” simply means the portfolio is getting as much expected return as possible for a given risk level, not that it maximizes diversification or income. Given the current composition and conservative risk score, the portfolio already seems reasonably close to a cautious efficient point, with bonds doing most of the stabilizing and equities plus real assets driving growth. Fine tuning might involve slightly adjusting the shares between bonds and equities to sit exactly at the preferred comfort level without adding new products.

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