Balanced and globally diversified portfolio with a strong focus on US equities

Report created on May 29, 2025

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.

Positions

Your portfolio is heavily weighted towards US equities, with a 60% allocation in the Vanguard S&P 500 UCITS ETF and a significant portion in global stocks through the Vanguard FTSE All-World UCITS ETF. The inclusion of the Vanguard FTSE Emerging Markets ETF adds a modest but crucial diversification element. This structure reflects a balanced approach, leaning towards developed markets with a slight tilt towards growth via the S&P 500's dominance.

Growth Info

Historically, your portfolio has shown a Compound Annual Growth Rate (CAGR) of 11.98%, a robust figure indicative of strong performance, particularly in bullish market conditions. The max drawdown of -25.23% suggests resilience in volatile markets, though it's a reminder of the inherent risks in equity-focused investments. The days contributing most to returns highlight the impact of significant market movements on performance.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential outcomes, suggest a wide range of future returns for your portfolio. With 970 out of 1,000 simulations showing positive returns, the projections are generally optimistic. However, it's crucial to remember that these simulations are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%

Your portfolio is entirely allocated to stocks, which aligns with a growth-oriented investment strategy but also exposes you to higher volatility. This singular focus on equities means you're potentially missing out on the risk-reducing benefits of including bonds or other asset classes, which could offer income or stability during market downturns.

Sectors Info

  • Technology
    28%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Utilities
    3%
  • Basic Materials
    3%
  • Real Estate
    2%

The sectoral allocation shows a heavy emphasis on technology, financial services, and consumer cyclicals, reflecting a growth-oriented strategy. However, this concentration can increase volatility and risk, especially if these sectors face industry-specific headwinds. Diversifying across a broader range of sectors could mitigate some of this risk.

Regions Info

  • North America
    83%
  • Europe Developed
    6%
  • Asia Emerging
    5%
  • Asia Developed
    2%
  • Japan
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Australasia
    1%

With 83% of assets in North America, your portfolio has a significant geographical concentration. While this has historically been a source of strong returns, it also exposes you to region-specific risks, such as regulatory changes or economic downturns in the US. Increasing exposure to other regions could provide additional diversification benefits.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    34%
  • Mid-cap
    17%
  • Small-cap
    1%

The focus on mega and big-cap stocks provides a foundation of stability and potential for growth, as these companies are generally well-established leaders in their industries. However, the minimal exposure to small and micro-cap stocks means you might be missing out on higher growth potential, albeit with higher risk.

Redundant positions Info

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

The high correlation between the Vanguard S&P 500 and Vanguard FTSE All-World ETFs indicates overlapping exposures, which could limit the diversification benefits within your portfolio. Identifying and reducing such overlaps can enhance portfolio efficiency by decreasing redundancy without significantly increasing risk.

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, your portfolio could benefit from optimization by addressing the high correlation between assets and exploring diversification into other asset classes or sectors. This would aim to achieve a more efficient risk-return profile, balancing growth potential with risk management more effectively.

Ongoing product costs Info

  • Vanguard S&P 500 UCITS Acc 0.07%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.12%

The overall cost structure of your portfolio is impressively low, with a Total Expense Ratio (TER) of 0.12%. This cost efficiency supports better long-term performance by minimizing the drag on returns, a crucial factor in maximizing investment growth over time.

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