This portfolio has only about 4.8 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced Portfolio with Broad Diversification and Moderate Risk

Report created on Jul 24, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio consists of three ETFs, with a significant weighting in the iShares Dow Jones Global Sustainability Screened UCITS ETF (56.60%), followed by the SPDR MSCI ACWI UCITS ETF (33.96%) and the iShares MSCI World Energy Sector UCITS ETF (9.43%). This composition reflects a balanced approach with a focus on sustainability and global exposure. The heavy reliance on ETFs provides broad diversification, reducing unsystematic risk. To enhance diversification further, consider adding more asset classes like bonds or commodities.

Growth Info

Historically, the portfolio has performed well with a Compound Annual Growth Rate (CAGR) of 12.19%. However, it has also experienced a significant maximum drawdown of -34.78%, indicating periods of high volatility. The fact that 90% of returns were generated in just 17 days underscores the importance of staying invested and not trying to time the market. To mitigate such drawdowns, incorporating more defensive assets could be beneficial.

Projection Info

Using a Monte-Carlo simulation with 1,000 iterations, the portfolio's future performance was projected. The 5th percentile outcome was 24.7%, while the median (50th percentile) was 448.87%, and the 67th percentile was 677.36%. The high number of simulations with positive returns (971 out of 1,000) suggests a strong likelihood of future gains. Monte-Carlo simulations are useful for understanding potential outcomes but should be complemented with other risk assessments.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted towards stocks, which make up 99.55% of the total allocation. There is a negligible allocation to cash (0.32%) and other assets (0.13%). This high concentration in equities suggests a growth-oriented strategy but also exposes the portfolio to higher volatility. To reduce risk, consider diversifying into other asset classes such as bonds or real estate.

Sectors Info

  • Technology
    25%
  • Financials
    15%
  • Health Care
    13%
  • Energy
    13%
  • Industrials
    9%
  • Telecommunications
    7%
  • Consumer Discretionary
    6%
  • Basic Materials
    4%
  • Consumer Staples
    4%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation is quite diverse, with significant holdings in Technology (24.56%), Financial Services (14.86%), and Healthcare (13.12%). However, there is also a notable allocation to Energy (13.01%). While this diversification across sectors helps mitigate sector-specific risks, the high exposure to volatile sectors like Technology and Energy could increase portfolio risk. A more balanced sector allocation could help stabilize returns.

Regions Info

  • North America
    61%
  • Europe Developed
    20%
  • Japan
    6%
  • Asia Developed
    5%
  • Asia Emerging
    4%
  • Australasia
    2%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is predominantly invested in North America (60.84%), followed by Europe Developed (19.86%) and Japan (5.83%). This concentration in North America provides exposure to some of the world's largest and most stable markets but also limits geographic diversification. Increasing exposure to emerging markets or other regions could offer growth opportunities and further diversify geographic risk.

Dividends Info

  • iShares MSCI World Energy Sector UCITS ETF USD Inc 3.60%
  • Weighted yield (per year) 0.34%

While specific dividend yield data is not provided, the inclusion of the iShares MSCI World Energy Sector UCITS ETF, which typically offers dividends, suggests some income generation. Dividends can provide a steady income stream and help cushion against market volatility. To enhance income potential, consider adding more dividend-paying assets or ETFs focused on high-yield sectors.

Ongoing product costs Info

  • iShares MSCI World Energy Sector UCITS ETF USD Inc 0.25%
  • iShares Dow Jones Global Sustainability Screened UCITS ETF USD (Acc) 0.60%
  • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI UCITS ETF 0.45%
  • Weighted costs total (per year) 0.52%

The total expense ratio (TER) of the portfolio is 0.52%, which is relatively low and helps in maximizing returns by keeping costs down. The individual expense ratios of the ETFs range from 0.25% to 0.6%. Low costs are crucial for long-term investment success, as they directly impact net returns. Regularly reviewing and possibly switching to lower-cost alternatives can further improve portfolio performance.

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