A conservative portfolio with a strong gold focus and moderate diversification in global markets

Report created on Dec 18, 2024

Risk profile Info

2/7
Conservative
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards Xetra-Gold, comprising nearly half of the total allocation. This significant gold exposure is complemented by two ETFs: Xtrackers II EUR Overnight Rate Swap and HSBC MSCI World, making up 27.92% and 21.03% of the portfolio, respectively. Additionally, there is a small allocation to Invesco Physical Bitcoin ETN. This composition suggests a conservative approach, with a focus on stability through gold, while still maintaining some exposure to global equities and alternative assets. Balancing these elements can help in managing risk while providing potential for growth.

Growth Info

Historically, the portfolio has demonstrated a compound annual growth rate (CAGR) of 12.11%, with a maximum drawdown of 8.4%. This performance indicates a relatively stable return profile with limited downside risk, aligning well with a conservative investment strategy. Understanding past performance can help set realistic expectations, but it's important to note that past results do not guarantee future performance. The limited number of days accounting for the majority of returns highlights the importance of staying invested to capture these gains.

Projection Info

The Monte Carlo simulation, which uses historical data to project future outcomes, suggests a wide range of potential returns. With a median expected return of 531.26% and a high number of simulations showing positive returns, the portfolio appears well-positioned for future growth. However, it's crucial to remember that these simulations are based on past data and assumptions, which may not fully capture future market conditions. Regularly reviewing and adjusting the portfolio can help in navigating uncertainties.

Asset classes Info

  • Bonds
    27%
  • Stocks
    26%
  • Other
    1%

The portfolio is primarily composed of two asset classes: bonds and stocks, with a small allocation to other assets. This mix offers a moderate level of diversification, balancing stability from bonds with growth potential from stocks. A more diversified asset allocation can help reduce risk, as different asset classes often react differently to market events. Considering adding other asset classes, such as real estate or commodities, could enhance diversification and improve risk-adjusted returns.

Sectors Info

  • Technology
    6%
  • No data
    5%
  • Financials
    3%
  • Consumer Discretionary
    2%
  • Health Care
    2%
  • Industrials
    2%
  • Telecommunications
    2%
  • Consumer Staples
    1%
  • Energy
    1%
  • Basic Materials
    1%
  • Utilities
    1%

Sectoral allocation reveals a broad spread across various industries, with technology and financial services being the most prominent. This spread can help mitigate sector-specific risks by not being overly reliant on any single industry. However, the portfolio's sector exposure is relatively low, suggesting room for further diversification. Balancing sector exposure can provide resilience against economic shifts affecting specific industries, and exploring additional sectors could enhance the portfolio's stability.

Regions Info

  • North America
    16%
  • No data
    5%
  • Europe Developed
    3%
  • Japan
    1%

Geographically, the portfolio has a notable exposure to North America, with smaller allocations to Europe and Japan. This geographic diversification can help manage regional risks and capture growth opportunities across different markets. However, with limited exposure to emerging markets, the portfolio may miss out on potential high-growth opportunities in these regions. Expanding geographic diversification could enhance long-term growth potential while reducing reliance on any single region's economic performance.

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.

Using the Efficient Frontier concept, this portfolio could potentially be optimized for a better risk-return ratio by adjusting the current asset allocations. The Efficient Frontier represents the set of portfolios offering the highest expected return for a given level of risk. By rebalancing the existing assets, it's possible to achieve a more efficient allocation without sacrificing the conservative nature of the portfolio. This involves carefully considering the trade-offs between risk and return to align with investment goals.

Dividends Info

  • HSBC MSCI World UCITS ETF 0.70%
  • Weighted yield (per year) 0.15%

The portfolio has a modest dividend yield, with the HSBC MSCI World ETF contributing a yield of 0.7%. Dividends can provide a steady income stream, which is especially valuable in volatile markets. While the current yield is relatively low, reinvesting dividends can enhance total returns over time through compounding. Exploring additional income-generating investments could boost the portfolio's yield, providing more stability and potential for growth.

Ongoing product costs Info

  • HSBC MSCI World UCITS ETF 0.15%
  • Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C 0.10%
  • Weighted costs total (per year) 0.06%

Portfolio costs are relatively low, with the HSBC MSCI World ETF and Xtrackers II ETF having expense ratios of 0.15% and 0.1%, respectively. Keeping costs low is crucial for maximizing long-term returns, as high fees can significantly erode gains over time. Regularly reviewing and comparing expense ratios across similar investments can help ensure cost-effectiveness. Although the current costs are reasonable, exploring lower-cost alternatives could further enhance net returns.

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