This portfolio has only about 6.1 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 Broadly Diversified Portfolio with Moderate Risk and Strong Technology Focus

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

This portfolio consists of three ETFs: Xtrackers MSCI World ESG UCITS ETF 1C (75%), Xtrackers MSCI Emerging Markets UCITS ETF 1C (20%), and Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF (5%). The portfolio is broadly diversified with a balanced risk classification. The high allocation to the MSCI World ESG ETF ensures significant exposure to global markets, while the emerging markets and European small cap ETFs add additional diversification. This composition provides a good mix of growth potential and risk management.

Growth Info

Historically, this portfolio has shown a strong performance with a compound annual growth rate (CAGR) of 11.66%. However, it has also experienced a significant maximum drawdown of -33.23%, indicating periods of substantial volatility. The performance is driven by a relatively small number of days, with 90% of returns coming from just 22 days. This highlights the importance of staying invested during volatile periods to capture these critical return days.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio shows a median (50th percentile) end value of 164.73% of the initial investment, with the 67th percentile reaching 264.76%. The worst-case scenario (5th percentile) predicts a loss of -21.25%. The annualized return across all simulations is 8.86%. This forward projection suggests a favorable outlook, but it also underscores the importance of considering potential downside risks.

Asset classes Info

  • Stocks
    80%
  • No data
    20%

The portfolio is primarily invested in stocks, which make up approximately 79.82% of the allocation. There is a notable 20% classified as "Unknown," likely representing the emerging markets ETF. The remaining small fractions are in other asset classes and cash. The heavy stock allocation aligns with the balanced risk classification, offering growth potential while maintaining some risk.

Sectors Info

  • Technology
    25%
  • No data
    20%
  • Financials
    13%
  • Health Care
    11%
  • Industrials
    8%
  • Telecommunications
    8%
  • Consumer Discretionary
    8%
  • Consumer Staples
    2%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    1%

The sector allocation is led by Technology (24.58%), followed by Financial Services (12.70%) and Healthcare (10.94%). Other notable sectors include Industrials, Communication Services, and Consumer Cyclicals. This sector distribution provides broad exposure across different industries, reducing sector-specific risks. However, the high concentration in Technology suggests a tilt towards growth-oriented sectors, which can be more volatile.

Regions Info

  • North America
    56%
  • No data
    20%
  • Europe Developed
    17%
  • Japan
    5%
  • Australasia
    1%
  • Asia Developed
    1%

Geographically, the portfolio is heavily weighted towards North America (56.28%), with significant allocations in Europe Developed (16.87%) and Japan (4.75%). The "Unknown" category likely includes emerging markets exposure. This geographic distribution ensures global diversification, but the heavy North American weighting indicates a potential bias towards developed markets, which may offer stability but limit exposure to high-growth regions.

Dividends Info

  • Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF 1.90%
  • Weighted yield (per year) 0.10%

Dividend yield data is not provided, but given the ETF composition, it is likely that the portfolio generates some level of income through dividends. Typically, ETFs that track broad market indices and include large-cap stocks tend to offer modest dividend yields. Investors should consider the role of dividends in their overall return and reinvest them to take advantage of compounding.

Ongoing product costs Info

  • Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF 0.23%
  • Xtrackers MSCI World ESG UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.20%

The portfolio has a Total Expense Ratio (TER) of 0.2%, which is relatively low and favorable for long-term investors. The low costs help in maximizing net returns, as high fees can erode gains over time. Keeping investment costs low is a key principle for maintaining a cost-effective portfolio, and this portfolio's TER is well-aligned with that objective.

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