Two fund global equity portfolio with strong diversification and efficient risk and return balance

Report created on Apr 27, 2026

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is built from just two broad equity ETFs, with 75% in a global all‑world fund and 25% in a Europe-wide fund. That means it is 100% in stocks, with no bonds or cash assumed in the strategic mix. Structurally, this is a simple “core and tilt” setup: a global core plus an extra allocation to one region. Simplicity matters because it makes it easier to understand what’s driving returns and risk. Here, the structure points to a straightforward equity growth approach, with an intentional overweight to Europe compared with a purely global index fund. That tilt shapes the risk and return pattern compared with global benchmarks.

Growth Info

Over the period from mid‑2019 to April 2026, €1,000 in this portfolio grew to about €2,079. That works out to a Compound Annual Growth Rate (CAGR) of 11.35%, meaning the value grew on average 11.35% per year, like measuring a car’s average speed over a long trip. The portfolio slightly lagged the global market benchmark and more noticeably the US market, which has had especially strong returns in recent years. The maximum drawdown, or worst peak‑to‑trough fall, was about ‑34%, similar to the benchmarks during the 2020 selloff. This shows the portfolio behaved very much like a diversified equity investment, with strong growth but meaningful temporary declines.

Projection Info

The forward projection uses a Monte Carlo simulation, which is a way of creating many possible future paths by randomly re‑mixing patterns from historical data. Think of it as rolling the dice 1,000 times using past returns as a guide, not a prediction. After 15 years, the median outcome for €1,000 is around €2,795, with a wide range from roughly €979 to €7,727 in the middle 90% of scenarios. The average annual return across simulations is 8.11%. This highlights both the growth potential and the uncertainty: outcomes cluster around growth, but there is still a meaningful chance of ending near or even below today’s value. As always, simulations cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

All of the portfolio is invested in stocks, with 0% in bonds, cash, or alternative assets. Being 100% equity means it is fully exposed to company profits and global economic cycles. This is important because asset classes behave differently: bonds often act as shock absorbers, while stocks tend to be the main return driver but also the main source of volatility. Here, diversification happens within equities rather than across multiple asset classes. That typically leads to stronger long‑term growth potential but also deeper short‑term swings, especially during market stress. The portfolio’s balanced risk rating of 4/7 reflects that it’s diversified across many companies and regions, even though it remains entirely in the equity asset class.

Sectors Info

  • Technology
    22%
  • Financials
    19%
  • Industrials
    14%
  • Health Care
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure is quite broad: technology at 22%, financials at 19%, industrials at 14%, and health care at 10%, with the rest spread across consumer, telecom, materials, energy, utilities, and real estate. This mix looks reasonably close to global equity benchmarks, with a noticeable but not extreme role for technology. Sector diversification matters because different parts of the economy respond differently to interest rates, inflation, and growth. For example, a tech‑heavier portfolio can surge in low‑rate, growth‑driven markets but may feel sharper pullbacks when rates rise. Here, the spread across cyclical and defensive sectors suggests the portfolio should participate broadly in global economic trends rather than hinging on a single industry theme.

Regions Info

  • North America
    47%
  • Europe Developed
    36%
  • Japan
    5%
  • Asia Developed
    5%
  • Asia Emerging
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is well spread: 47% in North America, 36% in developed Europe, and the rest across Japan, other developed Asia, emerging Asia, and smaller allocations to Australasia, Africa/Middle East, and Latin America. Compared with a pure global market index, Europe is overweight and the US slightly underweight, due to the dedicated Europe ETF. Geographic diversification is useful because different regions go through economic and political cycles at different times. When one region slows, another may be stronger. The strong representation of both North America and Europe means returns will still track major developed markets closely, while the smaller allocations to emerging and other regions add an extra layer of diversification.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    34%
  • Mid-cap
    16%

By market capitalization, about 49% of the portfolio is in mega‑cap companies, 34% in large caps, and 16% in mid caps. Market cap just means the total value of a company’s shares; mega‑caps are the global giants, while mid caps are smaller but still established firms. This distribution is quite typical of cap‑weighted global indices, where the largest companies naturally dominate. Mega‑caps tend to be more stable and liquid, which can dampen volatility somewhat, while mid caps can add some extra growth potential and diversification. The portfolio’s tilt toward the biggest firms also explains why well‑known global names play an outsized role in performance, even if each one has only a small percentage weight.

True holdings Info

  • NVIDIA Corporation
    3.16%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Apple Inc
    2.94%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Microsoft Corporation
    2.22%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Amazon.com Inc
    1.54%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Alphabet Inc Class A
    1.38%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    1.18%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Broadcom Inc
    1.13%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Alphabet Inc Class C
    1.12%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • Meta Platforms Inc.
    1.08%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
  • ASML Holding N.V.
    0.90%
    Part of fund(s):
    • Amundi Stoxx Europe 600 UCITS ETF C EUR
  • Top 10 total 16.66%

Looking through to the top holdings across the ETFs, the largest underlying exposures are familiar global leaders like NVIDIA, Apple, Microsoft, Amazon, Alphabet, TSMC, Broadcom, Meta, and ASML. Each of these appears only via the ETFs, not as direct single‑stock positions, and the biggest individual look‑through weight is just over 3%. Some names appear in both ETFs, creating overlap, but the reported overlap is based only on top‑10 holdings, so overall concentration is probably understated here. Still, no single company dominates the portfolio, which helps reduce idiosyncratic risk — the risk tied to one specific stock. Instead, performance is driven by broad market trends and the combined behavior of many large global companies.

Risk contribution Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    Weight: 75.00%
    75.4%
  • Amundi Stoxx Europe 600 UCITS ETF C EUR
    Weight: 25.00%
    24.6%

Risk contribution shows how much each holding adds to the portfolio’s overall ups and downs, which can differ from its simple weight. Here, the global ETF at 75% weight contributes about 75.4% of total risk, and the Europe ETF at 25% contributes about 24.6%. The risk/weight ratios are almost exactly 1, meaning each ETF’s share of volatility lines up closely with its share of the portfolio. That’s a sign of a very straightforward risk structure with no single position punching far above its size in terms of risk. Because both funds are broad, diversified equity baskets, the main source of risk is general stock‑market movement rather than any single concentrated holding or niche strategy.

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.

The risk vs. return chart shows this portfolio sitting on or very close to the efficient frontier. The efficient frontier is the curve of best possible returns for each risk level, using just the current holdings in different weightings. The Sharpe ratio, which measures return per unit of risk above a risk‑free rate, is 0.6 for the current mix, versus 0.71 for the optimal Sharpe portfolio and 0.68 for the minimum variance mix. The differences in expected return and risk between these points are quite small. This indicates the current allocation is already an efficient use of the two funds, with only modest theoretical improvements available from reweighting them.

Ongoing product costs Info

  • Amundi Stoxx Europe 600 UCITS ETF C EUR 0.07%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
  • Weighted costs total (per year) 0.16%

The total ongoing cost, measured by the weighted average Total Expense Ratio (TER), is about 0.16% per year. TER is the annual fee charged by the funds, taken from the assets, so it reduces returns slightly but does not appear as a separate bill. For broad index ETFs, a TER in this range is impressively low and compares favorably with many active funds that charge much more. Over long periods, even small cost differences can compound into meaningful amounts, so keeping expenses modest helps more of the portfolio’s gross returns flow through to the investor. Combined with broad diversification, the low‑cost structure is a strong foundation for long‑term equity investing.

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