Globally diversified stock portfolio with strong value and low volatility tilts for balanced growth
Report created on May 6, 2024Risk profile
4/7
Diversification profile
3/5
Positions
-
JP JPM Global Equity Multi-Factor UCITS ETF USD Acc
JPGL - IE00BJRCLL96 45.00% -
EU iShares Core MSCI World UCITS ETF USD (Acc) EUR
EUNL - IE00B4L5Y983 30.00% -
ZP SPDR® MSCI USA Small Cap Value Weighted UCITS ETF USD Acc EUR
ZPRV - IE00BSPLC413 15.00% -
ZP SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc
ZPRX - IE00BSPLC298 10.00%
The portfolio is a pure equity mix of four broad ETFs, with 45% in a global multi‑factor fund, 30% in a global market fund, and 25% in small‑cap value funds split between the US and Europe. So it blends core market exposure with explicit tilts toward certain characteristics like size and value. A 100% stock allocation naturally targets growth and accepts meaningful ups and downs along the way. The structure is pleasantly simple and easy to manage, yet still quite sophisticated under the hood. For many balanced investors, this kind of “few broad funds with clear roles” setup can support discipline and reduce tinkering.
Growth
From mid‑2019 to March 2026, €1,000 grew to about €1,942, a compound annual growth rate (CAGR) of 10.31%. CAGR is the “average speed” of growth per year, smoothing out the bumps. This slightly trailed the global market (10.54%) and more noticeably lagged the US market (12.79%), which has been unusually strong in recent years. Max drawdown of -37.31% shows the worst peak‑to‑trough fall, highlighting that even balanced‑risk stock portfolios can drop sharply during stress. The performance gap versus the US is the trade‑off for holding more value, small caps, and non‑US markets, which can shine in different cycles but have been less favored lately.
Asset classes
- Stocks 100%
All of the allocation is in stocks, with no bonds or cash buffers. That gives maximum exposure to long‑term growth, since equities are the asset class historically associated with higher returns, but also higher volatility and deeper drawdowns. Many “balanced” portfolios mix in bonds to smooth the ride, but this one seeks balance more through diversification across styles, sizes, and regions within equities. For someone with a long time horizon and stable income elsewhere, 100% stocks can be reasonable. For investors who might need to withdraw money in the near term, adding some lower‑risk assets outside this structure could help reduce the impact of market swings.
Sectors
- Financials 14%
- Technology 14%
- Industrials 13%
- Consumer Discretionary 10%
- Health Care 10%
- Consumer Staples 7%
- Energy 7%
- Basic Materials 7%
- Telecommunications 6%
- Utilities 6%
- Real Estate 6%
Sector exposure is notably even: financials and technology each at 14%, industrials and health care close behind, and the rest spread relatively evenly across consumer, energy, materials, telecom, utilities, and real estate. This kind of balance is very close to diversified global benchmarks and avoids big sector bets. That’s a positive sign: the portfolio’s main bets come from factors like value and size rather than overloading one industry. Balanced sectors help reduce the risk that a single industry shock dominates outcomes. For example, if technology stumbles during rate hikes, exposure to financials, utilities, and consumer sectors can cushion the blow.
Regions
- North America 69%
- Europe Developed 22%
- Japan 5%
- Asia Developed 2%
- Australasia 1%
- Latin America 1%
Geographically, the portfolio leans strongly toward North America at 69%, with 22% in developed Europe, 5% Japan, and small slices in other regions. This is actually broadly in line with global market weights, where the US is naturally dominant by market cap. That alignment with global standards is a strength: it avoids home‑country bias and captures the broad global economy. The sizeable European small‑cap value sleeve still gives a distinct flavor within that global mix. One trade‑off is that emerging markets have only minimal exposure via the broad funds, so the portfolio relies more on developed economies for growth and diversification.
Market capitalization
- Mid-cap 31%
- Large-cap 29%
- Mega-cap 22%
- Small-cap 13%
- Micro-cap 4%
Market capitalization is nicely spread: 22% mega‑cap, 29% large‑cap, 31% mid‑cap, 13% small‑cap, and 4% micro‑cap. That’s a noticeable shift away from the usual mega‑cap dominance seen in plain global indices. Smaller companies can offer higher growth potential and stronger exposure to local economic trends, but their prices tend to move more sharply, both up and down. This balanced size mix can improve diversification because large and small firms often react differently to economic news. The dedicated US and Europe small‑cap value funds are clearly doing their job here, giving a deliberate tilt down the size spectrum instead of pure mega‑cap concentration.
True holdings
-
NV NVIDIA Corporation 1.51%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
AA Apple Inc 1.36%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
MS Microsoft Corporation 0.97%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
AM Amazon.com Inc 0.71%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
GO Alphabet Inc Class A 0.64%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
GO Alphabet Inc Class C 0.53%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
AV Broadcom Inc 0.51%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
ME Meta Platforms Inc. 0.50%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
TS Tesla Inc 0.40%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- iShares Core MSCI World UCITS ETF USD (Acc) EUR
-
LL Eli Lilly and Company 0.30%
Part of fund(s):- iShares Core MSCI World UCITS ETF USD (Acc) EUR
- Top 10 total 7.43%
Looking through ETF top holdings, the biggest underlying exposures are familiar global giants like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Eli Lilly. The largest single company exposure is still only about 1.5%, and even the big “Magnificent” names remain small slices. Because these show up via multiple funds, there is some hidden overlap, but it’s modest rather than extreme. This indicates that, despite a strong tilt toward value and small caps, the portfolio still captures the major global growth leaders. The overlap data is partial, though, since it only uses top‑10 ETF positions, so total duplication is likely a bit higher than shown.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure stands out for very high value (82%) and very high low volatility (90%), with size, quality, momentum, and yield sitting around neutral to mildly high. Factors are like the underlying “traits” that drive returns; here the portfolio heavily favors cheaper‑priced stocks and those with historically steadier price patterns. A strong value tilt can do well when markets rotate away from expensive growth names, though it may lag during long “growth‑stock booms” like the recent US tech run. Very high low‑volatility exposure aims to soften drawdowns and daily swings, which fits nicely with a balanced‑risk profile that still wants equity growth.
Risk contribution
-
JPM Global Equity Multi-Factor UCITS ETF USD Acc
Weight: 45.00% 40.4% -
iShares Core MSCI World UCITS ETF USD (Acc) EUR
Weight: 30.00% 28.8% -
SPDR® MSCI USA Small Cap Value Weighted UCITS ETF USD Acc EUR
Weight: 15.00% 20.8% -
SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc
Weight: 10.00% 10.0%
Risk contribution shows how much each holding adds to the portfolio’s overall ups and downs, which can differ from simple weight. The global multi‑factor ETF at 45% weight contributes about 40% of risk, slightly less than proportional, suggesting its volatility is moderate. The MSCI World ETF is similar, with risk nearly matching its 30% weight. The standout is the US small‑cap value ETF: 15% weight but over 20% of total risk, a risk/weight ratio of 1.38. That means this relatively small slice is a key driver of volatility. If desired, fine‑tuning its size is a lever to alter overall risk without changing the whole structure.
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.
On the risk‑return chart, the current portfolio has a Sharpe ratio of 0.57, while the optimal mix of these same holdings reaches 0.66 with similar risk. The Sharpe ratio compares return to volatility, like measuring how much “bang for your buck” you get for each unit of risk. The good news: the current allocation is on or very close to the efficient frontier, meaning it already uses these funds in a highly efficient way. There is only modest room for improvement through reweighting. Any fine‑tuning would be about small adjustments to slightly enhance risk‑adjusted returns, rather than fixing big structural inefficiencies.
Ongoing product costs
- iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
- JPM Global Equity Multi-Factor UCITS ETF USD Acc 0.19%
- SPDR® MSCI USA Small Cap Value Weighted UCITS ETF USD Acc EUR 0.30%
- SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc 0.30%
- Weighted costs total (per year) 0.22%
Total ongoing costs, measured by the weighted average TER of about 0.22%, are impressively low for an actively tilted, globally diversified equity setup. TER (Total Expense Ratio) is the yearly fee the funds charge, quietly deducted within the ETF. Keeping costs low matters because every euro not spent on fees stays invested, compounding over decades. Here, the multi‑factor and small‑cap value tilts are achieved at almost index‑fund pricing, which is a real positive. Over a 20‑ or 30‑year horizon, the difference between 0.2% and, say, 1% fees can add up to many thousands of euros of extra wealth.
What next?
Create your own report?
Join our community!
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