This portfolio has only about 11 months 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.
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A cautious portfolio with a diversified global ETF focus and moderate dividend yield

Report created on Jul 4, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The current portfolio consists of a diverse mix of ETFs, with a strong focus on global equities. It includes a 20% stake in the iShares MSCI World UCITS ETF and significant allocations to other global and sector-specific ETFs. This composition provides a broad exposure to international markets, aligning well with a cautious investment profile. Compared to a typical benchmark, this portfolio is well-diversified across various geographies and sectors, which can help reduce risk. To further enhance diversification, consider adding non-equity asset classes, such as bonds, to balance potential equity volatility.

Growth Info

Historically, the portfolio has delivered a robust Compound Annual Growth Rate (CAGR) of 14.45%, indicating strong past performance. This growth rate suggests that the portfolio has effectively capitalized on favorable market conditions. However, it's important to remember that past performance does not guarantee future results, as market conditions can change. The portfolio's historical maximum drawdown of -7.44% is relatively low, indicating a degree of resilience during downturns. Monitoring ongoing performance against benchmarks can help ensure continued alignment with investment goals.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest that the portfolio has a high likelihood of achieving positive returns. With a 50th percentile projection of 511.6% and 999 out of 1,000 simulations showing positive returns, the outlook appears favorable. However, it's crucial to understand that these projections are based on past data and market conditions may vary. Regularly reviewing the portfolio's performance and adjusting allocations as necessary can help maintain alignment with long-term objectives.

Asset classes Info

  • Stocks
    80%

The portfolio is heavily weighted towards stocks, with an 80% allocation, which is typical for growth-oriented strategies. This allocation can lead to higher potential returns but also increases exposure to market volatility. Compared to benchmarks, the lack of bonds or other asset classes may limit risk mitigation during market downturns. Introducing a small allocation to fixed-income securities could provide stability and income diversification, enhancing the portfolio's resilience.

Sectors Info

  • Health Care
    15%
  • Financials
    14%
  • Technology
    11%
  • Industrials
    10%
  • Utilities
    7%
  • Consumer Discretionary
    6%
  • Consumer Staples
    4%
  • Basic Materials
    4%
  • Telecommunications
    4%
  • Energy
    3%
  • Real Estate
    1%

Sector allocation in the portfolio is relatively balanced, with notable exposure to healthcare (15%), financial services (14%), and technology (11%). This sectoral diversity helps mitigate risks associated with sector-specific downturns. However, the portfolio's focus on healthcare and technology may lead to higher volatility, especially during periods of regulatory changes or technological shifts. Regularly reviewing sector trends and adjusting allocations can help maintain a balanced risk profile.

Regions Info

  • North America
    27%
  • Europe Developed
    23%
  • Asia Emerging
    9%
  • Japan
    8%
  • Asia Developed
    7%
  • Africa/Middle East
    2%
  • Australasia
    2%
  • Latin America
    1%

The portfolio's geographic allocation is well-diversified across North America (27%), Europe Developed (23%), and Asia Emerging (9%). This distribution helps spread risk across different economic regions, reducing reliance on any single market. However, the relatively lower exposure to emerging markets and regions like Latin America may limit growth opportunities. Consider gradually increasing exposure to these areas to capitalize on potential growth while maintaining geographic diversification.

Market capitalization Info

  • Large-cap
    32%
  • Mega-cap
    26%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio includes a mix of market capitalizations, with 32% in large-cap and 26% in mega-cap stocks. This mix provides stability and growth potential, as large-cap companies tend to be more established. However, the lower allocation to small-cap (4%) and micro-cap (1%) stocks may limit exposure to high-growth opportunities. Increasing the allocation to smaller companies could enhance growth potential, albeit with increased risk.

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.

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The current portfolio could potentially be optimized for a better risk-return ratio using the Efficient Frontier. This concept helps identify the best possible return for a given level of risk by adjusting asset allocations. However, any changes should align with your investment goals and risk tolerance. Consider consulting with a financial advisor to explore optimization opportunities while ensuring alignment with your cautious investment profile.

Dividends Info

  • iShares MSCI World UCITS ETF USD (Dist) EUR 1.10%
  • Weighted yield (per year) 0.22%

The portfolio's dividend yield is relatively modest at 0.22%, with the iShares MSCI World UCITS ETF contributing a yield of 1.10%. While dividends can provide a steady income stream, the focus here appears more on capital appreciation. For investors seeking income, increasing allocations to higher-yielding assets or dividend-focused funds could boost the portfolio's income potential, aligning with income-oriented goals.

Ongoing product costs Info

  • iShares Healthcare Innovation UCITS ETF USD (Acc) 0.40%
  • iShares MSCI World UCITS ETF USD (Dist) EUR 0.50%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • iShares MSCI World Value Factor UCITS 0.30%
  • Lyxor MSCI New Energy ESG Filtered (DR) UCITS ETF Dist 0.60%
  • Vanguard FTSE All-World High Dividend Yield UCITS USD 0.29%
  • Weighted costs total (per year) 0.32%

The portfolio's overall Total Expense Ratio (TER) of 0.32% is commendably low, supporting better long-term returns by minimizing cost drag. Lower costs mean more of your investment returns are retained, which can significantly impact compound growth over time. Regularly reviewing and comparing fund expenses ensures continued cost efficiency. If costs rise, consider switching to lower-cost alternatives to maintain this advantage.

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