Balanced global equity portfolio with a strong focus on developed markets

Report created on Aug 8, 2025

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 predominantly invested in global equities, with a 90% allocation to a broad market ETF that tracks developed countries and a 10% allocation to an ETF focusing on emerging markets. Such a composition indicates a balanced approach, aiming to capture the growth potential of the global market while mitigating risk through diversification. The heavy weighting towards developed markets suggests a conservative tilt within an equity-focused strategy.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.81%, with a maximum drawdown of -25.33%. These numbers reflect a strong performance, particularly in the context of a balanced risk profile. The performance is bolstered by significant days contributing to the bulk of returns, highlighting the impact of short-term market movements on overall gains. Comparing this to benchmark indices could provide further insights into relative performance.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, this portfolio shows a wide range of potential returns. While past performance doesn't guarantee future results, these projections offer a glimpse into the portfolio's risk and reward dynamics. The simulations suggest a robust likelihood of positive returns, with a median projected increase significantly above the initial investment.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, which positions it for potential high growth but also exposes it to market volatility. This single-asset class approach simplifies the investment strategy but may benefit from the inclusion of other asset classes, such as bonds or real estate, to enhance diversification and reduce overall risk.

Sectors Info

  • Technology
    25%
  • Financials
    15%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation is well-diversified, with significant exposure to technology, financial services, and industrials. This sector spread is reflective of the global economy's major drivers of growth. However, the heavy emphasis on technology could introduce volatility, as this sector is often more sensitive to market fluctuations and economic changes.

Regions Info

  • North America
    68%
  • Europe Developed
    14%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America, with significant exposure to Europe and minimal allocations to emerging markets and other regions. This distribution underscores a focus on more stable, developed economies but may underrepresent the growth potential available in emerging markets.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    16%

The portfolio's market capitalization breakdown shows a preference for mega and big-cap stocks, which are typically less volatile than smaller companies. This aligns with the portfolio's balanced risk profile, as larger companies often have more stable earnings and dividends. However, the inclusion of mid-cap stocks adds a layer of growth potential.

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.

Given the current asset allocation and focus, there's a potential for optimization towards the Efficient Frontier, which aims for the best possible risk-return ratio. Adjusting the allocation could enhance returns for a given level of risk. However, any optimization should consider the investor's risk tolerance and investment horizon.

Ongoing product costs Info

  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • Weighted costs total (per year) 0.20%

The total expense ratio (TER) of 0.20% is impressively low, which is beneficial for long-term performance. Lower costs mean more of the investment's return is kept by the investor, a crucial factor in compounding growth over time. This cost efficiency is a strong positive attribute of the portfolio.

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