A globally diversified portfolio with a strong tech focus and balanced risk profile

Report created on Aug 10, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio predominantly consists of three ETFs, with a significant 80% allocated to the iShares Core MSCI World UCITS ETF, which provides broad exposure to global equities. The remaining 20% is evenly split between the iShares NASDAQ 100 UCITS ETF, emphasizing technology stocks, and the iShares MSCI EM UCITS ETF, targeting emerging markets. This structure suggests a strategic emphasis on global diversification, with a tilt towards technology and growth sectors. The portfolio's diversification is further underscored by its broad geographic and sectoral spread, aligning with a balanced risk classification.

Growth Info

Historical performance, with a Compound Annual Growth Rate (CAGR) of 13.50% and a maximum drawdown of -25.70%, indicates a strong return profile relative to its risk. The days contributing to 90% of returns highlight the portfolio's susceptibility to short-term volatility, common in equity-heavy allocations. This performance, when juxtaposed against benchmarks for similar risk profiles, underscores the effectiveness of the portfolio's diversification and sectoral choices, particularly the significant tech exposure through the NASDAQ component.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median simulation suggesting a 493.4% return, indicative of the portfolio's growth potential. However, the spread between the 5th and 67th percentiles highlights the inherent uncertainty and risk, emphasizing the importance of maintaining a long-term perspective. These projections, while useful, are based on historical data and cannot guarantee future performance, serving more as a guide for expectations.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, reflecting a growth-oriented strategy but also implying higher volatility and risk compared to mixed-asset portfolios. This singular focus on equities is appropriate for investors with a medium to long-term horizon and a balanced to higher risk tolerance. Diversification across multiple asset classes could further mitigate risk and smooth out returns, especially during market downturns.

Sectors Info

  • Technology
    28%
  • Financials
    13%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

With a 28% allocation to technology, followed by financial services and a mix of consumer cyclicals, industrials, and communication services, the portfolio is positioned to capitalize on growth sectors. However, this heavy tech concentration may expose it to sector-specific risks, such as regulatory changes or market sentiment shifts. Balancing with sectors that have different economic sensitivities could reduce volatility.

Regions Info

  • North America
    70%
  • Europe Developed
    13%
  • Asia Emerging
    5%
  • Japan
    4%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution, heavily skewed towards North America (70%), provides robust exposure to the world's largest economy and its innovative tech sector. However, this concentration may increase susceptibility to regional economic fluctuations. Expanding exposure to developed European markets or increasing the allocation towards emerging markets could offer additional diversification benefits and access to growth opportunities outside the U.S.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    34%
  • Mid-cap
    15%

The portfolio's market capitalization breakdown, with a dominant focus on mega (49%) and big (34%) cap stocks, aligns with its pursuit of stability and growth. These companies often offer more resilience during market downturns compared to their smaller counterparts. However, incorporating a small allocation to medium or even small-cap stocks could enhance growth potential and diversification.

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.

Optimization analyses suggest that while the portfolio is well-positioned on the Efficient Frontier, indicating an effective risk-return balance, there's always room for improvement. Adjustments in asset allocation, perhaps by incorporating fixed income or alternative assets, could potentially enhance the portfolio's efficiency. However, any optimization should consider the investor's risk tolerance, investment horizon, and financial goals.

Ongoing product costs Info

  • iShares NASDAQ 100 UCITS ETF USD (Acc) 0.36%
  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • Weighted costs total (per year) 0.21%

The portfolio's total expense ratio (TER) of 0.21% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact compounded returns over time. This cost efficiency is a strong aspect of the portfolio, aligning with best practices for long-term investing.

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