A well-diversified portfolio with a strong global focus and moderate risk exposure

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor seeking moderate growth with a balanced risk tolerance and a medium to long-term horizon. It emphasizes global diversification across various asset classes and sectors, providing resilience against market fluctuations. This approach is ideal for individuals looking to achieve steady growth while maintaining a level of risk that aligns with their financial goals. Investors who prefer a more hands-off approach will appreciate the broad diversification and low-cost structure of the portfolio.

Positions

  • HSBC MSCI World UCITS ETF
    H4ZJ - IE00B4X9L533
    37.57%
  • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI IMI UCITS ETF
    SPYI - IE00B3YLTY66
    13.52%
  • Lyxor Commodities Refinitiv/CoreCommodity CRB TR UCITS ETF - Acc-EUR
    LYTR - LU1829218749
    12.02%
  • iShares Core MSCI Europe UCITS ETF EUR (Acc)
    EUNK - IE00B4K48X80
    10.52%
  • Amundi Msci Emerging Markets II Ucits Etf
    AE5A - LU2573966905
    9.77%
  • Xtrackers MSCI World Momentum UCITS ETF
    XDEM - IE00BL25JP72
    5.56%
  • db x-trackers MSCI Nordic UCITS DR 1D
    XDN0 - IE00B9MRHC27
    5.56%
  • UBS - SBI Foreign AAA-BBB 5-10 UCITSCHF A-dis
    UEFZ - LU0879399441
    4.36%
  • Amundi EUR High Yield Corporate Bond ESG UCITS ETF Dis EUR
    LYQY - LU1812090543
    1.13%

This portfolio is composed predominantly of ETFs, with a primary focus on global equities. The largest holding is the HSBC MSCI World UCITS ETF, making up 37.57% of the portfolio. The portfolio is broadly diversified with a mix of equities, commodities, and bonds. Compared to a typical balanced benchmark, the equity weight is higher, which could result in increased volatility. It's important to maintain a balance between asset classes to manage risk effectively. Consider reviewing the weightings regularly to ensure alignment with your financial goals and risk tolerance.

Warning The historical data covers less than 2 years, which reduces the confidence in the calculated values.

Growth Info

Historically, the portfolio has demonstrated impressive performance with a CAGR of 46.52%. The max drawdown of -3.20% indicates relatively low volatility, which is favorable for risk management. This performance surpasses typical benchmarks, suggesting strong past returns. However, it's crucial to note that past performance does not guarantee future results. Regularly reviewing historical performance can help identify trends and make necessary adjustments to sustain growth. Keep in mind that market conditions can change, impacting future returns.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

The Monte Carlo simulation, which uses historical data to project potential future outcomes, suggests a robust outlook for the portfolio. With 1,000 simulations, the median projected return is 20,801.6%, and all simulations resulted in positive returns. While this indicates a favorable risk-return profile, remember that simulations are based on historical data and assumptions, which might not hold true in the future. Regularly reassess projections to stay informed about potential changes in market conditions and adjust your strategy accordingly.

Asset classes Info

  • Stocks
    73%
  • Other
    12%
  • Unknown
    10%
  • Bonds
    5%
  • No data
    0%
  • Cash
    0%

The portfolio is heavily weighted towards stocks, comprising 73% of the allocation. Other assets, such as commodities and bonds, make up smaller portions. This allocation aligns with a growth-oriented strategy, but it may increase exposure to market volatility. Diversifying across various asset classes can help mitigate risk and improve stability. Consider periodically rebalancing the portfolio to maintain a suitable risk profile, especially in changing market environments.

Sectors Info

  • Technology
    16%
  • Financials
    12%
  • Unknown
    10%
  • Industrials
    9%
  • Health Care
    9%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    1%

The portfolio's sector allocation is relatively balanced, with technology and financial services being the most prominent at 16% and 12%, respectively. This diversification aligns well with common benchmarks, providing resilience against sector-specific downturns. However, the tech-heavy allocation might lead to higher volatility, particularly during interest rate hikes. Monitoring sector trends and adjusting allocations as needed can help optimize performance and manage risk effectively.

Regions Info

  • North America
    43%
  • Europe Developed
    24%
  • Unknown
    10%
  • Japan
    3%
  • Australasia
    1%
  • Asia Developed
    1%
  • Asia Emerging
    1%
  • Africa/Middle East
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America, accounting for 43% of the allocation, followed by Europe Developed at 24%. This concentration aligns with global benchmarks but may expose the portfolio to regional risks. Expanding exposure to underrepresented regions, such as Asia and emerging markets, could enhance diversification and potentially capture growth opportunities. Regularly review geographic allocations to ensure they align with your investment objectives and risk tolerance.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    26%
  • Unknown
    22%
  • Mid-cap
    12%
  • Small-cap
    1%
  • Micro-cap
    0%

The portfolio's market capitalization exposure is primarily in mega and big caps, comprising 33% and 26% respectively. This focus on larger companies can provide stability and lower volatility compared to smaller caps. However, it may limit potential growth opportunities found in medium and small-cap stocks. Diversifying across various market capitalizations can enhance the portfolio's growth potential while managing risk. Consider periodic adjustments to maintain a balanced exposure to different company sizes.

Redundant positions Info

  • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI IMI UCITS ETF
    HSBC MSCI World UCITS ETF
    High correlation

The portfolio contains some highly correlated assets, particularly the SSgA SPDR ETFs Europe I Public Limited Company and HSBC MSCI World UCITS ETF. High correlation means these assets tend to move together, which can reduce diversification benefits. To optimize risk management, consider reducing the allocation of correlated assets and introducing less correlated alternatives. This adjustment can enhance the portfolio's resilience during market downturns and improve overall performance.

Dividends Info

  • HSBC MSCI World UCITS ETF 0.40%
  • Weighted yield (per year) 0.15%

The portfolio has a modest dividend yield of 0.15%, with the HSBC MSCI World UCITS ETF contributing 0.40%. While dividends can provide a steady income stream, this portfolio's focus appears to be more on growth rather than income. For investors seeking regular income, increasing exposure to higher-yielding assets may be beneficial. However, ensure that any changes align with your overall investment strategy and risk tolerance.

Ongoing product costs Info

  • iShares Core MSCI Europe UCITS ETF EUR (Acc) 0.20%
  • HSBC MSCI World UCITS ETF 0.15%
  • Amundi EUR High Yield Corporate Bond ESG UCITS ETF Dis EUR 0.25%
  • Lyxor Commodities Refinitiv/CoreCommodity CRB TR UCITS ETF - Acc-EUR 0.35%
  • SSgA SPDR ETFs Europe I Public Limited Company - SPDR MSCI ACWI IMI UCITS ETF 0.40%
  • UBS - SBI Foreign AAA-BBB 5-10 UCITSCHF A-dis 0.20%
  • Xtrackers MSCI World Momentum UCITS ETF 0.25%
  • db x-trackers MSCI Nordic UCITS DR 1D 0.30%
  • Weighted costs total (per year) 0.22%

The portfolio's total expense ratio (TER) is 0.22%, which is relatively low and supports long-term performance by minimizing costs. Keeping expenses in check is crucial for maximizing returns over time. Regularly reviewing and comparing fund expenses can help identify opportunities to reduce costs further. Consider exploring alternative ETFs or funds with similar objectives but lower fees to enhance cost-efficiency without compromising on diversification or performance.

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.

The portfolio could benefit from optimization using the Efficient Frontier, which focuses on achieving the best possible risk-return ratio. By adjusting the allocation of current assets, you can potentially enhance returns without increasing risk. However, the optimal portfolio with an expected return of 86.46% and a risk level of 14.75% suggests a higher risk profile than the current portfolio. Carefully evaluate your risk tolerance and investment goals before making significant changes to ensure alignment with your financial objectives.

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