Globally diversified stock only portfolio with strong low volatility tilt and impressively low costs
Report created on May 6, 2024Risk profile
4/7
Diversification profile
4/5
Positions
-
VW Vanguard FTSE All-World UCITS ETF USD Accumulation
VWCE - IE00BK5BQT80 100.00%
The structure here is about as simple and clean as it gets: one global equity ETF at 100%. That means full exposure to stocks and no ballast from bonds or cash within the portfolio itself. For many people, such simplicity is a big plus because it removes the need to constantly juggle different funds or guess which slice will win next. The key implication is that all risk and return comes from one diversified building block, so any extra safety usually has to come from money held outside this portfolio. As a core holding, this setup is straightforward, easy to monitor, and aligned with a long‑term, buy‑and‑hold mindset.
Growth
Since mid‑2019, €1,000 grew to about €1,970, giving a compound annual growth rate (CAGR) of 10.59%. CAGR is just the “average speed” of growth per year, smoothing out the bumps. This is almost identical to the global market benchmark, which shows the fund has tracked broad equity performance very well. Max drawdown of around -33% during the period is deep but normal for a pure stock allocation. The portfolio slightly lagged the US market but marginally beat the global benchmark, which is exactly what you’d hope from a broad “own-the-world” approach. Past returns can’t predict the future, but this track record supports the fund’s design.
Asset classes
- Stocks 100%
Asset‑class exposure is 100% stocks, with no bonds, cash, or alternatives mixed in. That’s a classic high‑growth, higher‑volatility profile compared with blended portfolios that hold fixed income or other defensive assets. For someone using this as their entire investment base, swings will be more pronounced, especially during downturns, because there is no built‑in stabilizer. Against global allocation norms that often pair equities with bonds, this is a more return‑oriented stance. The advantage is long‑term growth potential; the trade‑off is the need to sit through big drawdowns without panicking. If extra stability is needed, it usually has to come from separate savings or less volatile holdings outside this fund.
Sectors
- Technology 26%
- Financials 17%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 3%
- Real Estate 2%
Sector allocation is broadly spread, with technology the largest slice at 26%, followed by meaningful weights in financials, industrials, and consumer‑related areas. This pattern closely resembles major global equity benchmarks, which is a strong sign of healthy diversification. A tech tilt does mean sensitivity to interest rates and innovation cycles: rapid growth and big gains when optimism is high, but potentially sharper pullbacks if sentiment turns or regulation tightens. At the same time, decent exposure to areas like financials, health care, and industrials helps balance out pure growth risk. This sector mix is well‑balanced and aligns closely with global standards, which supports smoother long‑term behavior than a narrowly focused theme.
Regions
- North America 63%
- Europe Developed 15%
- Japan 6%
- Asia Developed 6%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio leans mostly on North America at 63%, with additional exposure across developed Europe, Japan, and both developed and emerging parts of Asia. That distribution is very similar to the global investable market, where the US and Canada dominate by market value. The benefit is alignment with how global capital is actually allocated today, which has historically rewarded investors given strong North American corporate earnings. It does, however, mean results are heavily influenced by one region’s economic and policy environment. For those wanting even more diversification, separate allocations outside this ETF could tilt toward under‑represented regions, but as a standalone, this mix is consistent with common global benchmarks.
Market capitalization
- Mega-cap 49%
- Large-cap 34%
- Mid-cap 16%
Market‑cap exposure is heavily skewed to mega‑ and large‑cap companies, with 83% in those buckets and the remaining 16% in mid‑caps. There’s effectively no small‑cap tilt here. Large companies tend to be more stable, better diversified across products and geographies, and usually have stronger balance sheets, which can slightly reduce risk versus a small‑cap-heavy approach. On the flip side, small‑caps sometimes deliver higher long‑term returns at the cost of more volatility. By hugging the global market‑cap structure, this portfolio behaves like the “average” world stock investor: anchored in giants, with some growth from the mid‑tier. That’s a pragmatic stance for those prioritizing broad, reliable exposure over aggressive small‑cap bets.
True holdings
-
NV NVIDIA Corporation 4.22%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
AA Apple Inc 3.92%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
MS Microsoft Corporation 2.96%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
AM Amazon.com Inc 2.05%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
GO Alphabet Inc Class A 1.85%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.58%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
AV Broadcom Inc 1.50%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
GO Alphabet Inc Class C 1.50%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
ME Meta Platforms Inc. 1.44%
Part of fund(s):- Vanguard FTSE All-World UCITS ETF USD Accumulation
-
TS Tesla Inc 1.16%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard FTSE All-World UCITS ETF USD Accumulation
- Top 10 total 22.17%
Looking through the ETF’s top holdings, exposure is clearly tilted toward the world’s largest, most influential companies. Names like Nvidia, Apple, Microsoft, Amazon, and Alphabet together already make up a meaningful slice of the equity risk. Because these appear via a single global ETF, there’s no extra hidden overlap between multiple funds, which actually simplifies concentration risk. However, it does mean portfolio behavior will be heavily influenced by how these giants perform, especially in tech‑driven market cycles. The uncovered 77.8% is spread across thousands of smaller positions, adding diversification beneath the surface. Overall, concentration at the very top is typical for a global market‑cap strategy.
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.
The standout factor feature is an extremely high low‑volatility exposure at 95%. Low volatility as a factor means the portfolio leans toward stocks that historically move less than the market, a bit like choosing steadier rides on a roller coaster. Research suggests such stocks can deliver returns comparable to the market with smaller swings, though this is not guaranteed. The value factor is also high, pointing slightly toward companies that look cheaper on fundamentals. Other factors (size, momentum, quality, yield) sit near neutral, so they don’t meaningfully tilt behavior. In practice, this mix could help smooth some of the rougher equity patches while still capturing a lot of the upside in normal markets.
Risk contribution
-
Vanguard FTSE All-World UCITS ETF USD Accumulation
Weight: 100.00% 100.0%
Risk contribution here is straightforward: with one ETF at 100%, that single holding naturally contributes 100% of portfolio risk. Risk contribution measures how much each position adds to overall ups and downs, which can differ from weight when some holdings are especially volatile. In multi‑fund portfolios, a small slice of a risky asset can dominate the total risk, but that’s not the case here. The main takeaway is that risk is concentrated in the global equity market as a whole, not in any single sector or country bet inside the ETF. Adjusting overall risk would involve changing the share of this ETF relative to safer assets held elsewhere, rather than tinkering within it.
Ongoing product costs
- Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
- Weighted costs total (per year) 0.19%
Total ongoing costs are impressively low at about 0.19% per year. The TER (Total Expense Ratio) is like a small “membership fee” charged by the fund to cover management and operations. Keeping this tiny is crucial, because fees directly eat into returns every single year. Over long horizons, the difference between 0.2% and 1% compounds into a surprisingly large gap in final wealth. This ETF is firmly in the low‑cost camp and lines up very well with best practices in evidence‑based investing. From a cost perspective, it strongly supports better long‑term performance and leaves more of the market’s return in the investor’s pocket.
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