A balanced portfolio with a strong focus on US and global equities for steady growth

Report created on Jul 14, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is split evenly between the iShares Core S&P 500 UCITS ETF and the iShares Core MSCI World UCITS ETF, indicating a significant focus on equities. With 100% of the portfolio allocated to stocks, the investor is exposed to the market's growth potential. However, this concentration in equities, particularly with a heavy weighting towards the US market, also carries a higher level of risk compared to more diversified portfolios that include bonds or other asset classes.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 12.50%, with a maximum drawdown of -34%. This suggests that while the portfolio has the potential for high returns, it also faces significant volatility, as evidenced by the substantial drawdown. Such performance highlights the trade-off between risk and return, where higher potential gains are accompanied by increased risk of large losses.

Projection Info

Monte Carlo simulations, which use historical data to forecast future performance, suggest a wide range of outcomes for this portfolio. With a median projected growth of 399.4% and 993 out of 1,000 simulations showing positive returns, the outlook appears generally positive. However, the simulations also indicate potential for significant variance in outcomes, underscoring the importance of risk tolerance in investment decisions.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks represents a focused strategy on capital growth through equity markets. While this can offer higher returns, especially in bullish market conditions, it lacks the risk mitigation benefits that come from diversifying across different asset classes, such as bonds or real estate, which can provide income and stability during market downturns.

Sectors Info

  • Technology
    31%
  • Financials
    15%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

With technology, financial services, and consumer cyclicals leading sector allocations, the portfolio is poised to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic cycles affecting these industries more than others. Diversifying across a broader range of sectors could help mitigate these risks.

Regions Info

  • North America
    87%
  • Europe Developed
    8%
  • Japan
    3%
  • Australasia
    1%
  • Asia Developed
    1%

The geographic distribution is heavily skewed towards North America, primarily the US, with minimal exposure to emerging markets and other developed regions. This focus enhances the portfolio's potential to capitalize on the growth of the US economy but also increases its vulnerability to region-specific economic and political risks.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    35%
  • Mid-cap
    17%
  • Small-cap
    1%

The emphasis on mega and big-cap stocks suggests a preference for stability and established companies, which typically offer less volatility but also potentially lower growth rates compared to smaller companies. Medium and small-cap companies, while riskier, could provide higher growth opportunities and further diversification benefits.

Redundant positions Info

  • iShares Core MSCI World UCITS ETF USD (Acc)
    iShares Core S&P 500 UCITS ETF USD (Acc)
    High correlation

The high correlation between the two ETFs in the portfolio means there is significant overlap in their holdings, reducing the diversification benefits. Diversifying into assets with lower correlations, such as international or emerging market equities, could help spread risk more effectively across the portfolio.

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.

Optimizing this portfolio involves addressing the high correlation between its components to enhance diversification benefits. By reallocating some assets into non-correlated investments, the investor can potentially achieve a more efficient risk-return profile, moving closer to the Efficient Frontier. This approach aims to maximize returns for a given level of risk by adjusting the allocation between different investments.

Ongoing product costs Info

  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • iShares Core MSCI World UCITS ETF USD (Acc) 0.20%
  • Weighted costs total (per year) 0.16%

The total expense ratio (TER) of 0.16% is relatively low, which is beneficial for long-term growth as it minimizes the drag on performance due to fees. Keeping costs low is crucial in maximizing net returns, especially in a fully equity-based portfolio where transaction and management fees can erode gains over time.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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