This portfolio has only about 6.1 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced Broadly Diversified Portfolio with Strong Historic Performance and Moderate Costs

Report created on Jul 24, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of three main ETFs: Xtrackers MSCI World ESG UCITS ETF 1C (60%), Xtrackers MSCI Emerging Markets UCITS ETF 1C (25%), and Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF (15%). This broad diversification across global markets and different market caps helps mitigate risks associated with regional economic downturns. The balanced risk classification ensures that the portfolio is suitable for moderate risk-takers looking for steady growth. To optimize further, consider reviewing the weight of each ETF periodically to maintain the desired risk level.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 10.29%, which is quite impressive. However, it also experienced a maximum drawdown of -33.95%, indicating significant volatility during market downturns. This performance highlights the portfolio's potential for substantial returns, alongside the risk of considerable losses during market stress. To protect against such drawdowns, consider maintaining a cash reserve or diversifying into more stable asset classes like bonds.

Projection Info

Using a Monte-Carlo simulation with 1,000 iterations, we projected the portfolio's future performance with a hypothetical initial investment. The simulation shows a median return of 158.35% and a 67th percentile return of 255.96%, indicating strong potential growth. However, the 5th percentile return is -13.94%, showing that there is still a risk of loss. These projections suggest that while the portfolio has high growth potential, it also carries a risk of negative returns. Regularly revisiting the asset allocation could help manage these risks.

Asset classes Info

  • Stocks
    75%
  • No data
    25%

The portfolio's asset classes are predominantly stocks (74.79%) and a significant unknown portion (25%). The remaining allocation is minimal in cash and other assets. This heavy tilt towards equities can drive higher returns but also increases volatility. To balance this, consider diversifying into other asset classes like bonds or real estate, which can offer more stability. Regularly reviewing the asset class distribution can help ensure it aligns with the desired risk tolerance and investment goals.

Sectors Info

  • No data
    25%
  • Technology
    21%
  • Financials
    12%
  • Health Care
    10%
  • Industrials
    9%
  • Consumer Discretionary
    8%
  • Telecommunications
    7%
  • Real Estate
    3%
  • Consumer Staples
    2%
  • Basic Materials
    2%
  • Utilities
    1%
  • Energy
    1%

The portfolio is diversified across multiple sectors, with Technology (20.64%), Financial Services (12.12%), and Healthcare (9.73%) being the most prominent. While this sector diversification reduces sector-specific risks, the unknown sector allocation (25%) needs clarification. Understanding this unknown portion can help in assessing the portfolio's overall risk and alignment with market trends. It may be beneficial to investigate this unknown allocation to ensure it fits the investment strategy and risk profile.

Regions Info

  • North America
    45%
  • No data
    25%
  • Europe Developed
    24%
  • Japan
    4%
  • Australasia
    1%
  • Asia Developed
    1%

Geographically, the portfolio is well-diversified with significant allocations in North America (45.16%), Europe Developed (24.32%), and Japan (3.80%). However, 25% of the geographic allocation is unknown, which could obscure potential risks or opportunities. This geographic diversification helps mitigate region-specific economic risks. To further enhance diversification, consider clarifying the unknown geographic allocation and possibly increasing exposure to underrepresented regions.

Dividends Info

  • Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF 1.90%
  • Weighted yield (per year) 0.28%

Dividend yield data is not provided, but dividends can be an essential part of the portfolio's total return. Dividends offer a steady income stream and can provide a buffer during market downturns. If dividend income is a priority, consider evaluating the dividend yields of the current ETFs and possibly incorporating high-dividend-paying assets. This can enhance the portfolio's income generation and provide more stability.

Ongoing product costs Info

  • Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB ETF 0.23%
  • Xtrackers MSCI World ESG UCITS ETF 1C 0.25%
  • Weighted costs total (per year) 0.18%

The portfolio's total expense ratio (TER) is 0.18%, which is quite low and favorable for long-term growth. Lower costs mean more of the returns are retained by the investor, enhancing overall performance. However, it's essential to keep an eye on these costs as they can change over time. Regularly reviewing the expense ratios of the ETFs can help ensure the portfolio remains cost-efficient.

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