Diversified Europe anchored equity portfolio with strong quality tilt and room for efficiency gains

Report created on Mar 31, 2026

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

An allocation like this tends to fit someone who is comfortable with equity market swings and focused on long‑term growth over short‑term stability. A typical profile might be a saver with a 10‑plus‑year horizon who doesn’t need to draw heavily from the portfolio during market downturns. They might value simplicity, low costs, and broad diversification, but still feel a natural preference for their home region. Income probably isn’t the main goal; building a larger pot for future retirement, big life goals, or financial independence likely matters more. Willingness to see 30% drawdowns without panicking is a key part of making this kind of setup work.

Positions

The structure is very equity-heavy, with 100% in stock ETFs and no bonds or cash buffer. Around 60% is anchored in a broad developed Europe fund, with the remaining 40% split evenly across global, US, emerging markets, and a Euro dividend strategy. This creates a clear home base in Europe while still giving exposure to worldwide markets. Being fully in equities matters because it drives both higher long‑term growth potential and larger short‑term swings. For someone happy riding out volatility, this is a focused growth setup; for anyone needing stability or withdrawals soon, the lack of defensive assets would be the key thing to rethink.

Growth Info

Over the 2019–2026 period, €1,000 grew to about €2,113, giving a compound annual growth rate (CAGR) of 12.29%. CAGR is like your average “cruising speed” over the whole journey, smoothing out bumps. This result beat the global market benchmark but slightly lagged the US market, which has been unusually strong. The portfolio’s max drawdown of about -33% was similar to those benchmarks, meaning it fell roughly as hard in the worst periods. The big positive is that you achieved near‑US‑like returns while staying globally and regionally diversified instead of being heavily concentrated in one market.

Projection Info

The Monte Carlo simulation uses past data and volatility patterns to generate many random future paths for the portfolio, like running 1,000 “what if” market histories. In these runs, €1,000 ends up around €1,188 in a bad‑case 5th percentile and roughly quadruples in the median case over 10 years, with an average simulated annual return of 14.53%. That suggests a strong growth profile but with a wide range of outcomes. It’s important to remember simulations are not forecasts; they assume the future behaves statistically like the past. They’re best seen as a rough weather map, not a precise itinerary.

Asset classes Info

  • Stocks
    100%

All of the money is in stocks, with no allocation to bonds, cash, or alternatives. Asset classes are simply broad buckets like equities, bonds, and real assets, each reacting differently to economic cycles. A 100% equity stance maximizes long‑term return potential but also makes the portfolio more sensitive to market crashes and sequence risk, especially early in a withdrawal phase. Many balanced investors mix in bonds or cash to smooth the ride and provide liquidity. Here, diversification comes entirely from holding different kinds of stocks, not from pairing stocks with more defensive asset classes.

Sectors Info

  • Financials
    21%
  • Industrials
    17%
  • Technology
    13%
  • Health Care
    11%
  • Consumer Staples
    8%
  • Consumer Discretionary
    8%
  • Basic Materials
    6%
  • Utilities
    6%
  • Telecommunications
    5%
  • Energy
    4%
  • Real Estate
    2%

Sector exposure is broadly spread, with financials, industrials, and technology leading, followed by health care and consumer areas, and smaller slices in utilities, materials, telecoms, energy, and real estate. This looks quite in line with diversified European and global benchmarks, which is a positive sign: the portfolio is not making big bets on a single industry. A balanced sector mix matters because different sectors lead in different environments—rate cycles, inflation trends, and economic growth phases all shuffle the winners. This alignment with broad market weights suggests the portfolio’s sector risk is sensibly diversified rather than speculative.

Regions Info

  • Europe Developed
    70%
  • North America
    17%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    1%
  • Japan
    1%

Geographically, about 70% sits in developed Europe, with 17% in North America and the rest spread thinly across emerging and other developed regions. Compared with global benchmarks that give roughly half to the US, this is a strong home‑region tilt. That can feel comfortable, especially for a European investor, and it aligns well with your local currency and economy. The trade‑off is higher exposure to Europe‑specific risks—growth, regulation, and currency—while underweighting regions that might lead at different times. Keeping some global and emerging exposure, as you already do, helps balance that, but Europe clearly calls the shots here.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    34%
  • Mid-cap
    17%

The portfolio leans heavily into mega‑ and large‑cap stocks, with only a modest 17% in mid‑caps and essentially nothing in smaller companies. Market capitalization just measures company size; larger firms tend to be more stable, widely followed, and less explosive than small caps. This size mix is very similar to standard global equity indices and is a solid, mainstream way to take equity risk. It means you’re mostly riding with the world’s big, established businesses rather than chasing smaller, potentially higher‑return but lumpier names. That supports smoother behaviour than a small‑cap‑heavy strategy, at the cost of less “lottery ticket” upside.

True holdings Info

  • ASML Holding N.V.
    2.31%
    Part of fund(s):
    • Vanguard FTSE Developed Europe UCITS
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    1.65%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • Vanguard FTSE Emerging Markets UCITS ETF USD Accumulation GBP
  • Rogers Corporation
    1.35%
    Part of fund(s):
    • Vanguard FTSE Developed Europe UCITS
  • Novartis AG
    1.31%
    Part of fund(s):
    • Vanguard FTSE Developed Europe UCITS
  • HSBC Holdings PLC
    1.30%
    Part of fund(s):
    • Vanguard FTSE Developed Europe UCITS
  • AstraZeneca PLC
    1.26%
    Part of fund(s):
    • Vanguard FTSE Developed Europe UCITS
  • NVIDIA Corporation
    1.16%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • Vanguard S&P 500 UCITS Acc
  • Nestlé S.A.
    1.11%
    Part of fund(s):
    • Vanguard FTSE Developed Europe UCITS
  • Apple Inc
    1.06%
    Part of fund(s):
    • Vanguard FTSE All-World UCITS ETF USD Accumulation
    • Vanguard S&P 500 UCITS Acc
  • Shell plc
    0.96%
    Part of fund(s):
    • Vanguard FTSE Developed Europe UCITS
  • Top 10 total 13.47%

Looking through the ETFs, the visible top holdings show familiar global names like ASML, TSMC, Novartis, NVIDIA, Apple, and Nestlé. Several of these appear via more than one ETF, which means there is some hidden concentration even though each fund looks diversified on its own. Because the analysis only sees ETF top‑10 positions, that overlap is likely understated. This kind of duplication is normal in broad index portfolios, but it does mean certain mega‑caps will drive performance more than their apparent indirect weight suggests. Being aware of that helps avoid overreacting when those few names have a strong up or down year.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 100%
Size
Exposure to smaller companies
Very high
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
Very high
Data availability: 100%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 100%

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.

Factor exposure shows very strong tilts toward size (meaning larger companies), and quality, plus high tilts to value, yield, and low volatility. Factors are like underlying traits—cheap vs expensive, stable vs risky, big vs small—that research links to long‑term returns. A strong quality tilt typically points to companies with solid balance sheets and consistent earnings, which can hold up better in downturns. The high size tilt toward big firms and the low‑volatility tilt both point to a more stable equity profile, at least relative to a high‑growth, speculative style. The value and yield tilts suggest a bias toward reasonably priced, income‑producing stocks over flashy growth stories.

Risk contribution Info

  • Vanguard FTSE Developed Europe UCITS
    Weight: 60.00%
    62.1%
  • Vanguard S&P 500 UCITS Acc
    Weight: 10.00%
    11.3%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    Weight: 10.00%
    9.4%
  • SPDR S&P Euro Dividend Aristocrats UCITS ETF
    Weight: 10.00%
    9.4%
  • Vanguard FTSE Emerging Markets UCITS ETF USD Accumulation GBP
    Weight: 10.00%
    7.9%

Risk contribution shows how much each position drives the portfolio’s overall ups and downs, which can differ from simple weights. The developed Europe fund at 60% weight contributes about 62% of the total risk, so its influence is very close to proportional. The S&P 500 ETF slightly “punches above its weight” in risk terms, while the emerging markets and dividend ETFs contribute a bit less risk than their allocations. With the top three positions responsible for roughly 83% of total risk, this is still a concentrated structure. If a smoother profile were desired, adjustments would mostly need to happen around that dominant European core.

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.

On the risk/return chart, the current mix has a Sharpe ratio of 0.63, which is below the optimal portfolio using the same holdings at 0.93 and slightly above the minimum‑risk version at 0.58. The Sharpe ratio measures return per unit of volatility, like how much “reward” you’re getting for every bump in the road. The fact that you sit about 1.9 percentage points below the efficient frontier at your current risk level means there’s room to improve using just reweighting. In other words, even without adding new funds, a different balance between the existing ETFs could potentially boost risk‑adjusted returns.

Dividends Info

  • SPDR S&P Euro Dividend Aristocrats UCITS ETF 3.70%
  • Weighted yield (per year) 0.37%

Only the Euro Dividend Aristocrats ETF has an explicitly high yield at around 3.7%, while the overall portfolio yield comes out relatively low at about 0.37%. That’s because most of the allocation is in broad accumulation funds that reinvest dividends instead of paying them out. For a growth‑oriented investor who doesn’t need regular income, reinvested dividends quietly boost total return and keep things simple at tax time in many jurisdictions. For someone relying on their portfolio for cash flow, the current setup is more about growing the pot and less about delivering high ongoing payouts, which might shape how withdrawals are planned.

Ongoing product costs Info

  • SPDR S&P Euro Dividend Aristocrats UCITS ETF 0.30%
  • Vanguard FTSE Developed Europe UCITS 0.10%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
  • Vanguard S&P 500 UCITS Acc 0.07%
  • Weighted costs total (per year) 0.12%

The average ongoing fund cost (TER) of about 0.12% per year is impressively low. TER is the annual fee charged by the ETF provider, quietly deducted inside the fund; shaving even a few tenths of a percent here can make a big difference over decades, thanks to compounding. This cost level is well below what many active funds charge and compares very favourably with similar index products. It means more of the portfolio’s gross return actually reaches you instead of being eaten by fees. From a cost perspective, this is one of the real strengths of the setup and a solid foundation for long‑term compounding.

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