A globally diversified portfolio with a cautious risk profile and a focus on ETFs

Report created on Aug 2, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio comprises four ETFs, each targeting different geographic and sectoral exposures, with a 95% allocation in stocks and a small 5% in bonds. The SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF and the Vanguard LifeStrategy 80% Equity UCITS ETF form the core, emphasizing European small-cap and diversified global equities. The inclusion of the Vanguard FTSE Emerging Markets UCITS ETF adds significant exposure to emerging markets, while the iShares Edge MSCI World Minimum Volatility UCITS ETF aims to reduce portfolio volatility. This composition suggests a strategic approach to achieving diversification across various dimensions, including geography, market capitalization, and volatility levels.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 8.52%, with a maximum drawdown of -16.09%. The performance is notable for a cautious risk profile, demonstrating resilience during market fluctuations. The days contributing to 90% of returns signify that a few key periods significantly impact overall performance. Comparing these metrics to benchmarks can provide insight into the portfolio's risk-adjusted returns, suggesting that the strategy has balanced growth objectives with risk management effectively.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, show a median increase of 174% in portfolio value, with a 95% likelihood of positive returns. This forward-looking analysis underscores the portfolio's potential for growth while acknowledging the inherent uncertainty in market movements. It's important to remember, however, that these projections are hypothetical and should be viewed as one of many tools in making informed investment decisions.

Asset classes Info

  • Stocks
    95%
  • Bonds
    5%

The asset allocation leans heavily towards stocks (95%), with a minimal bond presence (5%), reflecting a strategy that seeks growth while maintaining a cautious risk profile. This balance is typical for investors who are willing to accept some volatility for higher potential returns but still prefer a measure of stability through bond inclusion. Adjusting this mix could further align the portfolio with the investor's risk tolerance and return expectations.

Sectors Info

  • Financials
    18%
  • Technology
    16%
  • Industrials
    14%
  • Consumer Discretionary
    12%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Basic Materials
    6%
  • Energy
    4%
  • Utilities
    4%
  • Real Estate
    3%

Sector allocation is broad, with significant investments in financial services, technology, and industrials, followed by consumer cyclicals and communication services. This sector spread indicates a well-considered approach to capturing growth across diverse economic activities, though the concentration in tech and finance sectors could introduce volatility. Balancing sector exposures can mitigate sector-specific risks and capitalize on growth opportunities elsewhere.

Regions Info

  • Europe Developed
    37%
  • North America
    31%
  • Asia Emerging
    16%
  • Asia Developed
    6%
  • Japan
    4%
  • Africa/Middle East
    3%
  • Latin America
    2%

Geographic distribution is well-diversified, with a strong emphasis on developed Europe and North America, complemented by meaningful exposure to emerging markets in Asia. This global footprint enhances the portfolio's potential to benefit from growth in different regions while cushioning against localized economic downturns. However, the absence of investments in Europe Emerging and Australasia could be a missed opportunity for further diversification.

Market capitalization Info

  • Mid-cap
    31%
  • Mega-cap
    27%
  • Large-cap
    25%
  • Small-cap
    11%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown—medium, mega, big, small, and micro—demonstrates a strategic approach to diversification across different company sizes. This mix can help balance the growth potential of smaller companies with the stability of larger firms, although the current allocation may lean more towards larger companies, potentially limiting exposure to high-growth small-cap opportunities.

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.

The portfolio's current expected return is slightly below the optimal level identified by Efficient Frontier analysis, suggesting room for improvement in achieving the best possible risk-return ratio. By adjusting asset allocations within the existing portfolio, it may be possible to enhance returns without increasing risk significantly. This optimization process is an ongoing task that requires periodic review as market conditions evolve.

Ongoing product costs Info

  • iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc) EUR 0.30%
  • Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating 0.25%
  • Vanguard FTSE Emerging Markets UCITS 0.22%
  • SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc 0.30%
  • Weighted costs total (per year) 0.27%

The portfolio's total expense ratio (TER) of 0.27% is relatively low, which is favorable for long-term growth as lower costs translate directly into higher net returns. Keeping costs in check is vital for enhancing investment efficiency, especially in a diversified portfolio where expenses can quickly add up across multiple holdings.

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