A well-diversified global portfolio with a cautious risk profile and a focus on long-term growth

Report created on May 11, 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 demonstrates a strategic blend of 70% stocks, 15% bonds, and 15% other assets, including commodities like gold, which is a notable inclusion for diversification and inflation protection. The majority stake in the Vanguard FTSE All-World UCITS ETF USD Accumulation indicates a strong preference for global equity exposure, while the allocation towards bonds and commodities suggests a balanced approach to risk management. The inclusion of specific regional ETFs, such as the iShares S&P 500 GBP Hedged UCITS ETF, shows an intent to mitigate currency risk, particularly for UK-based investors.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 8.23% and a maximum drawdown of -18.83%, the portfolio has shown resilience and growth over time. The days contributing to 90% of returns being limited to 21 indicates that the portfolio's performance has been significantly influenced by a few strong market days. This performance, while solid, should be viewed with the understanding that past success is not a guaranteed predictor of future results.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes but with a majority leaning towards positive returns. The 50th percentile outcome of 162.2% growth is particularly encouraging, though it's important to remember that such projections are hypothetical and subject to market volatility. This method helps in understanding potential risks and rewards but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    70%
  • Other
    15%
  • Bonds
    15%

The portfolio's asset allocation is well-diversified, which is crucial for risk management. Stocks, as the largest component, provide growth potential, while bonds offer stability and income. The allocation to gold and other commodities is a prudent hedge against inflation and market volatility. This mix aligns with a cautious investment strategy, aiming to balance growth with risk mitigation.

Sectors Info

  • Technology
    15%
  • Financials
    13%
  • Consumer Discretionary
    7%
  • Industrials
    7%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation spans across technology, financial services, consumer cyclicals, and more, reflecting a broad market exposure. The emphasis on technology and financial services is consistent with their significant weight in global indices, offering growth potential but also requiring careful monitoring due to their volatility. Diversifying across sectors helps reduce unsystematic risk and capitalize on growth across different industries.

Regions Info

  • North America
    36%
  • Europe Developed
    16%
  • Asia Emerging
    9%
  • Asia Developed
    3%
  • Japan
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Geographically, the portfolio is heavily weighted towards North America and developed European markets, with emerging markets and Asia also represented. This distribution suggests a strategy that balances the stability of developed markets with the growth potential of emerging markets. However, the limited exposure to regions like Latin America and Africa/Middle East may indicate missed opportunities in diversifying further and tapping into high-growth areas.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    23%
  • Mid-cap
    11%
  • No data
    10%

The exposure to mega and big cap stocks dominates the portfolio, which is typical for investors seeking stability and lower volatility. These companies are usually well-established and can provide consistent returns. However, the relatively smaller allocation to medium and unknown market caps suggests a cautious approach, potentially limiting exposure to high-growth opportunities in smaller companies.

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 well-positioned against its risk level, demonstrating effective optimization. The Efficient Frontier analysis suggests that with the same level of risk, a slightly higher expected return could be achieved. This indicates room for minor adjustments to improve returns without increasing risk, a testament to the portfolio's solid foundation and its alignment with a cautious investment strategy.

Ongoing product costs Info

  • iShares III Public Limited Company - iShares Global Aggregate Bond UCITS ETF 0.10%
  • LYXOR Index Fund - Lyxor Smart Overnight Return 0.10%
  • iShares V Public Limited Company - iShares S&P 500 GBP Hedged UCITS ETF 0.20%
  • iShares Core FTSE 100 UCITS ETF GBP (Dist) 0.20%
  • iShares Physical Gold ETC 0.25%
  • Vanguard FTSE Emerging Markets UCITS 0.22%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.20%

The overall Total Expense Ratio (TER) of 0.20% is impressively low, especially given the broad diversification and international exposure of the portfolio. Lower costs directly translate to higher net returns for investors over time, making cost efficiency a crucial factor in portfolio management. This portfolio exemplifies effective cost management without compromising on diversification or global exposure.

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