Balanced portfolio with a strong focus on developed markets and emerging market exposure

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

This portfolio suits an investor seeking balanced growth with a moderate risk tolerance and a long-term investment horizon. It's designed for individuals who are comfortable with stock market volatility and are looking for a mix of stability from developed markets and growth potential from emerging markets. The investor likely values broad diversification across sectors and geographies to mitigate risks and capitalize on global economic trends.

Positions

  • Vanguard FTSE Developed World UCITS ETF USD Accumulation
    VGVF - IE00BK5BQV03
    70.00%
  • iShares MSCI EM UCITS ETF USD (Acc)
    EUNM - IE00B4L5YC18
    30.00%

The portfolio predominantly consists of two ETFs, with a 70% allocation to Vanguard FTSE Developed World UCITS ETF USD Accumulation and a 30% allocation to iShares MSCI EM UCITS ETF USD (Acc). This structure indicates a strategic focus on developed markets while maintaining significant exposure to emerging markets. The allocation across these ETFs suggests an intention to balance the stability and growth potential of developed markets with the higher growth prospects of emerging economies.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.23%, with a maximum drawdown of -32.82%. The days that make up 90% of returns number 16, highlighting that a few significant days have driven the majority of the portfolio's performance. This performance should be viewed in the context of the portfolio's risk score of 4 out of 7, indicating a balanced approach to risk-taking.

Projection Info

The Monte Carlo simulation, with 1,000 iterations, projects a wide range of outcomes, with the 50th percentile suggesting a potential 203.6% increase in value. The simulation's annualized return of 9.47% aligns closely with historical performance, providing a realistic expectation for future growth. However, it's important to note that such simulations are based on past data, and future market conditions could lead to different outcomes.

Asset classes Info

  • Stocks
    100%
  • Other
    0%
  • Cash
    0%
  • No data
    0%

The portfolio's asset class is exclusively stocks, indicating a focus on equity investments. This single-asset class approach simplifies the portfolio but also exposes it to the volatility inherent in stock markets. Diversifying across different asset classes could provide a buffer against this volatility.

Sectors Info

  • Technology
    27%
  • Financials
    19%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation is concentrated in Technology (27%), Financial Services (19%), and Consumer Cyclicals (11%), among others. This concentration in sectors that can exhibit high volatility suggests the portfolio may experience significant fluctuations. However, these sectors also offer high growth potential, especially in technology-driven markets.

Regions Info

  • North America
    51%
  • Asia Emerging
    15%
  • Europe Developed
    11%
  • Asia Developed
    11%
  • Japan
    4%
  • Africa/Middle East
    3%
  • Latin America
    2%
  • Australasia
    1%
  • Europe Emerging
    1%

Geographic distribution is heavily weighted towards North America (51%) and includes meaningful exposure to Asia Emerging (15%) and Europe Developed (11%). This geographical spread helps mitigate risks associated with specific regions while capitalizing on growth in both established and developing markets.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    34%
  • Mid-cap
    14%
  • Small-cap
    0%
  • Micro-cap
    0%

The portfolio's market capitalization exposure is skewed towards Mega (50%) and Big (34%) companies, with a smaller allocation to Medium (14%) companies. This indicates a preference for established, large-cap companies, likely due to their perceived stability and lower volatility compared to smaller companies.

Ongoing product costs Info

  • iShares MSCI EM UCITS ETF USD (Acc) 0.18%
  • Vanguard FTSE Developed World UCITS ETF USD Accumulation 0.12%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) of 0.14% is impressively low, which is beneficial for long-term growth as lower costs translate to higher net returns. Keeping costs low is a crucial aspect of investment strategy, especially in a portfolio focused on broad market exposure through ETFs.

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.

The current portfolio has an expected return of 9.47%, with a risk level of 4 out of 7. Portfolio optimization analysis suggests that an efficient portfolio with the same risk level could achieve an expected return of 11.89%. This indicates potential for improving the portfolio's risk-return profile without increasing the risk level, primarily through adjustments in asset allocation.

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.