A broadly diversified equity heavy portfolio with strong European tilt and impressively low ongoing costs
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 setup fits an investor who is growth‑oriented but not extreme, comfortable with seeing temporary drawdowns around 30% in pursuit of solid long‑term gains. They are likely thinking in terms of at least a 7–15 year horizon, such as building wealth for financial independence, retirement, or major future goals. Risk tolerance is moderate to moderately high: market swings are acceptable as long as the big picture remains on track. Regular income is not the primary focus; compounding through reinvested returns matters more. This type of investor values broad diversification, low costs, and a mostly rules‑based approach, but may enjoy a small active tilt through a high‑conviction single stock or regional bias.
Positions
-
iShares OMX Stockholm Capped UCITS
OM3X - IE00BD3RYZ16 24.00% -
iShares Core MSCI EM IMI UCITS ETF
IBC3 - IE00BD45KH83 12.00% -
iShares Public Limited Company - iShares Core FTSE 100 UCITS ETF
IUSZ - IE0005042456 12.00% -
Vanguard EUR Eurozone Government Bond UCITS ETF EUR Accumulation
VGEA - IE00BH04GL39 12.00% -
Berkshire Hathaway Inc
BRYN - US0846707026 11.00% -
Xtrackers EURO STOXX 50 UCITS ETF 1C
XESC - LU0380865021 11.00% -
iShares Core MSCI World UCITS ETF USD (Acc) EUR
EUNL - IE00B4L5Y983 10.00% -
Amundi Index Solutions - Amundi MSCI Nordic UCITS ETF-C
CN1G - LU1681044647 8.00%
The structure is clearly equity focused, with about 87% in stocks and 12% in bonds, sitting firmly in a balanced-but-growth-tilted camp. There’s a strong use of broad, low-cost index ETFs plus one large single stock position, which helps keep things simple and rules-based while adding a small active tilt. Compared with typical balanced benchmarks, equity exposure is slightly higher and bonds slightly lower, which can mean better long-term growth but bumpier ride in downturns. This allocation is well-balanced and aligns closely with global standards overall. To fine‑tune, it could help to revisit whether the equity/bond split still fits the intended time horizon and comfort with temporary losses.
Growth
Using the historic data, a 10.33% CAGR (Compound Annual Growth Rate) suggests that 10,000 could have grown to roughly 26,800 over ten years, assuming that growth repeated consistently. CAGR is like the “average yearly speed” of a road trip, smoothing out bumps along the way. The max drawdown of about –30% shows that at some point, the portfolio could have temporarily dropped to 7,000 from 10,000 before recovering. This downside is quite normal for a growth‑leaning balanced profile and broadly in line with equity-heavy benchmarks. It’s important to remember that past performance only shows how this mix handled previous markets, not what it will earn in the future.
Projection
The Monte Carlo analysis, with 1,000 simulations, tries to model many possible future paths using historical patterns of returns and volatility. Think of it as running the same race 1,000 times under slightly different weather conditions. A median (50th percentile) outcome of roughly 255% growth suggests more than tripling over the chosen period, while the 5th percentile at 25.5% shows a tougher, but still mostly positive, scenario. An annualized simulated return around 10.95% lines up well with historic results, which is reassuring. Still, simulations rely on the past to shape assumptions, so they can’t predict regime shifts, crashes, or policy changes that differ from history.
Asset classes
- Stocks 87%
- Bonds 12%
- Cash 0%
- Other 0%
- No data 0%
The allocation across asset classes is straightforward: mostly stocks, a modest slice of high‑quality government bonds, and virtually no cash or alternatives. This structure keeps the portfolio easy to understand and cheap to run, and matches what many balanced, growth‑oriented strategies look like. Stocks drive long‑term growth, while bonds act as a stabilizer when markets get rough. Relative to some classic 60/40 benchmarks, equity is higher and bonds lower, which nudges expected returns and volatility up a bit. For someone with many years ahead, that’s often a sensible trade‑off, but for a shorter horizon it might be worth considering a slight increase in the bond share to smooth the ride.
Sectors
- Financials 29%
- Industrials 19%
- Technology 10%
- Health Care 7%
- Consumer Discretionary 6%
- Consumer Staples 4%
- Basic Materials 4%
- Telecommunications 4%
- Energy 3%
- Utilities 2%
- Real Estate 2%
Sector exposure is nicely spread across the economy, with significant weights in financial services and industrials, and meaningful stakes in technology, healthcare, and consumer areas. This sector composition matches benchmark data quite closely, which is a strong indicator of diversification and helps reduce the risk of any one industry dominating outcomes. A mild tilt toward financials and industrials can make performance more sensitive to interest rates, economic growth, and business cycles, while technology and healthcare add growth potential. Compared with a very tech‑heavy mix, this profile is usually a bit less volatile when high‑growth names swing sharply. Periodically checking that no single sector drifts to an outsized weight can help keep risk in a comfortable range.
Regions
- Europe Developed 56%
- North America 19%
- Asia Emerging 5%
- Asia Developed 5%
- Africa/Middle East 1%
- Latin America 1%
- Japan 1%
- Europe Emerging 0%
- Australasia 0%
Geographically, there’s a clear home‑continent bias: over half in developed Europe, with the rest mainly in North America and emerging Asia. This European tilt is common for investors based in the region and can feel more intuitive, particularly when consuming local financial news or thinking in euros. Compared with global market benchmarks, which often lean more toward North America, this positioning may underperform when other regions strongly outperform Europe, but it also reduces currency mismatches and aligns well with a euro‑based lifestyle. The emerging market slice is present but not dominant, which balances extra growth potential with risk. A periodic check on whether the regional split still matches long‑term views can be helpful.
Market capitalization
- Mega-cap 44%
- Large-cap 28%
- Mid-cap 12%
- Small-cap 2%
- Micro-cap 0%
By market capitalization, the portfolio is anchored in mega and large companies, with smaller allocations to mid and small caps. This is very similar to broad global benchmarks and offers a good mix of stability and growth. Large and mega caps tend to be more established, with stronger balance sheets and more diversified business lines, which can cushion shocks during downturns. Smaller companies are more volatile but can contribute extra long-term return through innovation and growth. This allocation is well‑balanced and aligns closely with global standards. If there’s a desire for a bit more long‑run growth and risk tolerance is high, a slightly larger mid/small‑cap exposure could be considered, but it’s not necessary for a solid core.
Dividends
- iShares Core MSCI EM IMI UCITS ETF 2.10%
- Weighted yield (per year) 0.25%
The overall portfolio yield is modest at around 0.25%, even though some components, like the emerging markets ETF, offer higher distributions above 2%. This lower total yield largely comes from accumulation (reinvesting) share classes and the growth‑oriented nature of the holdings. Dividends can be attractive for income-focused investors, but reinvested income often supports stronger compounding over time for growth‑focused strategies. This setup suits someone who doesn’t need regular cash payouts and prefers to let income automatically buy more units. If regular income becomes a priority in future, gradually tilting part of the mix toward higher‑yielding or distributing funds could help, while keeping the overall risk profile in mind.
Ongoing product costs
- Amundi Index Solutions - Amundi MSCI Nordic UCITS ETF-C 0.25%
- iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
- iShares Core MSCI EM IMI UCITS ETF 0.18%
- iShares Public Limited Company - iShares Core FTSE 100 UCITS ETF 0.20%
- iShares OMX Stockholm Capped UCITS 0.10%
- Vanguard EUR Eurozone Government Bond UCITS ETF EUR Accumulation 0.07%
- Xtrackers EURO STOXX 50 UCITS ETF 1C 0.09%
- Weighted costs total (per year) 0.13%
Costs are a real strength here. With a total TER (Total Expense Ratio) of about 0.13%, the ongoing fees are impressively low, especially given the number of building blocks. TER is simply the yearly fee charged by the funds as a percentage of assets, quietly taken in the background. Lower costs mean more of the gross return stays in the portfolio, and over decades this difference can compound into a substantial extra amount. This cost level is competitive with many institutional and robo‑advisor solutions and firmly supports better long‑term performance. The main ongoing task is simply to monitor that current ETFs remain among the more efficient options available.
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.
From a risk versus return perspective, the mix looks reasonably close to an Efficient Frontier allocation for this specific set of assets. The Efficient Frontier is the curve that shows the best possible risk‑return trade‑offs using only these holdings and different weightings, not adding anything new. Within that constraint, minor shifts between equity regions or a slightly higher bond allocation could reduce volatility for only a small drop in expected return. Conversely, nudging the bond share lower might lift expected return but at the cost of larger drawdowns. Efficiency here is purely about getting the most return per unit of risk, not necessarily about maximizing diversification breadth or tailoring for income or other personal goals.
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