A high return global equity portfolio with leverage and gold that conflicts with a cautious risk profile

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

Cautious Investors

This setup best fits someone who says they’re cautious but is actually comfortable with substantial equity exposure and even some leverage to chase higher growth. Typical goals might include building wealth over a long horizon, such as 15 years or more, accepting meaningful ups and downs along the way. There’s an appreciation for global diversification, low costs, and a blend of growth and dividend styles, plus a small hedge in gold for peace of mind. True capital preservation isn’t the main priority; instead, the investor is willing to take on significant market risk, as long as the portfolio feels structured, diversified, and mostly hands‑off once set up.

Positions

  • iShares S&P 500 Swap UCITS ETF USD (Acc)
    I500 - IE00BMTX1Y45
    15.00%
  • Amundi Nasdaq-100 II UCITS ETF Acc EUR
    LYMS - LU1829221024
    15.00%
  • Amundi Stoxx Europe Select Dividend 30 UCITS ETF D EUR
    SELD - LU1812092168
    15.00%
  • Vanguard FTSE All-World High Dividend Yield UCITS ETF USD Accumulation
    VGWE - IE00BK5BR626
    15.00%
  • Amundi Prime All Country World UCITS ETF Acc EUR
    WEBN - IE0003XJA0J9
    15.00%
  • Amundi Msci World (2X) Leveraged Ucits Etf
    LVWC
    15.00%
  • WisdomTree Core Physical Gold USD ETC EUR
    WGLD - DE000A3GNQ18
    10.00%

This portfolio is built almost entirely from equity ETFs, plus a meaningful gold position, with allocations spread fairly evenly across the different funds. On paper it looks balanced, yet the presence of a 2x leveraged equity ETF puts it at the aggressive end of the spectrum, despite being labelled “cautious.” Structure matters because it drives how the portfolio behaves in crashes and recoveries. Here, the core is broad global and regional equity trackers, then topped up with high‑dividend funds and leverage. For someone truly cautious, dialing back leverage and reducing overlapping equity exposure could bring the overall behaviour more in line with the stated risk score and diversification label.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

The reported historic CAGR of about 20.75% with a very small max drawdown of -3.8% is unusually strong for a mostly equity portfolio, especially one including leverage. CAGR (compound annual growth rate) is like the average speed on a long trip, smoothing out bumps; max drawdown shows the worst peak‑to‑trough fall. Such smooth, high returns are likely based on a short or favourable period, and may not reflect how this mix behaves in a deep bear market. It’s helpful context, but it shouldn’t be treated as a promise. When planning ahead, it’s wise to mentally stress‑test for much larger temporary losses than the historical data here suggests.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

The Monte Carlo results show huge potential upside, with median projections above 2,000% and all 1,000 simulations ending positive. Monte Carlo simulation basically reruns market histories in many random ways to estimate a range of outcomes, giving an idea of best‑, worst‑ and middle‑case paths. The very high simulated annual return around 25.9% reflects the leveraged tilt and recent strong equity performance. Still, these simulations are built on historical patterns; if future markets are bumpier or returns lower, the actual path could be very different. It can be useful to look at the 5th percentile as a rough “bad‑case” guide, but even that might understate risk in severe or prolonged downturns.

Asset classes Info

  • Stocks
    75%
  • Other
    10%
  • No data
    0%

Asset‑class wise, around three quarters is in equities, with 10% in “other,” which here is essentially gold. That makes it an equity‑dominated portfolio with a single major diversifier. Equities are the main long‑term growth engine, but they can be volatile; gold often behaves differently in crises, which can soften some blows. Many cautious frameworks would tilt more toward cash or high‑quality bonds, which tend to be steadier and help cushion large drawdowns. Maintaining the strong equity core but gradually introducing more stabilising assets could make the experience more comfortable during rough markets, without completely giving up on the portfolio’s growth orientation.

Sectors Info

  • Technology
    18%
  • Financials
    16%
  • Consumer Discretionary
    8%
  • Industrials
    7%
  • Telecommunications
    7%
  • Health Care
    5%
  • Energy
    4%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    1%

Sector exposure is broad and actually quite healthy: technology leads, followed by financials, then a spread across consumer, industrial, communication, healthcare, and defensive areas. This looks similar to many global equity benchmarks, which is a good sign for diversification across different parts of the economy. One thing to know: tech‑heavy and growth‑tilted allocations can swing more when interest rates move or sentiment shifts, especially when combined with leverage. The blend of dividend‑focused funds and growth exposure does provide some balance. To keep risk aligned with a cautious label, it could help to ensure that no single sector indirectly dominates through multiple overlapping ETFs that all lean toward the same industry patterns.

Regions Info

  • North America
    46%
  • Europe Developed
    21%
  • Japan
    2%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Australasia
    1%
  • Europe Emerging
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is sensibly tilted toward North America at around mid‑40s percent, with solid developed Europe exposure and small allocations across Japan, Asia, emerging regions, and others. This is quite close to how global equity markets themselves are weighted, which is a strong indicator that the allocation is well‑balanced and aligns closely with global standards. Global spread reduces the impact of any single country’s economic shock. That said, global equities as a whole can fall together during worldwide downturns. Keeping this broad geographic reach while adjusting overall equity intensity and leverage is a straightforward way to keep the global benefits but better match a cautious risk profile.

Market capitalization Info

  • Large-cap
    30%
  • Mega-cap
    30%
  • Mid-cap
    14%
  • Small-cap
    1%
  • Micro-cap
    0%

Market‑cap exposure is dominated by mega and large companies, with very little in small caps. Large and mega caps are usually more established businesses, often with stronger balance sheets and more predictable earnings, which can be a bit steadier than smaller, more speculative firms. This tilt is in line with common world benchmarks and is a positive aspect of the portfolio’s construction. However, because the equity portion is amplified by leverage, the underlying “blue‑chip” feel can still translate into big swings. If the goal is to soften volatility, keeping this large‑cap bias but avoiding leverage and limiting concentration in a few similar large‑cap indices can be a more comfortable setup.

Redundant positions Info

  • iShares S&P 500 Swap UCITS ETF USD (Acc)
    Amundi Nasdaq-100 II UCITS ETF Acc EUR
    High correlation

The S&P 500 and Nasdaq‑100 ETFs are highlighted as highly correlated, meaning they tend to move in the same direction at the same time. Correlation is basically how similarly two assets behave; when correlation is high, holding both doesn’t add much protection in a downturn. Overlapping regional and global equity exposures also increase this effect, especially when many funds hold the same big companies. This is still a reasonably diversified equity mix, but there is room to streamline. Reducing strongly overlapping positions and focusing on a leaner set of complementary equity funds and diversifiers can maintain growth potential while making each holding work harder for true diversification.

Ongoing product costs Info

  • iShares S&P 500 Swap UCITS ETF USD (Acc) 0.07%
  • Amundi Nasdaq-100 II UCITS ETF Acc EUR 0.30%
  • Amundi Stoxx Europe Select Dividend 30 UCITS ETF D EUR 0.30%
  • Vanguard FTSE All-World High Dividend Yield UCITS ETF USD Accumulation 0.29%
  • Weighted costs total (per year) 0.14%

The overall cost level, with a total TER around 0.14%, is impressively low and strongly supports better long‑term performance. TER (total expense ratio) is like an annual “membership fee” on fund assets; even small differences compound significantly over many years. Here, the largest allocations are in cost‑efficient index trackers, which is very much in line with best practices. Keeping costs low is one of the few things investors can fully control. The key now isn’t fee reduction, but making sure that each paid‑for exposure adds something distinct—avoiding multiple similar funds that effectively charge twice for almost the same underlying holdings and behaviour.

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.

Efficient Frontier analysis suggests that, using the same building blocks, it’s possible to reach a much higher expected return for the same risk, or a similar return with less risk, just by changing the mix. The Efficient Frontier is simply the set of portfolios that give the best trade‑off between risk and return based on historical data and assumed correlations. “Efficiency” here only refers to that risk‑return balance, not other goals like simplicity or income. The comment about first trimming overlapping, highly correlated positions is important: cleaning up duplication often moves a portfolio closer to this efficient set, without needing to introduce new products or radically change the overall strategy.

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