A globally diversified equity portfolio with a growth tilt and moderate but focused factor 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 structure best fits an investor with a moderately high risk tolerance, a clear focus on long‑term growth, and comfort with temporary losses. Typical goals might include building wealth over decades, funding retirement, or growing capital for future flexibility rather than generating immediate income. The investor is likely comfortable seeing portfolio values move up and down with global equity markets and accepts that periods of sizeable drawdowns are part of the journey. A time horizon of at least 10–15 years suits this approach well, giving markets time to recover after downturns. Patience, discipline, and willingness to stay invested through volatility are key personal traits for this style.
Positions
-
Vanguard FTSE All-World UCITS ETF USD Accumulation
VWCE - IE00BK5BQT80 70.00% -
Avantis Global Small Cap Value UCITS ETF USD Acc EUR
AVWS - IE0003R87OG3 20.00% -
Avantis Emerging Markets Equity UCITS ETF
AVEM 10.00%
The portfolio is very straightforward: three global equity ETFs with roughly 70% in a broad world fund, 20% in global small cap value, and 10% in emerging markets. That leads to 100% in stocks and no bonds or cash-like components, which is more aggressive than a typical “balanced” benchmark that usually mixes in a sizable bond share. This simplicity is a strength because it is easy to understand and maintain. At the same time, it means risk is driven almost entirely by global stock markets. If a smoother ride is desired, adding some stabilizing assets could be considered to bring the risk profile closer to classic balanced allocations.
Historical data is limited for this portfolio, which reduces the confidence in the calculated values.
Growth
Based on the data, the portfolio shows a historical compound annual growth rate (CAGR) of about 7.04%. CAGR is the “average speed” of growth per year, similar to how you would describe a long road trip’s average speed, even if you drove faster or slower at different times. A maximum drawdown of around –21.16% suggests that the deepest historical loss was painful but not extreme for an all‑equity setup. A key insight is that 90% of returns came from just 2 days, highlighting how missing a few strong days can drastically hurt results. This underlines the value of staying invested instead of trying to time markets.
Due to limited historical data, this may show extreme values that are not realistic.
Projection
The Monte Carlo analysis, using 1,000 simulations, projects a wide range of possible future outcomes based on historical patterns. Monte Carlo means the computer “rolls the dice” many times using past volatility and returns to estimate chances of different end values. Here, the 5th percentile result of 4.2% reflects a very weak but still slightly positive outcome, while the median (50th percentile) of 212.1% and 67th percentile of 312.4% point to strong growth potential. About 955 of 1,000 simulations ended positive, with an average annualized return of 9.88%. It is important to remember simulated results are not guarantees and rely heavily on past market behavior.
Asset classes
- Stocks 100%
- Cash 0%
- Other 0%
- No data 0%
All investable assets here are in the single asset class “stocks,” with 0% in bonds, cash, or alternative assets. This creates a clear growth orientation and explains why the portfolio is classified as broadly diversified but not conservative. Compared to common balanced benchmarks, which often hold 40–60% in bonds, this structure will typically offer higher long‑term growth potential but also larger swings in value. This equity‑only approach aligns well with a long time horizon and tolerance for volatility. If more stability or predictable income is desired at some point, gradually blending in more defensive asset classes could help reduce the impact of market downturns.
Sectors
- Technology 24%
- Financials 19%
- Consumer Discretionary 12%
- Industrials 12%
- Telecommunications 7%
- Health Care 7%
- Energy 6%
- Basic Materials 5%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
The sector mix is nicely spread across 10 sectors: Technology leads at 24%, followed by Financial Services at 19%, Consumer Cyclicals and Industrials both at 12%, and meaningful exposure to Communication Services, Healthcare, Energy, and others. This allocation is well-balanced and aligns closely with global standards, which is a strong indicator of diversification. Tech and growth‑oriented sectors can boost returns but also tend to react more sharply to interest rate changes and economic news. Because no single sector (other than tech) dominates, sector‑specific shocks are cushioned. Keeping an eye on whether any one sector starts drifting significantly above global weights can help manage concentration risk over time.
Regions
- North America 60%
- Europe Developed 12%
- Asia Emerging 9%
- Asia Developed 7%
- Japan 6%
- Africa/Middle East 2%
- Australasia 2%
- Latin America 2%
- Europe Emerging 1%
Geographically, the portfolio is anchored in North America at 60%, with additional exposure to developed Europe, developed Asia, Japan, emerging Asia, and smaller allocations to Africa, Latin America, and Australasia. This pattern is similar to many global equity benchmarks, where the U.S. and Canada dominate due to their large market sizes. This alignment with global weights is beneficial because it spreads political and economic risk without needing complex region‑picking. At the same time, it means results are still heavily influenced by North American markets. For anyone wanting to reduce this home‑bias effect further, slightly increasing non‑North‑American allocations could be an option, while still keeping the broadly diversified global structure intact.
Market capitalization
- Mega-cap 37%
- Large-cap 27%
- Mid-cap 18%
- Small-cap 10%
- Micro-cap 8%
The mix across company sizes is pleasantly broad: around 37% mega cap, 27% big, 18% medium, 10% small, and 8% micro. That is more tilted to smaller companies than a typical global cap‑weighted benchmark, mainly due to the dedicated small cap value ETF. Smaller firms often bring higher long‑term return potential but more volatility, like a sports car compared to a bus. This tilt towards smaller and value‑oriented companies can enhance expected returns, especially over long horizons, but short‑term performance may lag when large growth stocks dominate. The structure looks thoughtfully diversified by size, so any adjustment would mainly depend on comfort with additional small‑cap swings.
Ongoing product costs
- Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
- Weighted costs total (per year) 0.13%
The disclosed ongoing costs are impressively low: the largest position, a global ETF with a 0.19% fee and a portfolio‑wide total expense ratio (TER) of about 0.13%, is well below many active funds. TER is the yearly cost charged by the fund, like a management fee taken in tiny daily slices. Over decades, every 0.1% saved can add up significantly due to compounding. This cost profile is strongly aligned with best practices and supports better long‑term performance. It also gives more room to accept market volatility, because less return is lost to fees. Regularly checking that new holdings stay in a similar low‑cost range helps maintain this advantage.
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.
Based on the Efficient Frontier analysis, there appears to be room to improve the risk‑return balance using only the current building blocks. The Efficient Frontier is a curve showing the best possible risk‑return ratios for a given set of assets, a bit like finding the fastest route at each fuel level. Here, a more efficient mix with the same risk level could reach an expected return of around 16.11%, higher than the current setup. Interestingly, the “optimal” point also has a 16.11% expected return at a risk level of 16.26%, so only minor risk changes may be needed. Efficiency here means maximizing return per unit of risk, not necessarily maximizing diversification or minimizing drawdowns.
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