A globally diversified equity portfolio with strong growth tilt and minor speculative alternative 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

Cautious Investors

This setup fits an investor who is comfortable with equity‑level risk despite being labelled “cautious,” and who is mainly focused on long‑term growth rather than income. Typical goals might include building wealth over 10+ years, funding retirement in the distant future, or growing a lump sum that does not need to be touched soon. They can tolerate market ups and downs as long as the long‑run direction is positive, and they value global diversification and low costs. A small speculative slice in alternatives, like bitcoin, can appeal to someone who enjoys a limited high‑risk kicker but wants the core of their money in broad, rules‑based global funds.

Positions

  • Vanguard FTSE All-World UCITS
    VWRL - IE00B3RBWM25
    36.00%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    VWRP - IE00BK5BQT80
    35.00%
  • L&G Global Equity UCITS ETF GBP
    LGGG - IE00BFXR5S54
    26.00%
  • Bitwise Physical Bitcoin ETC
    BTCE
    3.00%

This portfolio is built almost entirely from three broad global equity ETFs plus a small satellite position in bitcoin. The two Vanguard all‑world funds and the L&G global equity fund have very similar mandates, so the overall mix looks like one big global stock fund with some duplication, rather than three truly different building blocks. For a cautious risk profile, a 97% allocation to shares is very bold, as cautious investors usually hold a meaningful slice in steadier assets. It could help to clarify whether the aim is long‑term growth or capital stability, and if desired, gradually introduce more defensive assets while trimming overlapping funds that don’t add extra diversification.

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

Growth Info

Historically, this portfolio shows an exceptionally high annual growth rate (CAGR) above 30% with a very shallow max drawdown of around 4%. CAGR, or Compound Annual Growth Rate, is like the average yearly speed of your money over time. These numbers are unusually strong for such a short, specific market backdrop and are far better than what broad global equity benchmarks have delivered over long periods. It’s reassuring that returns have been strong, but these results likely reflect a favourable window, not a guaranteed pattern. It’s sensible to treat this performance as a bonus and plan future expectations using more modest long‑term global equity returns rather than extrapolating recent gains.

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

Projection Info

The Monte Carlo analysis shows very optimistic outcomes, with all 1,000 simulations ending positive and median growth in the thousands of percent. Monte Carlo is a technique that runs many “what if” paths using historical patterns to estimate a range of future results, rather than a single forecast. While the numbers look fantastic, they rely on past volatility and returns that may not repeat, especially when recent history has been unusually strong. It’s useful to view these projections as a rough map of possibilities, not a promise. For planning, it can be more prudent to stress‑test scenarios with lower returns or deeper temporary declines, particularly for cautious profiles or shorter time horizons.

Asset classes Info

  • Stocks
    97%
  • Unknown
    3%
  • Other
    0%
  • Cash
    0%
  • No data
    0%

Almost all of the portfolio (about 97%) is in stocks, with roughly 3% in bitcoin classified as unknown. This allocation is highly growth‑oriented and aligns more with an adventurous or aggressive style than a cautious one, even though the underlying stock ETFs are very diversified. Pure equity portfolios tend to do well over long periods but can experience sharp short‑term swings. For someone wanting smoother ride and capital preservation, mixing in more defensive assets, like high‑quality bonds or cash‑like holdings, often helps. On the positive side, the equity exposure is globally spread and this allocation is well‑balanced against common global equity standards, but it might be worth checking that the risk level truly matches personal comfort and time horizon.

Sectors Info

  • Technology
    28%
  • Financials
    16%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Unknown
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is broad and well diversified, with technology the largest slice, followed by financials, consumer, industrials, communication services, and healthcare. This sector mix looks very similar to popular global equity benchmarks, which is a strong indicator of healthy diversification. A tech tilt is normal in modern global indexes and has helped performance recently, but it can also mean more sensitivity when interest rates change or when growth stocks fall out of favour. Overall, this allocation is well‑balanced and aligns closely with global standards. If the tech weighting ever feels too high compared to comfort levels, it could be eased slightly by adjusting toward more balanced global exposures rather than adding narrow sector bets.

Regions Info

  • North America
    66%
  • Europe Developed
    14%
  • Japan
    6%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Unknown
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographic exposure is dominated by North America at about two‑thirds, with additional allocations to developed Europe, Japan, and smaller slices of emerging and other regions. This pattern mirrors common global market‑cap benchmarks, where the US naturally takes a big share due to company sizes. That alignment is positive, as it avoids big home‑country or regional bets that can add unnecessary risk. However, the heavy US tilt also means the portfolio is quite tied to how US markets perform. For anyone wanting a stronger balance, slightly increasing non‑US and emerging exposures within broad global funds could smooth regional risk, but sticking close to world‑market weights is generally considered a sound, low‑maintenance approach.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    34%
  • Mid-cap
    16%
  • Unknown
    3%
  • Small-cap
    0%
  • Micro-cap
    0%

By market capitalization, the portfolio leans heavily into mega and large companies, with a smaller slice in mid‑sized firms and effectively no small caps. Market cap simply means the total value of a company’s shares, and bigger companies tend to be more stable but may grow slower than smaller, more volatile firms. This structure again mirrors standard global indices, which are dominated by the largest brands. That alignment is reassuring and supports smoother behaviour during market stress compared with a small‑cap‑heavy mix. If extra growth and diversification are ever desired, a modest tilt toward smaller companies could be explored, but the current approach is very reasonable for someone preferring simplicity and lower relative volatility within equities.

Redundant positions Info

  • L&G Global Equity UCITS ETF GBP
    Vanguard FTSE All-World UCITS ETF USD Accumulation
    Vanguard FTSE All-World UCITS
    High correlation

The three main ETFs in this portfolio are highly correlated, meaning they tend to move in almost the same direction at the same time. Correlation is a score from -1 to 1 describing how similarly assets move; high positive values limit diversification benefits during downturns. Here, the global equity funds overlap strongly, so holding all three doesn’t significantly reduce risk compared to just one or two broad options. The small bitcoin position is the only asset with clearly different behaviour, but at 3% it doesn’t radically change overall risk. Simplifying by trimming duplicate global funds could keep the diversification, make monitoring easier, and reduce the chance of thinking the portfolio is more varied than it really is.

Dividends Info

  • Vanguard FTSE All-World UCITS 0.30%
  • Weighted yield (per year) 0.11%

The total yield of the portfolio is very low, around 0.11%, mainly because one of the key holdings is an accumulation ETF that reinvests income instead of paying it out. Dividend yield is the cash paid out each year as a percentage of the investment value. A low yield isn’t a problem for growth‑focused investors who prefer compounding over time, and this setup fits that idea well. For anyone needing regular income, though, this structure may not be ideal, as it prioritizes reinvested gains rather than cash flow. If income becomes a goal later on, gradually adding or swapping into more income‑oriented holdings could support withdrawals without relying solely on selling units.

Ongoing product costs Info

  • L&G Global Equity UCITS ETF GBP 0.10%
  • Vanguard FTSE All-World UCITS 0.19%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
  • Weighted costs total (per year) 0.16%

The overall cost level is impressively low, with a total ongoing charge (TER) around 0.16%. TER is the annual fee taken by the fund provider, similar to a small service charge on the total invested. Keeping costs this low is a big positive and strongly supports better long‑term performance, because even small fee differences compound significantly over decades. This cost profile compares very favourably with many actively managed options and aligns with best practices for long‑term investors. The main remaining cost consideration is avoiding unnecessary duplication of similar funds; simplifying the lineup while staying in low‑fee vehicles could potentially shave complexity without meaningfully increasing total costs.

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 only the current building blocks, a more “efficient” mix could slightly raise expected return at the same risk level. The Efficient Frontier is a concept that maps the best possible risk‑return trade‑offs for given assets, showing where no extra return can be gained without extra risk. Here, the data implies some small shifts among the existing ETFs might improve the risk‑return ratio, although simulated numbers rely heavily on the strong recent past and might be overly optimistic. Efficiency in this context is about return per unit of risk, not about matching every goal. Clarifying priorities like income, simplicity, or capital preservation can help decide whether fine‑tuning along the frontier is actually useful.

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