A strategically diversified portfolio with a cautious profile and global 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 portfolio suits an investor seeking balanced growth with moderate risk tolerance and a long-term horizon. It prioritizes steady returns while maintaining exposure to global equities, making it ideal for individuals looking to build wealth over time, with a cautious approach to risk management.

Positions

  • iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc) EUR
    IQQ0 - IE00B8FHGS14
    35.00%
  • Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating
    V80A - IE00BMVB5R75
    35.00%
  • Vanguard FTSE Emerging Markets UCITS
    VFEM - IE00B3VVMM84
    20.00%
  • SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc
    ZPRX - IE00BSPLC298
    10.00%

This portfolio, with a 70% allocation to equity ETFs and a 20% emphasis on emerging markets, reflects a cautious yet growth-oriented investment strategy. The inclusion of the iShares Edge MSCI World Minimum Volatility and Vanguard LifeStrategy 80% Equity ETFs as core holdings, complemented by targeted exposure to emerging markets and European small-cap value stocks, showcases a thoughtful approach to risk management while seeking growth. The diversification across asset classes, sectors, and geographies is commendable, aligning well with a risk score of 3 out of 7 and a diversification score of 5 out of 5.

Growth Info

Historical performance, indicated by a Compound Annual Growth Rate (CAGR) of 7.98% and a maximum drawdown of -14.62%, suggests resilience in varying market conditions. The days contributing to 90% of returns being limited to 17 indicates significant returns were achieved on relatively few days, highlighting the importance of staying invested over trying to time the market.

Projection Info

Monte Carlo simulations, with 1,000 runs, offer a forward-looking perspective on potential portfolio performance. With 983 simulations resulting in positive returns and key percentiles indicating substantial growth opportunities, these projections underscore the portfolio's potential for long-term wealth accumulation. However, it's crucial to remember that these simulations are based on historical data and assumptions, not guarantees of future performance.

Asset classes Info

  • Stocks
    93%
  • Bonds
    7%
  • Other
    0%
  • Cash
    0%
  • No data
    0%

The asset allocation, with 93% in stocks and 7% in bonds, skews towards equities, reflecting a growth-focused strategy within a cautious risk framework. This mix supports potential capital appreciation while the bond allocation provides a buffer against equity market volatility.

Sectors Info

  • Technology
    20%
  • Financials
    18%
  • Industrials
    11%
  • Health Care
    10%
  • Consumer Discretionary
    10%
  • Telecommunications
    10%
  • Consumer Staples
    8%
  • Utilities
    5%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    2%

Sectoral distribution is well-balanced, with significant allocations to technology, financial services, and industrials. This spread across cyclical and defensive sectors enhances the portfolio's ability to navigate economic cycles, though the heavy weighting in technology and financial services may introduce sector-specific risks.

Regions Info

  • North America
    47%
  • Europe Developed
    21%
  • Asia Emerging
    14%
  • Asia Developed
    6%
  • Japan
    6%
  • Africa/Middle East
    3%
  • Latin America
    2%
  • Australasia
    1%
  • Europe Emerging
    0%

Geographic allocation emphasizes North America and developed Europe, with meaningful exposure to emerging Asia. This global footprint diversifies risk and taps into growth opportunities in both developed and emerging markets, though the modest allocation to emerging and frontier markets could be increased to enhance growth prospects.

Market capitalization Info

  • Large-cap
    33%
  • Mega-cap
    31%
  • Mid-cap
    24%
  • Small-cap
    4%
  • Micro-cap
    0%

The market capitalization mix, with a bias towards big and mega-cap stocks, provides stability and reduces volatility. However, the inclusion of medium, small, and notably, no micro-cap exposure, suggests a cautious approach to risk. Increasing exposure to smaller caps could offer higher growth potential at the expense of increased volatility.

Ongoing product costs Info

  • iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc) EUR 0.30%
  • Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating 0.25%
  • Vanguard FTSE Emerging Markets UCITS 0.22%
  • SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF EUR Acc 0.30%
  • Weighted costs total (per year) 0.27%

With a total Expense Ratio (TER) of 0.27%, the portfolio is cost-efficient, which is critical for enhancing long-term returns. Lower costs mean more of the portfolio’s gains are retained by the investor, a crucial factor in compounding wealth over time.

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 portfolio appears well-optimized within its cautious risk framework, balancing growth potential with risk management. However, exploring the Efficient Frontier could reveal opportunities to fine-tune asset allocation for an even better risk-return trade-off, without necessarily increasing overall risk.

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.