How our portfolios are build

Portfolio structure and building blocks

Have a look and see how our portfolios are build. They have been constructed with focus on

Level of risk. We optimize return for a given level of risk and we offer five different levels of risk to choose from, matching your individual risk-comfort zone.
Global diversification across a range of asset classes as well as style diversification, to extract long-term risk asset-class risk-premia, such as dividends, small-and-mid caps, high-yield etc.
Transparency and efficiency. Hence we use most liquid an cost-efficient ETF's on well known and liquid market indices.

First of all, we define a level of risk and then run a state-of-the-art portfolio optimization, that maximizes portfolio return for the given level of risk. We further maximize diversification, such that you do not get too much risk contribution from just one single asset class, i.e. you don't put too much eggs into one basket. This method balances risk and return in a very efficient manner. Asset allocation and diversification are the most important long-term performance drivers.

As portfolio building blocks we only use cost-efficient ETF's. Fees are a critical factor for long-term investors. Imagine that at only 2% return, compounded over 35 years, lead to doubling your initial wealth invested. Turning that fact around, means 2% of fees can cost you quite a bit in the long-run. Remember what Albert Einstein said "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it".

Have a look at our benchmark portfolio allocation for "A3" here.

Portfolio - Asset Allocation

here: for our invest4goals (A3) portfolio

Portfolio - Risk-Return statistics

A simple, but important aspect is re-balancing. As time passes and certain asset classes outperform others, your initial asset class weights change. We automatically re-balance our benchmark portfolios to the initial portfolio weights on a regular basis.

See and learn how our investors are making use of those portfolios and invest into them over time in our "People like me" section.

Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss. We do not provide financial planning services to individual investors. There is no guarantee that the intended goal will be reached. Changes to inputs and other assumptions may affect your potential to reach the intended goal. For Illustrative purposes only. Not representative of any specific investment or account. Diversification and re-balancing strategies do not ensure a profit and do not protect against losses in declining markets. Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.