Nutmeg is one of the most popular robo-advisors in the UK. And for good reason – over the long term its ready-made portfolios have performed very well. But what does Nutmeg actually invest in? Let’s take a look under the bonnet of this robo-advisor.
Nutmeg’s ready-made portfolios
With Nutmeg, there are five different types of ready-made portfolios you can invest in. These are:
- Fixed allocation portfolios
- Fully managed portfolios
- Socially responsible investment portfolios
- Smart Alpha portfolios
- Thematic investing portfolios
All of these portfolios contain a mix of stocks and bonds. More specifically, they contain a mix of stock and bond exchange-traded funds (ETFs).
ETFs are low-cost funds that typically track market indexes (FTSE 100, S&P 500, etc.), asset classes, or market segments. They’re an easy way to gain exposure to a diversified range of investments without having to buy each one individually.
The exact mix of different ETFs you get will depend on the risk level of the portfolio that you choose. Below, we look at how some of the portfolios are invested.
Fixed allocation portfolios
Nutmeg’s fixed allocation portfolios offer passive investing with a global, multi-asset allocation. The mix of investments in the portfolios is set by the Nutmeg investment team at the beginning, rebalanced automatically, and reviewed once a year.
A lot of this portfolio is invested in large-cap US and UK stocks.
As for the types of the ETFs in these portfolios, here’s a look at the breakdown of the highest risk level portfolio (risk level 5) as of 30 September 2024.
| Xtrackers MSCI USA UCITS ETF | 31.40% |
| iShares Core FTSE 100 UCITS ETF | 16.60% |
| iShares Core S&P 500 UCITS ETF (GBP Hedged) | 16.10% |
| iShares Core MSCI Emerging Markets IMI UCITS ETF | 7.80% |
| Vanguard FTSE Developed Europe ex UK UCITS ETF | 5.80% |
| iShares MSCI USA Small Cap ESG Enhanced UCITS ETF | 4.80% |
| Vanguard FTSE 250 UCITS ETF | 3.40% |
| iShares Core MSCI EMU UCITS ETF (GBP Hedged) | 2.80% |
| Amundi MSCI Japan UCITS ETF | 2.30% |
| iShares Core MSCI Pacific ex Japan UCITS ETF | 2.20% |
| UBS MSCI Canada UCITS ETF | 1.90% |
| UBS MSCI Japan UCITS ETF (GBP Hedged) | 1.60% |
| iShares MSCI Japan Small Cap UCITS ETF | 1.00% |
| UBS MSCI Switzerland 20/35 UCITS ETF (GBP Hedged) | 0.90% |
| iShares MSCI EMU Small Cap UCITS ETF | 0.50% |
| UBS MSCI Canada UCITS ETF (GBP Hedged) | 0.50% |
| CASH | 0.30% |
And here’s a look at the lowest risk portfolio (risk level 1) as of 30 September 2024.
This portfolio is more focused on government and corporate bonds but still has some equity exposure.
| Lyxor UK Government Bond 0-5 Year UCITS ETF | 21.80% |
| Lyxor Core UK Government Bond UCITS ETF | 21.20% |
| iShares GBP Corporate Bond 0-5 Year UCITS ETF | 17.40% |
| Shares GBP Ultrashort Bond UCITS ETF | 15.80% |
| Xtrackers MSCI USA UCITS ETF | 6.40% |
| iShares Core GBP Corporate Bond UCITS ETF | 3.50% |
| iShares Core FTSE 100 UCITS ETF | 3.40% |
| iShares Core S&P 500 UCITS ETF (GBP Hedged) | 3.20% |
| iShares Core MSCI Emerging Markets IMI UCITS ETF | 1.60% |
| Vanguard FTSE Developed Europe ex UK UCITS ETF | 1.30% |
| iShares MSCI USA Small Cap ESG Enhanced UCITS ETF | 0.80% |
| Shares Core MSCI EMU UCITS ETF (GBP Hedged) | 0.70% |
| Vanguard FTSE 250 UCITS ETF | 0.60% |
| Amundi MSCI Japan UCITS ETF | 0.50% |
| iShares Core MSCI Pacific ex Japan UCITS ETF | 0.50% |
| UBS MSCI Japan UCITS ETF (GBP Hedged) | 0.50% |
| UBS MSCI Canada UCITS ETF | 0.50% |
As you can see, these ready-made portfolios hold many different ETFs.
Fully managed portfolios
The fully managed portfolios are similar to the fixed allocation portfolios in that they offer a global, multi-asset allocation. However, the key difference is that with these portfolios, Nutmeg’s investment experts monitor them actively and adjust them for you.
There is a heavy focus on US stocks in fully managed portfolios.
Here’s a breakdown of the highest risk fully managed portfolio as of 30 September 2024.
| iShares Core S&P 500 UCITS ETF | 19.50% |
| iShares Core S&P 500 UCITS ETF (GBP Hedged) | 13.50% |
| Invesco S&P 500 UCITS ETF | 9.00% |
| Shares Core FTSE 100 UCITS ETF | 8.30% |
| Invesco EQQQ Nasdaq-100 UCITS ETF | 6.40% |
| Vanguard FTSE 100 UCITS ETF | 5.30% |
| Shares MSCI EM EX-China UCITS ETF | 4.30% |
| Vanguard FTSE 250 UCITS ETF | 4.20% |
| Invesco S&P 500 UCITS ETF | 4.10% |
| JPMorgan Betabuilders US Small Cap Equity UCITS ETF | 4.00% |
| iShares Core MSCI Emerging Markets IMI UCITS ETF | 3.80% |
| Amundi MSCI Japan UCITS ETF | 2.50% |
| iShares MSCI Europe Industrials Sector UCITS ETF | 2.50% |
| iShares Core MSCI EMU UCITS ETF (GBP Hedged) | 2.40% |
| UBS MSCI Switzerland 20/35 UCITS ETF (GBP Hedged) | 1.80% |
| Xtrackers MSCI Nordic UCITS ETF | 1.60% |
| iShares Core MSCI EMU UCITS ETF | 1.40% |
| UBS MSCI Canada UCITS ETF (GBP Hedged) | 1.40% |
| iShares Core MSCI Pacific ex Japan UCITS ETF | 1.30% |
| UBS MSCI Japan UCITS ETF (GBP Hedged) | 1.30% |
| iShares MSCI Japan Small Cap UCITS ETF | 1.00% |
| CASH | 0.30% |
And here’s a look at the lowest risk fully managed portfolio as of 30 September 2024. This portfolio is more focused on short-term bonds.
| iShares GBP Ultrashort Bond UCITS ETF | 33.00% |
| Lyxor UK Government Bond 0-5 Year UCITS ETF | 26.10% |
| iShares GBP Corporate Bond 0-5 Year UCITS ETF | 17.10% |
| Lyxor Core UK Government Bond UCITS ETF | 10.80% |
| Invesco S&P 500 UCITS ETF | 2.40% |
| Invesco S&P 500 UCITS ETF | 2.00% |
| iShares Core FTSE 100 UCITS ETF | 1.70% |
| iShares Core S&P 500 UCITS ETF (GBP Hedged) | 1.00% |
| iShares MSCI EM EX-China UCITS ETF | 0.90% |
| Amundi MSCI Japan UCITS ETF | 0.70% |
| iShares MSCI USA Small Cap ESG Enhanced UCITS ETF | 0.70% |
| iShares MSCI Europe Industrials Sector UCITS ETF | 0.60% |
| Vanguard FTSE 250 UCITS ETF | 0.50% |
| iShares Fallen Angels High Yield Corporate Bond UCITS ET (GBP Hedged) | 0.50% |
| Invesco EQQQ Nasdaq-100 UCITS ETF | 0.50% |
| iShares USD High Yield Corporate Bond UCITS ETF (GBP Hedged) | 0.50% |
| iShares Core GBP Corporate Bond UCITS ETF | 0.50% |
| CASH | 0.30% |
Socially responsible investment portfolios
Nutmeg’s socially responsible investment (SRI) portfolios are invested in equity and bond ETFs that have a focus on environmental, social, and governance (ESG) factors. Like the fully managed portfolios, there’s continuous oversight from Nutmeg’s in-house investment team.
The largest holdings are US and UK equity ESG products.
Here’s a breakdown of the highest risk SRI portfolio as of 30 September 2024.
| UBS Irl ETF PLC – MSCI USA Socially Responsible UCITS ETF | 18.80% |
| UBS MSCI United Kingdom IMI Socially Responsible UCITS ETF | 16.70% |
| iShares MSCI USA SRI UCITS ETF | 14.30% |
| UBS MSCI ACWI Socially Responsible UCITS ETF (GBP Hedged) | 13.50% |
| UBS MSCI USA Socially Responsible UCITS ETF (GBP Hedged) | 10.50% |
| UBS MSCI Emerging Markets Socially Responsible UCITS ETF | 6.50% |
| UBS MSCI World Socially Responsible UCITS ETF | 6.10% |
| UBS MSCI EMU Socially Responsible UCITS ETF | 5.20% |
| UBS MSCI EMU Socially Responsible UCITS ETF (GBP Hedged) | 3.50% |
| iShares MSCI Japan SRI UCITS ETF | 3.10% |
| iShares MSCI Japan SRI UCITS ETF (GBP Hedged) | 0.80% |
| Amundi Index MSCI Pacific ex Japan SRI PAB UCITS ETF | 0.70% |
| CASH | 0.30% |
And here’s a look at the lowest risk SRI portfolio as of 30 September 2024. This is mainly focused on short-term ESG fixed income products.
| iShares USD Corporate Bond 0-3 Year ESG UCITS ETF | 32.90% |
| iShares GBP Ultrashort Bond ESG UCITS ETF | 31.80% |
| Lyxor UK Government Bond 0-5 Year UCITS ETF | 11.10% |
| UBS Bloomberg MSCI US Liquid Corporates Sustainable UCITS ETF (GBP Hedged) | 5.60% |
| Lyxor Core UK Government Bond UCITS ETF | 5.00% |
| UBS Irl ETF PLC – MSCI USA Socially Responsible UCITS ETF | 3.80% |
| UBS MSCI United Kingdom IMI Socially Responsible UCITS ETF | 2.10% |
| UBS MSCI ACWI Socially Responsible UCITS ETF (GBP Hedged) | 2.10% |
| SPDR Bloomberg 15+ Year Gilt UCITS ETF | 1.70% |
| UBS MSCI USA Socially Responsible UCITS ETF (GBP Hedged) | 1.70% |
| UBS MSCI Emerging Markets Socially Responsible UCITS ETF | 0.80% |
| iShares MSCI Japan SRI UCITS ETF | 0.50% |
| UBS MSCI EMU Socially Responsible UCITS ETF | 0.50% |
| CASH | 0.30% |
Smart Alpha portfolios
With the Smart Alpha portfolios, asset allocation is managed by Nutmeg’s in-house investment team, who make tactical adjustments to the portfolios based on JP Morgan Asset Management’s research. The aim is to achieve higher returns by investing in more niche ETFs.
Here’s a breakdown of the highest risk Smart Alpha portfolio as of 30 September 2024. The largest holdings here are JP Morgan equity products.
| JPMorgan US Research Enhanced Index Equity ESG UCITS ETF | 35.50% |
| JPMorgan Global Research Enhanced Index Equity ESG UCITS ETF (GBP Hedged) | 22.50% |
| JPMorgan UK Equity Core UCITS ETF | 14.40% |
| JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF | 8.50% |
| iShares MSCI World Small Cap UCITS ETF | 8.10% |
| JPMorgan Europe Research Enhanced Index Equity ESG UCITS ETF | 5.70% |
| JPMorgan Japan Research Enhanced Index Equity ESG UCITS ETF | 3.50% |
| JPMorgan AC Asia Pacific ex Japan Research Enhanced Index Equity ESG UCITS ETF | 1.20% |
| CASH | 0.50% |
And here’s a look at the lowest-risk Smart Alpha portfolio as of 30 September 2024. This is mainly invested in JP Morgan bond ETFs.
| JPMorgan GBP Ultra-Short Income UCITS ETF | 39.50% |
| SPDR Bloomberg 15+ Year Gilt UCITS ETF | 10.90% |
| JPMorgan BetaBuilders UK Gilt 1-5 YR UCITS ETF | 9.50% |
| JPMorgan Global Research Enhanced Index Equity ESG UCITS ETF | 7.50% |
| JPMorgan US Research Enhanced Index Equity ESG UCITS ETF | 4.50% |
| JPMorgan Global Research Enhanced Index Equity ESG UCITS ETF (GBP Hedged) | 4.50% |
| JPMorgan USD Corporate Bond Research Enhanced Index ESG UCITS ETF (GBP Hedged) | 4.50% |
| JPMorgan EUR Corporate Bond Research Enhanced Index ESG UCITS ETF (GBP Hedged) | 4.50% |
| JPMorgan UK Equity Core UCITS ETF | 3.50% |
| JPMorgan Global Aggregate Bond Active UCITS ETF | 2.50% |
| JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF | 2.50% |
| JPMorgan Global High Yield Corporate Bond Multi-Factor UCITS ETF (GBP Hedged) | 2.00% |
| iShares MSCI World Small Cap UCITS ETF | 1.50% |
| JPMorgan USD Emerging Markets Sovereign Bond UCITS ET (GBP Hedged) | 1.00% |
| JPMorgan Japan Research Enhanced Index Equity ESG UCITS ETF | 1.00% |
| CASH | 0.50% |
Thematic investing portfolios
Finally, Nutmeg’s thematic investing portfolios have been designed to help you invest in trends shaping the future. There are three different portfolios here – Technological innovation, Resource transformation, and Evolving consumer (each with multiple risk levels).
With these portfolios, the bulk of your money is invested in globally diversified ETFs that are not specific to your chosen theme. However, some capital is allocated to niche ETFs that are focused on your chosen theme.
Here’s a breakdown of the highest-risk Technological Innovation portfolio as of 30 September 2024.
As you can see, there are ETFs focused on themes such as cloud computing, cybersecurity, robotics, and semiconductors.
| iShares Core S&P 500 UCITS ETF | 15.50% |
| iShares Core S&P 500 UCITS ETF (GBP Hedged) | 10.70% |
| Invesco S&P 500 UCITS ETF | 7.20% |
| iShares Core FTSE 100 UCITS ETF | 6.60% |
| iShares Digital Security UCITS ETF | 6.20% |
| iShares Robotics and Automation UCITS ETF | 6.00% |
| Invesco EQQQ Nasdaq-100 UCITS ETF | 5.10% |
| Vanguard FTSE 100 UCITS ETF | 4.20% |
| First Trust Cloud Computing UCITS ETF | 4.20% |
| VanEck Semiconductors UCITS ETF | 4.00% |
| Shares MSCI EM EX-China UCITS ETF | 3.40% |
| Vanguard FTSE 250 UCITS ETF | 3.40% |
| JPMorgan Betabuilders US Small Cap Equity UCITS ETF | 3.20% |
| Invesco S&P 500 UCITS ETF | 3.20% |
| Shares Core MSCI Emerging Markets IMI UCITS ETF | 3.00% |
| iShares MSCI Europe Industrials Sector UCITS ETF | 2.00% |
| Amundi MSCI Japan UCITS ETF | 2.00% |
| iShares Core MSCI EMU UCITS ETF (GBP Hedged) | 1.90% |
| UBS MSCI Switzerland 20/35 UCITS ETF (GBP Hedged) | 1.40% |
| Xtrackers MSCI Nordic UCITS ETF | 1.30% |
| iShares Core MSCI EMU UCITS ETF | 1.10% |
| UBS MSCI Canada UCITS ETF (GBP Hedged) | 1.10% |
| Shares Core MSCI Pacific ex Japan UCITS ETF | 1.00% |
| UBS MSCI Japan UCITS ETF (GBP Hedged) | 1.00% |
| iShares MSCI Japan Small Cap UCITS ETF | 0.80% |
| CASH | 0.30% |
Here’s a breakdown of the highest risk Resource transformation portfolio as of 30 September 2024.
Here, there are ETFs focused on themes such as clean energy and water.
| iShares Core S&P 500 UCITS ETF | 15.50% |
| iShares Core S&P 500 UCITS ETF (GBP Hedged) | 10.70% |
| Invesco S&P 500 UCITS ETF | 7.20% |
| iShares Core FTSE 100 UCITS ETF | 6.60% |
| VanEck Global Mining UCITS ETF | 6.20% |
| iShares Global Water UCITS ETF | 5.90% |
| Invesco EQQQ Nasdaq-100 UCITS ETF | 5.10% |
| Global X Uranium UCITS ETF | 4.50% |
| Vanguard FTSE 100 UCITS ETF | 4.20% |
| iShares Global Clean Energy UCITS ETF | 3.70% |
| iShares MSCI EM EX-China UCITS ETF | 3.40% |
| Vanguard FTSE 250 UCITS ETF | 3.40% |
| JPMorgan Betabuilders US Small Cap Equity UCITS ETF | 3.20% |
| Invesco S&P 500 UCITS ETF | 3.20% |
| iShares Core MSCI Emerging Markets IMI UCITS ETF | 3.00% |
| iShares MSCI Europe Industrials Sector UCITS ETF | 2.00% |
| Amundi MSCI Japan UCITS ETF | 2.00% |
| iShares Core MSCI EMU UCITS ETF (GBP Hedged) | 1.90% |
| UBS MSCI Switzerland 20/35 UCITS ETF (GBP Hedged) | 1.40% |
| Xtrackers MSCI Nordic UCITS ETF | 1.30% |
| iShares Core MSCI EMU UCITS ETF | 1.10% |
| UBS MSCI Canada UCITS ETF (GBP Hedged) | 1.10% |
| iShares Core MSCI Pacific ex Japan UCITS ETF | 1.00% |
| UBS MSCI Japan UCITS ETF (GBP Hedged) | 1.00% |
| iShares MSCI Japan Small Cap UCITS ETF | 0.80% |
| CASH | 0.30% |
Here’s a breakdown of the highest risk Evolving consumer portfolio as of 30 September 2024.
This portfolio has ETFs focused on themes such as demographic change, healthcare innovation, and emerging global wealth.
| iShares Core S&P 500 UCITS ETF | 15.50% |
| iShares Core S&P 500 UCITS ETF (GBP Hedged) | 10.80% |
| Invesco S&P 500 UCITS ETF | 7.20% |
| iShares Core FTSE 100 UCITS ETF | 6.60% |
| iShares MSCI EM Consumer Growth UCITS ETF | 5.80% |
| iShares Ageing Population UCITS ETF | 5.50% |
| iShares Digitalisation UCITS ETF | 5.20% |
| Invesco EQQQ Nasdaq-100 UCITS ETF | 5.10% |
| Vanguard FTSE 100 UCITS ETF | 4.20% |
| iShares Healthcare Innovation UCITS ETF | 3.90% |
| iShares MSCI EM EX-China UCITS ETF | 3.40% |
| Vanguard FTSE 250 UCITS ETF | 3.40% |
| JPMorgan Betabuilders US Small Cap Equity UCITS ETF | 3.20% |
| Invesco S&P 500 UCITS ETF | 3.20% |
| iShares Core MSCI Emerging Markets IMI UCITS ETF | 3.00% |
| iShares MSCI Europe Industrials Sector UCITS ETF | 2.00% |
| Amundi MSCI Japan UCITS ETF | 2.00% |
| iShares Core MSCI EMU UCITS ETF (GBP Hedged) | 1.90% |
| UBS MSCI Switzerland 20/35 UCITS ETF (GBP Hedged) | 1.40% |
| Xtrackers MSCI Nordic UCITS ETF | 1.30% |
| iShares Core MSCI EMU UCITS ETF | 1.10% |
| UBS MSCI Canada UCITS ETF (GBP Hedged) | 1.10% |
| iShares Core MSCI Pacific ex Japan UCITS ETF | 1.00% |
| UBS MSCI Japan UCITS ETF (GBP Hedged) | 1.00% |
| iShares MSCI Japan Small Cap UCITS ETF | 0.80% |
| CASH | 0.30% |
Summary
- Nutmeg offers five different types of ready-made portfolios
- These portfolios provide exposure to stocks and bonds
- Each portfolio is invested in a range of different ETFs
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
Before establishing himself as a writer, Edward earned a Commerce degree from the prestigious University of Melbourne. Complementing his academic background, he holds the esteemed Investment Management Certificate (IMC) and is a proud holder of the Chartered Financial Analyst (CFA) qualification.
Widely recognized as a sought-after investment expert, Edward’s insightful perspectives and analyses have been featured on sites such as BlackRock, Credit Suisse, WisdomTree, Motley Fool, eToro, and CMC Markets, among others.
You can contact Ed at edward@goodmoneyguide.com
