A cautious portfolio with high dividend yield and broad diversification across sectors and regions

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 with a cautious risk tolerance seeking steady income and moderate growth. With a focus on high dividend yields and broad diversification, it's ideal for those prioritizing income stability over aggressive growth. The portfolio's structure supports a long-term investment horizon, making it suitable for individuals who prefer a balanced approach to wealth accumulation while managing risk effectively.

Positions

  • Petroleo Brasileiro Petrobras SA ADR
    PBR - US71654V4086
    6.44%
  • PIMCO Dynamic Income Fund
    PDI - US72201Y1010
    5.00%
  • VICI Properties Inc
    VICI - US9256521090
    3.86%
  • Virtus AllianzGI Artificial Intell & Tech Opps
    AIO - US92838Y1001
    3.85%
  • Capital Southwest Corporation
    CSWC - US1405011073
    3.85%
  • Dow Inc
    DOW - US2605571031
    3.85%
  • Energy Transfer LP
    ET - US29273V1008
    3.85%
  • Gladstone Investment Corporation
    GAIN - US3765461070
    3.85%
  • Global Net Lease Inc.
    GNL - US3793782018
    3.85%
  • Gabelli Utility Closed Fund
    GUT - US36240A1016
    3.85%
  • JPMorgan Equity Premium Income ETF
    JEPI - US46641Q3323
    3.85%
  • JPMorgan Nasdaq Equity Premium Income ETF
    JEPQ - US46654Q2030
    3.85%
  • Nuveen Preferred and Income Term Closed Fund
    JPI - US67075A1060
    3.85%
  • JPMorgan Ultra-Short Income ETF
    JPST - US46641Q8371
    3.85%
  • Nuveen Real Estate Fund
    JRS - US67071B1089
    3.85%
  • Kinder Morgan Inc
    KMI - US49456B1017
    3.85%
  • The Coca-Cola Company
    KO - US1912161007
    3.85%
  • Altria Group
    MO - US02209S1033
    3.85%
  • Realty Income Corp
    O - US7561091049
    3.85%
  • Pimco Dynamic Income Opportunities Fund
    PDO - US69355M1071
    3.85%
  • Postal Realty Trust Inc
    PSTL - US73757R1023
    3.85%
  • PIMCO Corporate & Income Opportunity
    PTY - US72201B1017
    3.85%
  • Cohen & Steers Quality Income Realty Fund Inc
    RQI - US19247L1061
    3.85%
  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    3.85%
  • Cohen and Steers Infrastructure Closed Fund
    UTF - US19248A1097
    3.85%

The portfolio consists of a diverse mix of stocks, funds, and ETFs, with a notable focus on common stocks at 79%. The allocation is broadly diversified, with no single asset dominating the portfolio. This structure aligns well with cautious investor profiles who prefer a balanced approach. Compared to typical benchmarks, the portfolio's composition is well-rounded, providing a good mix of growth and income-generating assets. Consider maintaining this balance to support steady growth while managing risk effectively.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.67%, with a maximum drawdown of -15.22%. This performance is relatively strong, especially for a cautious profile, and suggests resilience during market downturns. The portfolio's ability to recover from drawdowns is a positive indicator of its stability. To continue benefiting from this performance, ensure that the asset allocation remains aligned with market conditions and your risk tolerance.

Projection Info

Using Monte Carlo simulations, which predict future outcomes based on historical data, the portfolio shows a range of potential returns. The median (50th percentile) projection suggests a 171.5% return, while the riskier 5th percentile indicates a -32.7% outcome. Although past performance doesn't guarantee future results, these projections can guide expectations. Consider revisiting your portfolio's risk exposure periodically to align with evolving market trends and personal goals.

Asset classes Info

  • Stocks
    79%
  • Bonds
    19%
  • Not Classified
    5%
  • No data
    1%
  • Other
    0%

The portfolio's allocation across asset classes is predominantly in stocks (79%), with bonds making up 19%. This allocation provides a solid foundation for growth while incorporating some stability through bonds. Compared to common benchmarks, this mix is typical for a cautious investor seeking moderate growth. To enhance diversification, consider periodically reviewing the allocation and adjusting if necessary to maintain the desired risk-return balance.

Sectors Info

  • Real Estate
    24%
  • Energy
    16%
  • Financials
    10%
  • Consumer Staples
    9%
  • Basic Materials
    8%
  • Utilities
    5%
  • Technology
    5%
  • Industrials
    2%
  • Health Care
    2%
  • Telecommunications
    2%
  • Consumer Discretionary
    1%
  • Consumer Discretionary
    0%

Sector allocation is diverse, with real estate (24%) and energy (16%) as the largest sectors. This variety helps mitigate risks associated with sector-specific downturns. The portfolio's sector composition aligns well with common benchmarks, indicating a balanced approach. However, be mindful of sector trends that could impact performance, such as interest rate changes affecting real estate or energy price fluctuations. Regularly assess sector exposure to ensure it aligns with market conditions and personal goals.

Regions Info

  • North America
    82%
  • Latin America
    7%
  • Unknown
    4%
  • Europe Developed
    3%
  • Asia Emerging
    0%
  • Asia Developed
    0%
  • Japan
    0%
  • Australasia
    0%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily focused on North America (82%), with minor exposure to Latin America (7%) and Europe (3%). This concentration may limit diversification benefits from global markets. While North America has been a strong performer, consider increasing exposure to other regions to reduce reliance on a single market. Expanding geographic diversification can help mitigate risks associated with regional economic shifts.

Market capitalization Info

  • Large-cap
    40%
  • Small-cap
    21%
  • Mid-cap
    8%
  • Mega-cap
    8%
  • Micro-cap
    0%

The portfolio's market capitalization is led by big companies (40%), followed by small (21%) and medium (8%) firms. This blend offers stability from established companies while capturing growth potential from smaller firms. Compared to benchmarks, this allocation is typical for a cautious investor. To maintain a balanced risk profile, consider periodically reviewing market cap exposure to ensure it aligns with changing market dynamics and personal objectives.

Dividends Info

  • Virtus AllianzGI Artificial Intell & Tech Opps 6.50%
  • Capital Southwest Corporation 11.30%
  • Dow Inc 6.80%
  • Energy Transfer LP 6.10%
  • Gladstone Investment Corporation 12.00%
  • Global Net Lease Inc. 11.50%
  • Gabelli Utility Closed Fund 10.90%
  • JPMorgan Equity Premium Income ETF 7.10%
  • JPMorgan Nasdaq Equity Premium Income ETF 9.30%
  • Nuveen Preferred and Income Term Closed Fund 6.80%
  • JPMorgan Ultra-Short Income ETF 5.10%
  • Nuveen Real Estate Fund 7.90%
  • Kinder Morgan Inc 3.80%
  • The Coca-Cola Company 3.20%
  • Altria Group 7.90%
  • Realty Income Corp 5.80%
  • Petroleo Brasileiro Petrobras SA ADR 17.50%
  • PIMCO Dynamic Income Fund 12.80%
  • Pimco Dynamic Income Opportunities Fund 10.30%
  • Postal Realty Trust Inc 7.40%
  • PIMCO Corporate & Income Opportunity 9.00%
  • Cohen & Steers Quality Income Realty Fund Inc 6.90%
  • Schwab U.S. Dividend Equity ETF 3.50%
  • Cohen and Steers Infrastructure Closed Fund 7.00%
  • VICI Properties Inc 5.80%
  • Weighted yield (per year) 8.39%

The portfolio boasts a high dividend yield of 8.39%, which significantly contributes to total returns. This yield is particularly beneficial for income-focused investors, providing a steady cash flow. Given the importance of dividends in this portfolio, ensure that dividend-paying assets remain a core component. Regularly review dividend sustainability to maintain income stability, especially during economic fluctuations.

Ongoing product costs Info

  • Virtus AllianzGI Artificial Intell & Tech Opps 1.41%
  • Gabelli Utility Closed Fund 1.59%
  • JPMorgan Equity Premium Income ETF 0.35%
  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Nuveen Preferred and Income Term Closed Fund 1.67%
  • JPMorgan Ultra-Short Income ETF 0.18%
  • Nuveen Real Estate Fund 1.53%
  • PIMCO Dynamic Income Fund 2.18%
  • PIMCO Corporate & Income Opportunity 1.19%
  • Cohen & Steers Quality Income Realty Fund Inc 2.21%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Cohen and Steers Infrastructure Closed Fund 2.29%
  • Weighted costs total (per year) 0.60%

The portfolio's Total Expense Ratio (TER) is 0.60%, which is reasonable given the mix of assets. Lower costs can enhance long-term returns by reducing the drag on performance. Some funds have higher expense ratios, which could impact net returns. Consider reviewing and potentially replacing high-cost funds with lower-cost alternatives to improve portfolio efficiency. Keeping costs in check is crucial for maximizing net returns 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 Efficient Frontier analysis suggests potential for optimization, with an expected return of 4.77% at the same risk level. This indicates room for improvement in the risk-return balance. To achieve this, consider reallocating assets within the portfolio to optimize returns without increasing risk. Regularly revisiting the portfolio's allocation can help ensure it remains aligned with personal goals and market conditions.

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