High income tilted portfolio with strong value focus and conservative risk aligned structure

Report created on Apr 7, 2026

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.

Positions

The portfolio is built mostly from income-focused ETFs, with seven funds and fairly even position sizes. Around two thirds of the holdings target bonds, preferreds, loans, or structured high-income strategies, while the remaining slice leans on dividend stocks. This kind of structure is designed to turn market exposure into steady cash flow rather than chasing maximum growth. That fits well with a conservative risk score and “broadly diversified” rating. The main takeaway is that the portfolio is intentionally built to prioritize income and smoother rides over aggressive capital appreciation, and its mix of multiple managers and income styles helps reduce reliance on any single approach or sector.

Growth Info

Over the recent period, $1,000 grew to about $1,190, giving a compound annual growth rate (CAGR) of 8.39%. CAGR is the “average speed” of growth per year, smoothing out ups and downs. Compared with broad US and global markets, the return has been lower, but the max drawdown of about -9.8% has also been much shallower than the benchmarks. Drawdown measures the worst peak‑to‑trough fall, which matters a lot for sleep-at-night risk. This pattern is what you’d expect from a conservative, income-heavy mix: it gave up some upside during a strong equity period but delivered a gentler ride, which is consistent with the portfolio’s stated risk profile.

Projection Info

The Monte Carlo projection uses many random “what if” paths based on historical behavior to estimate possible future outcomes. It’s like running 1,000 alternate timelines for the portfolio over 15 years, then looking at the range. Here, a $1,000 stake has a median outcome of around $2,206, with most scenarios landing between roughly $1,757 and $2,802. The average simulated annual return is about 5.71%, higher than cash but not extreme. These numbers are helpful for planning, but they are based on past patterns and assumptions, which can change. So they are guideposts, not promises, especially for an income-focused mix in shifting rate environments.

Asset classes Info

  • Bonds
    45%
  • Stocks
    41%
  • Not classified
    14%

Asset-class allocation is skewed toward bonds and bond-like assets at 45%, with 41% in stocks and 14% not classified. That’s a fairly cautious balance: fixed income is there to dampen volatility and deliver regular interest, while equities provide growth and some dividend income. Compared with typical “all-stock” benchmarks, this is meaningfully more defensive, which supports the conservative risk label. Having both traditional bonds and senior loans adds different credit and interest rate exposures, which can help diversification across fixed income types. Overall, this mix is well-aligned with someone who wants meaningful downside cushioning and income, while still keeping a reasonable stake in growth assets.

Sectors Info

  • Utilities
    15%
  • Technology
    14%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Consumer Discretionary
    4%
  • Financials
    3%
  • Health Care
    3%
  • Real Estate
    2%
  • Energy
    2%
  • Industrials
    2%

This breakdown covers the equity portion of your portfolio only.

Sector-wise, the portfolio leans heavily on utilities and technology, with utilities alone around 15% and tech about 14%, plus smaller slices of telecoms, consumer areas, financials, and others. That’s different from a plain-vanilla market index, where tech tends to dominate but utilities play a smaller role. Utilities and high-dividend sectors often act as income workhorses and can hold up better during economic slowdowns, though they can lag when growth and speculative areas run hot. The notable utility tilt fits the low-volatility, income theme and supports stability. The tech exposure ties returns somewhat to growth trends, but in a more muted way than a pure growth portfolio.

Regions Info

  • North America
    54%
  • Europe Developed
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, the portfolio is overwhelmingly US-focused, with about 54% in North America and only a token amount in developed Europe. This is common for US-based income portfolios because many high-yield and tax-exempt bond funds are US-only by design. The upside is clear: returns and risks are tied mostly to one familiar economy and currency, which simplifies planning and removes foreign exchange noise. The tradeoff is less diversification across different economic cycles and policy regimes. When the US does well, that concentration can be a plus; if the US stumbles while other regions do better, the portfolio will feel more “home country” risk than a global mix.

Market capitalization Info

  • Mega-cap
    15%
  • Large-cap
    13%
  • Mid-cap
    10%
  • Small-cap
    2%

This breakdown covers the equity portion of your portfolio only.

Market-cap exposure is tilted to the largest companies, with mega-caps at 15%, large-caps at 13%, and progressively smaller slices in mid- and small-caps. Large and mega‑cap stocks tend to be more stable, with established earnings and often stronger balance sheets, which meshes nicely with a conservative and income-driven approach. Smaller companies, while sometimes faster growing, can be more volatile and sensitive to economic shocks. Having only modest small-cap exposure means the portfolio is less likely to experience sharp swings tied to that segment. This structure supports smoother equity behavior, though it may give up some of the long-run growth potential that diversified small-cap exposure can provide.

True holdings Info

  • NVIDIA Corporation
    2.43%
    Part of fund(s):
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • Apple Inc
    2.16%
    Part of fund(s):
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • Microsoft Corporation
    1.56%
    Part of fund(s):
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • Amazon.com Inc
    1.23%
    Part of fund(s):
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • Alphabet Inc Class A
    0.99%
    Part of fund(s):
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • Tesla Inc
    0.86%
    Part of fund(s):
    • LS 1x Tesla Tracker ETP Securities GBP
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • Meta Platforms Inc.
    0.85%
    Part of fund(s):
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • Alphabet Inc Class C
    0.85%
    Part of fund(s):
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • Broadcom Inc
    0.84%
    Part of fund(s):
    • NEOS Nasdaq 100 High Income ETF
    • SHP ETF Trust - NEOS S&P 500 High Income ETF
  • State Street Master Funds - State Street U.S. Government Money Market Portfolio
    0.61%
    Part of fund(s):
    • SPDR Blackstone Senior Loan ETF
  • Top 10 total 12.39%

Looking through the ETFs, the biggest underlying exposures include familiar mega-cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, plus other large US growth companies. These show up because some income ETFs write options on major indices or hold large-cap stocks directly, so the same company can appear in multiple funds and quietly increase concentration. Overlap is measured only on ETF top-10 holdings here, so real overlap is likely higher. The main implication is that while the portfolio appears diversified by fund count, a chunk of equity risk is still driven by a small group of large US tech and growth companies, which can matter in sharp sector reversals.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 10%
Size
Exposure to smaller companies
Very low
Data availability: 55%
Momentum
Exposure to recently outperforming stocks
No data
Data availability: 0%
Quality
Preference for financially healthy companies
No data
Data availability: 0%
Yield
Preference for dividend-paying stocks
Very high
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
Very high
Data availability: 85%

Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.

Factor exposure shows very strong tilts toward value, yield, and low volatility, with very low exposure to size. “Factors” are characteristics like value or quality that research links to long-term returns. A very high value tilt means a preference for cheaper, income-rich securities over expensive growth names. Very high yield and low-volatility tilts point to holdings chosen for generous income and relatively stable price patterns. Very low size exposure confirms the focus on larger, steadier companies instead of riskier small caps. Together, these tilts create a behavior profile: steadier, income-heavy, potentially lagging in roaring growth markets but tending to hold up better in choppy or risk-off periods.

Risk contribution Info

  • NEOS Nasdaq 100 High Income ETF
    Weight: 15.00%
    32.1%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF
    Weight: 15.00%
    26.5%
  • Global X U.S. Preferred ETF
    Weight: 15.00%
    13.4%
  • Invesco S&P 500® High Dividend Low Volatility ETF
    Weight: 10.00%
    11.5%
  • SPDR Portfolio High Yield Bond
    Weight: 15.00%
    8.7%
  • Top 5 risk contribution 92.3%

Risk contribution reveals that the NEOS Nasdaq 100 High Income and NEOS S&P 500 High Income ETFs, each at 15% weight, contribute about 32% and 27% of overall risk, respectively. Risk contribution measures how much each holding drives the portfolio’s total ups and downs, which can be very different from weight. Here, the top three holdings together account for over 72% of total risk, meaning day-to-day volatility is dominated by a few positions. The takeaway is that, under the hood, the portfolio’s risk is more concentrated than its even weights suggest. Adjusting position sizes or diversifying styles could reduce this concentration without changing the overall conservative profile.

Redundant positions Info

  • SHP ETF Trust - NEOS S&P 500 High Income ETF
    NEOS Nasdaq 100 High Income ETF
    High correlation

Correlation looks at how assets move relative to each other, from -1 (move opposite) to +1 (move together). The NEOS Nasdaq 100 High Income ETF and NEOS S&P 500 High Income ETF are flagged as moving almost identically, meaning their returns tend to rise and fall in tandem. When two holdings are highly correlated, they don’t add much diversification—even if they target different indices or strategies on paper. In practice, that means the portfolio may be getting very similar risk from both funds, particularly in equity market selloffs. Recognizing these “hidden twins” can be useful when thinking about simplifying or balancing exposure across different types of income sources.

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.

Click on the colored dots to explore allocations.

The risk–return chart shows the current portfolio with a Sharpe ratio of 0.6, while the optimal mix of the same holdings could reach a Sharpe of 1.19 and the minimum-variance mix 1.37. The Sharpe ratio measures risk-adjusted return—how much excess return you get per unit of volatility above a risk-free rate. The current allocation sits about 1.54 percentage points below the efficient frontier at its risk level, meaning it’s not using its ingredients as efficiently as possible. The key insight is that simply reweighting these existing ETFs—without adding anything new—could improve the tradeoff between risk and return, either for more return at similar risk or less risk at similar return.

Dividends Info

  • Global X U.S. Preferred ETF 5.90%
  • NEOS Nasdaq 100 High Income ETF 14.80%
  • Invesco S&P 500® High Dividend Low Volatility ETF 4.30%
  • SPDR Portfolio High Yield Bond 6.80%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 12.40%
  • SPDR Blackstone Senior Loan ETF 7.10%
  • Vanguard Tax-Exempt Bond Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 7.94%

Income is the star of this portfolio. The overall yield is around 7.94%, with several holdings in the 6–15% range, which is far above broad market dividend levels. Yield is the annual cash paid out, as a percentage of the investment, and it can be a crucial component of total return—especially for conservative investors or those drawing regular withdrawals. High-yield bond, loan, and option-writing strategies are typically what make such a high blended yield possible. The flip side is that very high yields often come with credit risk, interest rate sensitivity, or limited price growth, so it’s wise to treat income as part of total return, not a guaranteed paycheck.

Ongoing product costs Info

  • Global X U.S. Preferred ETF 0.23%
  • NEOS Nasdaq 100 High Income ETF 0.68%
  • Invesco S&P 500® High Dividend Low Volatility ETF 0.30%
  • SPDR Portfolio High Yield Bond 0.05%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • SPDR Blackstone Senior Loan ETF 0.70%
  • Vanguard Tax-Exempt Bond Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.39%

Portfolio costs, measured by the total expense ratio (TER), average around 0.39% per year across all ETFs. TER is the annual fee the fund charges to run the strategy, taken directly from returns. For an income-focused, multi-ETF mix that includes some specialized high-income strategies, this cost level is quite reasonable. You have a blend of ultra-low-cost core bond funds at 0.05% and more complex high-income ETFs in the 0.6–0.7% range. Over long horizons, even small fee differences compound, so keeping the blended cost under 0.40% is a real positive. It leaves more of the portfolio’s yield and returns in the investor’s pocket.

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