This portfolio has only about 1.1 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.
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Balanced Portfolio with High Risk and Limited Diversification Focused Heavily on Technology and Energy Sectors

Report created on Jul 17, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is heavily weighted in ETFs, with notable positions in the Vanguard S&P 500 ETF and Schwab U.S. Large-Cap Growth ETF. These two make up a significant portion of the portfolio, indicating a focus on large-cap equities. Additionally, there are holdings in technology and energy sectors, with Energy Transfer LP as a standout common stock. The portfolio's composition suggests a balanced approach with a slight tilt towards growth-oriented investments. This mix offers potential for solid returns but also exposes the portfolio to sector-specific risks.

Growth Info

Historically, the portfolio has performed impressively, with a compound annual growth rate (CAGR) of 31.81%. This strong performance indicates that the chosen assets have historically delivered high returns. However, the max drawdown of -10.68% highlights potential volatility, which is a reminder of the risks associated with high-growth investments. The portfolio's ability to achieve 90% of returns in just 18 days suggests a concentrated performance, which could be both a strength and a weakness depending on market conditions.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio's future performance was analyzed. This method uses random sampling to model potential future outcomes, providing a range of possible returns. The simulation suggests a promising outlook, with a median return of 5,140.43% and all simulations showing positive returns. This indicates a high probability of continued growth, but it's important to remember that past performance is not always indicative of future results. The portfolio's projected returns align with its historical performance, confirming its growth potential.

Asset classes Info

  • Stocks
    97%
  • No data
    3%

The portfolio is predominantly composed of stocks, accounting for 96.76% of the total allocation. This heavy reliance on equities suggests a focus on capital appreciation rather than income generation. While this allocation can drive substantial growth, it also introduces higher volatility compared to a more diversified portfolio with bonds or other asset classes. To mitigate risk, consider incorporating a more balanced mix of asset classes. This could help stabilize returns during market downturns and provide a cushion against equity market fluctuations.

Sectors Info

  • Technology
    47%
  • Energy
    20%
  • Telecommunications
    8%
  • Consumer Discretionary
    8%
  • Health Care
    5%
  • Financials
    4%
  • Industrials
    3%
  • Consumer Staples
    2%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Technology and energy sectors dominate the portfolio, representing 47.15% and 19.65% of the allocation, respectively. This concentration indicates a strong belief in the growth potential of these sectors. However, it also exposes the portfolio to sector-specific risks, such as regulatory changes or technological disruptions. Diversifying across a broader range of sectors could help reduce these risks and enhance the portfolio's resilience. Consider exploring investments in underrepresented sectors to achieve a more balanced and diversified sector allocation.

Regions Info

  • North America
    99%

The portfolio is heavily concentrated in North American assets, with 99.25% of the allocation in this region. This geographic focus suggests confidence in the stability and growth prospects of North American markets. However, it limits exposure to international markets, which could offer diversification benefits and potential growth opportunities. Expanding the geographic allocation to include more international assets could help mitigate regional risks and enhance the portfolio's overall diversification. Consider exploring global investment opportunities to achieve a more balanced geographic distribution.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Information Technology Index Fund ETF Shares
    JPMorgan Nasdaq Equity Premium Income ETF
    REX FANG & Innovation Equity Premium Income ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The portfolio exhibits high correlations among several assets, particularly within the technology sector. Assets like the Vanguard S&P 500 ETF and Vanguard Information Technology Index Fund ETF Shares move in tandem, limiting diversification benefits. While this alignment can amplify returns in a rising market, it also increases risk during downturns. To enhance diversification, consider reducing the overlap of highly correlated assets. This could help achieve a more balanced risk-return profile and improve the portfolio's resilience against market volatility.

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.

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Before optimizing, focus on reducing the overlap of highly correlated assets to improve diversification. Moving along the efficient frontier, you can achieve a riskier or more conservative portfolio by adjusting the asset mix. A more efficient portfolio with the same risk level as the current one could offer an expected return of 34.03%, slightly above the current expected return. This suggests potential for improved performance with better asset allocation. Prioritize diversification and cost efficiency to enhance the portfolio's risk-return profile and achieve investment goals.

Dividends Info

  • Canadian Natural Resources Ltd 4.50%
  • Energy Transfer LP 6.70%
  • REX FANG & Innovation Equity Premium Income ETF 26.10%
  • JPMorgan Nasdaq Equity Premium Income ETF 9.30%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vitesse Energy Inc 7.30%
  • Weighted yield (per year) 5.28%

The portfolio offers a decent dividend yield of 5.28%, with Energy Transfer LP and REX FANG & Innovation Equity Premium Income ETF contributing significantly. This yield provides a steady income stream, which can be attractive for income-focused investors. However, the high yield from REX FANG & Innovation Equity Premium Income ETF may not be sustainable in the long term. To maintain a reliable income stream, consider diversifying dividend sources across more stable assets. This could help reduce reliance on any single high-yield investment and ensure consistent dividend income.

Ongoing product costs Info

  • REX FANG & Innovation Equity Premium Income ETF 0.65%
  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) is 0.14%, which is relatively low and indicates cost-effective management. This low cost structure helps maximize net returns and is a positive aspect of the portfolio. However, the REX FANG & Innovation Equity Premium Income ETF carries a higher expense ratio of 0.65%, which could impact returns over time. To keep costs low, consider evaluating the necessity of higher-cost ETFs and explore alternatives with lower fees. This approach can enhance overall portfolio efficiency and improve long-term performance.

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