A focused portfolio with high exposure to S&P 500 and significant dividend yield

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is evenly split between two ETFs, both tracking the S&P 500 but with different focuses: one on high income and the other on overall market performance. Its composition is highly concentrated, with 100% of its allocation in stocks, specifically within the S&P 500 index. This concentration in a single asset class and geographic region (North America) indicates a low level of diversification, as reflected by its diversification score.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.06%, with a maximum drawdown of -17.69%. These figures suggest that the portfolio has experienced solid growth while managing risks relatively well. However, the reliance on a small number of sectors and the S&P 500 index may limit its ability to mitigate losses during market downturns specific to its heavy concentrations.

Projection Info

Using Monte Carlo simulations, the portfolio's future performance was projected across 1,000 scenarios, showing a wide range of potential outcomes. The median outcome suggests a significant increase in value, but it's important to remember that these simulations are based on historical data and cannot guarantee future results. They serve as a tool for understanding potential volatility and risk, rather than exact predictions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely composed of stocks, with a negligible cash position. This heavy allocation towards equities is typical for growth-oriented portfolios but comes with higher volatility. The lack of diversification across asset classes could expose the portfolio to greater market risk during downturns.

Sectors Info

  • Technology
    34%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    3%
  • Real Estate
    2%
  • Basic Materials
    2%

The sectoral allocation leans heavily towards technology, financial services, and consumer cyclicals, mirroring the S&P 500's current composition. This concentration in high-growth sectors could offer significant upside during bullish market phases but might also lead to higher volatility compared to more diversified portfolios.

Regions Info

  • North America
    100%

Geographic exposure is exclusively North American, specifically the United States. This focus on a single region can offer advantages during periods of strong US market performance but lacks international diversification, which could help spread risk and capture global growth opportunities.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    35%
  • Mid-cap
    17%
  • Small-cap
    1%

The portfolio's market capitalization exposure is skewed towards mega and large-cap stocks, which tend to be less volatile than smaller companies. This bias towards larger companies, characteristic of the S&P 500 index, may provide stability but could also limit potential high-growth opportunities found in smaller caps.

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.

Considering the portfolio's current risk and return characteristics, there may be opportunities to optimize its performance on the Efficient Frontier by diversifying across more asset classes or geographic regions. However, any adjustments should be made in the context of the investor's risk tolerance and investment goals.

Dividends Info

  • SHP ETF Trust - NEOS S&P 500 High Income ETF 12.20%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 6.70%

The significant difference in dividend yields between the two ETFs highlights a strategic focus on income generation through the high-yield ETF. This approach can provide a steady income stream but should be balanced against the potential for price volatility and the impact of fees on net returns.

Ongoing product costs Info

  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.36%

The portfolio's total expense ratio (TER) averages to 0.36%, with a notable difference in costs between the two ETFs. While the Vanguard S&P 500 ETF is extremely cost-efficient, the SHP ETF Trust - NEOS S&P 500 High Income ETF carries a higher fee, which could impact net returns over time, particularly in lower yield environments.

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