Balanced portfolio with a strong focus on S&P 500 and short-term Treasury bonds

Report created on Oct 13, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the S&P 500 through two ETFs, with 50% in the SPDR S&P 500 ETF Trust and an additional 25% in the ProShares Ultra S&P500, the latter offering leveraged exposure. The remaining 25% is allocated to short-term Treasury bonds via the iShares® 0-3 Month Treasury Bond ETF. This composition suggests a strategy leaning towards growth with a cushion of stability provided by low-risk government bonds. However, the use of a leveraged ETF introduces higher volatility and potential risk.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.91%, with a maximum drawdown of -28.90%. These figures highlight the portfolio's ability to generate substantial returns, albeit with significant volatility. The days contributing to 90% of the returns being concentrated in just 26 days indicates that the portfolio's performance is highly dependent on short, significant market movements, typical of strategies involving leveraged assets.

Projection Info

Monte Carlo simulations, using 1,000 iterations, project a wide range of outcomes with the median (50th percentile) suggesting a 740.6% return. The broad spread between the 5th percentile at 114.7% and the 67th at 1,127.3% underscores the high uncertainty and risk associated with this portfolio's future performance. While the simulations show a strong likelihood of positive returns, the high variance calls for cautious optimism.

Asset classes Info

  • Stocks
    71%
  • Cash
    27%
  • Bonds
    2%

The portfolio's asset allocation is primarily in stocks (71%) and cash equivalents (27%), with a minimal bond presence (2%). This allocation supports a growth-oriented strategy while maintaining liquidity through short-term Treasury bonds. However, the minimal diversification across asset classes could expose the portfolio to higher market volatility and sector-specific risks.

Sectors Info

  • Technology
    27%
  • Financials
    10%
  • Consumer Discretionary
    8%
  • Telecommunications
    8%
  • Health Care
    7%
  • Industrials
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation heavily favors technology (27%), with significant investments in financial services (10%) and consumer cyclicals (8%). This concentration in technology and growth sectors can drive high returns during bullish market conditions but also increases susceptibility to market corrections or shifts in investor sentiment. Diversifying across more sectors could mitigate some of these risks.

Regions Info

  • North America
    75%

Geographically, the portfolio is predominantly invested in North America (75%), with no exposure to developed European markets or emerging economies. This concentration in a single region, while potentially reducing complexity, limits global diversification and exposure to growth opportunities in other parts of the world.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    23%
  • Mid-cap
    12%
  • Small-cap
    1%

The portfolio's market capitalization exposure leans towards mega (33%) and big (23%) cap stocks, with lesser allocations to medium (12%) and small (1%) caps. This bias towards larger companies may offer stability and lower volatility but could also limit potential high-growth opportunities found in smaller cap stocks.

Redundant positions Info

  • ProShares Ultra S&P500
    SPDR S&P 500 ETF Trust
    High correlation

The high correlation between the SPDR S&P 500 ETF Trust and the ProShares Ultra S&P500 indicates a redundancy that does not contribute to diversification. This overlap, especially with the leveraged ETF, amplifies risk without proportionately increasing the expected return. Reducing exposure to correlated assets could enhance the portfolio's risk-adjusted performance.

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.

Given the high correlation between the SPDR S&P 500 ETF Trust and the ProShares Ultra S&P500, optimizing the portfolio involves reducing overlap to achieve a more efficient risk-return profile. Leveraging the Efficient Frontier concept could help in reallocating assets to minimize volatility without sacrificing expected returns. This optimization process should focus on diversifying across uncorrelated assets to enhance portfolio resilience.

Dividends Info

  • iShares® 0-3 Month Treasury Bond ETF 4.30%
  • SPDR S&P 500 ETF Trust 0.80%
  • ProShares Ultra S&P500 0.70%
  • Weighted yield (per year) 1.65%

The portfolio's overall dividend yield stands at 1.65%, with the highest yield from the iShares® 0-3 Month Treasury Bond ETF at 4.30%. While dividends contribute to the total return, the focus on growth-oriented ETFs, especially the leveraged S&P 500 position, suggests that capital appreciation is the primary goal rather than income generation.

Ongoing product costs Info

  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • SPDR S&P 500 ETF Trust 0.10%
  • ProShares Ultra S&P500 0.91%
  • Weighted costs total (per year) 0.30%

The portfolio's total expense ratio (TER) of 0.30% is relatively low, enhancing its attractiveness for long-term growth. The higher cost of the ProShares Ultra S&P500 (0.91%) is offset by the lower costs of the other two ETFs. Keeping costs low is crucial for maximizing returns, especially in a strategy that includes leveraged investments.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey