Balanced portfolio with strong tech focus and impressive historical returns but high concentration risk

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

Balanced Investors

This portfolio suits investors with a moderate risk tolerance seeking balanced growth and income. With a significant allocation to technology and healthcare, it targets high growth potential but requires comfort with sector-specific volatility. The moderate diversification and focus on North American assets suggest a preference for familiar markets. Ideal for those with a medium to long-term investment horizon, it balances growth with some income generation.

Positions

  • Tidal Trust II YieldMax AI Opti
    AIYY
    7.93%
  • Tidal Trust II
    ULTY
    6.47%
  • iShares Core Total USD Bond Market ETF
    IUSB - US46434V6130
    4.87%
  • Taiwan Semiconductor Manufacturing
    TSM - US8740391003
    4.85%
  • ASML Holding NV
    ASMLF - NL0010273215
    4.83%
  • Hims Hers Health Inc
    HIMS - US4330001060
    4.38%
  • Advanced Micro Devices Inc
    AMD - US0079031078
    3.90%
  • Vanguard International High Dividend Yield Index Fund ETF Shares
    VYMI - US9219467944
    3.80%
  • NVIDIA Corporation
    NVDA - US67066G1040
    2.53%
  • Abbott Laboratories
    ABT - US0028241000
    2.49%
  • Becton Dickinson and Company
    BDX - US0758871091
    2.45%
  • Apple Inc
    AAPL - US0378331005
    2.38%
  • Cincinnati Financial Corporation
    CINF - US1720621010
    2.29%
  • iShares Core S&P Total U.S. Stock Market ETF
    ITOT - US4642871507
    2.27%
  • Dover Corporation
    DOV - US2600031080
    2.24%
  • Parker-Hannifin Corporation
    PH - US7010941042
    1.93%
  • Palantir Technologies Inc
    PLTR - US69608A1088
    1.84%
  • Defiance Quantum
    QTUM - US26922A4206
    1.58%
  • AbbVie Inc
    ABBV - US00287Y1091
    1.34%
  • Texas Instruments Incorporated
    TXN - US8825081040
    1.30%
  • Duke Energy Corporation
    DUK - US26441C2044
    1.29%
  • Williams Companies Inc
    WMB - US9694571004
    1.29%
  • Johnson & Johnson
    JNJ - US4781601046
    1.28%
  • The Coca-Cola Company
    KO - US1912161007
    1.28%
  • Medtronic PLC
    MDT - IE00BTN1Y115
    1.28%
  • Southern Company
    SO - US8425871071
    1.28%
  • Lockheed Martin Corporation
    LMT - US5398301094
    1.27%
  • Comcast Corp
    CMCSA - US20030N1019
    1.26%
  • Altria Group
    MO - US02209S1033
    1.25%
  • PNC Financial Services Group Inc
    PNC - US6934751057
    1.25%
  • Exxon Mobil Corp
    XOM - US30231G1022
    1.25%
  • ConocoPhillips
    COP - US20825C1045
    1.24%
  • PepsiCo Inc
    PEP - US7134481081
    1.24%
  • Philip Morris International Inc
    PM - US7181721090
    1.24%
  • Verizon Communications Inc
    VZ - US92343V1044
    1.23%
  • Chevron Corp
    CVX - US1667641005
    1.22%
  • Starbucks Corporation
    SBUX - US8552441094
    1.21%
  • Arista Networks
    ANET - US0404131064
    1.15%
  • Broadcom Inc
    AVGO - US11135F1012
    1.14%
  • Amazon.com Inc
    AMZN - US0231351067
    1.12%
  • Alphabet Inc Class A
    GOOGL - US02079K3059
    1.12%
  • Salesforce.com Inc
    CRM - US79466L3024
    1.10%
  • Meta Platforms Inc.
    META - US30303M1027
    1.10%
  • Adobe Systems Incorporated
    ADBE - US00724F1012
    1.09%
  • Microsoft Corporation
    MSFT - US5949181045
    1.09%
  • iShares Core MSCI International Developed Market
    IDEV - US46435G3267
    1.04%
  • iShares Core International Aggregate Bond ETF
    IAGG - US46435G6724
    0.80%
  • Smartalk Teleservices Inc
    SMTK
    0.75%
  • Tesla Inc
    TSLA - US88160R1014
    0.70%
  • American Airlines Group
    AAL - US02376R1023
    0.40%
  • iShares Core MSCI Emerging Markets ETF
    IEMG - US46434G1031
    0.37%

The portfolio consists of a mix of ETFs and individual stocks, with a significant portion in technology and healthcare sectors. The largest holding is Tidal Trust II YieldMax AI Opti, representing nearly 8% of the portfolio. Compared to typical balanced portfolios, this one has a higher concentration in individual stocks, which can increase potential returns but also risk. Balancing ETFs with individual stocks allows for diversification, but the portfolio's current composition leans heavily on specific sectors, which may expose it to sector-specific risks.

Warning The historical data covers less than 2 years, which reduces the confidence in the calculated values.

Growth Info

Historically, the portfolio has performed exceptionally well, with a compound annual growth rate (CAGR) of 24.35% and a maximum drawdown of 10.3%. This indicates strong growth potential, although the drawdown suggests some periods of significant losses. The performance surpasses typical balanced benchmarks, reflecting high growth assets. However, past performance doesn't guarantee future results, and the portfolio's volatility should be considered when assessing its alignment with personal risk tolerance and investment goals.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with an impressive 31.29% annualized return across simulations. This method uses historical data to estimate future performance, which can help visualize potential growth scenarios but is not a prediction. The portfolio's high expected returns are promising, but investors should remain aware of the inherent uncertainties and incorporate these projections into a broader risk management strategy.

Asset classes

  • Stocks
    83%
  • Bonds
    10%
  • Cash
    7%
  • Other
    0%
  • No data
    0%

The portfolio is predominantly allocated to stocks, accounting for over 83% of the total, with bonds and cash making up the remainder. This stock-heavy allocation suggests a focus on growth, which may suit investors with higher risk tolerance. Compared to typical balanced portfolios, this allocation is aggressive, potentially enhancing returns but also increasing volatility. Consider reassessing the balance to ensure it aligns with your risk appetite and long-term objectives.

Sectors

  • Technology
    33%
  • Consumer Staples
    11%
  • Health Care
    10%
  • Industrials
    7%
  • Financials
    6%
  • Telecommunications
    6%
  • Energy
    6%
  • Real Estate
    5%
  • Consumer Discretionary
    5%
  • Utilities
    3%
  • Basic Materials
    0%

There is a notable concentration in the technology sector, which comprises over 32% of the portfolio. While this sector has driven recent growth, it can be volatile, especially during economic shifts or interest rate changes. The portfolio's sector allocation diverges from typical balanced benchmarks, indicating potential sector-specific risks. Diversifying across more sectors could mitigate these risks and enhance long-term stability.

Regions

  • North America
    74%
  • Europe Developed
    9%
  • Asia Emerging
    6%
  • Japan
    1%
  • Asia Developed
    1%
  • Australasia
    0%
  • Africa/Middle East
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

The portfolio is heavily weighted towards North American assets, accounting for nearly 74% of geographic exposure. This provides familiarity and stability but limits exposure to international growth opportunities. Compared to global benchmarks, the portfolio is underexposed to emerging markets and other regions. Expanding geographic diversification could reduce regional risk and capture growth in underrepresented areas.

Dividends

  • Apple Inc 0.40%
  • AbbVie Inc 3.40%
  • Abbott Laboratories 1.90%
  • Tidal Trust II YieldMax AI Opti 96.20%
  • ASML Holding NV 0.90%
  • Broadcom Inc 0.70%
  • Becton Dickinson and Company 1.30%
  • Cincinnati Financial Corporation 1.70%
  • Comcast Corp 3.20%
  • ConocoPhillips 3.20%
  • Salesforce.com Inc 0.30%
  • Chevron Corp 4.50%
  • Dover Corporation 1.10%
  • Duke Energy Corporation 3.80%
  • Alphabet Inc Class A 0.30%
  • iShares Core MSCI International Developed Market 1.80%
  • iShares Core MSCI Emerging Markets ETF 1.00%
  • iShares Core S&P Total U.S. Stock Market ETF 0.80%
  • iShares Core Total USD Bond Market ETF 3.30%
  • Johnson & Johnson 3.40%
  • The Coca-Cola Company 3.10%
  • Lockheed Martin Corporation 1.90%
  • Medtronic PLC 2.60%
  • Meta Platforms Inc. 0.20%
  • Altria Group 5.60%
  • Microsoft Corporation 0.70%
  • PepsiCo Inc 2.60%
  • Parker-Hannifin Corporation 1.00%
  • Philip Morris International Inc 3.20%
  • PNC Financial Services Group Inc 3.20%
  • Defiance Quantum 0.60%
  • Starbucks Corporation 2.60%
  • Southern Company 3.40%
  • Taiwan Semiconductor Manufacturing 0.80%
  • Texas Instruments Incorporated 2.70%
  • Tidal Trust II 108.20%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 4.80%
  • Verizon Communications Inc 6.70%
  • Williams Companies Inc 2.60%
  • Exxon Mobil Corp 3.60%
  • Weighted yield (per year) 16.12%

The portfolio's dividend yield is 16.12%, significantly boosted by high-yielding ETFs like Tidal Trust II. Dividends can provide steady income and reduce reliance on capital gains for returns. However, the high yield of certain assets may indicate elevated risk. Balancing high-yield stocks with stable dividend payers can ensure consistent income while managing risk.

Ongoing product costs

  • Tidal Trust II YieldMax AI Opti 0.99%
  • iShares Core International Aggregate Bond ETF 0.07%
  • iShares Core MSCI International Developed Market 0.04%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • iShares Core S&P Total U.S. Stock Market ETF 0.03%
  • iShares Core Total USD Bond Market ETF 0.06%
  • Defiance Quantum 0.40%
  • Tidal Trust II 1.14%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.17%

The portfolio's total expense ratio (TER) is 0.17%, which is relatively low and supports better long-term performance by minimizing costs. However, some ETFs have higher fees, such as Tidal Trust II and Defiance Quantum. Reducing exposure to high-cost funds could further enhance returns. Regularly review fees and consider lower-cost alternatives to optimize cost efficiency without compromising investment goals.

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.

Optimizing the portfolio using the Efficient Frontier could increase expected returns to 42.87% while maintaining the same risk level. This optimization focuses on achieving the best risk-return balance by adjusting allocations among current assets. While not a guarantee of future performance, it offers a framework for enhancing efficiency. Review the current allocation and consider adjustments to align with this optimal strategy for improved outcomes.

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