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Yield-chasing real estate junkie portfolio flirting a little too hard with stomach-churning drawdowns

Report created on Mar 24, 2026

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This thing isn’t a portfolio; it’s a REIT fan club with a couple of ETFs duct-taped on for optics. Over 70% sits in just five individual names, all in the same general corner of the market. That’s less “diversified portfolio” and more “if this niche cracks, everything cracks together.” It looks like someone sorted for high yield, squinted at the tickers, and called it a strategy. The structure screams income obsession with almost zero Plan B. Takeaway: if most of the money depends on one theme behaving, that’s not diversification, that’s just themed gambling in a nicer font.

Growth Info

Performance since 2017 is the investing equivalent of doing hard mode for no extra reward. A 9.0% CAGR sounds okay until it’s stacked against the US market at 13.6% and global at 10.5%. You took way more pain for less gain, with a brutal max drawdown of -56% versus about -34% for broad markets. That’s “half your money gone on paper” territory. And 90% of returns came from just 8 days, so missing a tiny handful of good days would wreck results. Past data is like yesterday’s weather: informative, but clearly this forecast is “stormy with extra drama.”

Projection Info

Monte Carlo simulation is basically running your portfolio through a thousand alternate universes to see how often it blows up. Here, the median outcome over 10 years looks decent at +148%, and the average simulated return (about 11.8%) is actually higher than realized history. But the 5th percentile at -65% is ugly: that’s “retirement gets delayed and you get a side gig” bad. Simulations lean on past behavior, which is cute until the future refuses to cooperate. Takeaway: you’re holding a portfolio that can deliver nice upside but also has real potential for nasty, long-lasting drawdowns if things go off-script.

Asset classes Info

  • Stocks
    100%

Asset classes: 100% stock, zero anything else. That’s it. No bonds, no cash buffer, no other stabilizers — just pure equity rollercoaster. For a growth profile, leaning into stocks is normal, but this is more like shrugging at volatility and saying, “Hit me again.” The problem isn’t just being all-equity; it’s being all-equity in one corner of the equity world. When markets wobble, everything here wobbles together, and there’s nothing in the mix whose job is “be boring while everything else screams.” Takeaway: if you want smoother rides, some chunk of the portfolio usually has to be intentionally boring.

Sectors Info

  • Real Estate
    78%
  • Financials
    14%
  • Energy
    3%
  • Industrials
    1%
  • Basic Materials
    1%
  • Consumer Discretionary
    1%
  • Consumer Staples
    1%
  • Health Care
    1%

Sector exposure screams “I only invest in what sends me a monthly or chunky check.” Real estate dominates at 78%, financial services adds 14%, and everything else is background noise pretending to be diversification. Sprinkle of energy and a one-percent tourist allocation to other sectors doesn’t change that the portfolio is basically a levered bet on property and lending. If that ecosystem hurts — higher rates, credit stress, weak tenants — multiple holdings suffer at once. Takeaway: real diversification means having different engines of return, not ten versions of the same economic story wearing different tickers.

Regions Info

  • North America
    92%
  • Europe Developed
    4%
  • Japan
    1%
  • Asia Developed
    1%
  • Australasia
    1%
  • Asia Emerging
    1%

Geographically, this is a proud homebody: about 92% in North America and tiny slivers elsewhere just to look worldly. A couple of international ETFs are like putting a global sticker on a very local suitcase. When the US and its close economic cousins struggle, this pile is going down with them, because the tiny allocations to Europe, Japan, and emerging Asia are too small to matter. On the positive side, at least the foreign exposure isn’t wildly random; it loosely tracks broad markets. Takeaway: “global” isn’t 90%+ in one region with a side salad of overseas.

Market capitalization Info

  • Small-cap
    33%
  • Mid-cap
    33%
  • Large-cap
    28%
  • Mega-cap
    5%

Market cap spread is actually one of the few half-sane things here: roughly a third each in small and mid caps, under a third in large, and a tiny touch of mega caps. The tilt toward smaller companies does explain part of the bumpiness, though — smaller and mid-sized names swing harder when sentiment or rates move. It’s like choosing a bus where half the passengers are calm adults and half are hyper kids on sugar: you’ll still get to the destination, but not quietly. Takeaway: size balance is decent, but adding this on top of niche sector bets magnifies volatility.

True holdings Info

  • Realty Income Corporation
    12.61%
    Part of fund(s):
    • iShares Global REIT ETF
    Direct holding 12.50%
  • Starwood Property Trust Inc
    11.70%
  • VICI Properties Inc
    11.56%
    Part of fund(s):
    • iShares Global REIT ETF
    Direct holding 11.50%
  • Gladstone Commercial Corporation
    11.30%
  • EPR Properties
    11.11%
    Part of fund(s):
    • iShares Core MSCI EAFE ETF
    • iShares Global REIT ETF
    Direct holding 11.10%
  • Main Street Capital Corporation
    6.70%
  • LTC Properties Inc
    6.60%
    Part of fund(s):
    • iShares Global REIT ETF
    Direct holding 6.60%
  • Gladstone Land Corporation
    5.10%
  • Ellington Financial Inc.
    4.90%
  • Gladstone Capital Corporation
    4.70%
  • Top 10 total 86.28%

The look-through holdings basically confirm the obvious: it’s the same cast of characters over and over. Those ETFs barely change the story; Realty Income, VICI, and EPR are already massive direct positions and then quietly reappear in the ETFs for a tiny bonus dose of concentration. Overlap may even be worse than it looks since only the top 10 ETF holdings are counted. This is like trying to diversify your diet by ordering three different burgers from the same fast-food place. Takeaway: when the same names appear directly and via funds, risk piles up even if it looks like “lots of positions.”

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 93%
Size
Exposure to smaller companies
Neutral
Data availability: 87%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
High
Data availability: 86%
Yield
Preference for dividend-paying stocks
Very high
Data availability: 93%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 100%

The factor profile is unintentionally very on-brand: maxed-out yield (97.7%), strong quality and low volatility tilts, plus decent value and size. Factor exposure is basically the ingredient list: this one reads “high yield with a side of supposedly safer and cheaper stuff.” Yield + low vol + quality is actually a semi-respectable recipe — if it weren’t being deployed in a narrow, rate-sensitive niche. The momentum tilt is weaker, so you’re not exactly chasing what’s hot. Takeaway: the factor mix itself isn’t crazy; the problem is you poured all those fancy ingredients into one fragile sector casserole.

Risk contribution Info

  • EPR Properties
    Weight: 11.10%
    17.2%
  • Gladstone Commercial Corporation
    Weight: 11.30%
    13.0%
  • Starwood Property Trust Inc
    Weight: 11.70%
    12.3%
  • Realty Income Corporation
    Weight: 12.50%
    11.4%
  • VICI Properties Inc
    Weight: 11.50%
    11.2%
  • Top 5 risk contribution 65.1%

Risk contribution is the “who’s actually rocking the boat” metric, and a few names are throwing elbows. EPR at 11% weight is delivering 17% of total risk — that’s a risk-to-weight ratio of 1.55, basically an overcaffeinated holding. The top three positions alone drive over 42% of portfolio volatility. Realty Income at least behaves a bit better, contributing slightly less risk than its weight. This setup means a bad headline in just one or two names can dominate portfolio performance. Takeaway: trimming the worst offenders or capping single-name weights is how you make sure one holding doesn’t hijack the ride.

Redundant positions Info

  • iShares Core MSCI EAFE ETF
    Vanguard International High Dividend Yield Index Fund ETF Shares
    High correlation

Correlation is how similarly things move — if everything jumps and falls together, you’re not diversified, you’re just holding many copies of the same emotional experience. The ETFs that are supposed to “diversify” you, like the international dividend fund and the EAFE ETF, are highly correlated with each other and broadly tied to the same risk drivers as your core holdings. So when markets panic or yield-sensitive stuff sells off, these positions likely don’t step in as heroes; they just join the drama. Takeaway: true diversification means owning things that sometimes behave awkwardly different, not clones wearing different logos.

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.

Risk vs. return paints a perfect “good ingredients, messy recipe” story. You sit on the efficient frontier, so the mix of holdings isn’t totally irrational — you’re not leaving obvious free lunch on the table. But you’re not at the optimal point either: current Sharpe ratio is 0.36, while the best achievable with these same holdings is 0.59 at lower risk and higher return. That’s like driving a decent car badly tuned. The same-risk optimized portfolio could push returns way up but at almost insane volatility. Takeaway: smarter reweighting within what you already own could squeeze more reward from the same basic menu.

Dividends Info

  • Ellington Financial Inc. 12.40%
  • EPR Properties 7.00%
  • Gladstone Capital Corporation 10.70%
  • Gladstone Commercial Corporation 9.80%
  • iShares Core MSCI EAFE ETF 3.60%
  • Gladstone Land Corporation 5.00%
  • LTC Properties Inc 5.60%
  • Main Street Capital Corporation 7.20%
  • Realty Income Corporation 5.30%
  • iShares Global REIT ETF 3.70%
  • Starwood Property Trust Inc 11.10%
  • VICI Properties Inc 4.90%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 3.70%
  • Energy Select Sector SPDR® Fund 2.40%
  • Weighted yield (per year) 7.11%

This portfolio is loudly screaming “PAY ME NOW.” A 7.1% total yield is serious income territory, with some names sporting double-digit payouts. That’s great until you remember ultra-high yield can be a distress signal, not a gift. Chasing yield is like dating solely based on looks: fun until the baggage arrives. There’s also reinvestment risk — if payouts get cut, you’re left with a bruised price and lower income. Takeaway: income is fine as a goal, but when yield gets this high across the board, it’s worth asking whether the risk side of the equation is getting enough attention.

Ongoing product costs Info

  • iShares Core MSCI EAFE ETF 0.07%
  • iShares Global REIT ETF 0.14%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Energy Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.02%

On costs, you somehow threaded the needle: total TER around 0.02% is absurdly low. That’s “did the system glitch?” territory. The ETFs are all cheap, and most of the portfolio is in individual stocks anyway, which don’t have ongoing fund fees. So in a rare twist, fees are not the villain here — you’re not leaking money through costs; you’re stressing the portfolio through concentration and sector bets instead. Takeaway: costs are clean and efficient; the drag on returns has come from what you own, not how much you’re being charged to own it.

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