This portfolio has only about 1.6 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.

Balanced portfolio with high income ETFs and a focus on US large-cap stocks

Report created on Aug 19, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio predominantly consists of U.S. large-cap and high-income ETFs, with a significant tilt towards technology. With 99% in stocks and a mere 1% in cash, it leans heavily on equity for growth and income generation. The diversification is moderate, primarily within the U.S., which reflects a focus on domestic markets over global exposure. The asset allocation shows a preference for mega and big-cap companies, which may offer stability but limits exposure to potentially higher-growth small and micro-cap sectors.

Growth Info

Historically, this portfolio has shown a compelling Compound Annual Growth Rate (CAGR) of 19.12%, with a maximum drawdown of -19.09%. While these figures suggest strong past performance and resilience during market downturns, it's essential to remember that past performance is not indicative of future results. The days contributing most to returns highlight the portfolio's vulnerability to significant market movements, underscoring the importance of understanding the risks associated with high-growth strategies.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 947.6%. While these projections are based on historical data and provide a broad view of potential future performance, they should not be the sole basis for investment decisions. The wide variance in simulation outcomes also highlights the inherent uncertainty in predicting stock market performance, emphasizing the need for a diversified and balanced approach to mitigate risk.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset class allocation, heavily skewed towards stocks, aligns with its growth and income objectives. However, the lack of bonds or alternative investments might increase volatility and risk. Diversifying across more asset classes could provide a buffer against market fluctuations, potentially smoothing out returns over time without significantly compromising growth prospects.

Sectors Info

  • Technology
    41%
  • Telecommunications
    12%
  • Consumer Discretionary
    11%
  • Financials
    8%
  • Health Care
    8%
  • Industrials
    6%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

The sector allocation reveals a heavy concentration in technology, which, while offering substantial growth potential, also increases susceptibility to sector-specific downturns. The underrepresentation of sectors like real estate and utilities, traditionally seen as more stable, could be a missed opportunity for risk mitigation and income diversification.

Regions Info

  • North America
    96%
  • Europe Developed
    3%
  • Japan
    1%

Geographically, the portfolio's concentration in North America, particularly the U.S., exposes it to regional economic and market risks. Expanding into developed European and emerging markets could offer broader diversification, potentially reducing volatility and tapping into growth opportunities outside the U.S.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    2%

The focus on mega and big-cap stocks provides a foundation of stability and liquidity. However, the limited exposure to medium, small, and micro-cap stocks may restrict the portfolio's ability to capitalize on the higher growth rates often found in these segments. Balancing market cap exposure could enhance return potential while managing risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    NEOS Nasdaq 100 High Income ETF
    Schwab U.S. Large-Cap ETF
    Goldman Sachs S&P 500 Core Premium Income ETF
    SHP ETF Trust - NEOS S&P 500 High Income ETF
    Goldman Sachs Nasdaq-100 Core Premium Income ETF
    High correlation

The high correlation among the portfolio's core holdings, particularly within U.S. large-cap ETFs, limits diversification benefits. This redundancy not only increases risk but also diminishes the potential for outperformance. Reducing overlap by reallocating investments into less correlated assets could improve the portfolio's overall risk-adjusted returns.

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.

Optimizing the portfolio involves reducing the high correlation among its holdings, which currently do not add diversification benefits. By reallocating assets towards less correlated, potentially undervalued sectors or geographies, the portfolio could achieve a more efficient risk-return profile, closer to the Efficient Frontier.

Dividends Info

  • Goldman Sachs Nasdaq-100 Core Premium Income ETF 10.00%
  • Goldman Sachs S&P 500 Core Premium Income ETF 8.20%
  • NEOS Nasdaq 100 High Income ETF 13.80%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab International Equity ETF 2.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Schwab U.S. Large-Cap ETF 1.10%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 11.90%
  • Weighted yield (per year) 6.16%

The portfolio's focus on high-income ETFs results in a substantial dividend yield, contributing to its attractiveness for income-seeking investors. However, the emphasis on income generation through dividends should be balanced with growth considerations and the potential tax implications of high dividend yields.

Ongoing product costs Info

  • Goldman Sachs Nasdaq-100 Core Premium Income ETF 0.29%
  • Goldman Sachs S&P 500 Core Premium Income ETF 0.29%
  • NEOS Nasdaq 100 High Income ETF 0.68%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Schwab U.S. Large-Cap ETF 0.03%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • Weighted costs total (per year) 0.27%

With a Total Expense Ratio (TER) averaging 0.27%, the portfolio is relatively cost-efficient, which is crucial for maximizing long-term returns. While some ETFs have higher expense ratios, their inclusion seems justified by specific strategy or income objectives. Continuously monitoring and optimizing for cost efficiency, however, remains essential.

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