A tech-focused equity portfolio with high dividend yield and moderate risk

Report created on Aug 18, 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 predominantly invests in large-cap US equities through ETFs, with a notable concentration in the technology sector. The allocation includes 34.29% in JPMorgan Nasdaq Equity Premium Income ETF, 22.32% in Invesco NASDAQ 100 ETF, 21.70% in Vanguard S&P 500 ETF, and 21.69% in iShares Core Dividend Growth ETF. This composition suggests a strategy focused on generating income while maintaining growth potential, particularly through exposure to the tech industry.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.51%, with a maximum drawdown of -19.29%. This performance indicates a strong growth trajectory, albeit with significant volatility. The concentration in high-growth sectors like technology may contribute to these fluctuations, emphasizing the need for a balanced approach to risk management.

Projection Info

Monte Carlo simulations, based on 1,000 iterations, predict a wide range of outcomes, with a median portfolio value increase of 663%. Such projections, while optimistic, should be approached with caution, as they rely on historical data that may not accurately predict future market conditions. Diversification beyond highly correlated assets could mitigate risks not captured in these simulations.

Asset classes Info

  • Stocks
    94%
  • No data
    5%

The portfolio's asset allocation is heavily skewed towards stocks (94%), with a small portion not classified (5%) and negligible cash holdings. This high equity exposure aligns with the portfolio’s growth-oriented strategy but also increases its sensitivity to market volatility. A more diversified asset class allocation could provide better risk-adjusted returns.

Sectors Info

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

The sectoral allocation reveals a significant emphasis on technology (41%), followed by consumer cyclicals and communication services. While this sector concentration has likely fueled the portfolio's strong performance, it also increases vulnerability to sector-specific downturns. Broadening the sectoral distribution could enhance stability.

Regions Info

  • North America
    98%
  • Europe Developed
    1%

Geographically, the portfolio is heavily concentrated in North America (98%), with minimal exposure to other regions. This focus on the US market has historically offered robust growth opportunities but also entails geographic risk. Increasing international diversification could capture growth in emerging markets and reduce potential volatility.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    35%
  • Mid-cap
    14%
  • Small-cap
    1%

The market capitalization breakdown shows a preference for mega (44%) and big-cap (35%) companies, indicative of a conservative approach within the equity allocation. However, incorporating more medium, small, or micro-cap stocks could improve diversification and potentially enhance returns by capturing the growth of smaller companies.

Redundant positions Info

  • Vanguard S&P 500 ETF
    JPMorgan Nasdaq Equity Premium Income ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation among the ETFs focused on the S&P 500, Nasdaq, and dividend growth suggests limited diversification benefits. This redundancy can amplify risks during market downturns. Reallocating assets to less correlated investments could reduce portfolio volatility without significantly sacrificing 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.

The portfolio's current composition, while strong in certain aspects, could benefit from optimization to reduce overlap and enhance diversification. Employing the Efficient Frontier concept could identify a mix of assets that offers the best possible return for a given level of risk, potentially improving the portfolio's risk-adjusted performance.

Dividends Info

  • iShares Core Dividend Growth ETF 2.10%
  • JPMorgan Nasdaq Equity Premium Income ETF 11.10%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 4.63%

The portfolio's dividend yield stands at 4.63%, bolstered by the JPMorgan Nasdaq Equity Premium Income ETF's 11.10% yield. This focus on dividend income is advantageous for investors seeking regular income streams. However, it's important to balance yield-seeking with growth potential and risk management.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.18%

With an average Total Expense Ratio (TER) of 0.18%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This efficiency is commendable, as lower costs can significantly enhance long-term investment outcomes.

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