A high-dividend yield-focused portfolio with a strong emphasis on S&P 500 ETFs

Report created on Oct 28, 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 concentrated in four Exchange-Traded Funds (ETFs) that focus on the S&P 500, with a particular emphasis on high-dividend yields. Each ETF represents a quarter of the portfolio, showcasing a strategy centered around income generation through dividends. This single-focused approach leans heavily on the performance of large-cap U.S. equities, particularly within the technology sector, which constitutes a significant portion of the portfolio. While this concentration enhances potential for high income, it also introduces specific risks associated with limited diversification across sectors and geographies.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 16.06%, with a maximum drawdown of -17.15%. These figures indicate a strong performance, particularly in the context of its balanced risk profile. It's noteworthy that a small number of days have contributed disproportionately to the portfolio's returns. This fact highlights the impact of significant market movements on performance, underscoring the importance of staying invested during volatile periods to capture potential gains.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest this portfolio has a broad spectrum of potential future performances. With all simulations showing positive returns and a median projected increase of 746.3%, these projections offer an optimistic outlook. However, it's crucial to remember that such simulations are based on past performance, which is not a reliable indicator of future results. These projections should be considered as one of many tools in assessing potential future performance.

Asset classes Info

  • Stocks
    95%
  • No data
    4%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks, with a minor allocation to unclassified assets and cash. This high allocation to equities is in line with the portfolio’s focus on generating dividend income and capital growth but comes with higher volatility and risk compared to more diversified asset allocations. The minimal diversification across asset classes could limit the portfolio’s ability to mitigate risks during market downturns.

Sectors Info

  • Technology
    32%
  • Consumer Discretionary
    11%
  • Financials
    10%
  • Telecommunications
    10%
  • Health Care
    8%
  • Consumer Staples
    8%
  • Real Estate
    7%
  • Industrials
    5%
  • Utilities
    5%
  • Energy
    3%
  • Basic Materials
    2%

With a third of the portfolio invested in technology, followed by significant allocations to consumer cyclicals and financial services, the sectoral distribution reflects a typical S&P 500 composition. This concentration in high-growth sectors can enhance returns but also increases susceptibility to sector-specific risks. The portfolio’s performance may be highly influenced by the fortunes of these sectors, particularly technology, which can be volatile.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

The geographic allocation is almost entirely focused on North America, with a nominal exposure to developed Europe. This heavy concentration on the U.S. market capitalizes on the historical strength of American corporations but limits global diversification. Expanding geographic exposure could reduce vulnerability to U.S.-specific economic downturns and take advantage of growth in other regions.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    29%
  • Mid-cap
    25%
  • Small-cap
    7%

The portfolio's exposure spans mega to small-cap stocks, with a leaning towards larger companies. This distribution suggests a balance between seeking stability from large-cap companies and pursuing growth opportunities in smaller caps. However, the emphasis on larger companies aligns with the portfolio’s focus on dividends, as these companies are often more established and have a consistent dividend-paying history.

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.

Considering the Efficient Frontier, this portfolio may benefit from optimization to achieve a better risk-return ratio. While the current allocation has performed well historically, there's potential to enhance returns or reduce risk without significantly altering the portfolio's income-generating focus. Adjustments could involve diversifying across more asset classes or sectors, or rebalancing the geographic exposure to include emerging markets or other developed regions.

Dividends Info

  • JPMorgan Nasdaq Equity Premium Income ETF 10.10%
  • SPDR® Portfolio S&P 500 High Dividend ETF 4.50%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 11.60%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 6.82%

The portfolio’s dividend yield is notably high, driven by the selection of ETFs known for their income-generating capabilities. This focus on dividends is advantageous for income-seeking investors but should be balanced with the consideration of total return, factoring in both income and capital appreciation. Dividend strategies can provide a steady income stream but may also lead to overweighting in certain sectors or companies.

Ongoing product costs Info

  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • SPDR® Portfolio S&P 500 High Dividend ETF 0.07%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.28%

The Total Expense Ratio (TER) of 0.28% is relatively low, enhancing the net return potential of the portfolio. Costs are a crucial factor in long-term performance, and maintaining low investment costs is beneficial. The variance in individual ETF costs, from 0.03% to 0.68%, suggests an opportunity to review and possibly reallocate towards more cost-efficient options without compromising strategic objectives.

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