A growth-oriented portfolio with a focus on the S&P 500, gold, and long-term treasuries

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

Growth Investors

This portfolio is suited for an investor with a growth-oriented profile, willing to accept higher levels of risk for the potential of substantial returns. The inclusion of gold and long-term treasuries indicates a preference for hedging against market volatility, making it ideal for someone with a medium to long-term investment horizon who can tolerate significant fluctuations in portfolio value.

Positions

  • ProShares Ultra S&P500
    SSO - US74347R1077
    60.00%
  • SPDR® Gold Shares
    GLD - US78463V1070
    20.00%
  • PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund
    ZROZ - US72201R8824
    20.00%

This portfolio is heavily weighted towards the ProShares Ultra S&P500 ETF, making up 60% of the allocation, followed by equal 20% positions in SPDR® Gold Shares and PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF. This composition reflects a growth-focused strategy with a hedge against market volatility through gold and bonds. The significant tilt towards a leveraged ETF suggests a higher risk tolerance, aiming for amplified returns from the stock market's movements.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 18.94%, with a maximum drawdown of -43.02%. These figures indicate a high-reward, high-risk profile, as evidenced by the substantial drawdown during adverse market conditions. The days contributing to 90% of the returns being limited to 34 suggests that the portfolio's performance is heavily reliant on short, significant market movements.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, show a wide range of outcomes for this portfolio. The median projection suggests a 314.8% return, with a 5th percentile outcome at a -26.0% loss. While these simulations provide a broad view of potential future states, it's crucial to remember that they rely on past data, which doesn't guarantee future results.

Asset classes Info

  • Stocks
    51%
  • Other
    21%
  • Bonds
    20%
  • Cash
    8%

The asset class distribution leans heavily towards stocks (51%), with significant positions in 'other' (21%)—presumably gold—and bonds (20%). This allocation supports the growth orientation but with a conservative tilt through the inclusion of gold and bonds, potentially cushioning against stock market volatility.

Sectors Info

  • Technology
    21%
  • Financials
    8%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Health Care
    5%
  • Industrials
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

The sectoral breakdown within the stock portion is diversified, led by technology (21%), financial services (8%), and consumer cyclicals (7%). This diversification can help mitigate sector-specific risks, but the heavy emphasis on technology may increase sensitivity to market fluctuations in this sector.

Regions Info

  • North America
    60%
  • Europe Developed
    0%

Geographic exposure is predominantly North American (60%), with no allocation to developed European markets. This concentration enhances exposure to the US economy's growth potential but reduces diversification benefits that international markets might offer.

Market capitalization Info

  • Mega-cap
    22%
  • Unknown
    20%
  • Large-cap
    16%
  • Mid-cap
    8%
  • Small-cap
    0%

The market capitalization exposure is varied, with a significant portion in mega-cap (22%) and unknown (20%), likely reflecting the gold and bond ETFs. This mix suggests a balance between stability offered by large-cap companies and the higher risk-reward profile of less transparent investments.

Dividends Info

  • ProShares Ultra S&P500 0.70%
  • PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund 4.60%
  • Weighted yield (per year) 1.34%

The portfolio's dividend yield is modest, with a total yield of 1.34%. The high yield from the PIMCO ETF (4.60%) suggests an income-generating component, balancing the lower yield (0.70%) from the leveraged S&P 500 position. This mix supports the portfolio's growth focus while providing some income.

Ongoing product costs Info

  • SPDR® Gold Shares 0.40%
  • ProShares Ultra S&P500 0.91%
  • PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund 0.15%
  • Weighted costs total (per year) 0.66%

The total expense ratio (TER) of 0.66% is within a reasonable range, considering the inclusion of specialized ETFs. However, the higher cost of the leveraged S&P 500 ETF (0.91%) suggests a trade-off between potential higher returns and increased costs.

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.

Considering the Efficient Frontier, this portfolio may not be fully optimized for the best risk-return ratio due to its heavy reliance on a leveraged ETF and significant positions in gold and long-term treasuries. Adjusting the allocation could potentially enhance returns for the same level of risk or reduce risk without significantly compromising returns.

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