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A dividend-hungry portfolio that forgot about the rest of the investment food pyramid

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

Balanced Investors

This portfolio suits the investor who loves dividends more than a cat loves catnip, thinking they're the key to wealth. It's for someone with a risk appetite that's there, but not adventurous enough to stray far from home, preferring the familiar streets of North America. This investor is like a gardener who only waters one part of the garden; they're focused, but maybe a bit too much. They're in it for the long haul but could do with a map that shows more than their backyard.

Positions

  • Ares Capital Corporation
    ARCC - US04010L1035
    22.55%
  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    17.36%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    16.12%
  • iShares Core Dividend Growth ETF
    DGRO - US46434V6213
    12.65%
  • South Bow Corporation
    SOBO - CA83671M1059
    9.13%
  • Vanguard S&P Mid-Cap 400 Index Fund ETF Shares
    IVOO - US9219328856
    7.42%
  • Vanguard S&P Small-Cap 600 Index Fund ETF Shares
    VIOO - US9219328286
    7.40%
  • Vanguard International High Dividend Yield Index Fund ETF Shares
    VYMI - US9219467944
    7.37%

First off, this portfolio screams "I love dividends more than a kid loves candy," with a side of "what's diversification again?" The top-heavy allocation to Ares Capital Corporation and a trio of dividend ETFs is like betting on your favorite horse because it has the prettiest mane. Sure, dividends are great, but when 22.55% of your portfolio is cozied up in one stock, it's like building your castle on a cloud. It may look majestic, but one strong wind (or market downturn) could send it all tumbling down.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

With a CAGR of 15.05%, you might feel like the king of the castle, but let's not forget that past performance is as reliable as a weather forecast during a hurricane. Those three days accounting for 90% of your returns? That's not investing; that's getting lucky at a roulette table. Sure, the numbers look impressive now, but relying on a few good days is like expecting lightning to strike your lottery ticket.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations are great for stress-testing your portfolio against the financial equivalent of a zombie apocalypse, but even they can't predict the future with 100% accuracy. Your portfolio's future looks brighter than a supernova with an annualized return of 17.02% in simulations, but remember, simulations are based on historical data. They're like trying to drive forward while only looking in the rearview mirror. Intriguing, but not exactly foolproof.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%

All in on stocks, huh? This portfolio's dedication to equities is like deciding every meal will be steak because you read somewhere it's good for iron. A 100% stock allocation is great for growth (and indigestion), but it's a rocky ride without the cushion of bonds or the spice of alternative investments. Diversification across asset classes isn't just about balancing your diet; it's about not getting knocked out when the stock market decides to throw a punch.

Sectors Info

  • Financials
    35%
  • Energy
    15%
  • Technology
    12%
  • Health Care
    8%
  • Industrials
    8%
  • Consumer Staples
    7%
  • Consumer Discretionary
    7%
  • Telecommunications
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

With a third of the portfolio in Financial Services and a noticeable tilt towards Energy and Tech, it's clear where the heart lies. However, this sector love triangle means if any of these sectors catch a cold, the whole portfolio is sneezing. It's like packing your entire wardrobe for a trip with only beachwear and then being surprised when it snows. A little more variety wouldn't hurt, unless you're aiming for a portfolio that's as predictable as a soap opera plotline.

Regions Info

  • North America
    93%
  • Europe Developed
    4%
  • Japan
    1%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Australasia
    1%
  • Latin America
    0%
  • Africa/Middle East
    0%
  • Europe Emerging
    0%

North America at 93%? This portfolio's geographic diversification is as adventurous as ordering a cheeseburger at every restaurant around the globe. Sure, it's a safe bet, but you're missing out on the flavors of the world. Europe, Asia, and Australasia barely get a look in, making this the financial equivalent of never leaving your hometown. The world's a big place; your portfolio might enjoy a little vacation elsewhere.

Market capitalization Info

  • Large-cap
    47%
  • Mid-cap
    24%
  • Mega-cap
    14%
  • Small-cap
    11%
  • Micro-cap
    4%

Big, Medium, Mega, Small, Micro – it sounds like a portfolio trying to cover all bases but ends up playing it safe with the big guys. With 47% in Big caps and a timid nod to the Micro world, it's like wanting to swim in the ocean but only dipping your toes in. Sure, large caps bring stability, but the smaller end of town often brings the growth fireworks. Don't be shy; the little guys could make your portfolio's heart race.

Redundant positions Info

  • Vanguard S&P Small-Cap 600 Index Fund ETF Shares
    Vanguard S&P Mid-Cap 400 Index Fund ETF Shares
    High correlation

Ah, the joy of finding out your assets are more correlated than twins at a family reunion. The Vanguard S&P Small-Cap 600 and Mid-Cap 400 ETFs holding hands in correlation means you're not diversifying; you're just collecting similar things, like a kid with baseball cards. It's like buying two slightly different shades of blue paint and expecting one to look green. Time to spread out a bit more and truly diversify, or you're just doubling down on the same bet.

Dividends Info

  • Ares Capital Corporation 8.60%
  • iShares Core Dividend Growth ETF 2.10%
  • Vanguard S&P Mid-Cap 400 Index Fund ETF Shares 1.50%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Vanguard S&P Small-Cap 600 Index Fund ETF Shares 1.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 4.00%
  • South Bow Corporation 5.40%
  • Weighted yield (per year) 4.04%

This portfolio's dividend yield is like a siren song leading investors to rocky shores. Sure, a 4.04% yield is nothing to scoff at, but when it's heavily weighted towards one high-yield stock and a few ETFs, it's more of a one-trick pony than a well-rounded show horse. Dividends are great, but they're not the be-all and end-all. Like junk food, too much of a good thing can lead to regret.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • Vanguard S&P Mid-Cap 400 Index Fund ETF Shares 0.10%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P Small-Cap 600 Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.06%

On a brighter note, your portfolio's costs are so low it's like finding a luxury car with the maintenance costs of a bicycle. With a Total Expense Ratio (TER) of just 0.06%, at least you're not bleeding money on fees. It's the silver lining in a cloud that's otherwise raining too heavily on dividends and North American stocks. Keep it up, but maybe sprinkle some of those savings into diversifying a bit more.

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.

Your portfolio's current state is like having a map to treasure island but walking in circles because you're convinced it's the best path. The promise of a more efficient portfolio with a 25.32% expected return is dangling in front of you like a golden carrot. It's time to stop being sentimental about your picks and start being strategic. Optimization isn't just a fancy term; it's the difference between sailing towards the horizon and rowing in a kiddie pool.

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