Overview • The pie consists of 5 holdings, each making up 20% of the total, showing an equal weight distribution. • It has a relatively high overall risk level, indicated by a beta of 1.19, meaning it tends to move more than the market. • The pie shows a strong average annual return of 20%, with a moderate risk-adjusted return (Sharpe ratio) of 0.40. • The price-to-earnings ratio is quite high at 89.31, suggesting the pie includes growth-focused investments. • Dividend yield is attractive at 7.23%, indicating a good income component.
Exposure & balance • The pie is evenly split across five sectors: Technology, Consumer Cyclical, Financial, Communications, and Other (an ETF tracking the S&P 500). • Each sector contributes equally, providing some diversification across industries. • Holdings include high-growth stocks like Tesla and Nvidia, a high-dividend REIT (Dynex Capital), a telecommunications company (Vodafone), and a broad market ETF (Vanguard S&P 500). • This mix balances growth potential with income from dividends, but leans towards higher risk due to growth stocks and sector choices.
Strengths • Equal weighting across five different sectors helps spread risk and avoids over-concentration in one area. • Including a broad market ETF adds stability and exposure to a wide range of companies. • The presence of high dividend yield stocks like Dynex Capital and Vodafone provides steady income. • Growth-oriented stocks like Tesla and Nvidia offer potential for strong capital gains. • The pie's beta of 1.19 suggests it can capture market upside while offering some diversification benefits.
Considerations • The pie is concentrated in only five holdings, which can increase risk if any single holding performs poorly. • High price-to-earnings ratios, especially Tesla's 323.41, indicate expensive valuations that may be vulnerable to market corrections. • The pie's beta above 1 means it may experience larger swings than the overall market, which could be challenging for risk-averse investors. • Some holdings have high volatility and implied volatility, suggesting price swings can be significant. • Currency and liquidity risks may arise from international holdings like Vodafone and Dynex Capital. • The pie's dividend yield is boosted by a few high-yield stocks, which may carry additional risks compared to more balanced income sources.
Summary • This pie offers a blend of growth and income through an equal mix of five holdings across different sectors. • It aims for strong returns with a higher risk profile, suitable for investors comfortable with market fluctuations. • The inclusion of a broad market ETF provides some balance against more volatile individual stocks. • While the pie has attractive income features, its concentration and high valuations suggest careful monitoring is needed. • Overall, it is a focused, growth-tilted pie with income elements, sensitive to market movements and individual stock performance.