This past weekend I had some great conversations with ChatGPT on building some model investment portfolios based on some specific criteria. Long time readers know that I primarily invest in equities/ETFs that have options on them so I can hedge or generate additional income from options trading. With that in mind, I asked ChatGPT to build two portfolios, one for someone in retirement and one for someone young with a long time horizon. Keep in mind that this portfolio focuses only on ETFs that trade options.
The answer below is for an investment model for 25 year olds
3️⃣ Model Portfolio Construction
(Using ETFs present in or consistent with the original file)
Tier A – Growth Core (55%)
| ETF | Weight | Rationale |
|---|---|---|
| SPY | 25% | Core market exposure; captures broad economic growth |
| QQQ | 30% | Structural tilt toward innovation, tech, and productivity |
📈 QQQ overweight is intentional — over 40 years, growth factor dominance matters more than drawdowns.
Tier B – Growth Accelerators (30%)
| ETF | Weight | Rationale |
|---|---|---|
| IWM | 15% | Small-cap premium over long horizons |
| SMH | 10% | Semiconductors = backbone of AI, automation, compute |
| ARKK | 5% | High-risk / high-reward innovation sleeve |
🚀 This tier will be volatile and periodically painful — but it’s where outsized upside originates.
Tier C – Asymmetric Growth (15%)
| ETF | Weight | Rationale |
|---|---|---|
| IBIT | 10% | Bitcoin adoption curve + fixed supply |
| GLD | 5% | Monetary hedge; optionality against fiat debasement |
🧠 This sleeve is about non-linear payoff, not correlation smoothing.
4️⃣ Final Portfolio Snapshot
| Asset Class | Weight |
|---|---|
| US Large-Cap Growth | 55% |
| US Small / Thematic Growth | 30% |
| Asymmetric / Alternative | 15% |
| Bonds / Cash | 0% |
✔️ Fully aligned with 40-year horizon
✔️ Designed to outperform inflation dramatically
✔️ Drawdowns accepted as temporary, not risks
5️⃣ Expected Behavior (Important)
During Bull Markets
- Portfolio likely outperforms SPY
- QQQ + SMH + IBIT drive returns
During Bear Markets
- Drawdowns of -40% to -60% are possible
- No forced selling, no defensive ballast
- Rebalancing is the advantage
Over 40 Years
- Volatility becomes irrelevant
- CAGR dominates outcomes
- Biggest risk = being underinvested in growth
6️⃣ Rebalancing Rules (Critical for Success)
To make this work psychologically and mathematically:
- Annual rebalance only
- Rebalance toward worst performers
- Never reduce Tier C during crashes
- No market timing, no volatility targeting
Final Thought (Advisor-Level)
For a 25-year-old, risk is not volatility — risk is missing compounding decades.
This portfolio is intentionally aggressive because time is the hedge.
My Thoughts
I like the portfolio, most of the options traded on the market today on ETFs are SPY, IWM and QQQ. GLD is hot right now as is SLV and bitcoin seems to be a staple one should have in their portfolio (for now). I don’t like ARKK personally and would probably substitute more GLD, SLV or even CPER but that’s me.
The best part of this portfolio is that it can be hedged with options so during recessions or economic downturns, puts or calls can be traded for additional income or minimizing losses.
Share The Wealth
Have you built a model portfolio yet with AI and your circumstances? Let me know in the comments below!