Background Info: I have $1,225 to invest and I want to at least beat the market. I am using fidelity so I can do fractional shares. (I'm afraid from using fidelity exclusive ETF's as I heard you can't really swap them over to other brokerages and would have to sell them instead. I probably won't for at least the next 10 years as I am young but one can never be too prepared.)
I've been researching a little and I wanted to create a set of ETF's that would "balance" each other out and not correlate so heavily while still having good earnings. This way if one sector did bad the other sectors would even out the losses and generally end the day with a slight loss or gain.
I used AI to run calculations on it and it beat the S&P500 within the last 10 years (I didn't run any calculations before 10 years) and had a lower drawdown as a whole. The correlation within the portfolio are in their own "branch" where SPMO, VTV, IGM, and AVUV are correlated in their own branch. IMTM and AIRR would correlate loosely in their own branch, and then XHLD and XME would correlate loosely as well. Lastly, I have EMLC as a high yield dividend bond ETF where I can use the little dividends it provides to reinvest dips.
Would this be good for the year of 2026? I know past performance isn't a prediction of the future but based on the news it should do decent and I'm assuming the market will go up.
All in all, is this a good strat or am I overcomplicating things and should just VOO and chill. (or VTI/VT to not disrespect others who believe this is the way instead.)