In building a custom DIY ETF portfolio to outperform the S&P 500 over the next decade, it's essential to understand that simply tracking the index isn’t enough. Based on Goldman Sachs' projection that the S&P 500 could reach 8,000 by 2026 due to roughly 25% EPS growth driven by AI infrastructure, beating this benchmark requires focused, conviction-driven investment decisions across carefully selected holdings. My 3-layer portfolio approach involves diversifying allocations into three key categories: high-growth sectors propelled by technology and AI innovation, stable dividend-paying companies to create consistent income streams targeting $12K in dividends by 2027, and select contrarian positions to capture undervalued opportunities that traditional indexes might overlook. One critical aspect is concentration rather than broad market exposure. While index funds provide convenience, a concentrated portfolio allows for more efficient capital deployment toward companies with strong growth potential and dividend consistency. For example, integrating companies that align with megatrends such as AI infrastructure leverages the anticipated earnings surge and market expansion. Additionally, it's important to use tax-advantaged accounts like RRSPs to maximize compounding benefits, especially over a 10+ year horizon. Monitoring capital needs and adjusting allocations based on market conditions—such as evaluating current case versus bear case scenarios—helps maintain alignment with long-term goals. From personal experience, actively managing a DIY ETF requires commitment to research and reassessment but can be very rewarding. Constructing a blueprint that blends growth, income, and value while maintaining flexibility has enabled me to outperform passive benchmarks and build a more resilient portfolio tailored to my financial objectives. Achieving the dual mandate of beating the S&P 500 and generating meaningful dividend income is challenging but achievable with disciplined execution and market insight.