Three fund stock portfolio mixing US dividends US growth and international shares with moderate diversification
Report created on Apr 28, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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SC Schwab International Equity ETF
SCHF - US8085248057 34.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 33.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 33.00%
This portfolio is a simple three‑ETF, 100% stock setup split almost evenly between US dividend stocks, US large‑cap growth, and international equities. That makes it very easy to understand and maintain, with each fund playing a clear role: income, growth, and global diversification. A structure like this ties results closely to stock market behavior rather than cash or bonds. The balanced split across the three funds helps avoid having any single ETF dominate overall outcomes. This allocation is well-balanced across its building blocks and aligns closely with common broad equity mixes that blend domestic and international markets while combining different styles of stock investing.
Growth
From 2016 to 2026, a $1,000 investment in this portfolio grew to about $3,673, which works out to a 13.96% Compound Annual Growth Rate (CAGR). CAGR is like average speed on a road trip, smoothing out ups and downs to show long‑run pace. Over this period, the portfolio slightly lagged the broad US market by about 1% per year but outpaced the global market by about 1.7% per year. Its worst drop, or max drawdown, was about -33%, very similar to major benchmarks. That pattern suggests the portfolio has behaved like a mainstream equity mix, with strong long‑term growth and stock‑like downside during stress.
Projection
The forward projection uses a Monte Carlo simulation, which is basically a thousand “what if” replays of the future using past return and volatility patterns as inputs. For a $1,000 starting amount over 15 years, the median outcome lands around $2,705, with most simulations falling between about $1,736 and $4,039. The average annual return across simulations is 7.87%, and roughly 72% of paths end with a positive result. These numbers are not forecasts or guarantees; they just illustrate a wide range of plausible futures if markets behave roughly like their historical record. Real‑world results could end up outside even the 5–95% range shown.
Asset classes
- Stocks 100%
All of this portfolio sits in one asset class: stocks. There are no bonds, cash, or alternative assets in the mix. That means the portfolio’s ups and downs are driven entirely by equity markets, with little built‑in cushion from traditionally steadier assets. A 100% stock allocation can deliver strong long‑term growth but usually comes with larger short‑term swings and deeper drawdowns. Compared with many blended benchmarks that mix in bonds, this portfolio leans more toward growth‑oriented behavior than capital preservation. The “Balanced” risk label here refers more to the mix of equity styles and regions than to a blend of stocks and bonds.
Sectors
- Technology 25%
- Financials 14%
- Health Care 11%
- Industrials 11%
- Consumer Staples 9%
- Consumer Discretionary 9%
- Telecommunications 9%
- Energy 7%
- Basic Materials 3%
- Utilities 1%
- Real Estate 1%
Sector exposure is reasonably spread out, with technology at 25% and no other sector above 14%. Financials, health care, and industrials each sit around the low‑teens, while consumer areas and telecommunications cluster in the high‑single digits. Smaller slices in energy, materials, utilities, and real estate round out the picture. This layout broadly resembles large, diversified equity benchmarks, which is a strong indicator of sector diversification. A modest tilt toward technology can increase sensitivity to innovation cycles and interest‑rate moves, while the solid presence of more defensive areas like consumer staples and health care can soften some sector‑specific shocks.
Regions
- North America 70%
- Europe Developed 17%
- Japan 7%
- Asia Developed 4%
- Australasia 2%
Geographically, about 70% of the portfolio is in North America, with the rest spread across developed markets such as Europe, Japan, other developed Asia, and Australasia. This creates a clear home‑country tilt toward the US while still keeping roughly 30% outside North America. Compared with global market indices, which generally have somewhat lower US weights, this portfolio is more anchored to one economy and currency. That can help when the US market leads but reduces diversification if other regions outperform. The presence of several developed regions still helps dilute single‑country risk and brings in different economic and policy environments.
Market capitalization
- Large-cap 44%
- Mega-cap 38%
- Mid-cap 15%
- Small-cap 1%
Most holdings sit in the largest companies: 38% mega‑cap and 44% large‑cap, with 15% in mid‑caps and only 1% in small‑caps. Market capitalization simply measures company size by stock market value. This pattern closely mirrors broad index behavior, where the biggest companies dominate total market value. Heavy large‑ and mega‑cap exposure tends to mean more stable business models, stronger balance sheets, and higher liquidity, which can reduce extreme volatility compared with a small‑cap tilt. The modest mid‑cap slice adds some room for faster growth without turning the portfolio into a small‑company‑driven strategy.
True holdings
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NV NVIDIA Corporation 3.95%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AA Apple Inc 3.27%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 2.52%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 2.03%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
TX Texas Instruments Incorporated 1.85%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AV Broadcom Inc 1.62%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
UN UnitedHealth Group Incorporated 1.61%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
GO Alphabet Inc Class A 1.61%
Part of fund(s):- Schwab U.S. Large-Cap Growth ETF
-
CV Chevron Corp 1.34%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
CO ConocoPhillips 1.30%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 21.11%
Looking through to the top holdings across the ETFs, a handful of big names show up prominently, including NVIDIA, Apple, Microsoft, Amazon, and Alphabet. NVIDIA alone is about 4% of the portfolio, with Apple over 3% and several others between 1.5–2%. Because some of these companies may appear in multiple funds, they create hidden concentration that’s not obvious from the three‑ETF list. Overlap data only covers ETF top‑10 holdings, so total duplication is likely higher than shown. This kind of overlap means that the portfolio’s fortunes are meaningfully tied to a relatively small set of global mega‑cap leaders.
Factors
Factor exposure is mostly neutral, with one notable feature: a higher exposure to the yield factor at 64%. Factors are like investing “ingredients” — characteristics such as value, momentum, or yield that research links to long‑term return patterns. A high yield tilt usually comes from stocks that pay above‑average dividends and can sometimes be more mature, cash‑generating businesses. The portfolio’s yield tilt comes largely from the dedicated dividend ETF and is balanced by the growth and international funds. Other factors such as value, size, momentum, quality, and low volatility sit close to market‑like levels, suggesting a broadly balanced style mix.
Risk contribution
-
Schwab U.S. Large-Cap Growth ETF
Weight: 33.00% 38.8% -
Schwab International Equity ETF
Weight: 34.00% 31.9% -
Schwab U.S. Dividend Equity ETF
Weight: 33.00% 29.3%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the US Large‑Cap Growth ETF is 33% of the assets but contributes almost 39% of the risk, reflecting its more volatile nature. The international and US dividend ETFs each contribute slightly less risk than their weights, at around 32% and 29% of total risk, respectively. This means day‑to‑day and year‑to‑year swings are disproportionately influenced by the growth sleeve, even though all three funds are similarly sized. The risk distribution is still fairly balanced overall, with no single ETF dominating completely.
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.
Click on the colored dots to explore allocations.
The risk‑return chart shows the current portfolio sitting on or very close to the efficient frontier, which is the curve of best achievable returns for each risk level using these specific holdings. The Sharpe ratio, a measure of risk‑adjusted return, is 0.61 for the current mix, compared with 0.85 for the optimal weighting and 0.69 for the minimum‑variance blend. That indicates there is some room, in theory, to tweak weights among the same three ETFs for either higher risk‑adjusted return or slightly lower volatility. Still, being near the frontier signals this is already a fairly efficient use of the chosen building blocks.
Dividends
- Schwab U.S. Dividend Equity ETF 3.40%
- Schwab International Equity ETF 3.10%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 2.31%
The portfolio’s total dividend yield is about 2.31%, driven mostly by the dedicated US dividend ETF at 3.40% and the international ETF at 3.10%. The US large‑cap growth ETF yields only 0.40%, reflecting its focus on companies that tend to reinvest profits rather than pay them out. Dividends can matter because they provide a cash return component that doesn’t depend on selling shares and can help smooth total returns over time. Here, income plays a noticeable but not dominant role: the yield is higher than a pure growth portfolio but lower than a heavily income‑focused strategy.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab International Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.05%
Annual costs are very low, with a total TER (Total Expense Ratio) of about 0.05%. TER is the ongoing fee charged by funds each year, taken directly from returns. For context, that’s well below many actively managed funds and in line with some of the most cost‑efficient index products available. On a $10,000 portfolio, 0.05% works out to just $5 per year in explicit fund fees. Over long periods, keeping costs this low helps more of the portfolio’s gross return show up in your actual results. The costs are impressively low, supporting better long‑term performance relative to higher‑fee alternatives.
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