Dividend focused equity portfolio with strong value tilt and modest real estate allocation

Report created on Apr 27, 2026

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is built entirely from five equity ETFs, with a clear focus on dividend strategies. Four funds target dividend‑oriented stocks, while one adds listed real estate, giving it a distinct income flavor rather than a broad market mix. The largest position, a core dividend growth ETF at 40%, acts as the anchor, with the other four funds equally sized at 15% each. That structure keeps things relatively simple and easy to follow. Because everything here is equity or real estate, the portfolio’s ups and downs will still be tied to stock markets, even though the focus is on dividends. So the overall shape is “all‑equity, dividend‑tilted,” rather than a traditional stock‑and‑bond balanced blend.

Growth Info

Over the last five years or so, $1,000 in this portfolio grew to about $1,522, which works out to a Compound Annual Growth Rate (CAGR) of 8.84%. CAGR is like your long‑term average speed on a road trip, smoothing out all the bumps along the way. Over the same period, a broad US market index returned 12.51% and a global index 10.24%, so this portfolio lagged both. The worst peak‑to‑trough fall, or max drawdown, was about ‑21%, a bit smaller than the benchmarks’ roughly ‑24% to ‑26%. That pattern—lower return with slightly shallower drops—is consistent with income and value‑tilted approaches, though past performance doesn’t guarantee anything similar ahead.

Projection Info

The Monte Carlo simulation uses the portfolio’s past risk and return patterns to randomly generate many possible 15‑year paths for $1,000 invested. It’s like running 1,000 alternate futures based on historical data, then seeing how often things end up higher or lower. The median outcome is about $2,673, which implies an annualized return of roughly 7.94% across all simulations. The “likely range” of $1,850 to $4,166 shows how wide outcomes can be even with the same starting point. Importantly, these are estimates, not promises; they assume the future behaves somewhat like the past, which it rarely does exactly. Still, the 75% chance of a positive outcome highlights that staying invested over long periods has historically been rewarding.

Asset classes Info

  • Stocks
    85%
  • Real Estate
    15%

By asset class, the portfolio is 85% in general stocks and 15% in listed real estate. That’s a fairly focused equity profile with a small but meaningful tilt toward property‑related companies. In many broad equity benchmarks, real estate is just a modest slice, so a dedicated 15% is a noticeable overweight. Real estate often reacts differently to interest rates and inflation than other stocks, which can add another dimension of diversification. At the same time, because there are no bonds or cash building blocks here, the portfolio’s overall risk will still feel like an equity portfolio rather than a mixed stock‑bond blend. The stock‑heavy stance is very clear from this breakdown.

Sectors Info

  • Financials
    15%
  • Real Estate
    15%
  • Technology
    14%
  • Health Care
    13%
  • Consumer Staples
    11%
  • Industrials
    9%
  • Energy
    7%
  • Consumer Discretionary
    5%
  • Utilities
    4%
  • Telecommunications
    4%
  • Basic Materials
    2%

This breakdown covers the equity portion of your portfolio only.

Sector‑wise, the portfolio is spread across many areas, with financials and real estate together making up about 30%. Technology, health care, and consumer staples are also prominent, and there’s exposure to industrials, energy, utilities, telecom, and materials. That’s a broad spread, but the real estate and dividend focus creates a tilt toward more mature, cash‑generative businesses rather than high‑growth areas. Compared with a typical global or US index, this usually means less exposure to fast‑growing tech and more to sectors that pay steadier dividends. That can help with income stability, but it may lag during periods when growth‑heavy sectors drive market returns, as has been common in recent years.

Regions Info

  • North America
    85%
  • Europe Developed
    10%
  • Australasia
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Africa/Middle East
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, about 85% of the portfolio is tied to North America, with the rest spread across developed Europe, Australasia, and smaller slices in Asia and Africa/Middle East. Many global benchmarks have closer to 60%–65% in North America, so this is a noticeable home‑country tilt toward the US region. That’s not unusual for US‑based investors and has worked well over the last decade as US markets outperformed many others. However, it also means portfolio results will be heavily influenced by US economic conditions, policy, and currency moves. The smaller international dividend fund does introduce some non‑US diversification, but the overall story remains strongly North America‑centric.

Market capitalization Info

  • Large-cap
    48%
  • Mega-cap
    22%
  • Mid-cap
    21%
  • Small-cap
    6%
  • Micro-cap
    1%

This breakdown covers the equity portion of your portfolio only.

Looking at company size, the portfolio leans strongly toward larger businesses: about 70% in mega‑ and large‑caps, 21% in mid‑caps, and only a small slice in small and micro‑caps. Larger companies tend to be more established, often with steadier earnings and more predictable dividend policies, which fits the income theme here. In many broad benchmarks, large‑caps also dominate, but this portfolio seems even more tilted that way. That can mean somewhat lower volatility than a small‑cap‑heavy mix, and it may reduce exposure to more speculative, high‑growth names. On the flip side, it means less participation in the sometimes powerful rallies that small‑caps can experience after downturns.

True holdings Info

  • Vanguard REIT II Index Fund Institutional Plus Shares
    2.19%
    Part of fund(s):
    • Vanguard Real Estate Index Fund ETF Shares
  • Broadcom Inc
    1.93%
    Part of fund(s):
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Apple Inc
    1.80%
    Part of fund(s):
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Microsoft Corporation
    1.77%
    Part of fund(s):
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • JPMorgan Chase & Co
    1.75%
    Part of fund(s):
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Exxon Mobil Corp
    1.65%
    Part of fund(s):
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • UnitedHealth Group Incorporated
    1.63%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • iShares Core Dividend Growth ETF
  • Johnson & Johnson
    1.49%
    Part of fund(s):
    • Vanguard Dividend Appreciation Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Procter & Gamble Company
    1.38%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • iShares Core Dividend Growth ETF
  • Welltower Inc
    1.16%
    Part of fund(s):
    • Vanguard Real Estate Index Fund ETF Shares
  • Top 10 total 16.73%

This breakdown covers the equity portion of your portfolio only.

The look‑through data, covering the top holdings inside each ETF, shows some clear repeat names. Big companies like Broadcom, Apple, Microsoft, JPMorgan, Exxon Mobil, UnitedHealth, Johnson & Johnson, Procter & Gamble, and large REITs like Welltower appear across multiple funds and together make up a noticeable chunk of the visible exposure. This kind of overlap is common when using several broad dividend and quality‑tilted ETFs, but it does create hidden concentration: the same underlying company can effectively be held multiple times. Because this analysis only sees the top 10 holdings for each ETF, the true overlap is likely higher, so actual diversification by company is a bit lower than the number of ETFs might suggest.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 85%
Size
Exposure to smaller companies
Low
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
Low
Data availability: 70%
Quality
Preference for financially healthy companies
High
Data availability: 70%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 100%

Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.

Factor exposure shows strong tilts toward value, yield, quality, and low volatility, with relatively low exposure to size and momentum. Factors are like the underlying “traits” that drive returns—value means cheaper stocks, quality means strong balance sheets and profits, low volatility means historically steadier price moves, and yield reflects higher dividends. This combination is very consistent with the portfolio’s dividend‑growth approach. In practice, that can mean smoother rides than a high‑growth portfolio and more of the total return coming from income rather than price spikes. The flip side is weaker momentum and size exposure, which may cause lagging performance when markets favor fast‑moving, trend‑driven, or smaller growth companies.

Risk contribution Info

  • iShares Core Dividend Growth ETF
    Weight: 40.00%
    40.2%
  • Vanguard Real Estate Index Fund ETF Shares
    Weight: 15.00%
    17.8%
  • Vanguard Dividend Appreciation Index Fund ETF Shares
    Weight: 15.00%
    15.2%
  • Schwab U.S. Dividend Equity ETF
    Weight: 15.00%
    15.1%
  • Schwab International Dividend Equity ETF
    Weight: 15.00%
    11.7%

Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from its simple weight. Here, the core dividend growth ETF is 40% of the portfolio and contributes about 40% of total risk, so it’s very much the main driver. The real estate ETF, at 15% weight, contributes almost 18% of the risk, showing it’s a bit more volatile relative to its size. The international dividend ETF, by contrast, contributes less risk than its 15% weight. The top three funds account for about 73% of total risk, so the portfolio’s behavior is strongly shaped by that trio, with real estate adding a noticeable extra kick.

Redundant positions Info

  • Vanguard Dividend Appreciation Index Fund ETF Shares
    iShares Core Dividend Growth ETF
    High correlation

The correlation analysis flags that the core dividend growth ETF and the dividend appreciation ETF move almost identically. Correlation measures how two investments move relative to each other: a value near 1 means they tend to go up and down together, while lower or negative values mean more independent behavior. Highly correlated positions don’t add much diversification, even if they’re separate funds. In this case, using two very similar US dividend‑growth strategies increases exposure to that specific style without greatly smoothing out the ride. This is not inherently a problem, but it does mean that, functionally, a large part of the portfolio is riding on one underlying pattern of performance.

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.

On the risk‑return chart, the current portfolio sits below the efficient frontier. The efficient frontier represents the best expected return for each level of risk using just these existing holdings in different mixes. The current Sharpe ratio, a measure of return earned per unit of risk above cash, is 0.4, while both the optimal and minimum‑variance mixes reach above 0.7. That gap suggests that, historically, different weightings of the same five ETFs could have delivered higher expected returns or similar returns with less volatility. Importantly, this doesn’t require adding new investments—just shows that the present mix is not making the most of the available diversification between these funds.

Dividends Info

  • iShares Core Dividend Growth ETF 2.00%
  • Schwab U.S. Dividend Equity ETF 3.40%
  • Schwab International Dividend Equity ETF 3.40%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.50%
  • Vanguard Real Estate Index Fund ETF Shares 3.70%
  • Weighted yield (per year) 2.60%

The portfolio’s overall dividend yield is about 2.6%, above the yield of a typical broad US market index in recent years. Individual funds range from roughly 1.5% to 3.7%, with the real estate and high‑dividend ETFs on the higher end. Dividends can play two roles: they provide ongoing cash flow, and they form a meaningful chunk of total return over long periods, especially when reinvested. Because all holdings are equity‑based, these dividends are still exposed to market risk—payouts can be cut in downturns. But the combination of higher yield and quality tilt suggests an emphasis on established companies that have historically been able to sustain or grow their distributions.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Dividend Equity ETF 0.14%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Weighted costs total (per year) 0.09%

The portfolio’s average ongoing cost (TER) is about 0.09%, which is impressively low for a multi‑ETF setup. TER, or Total Expense Ratio, is the annual fee charged by each fund, expressed as a percentage of your investment. Think of it as a small slice taken off each year to pay for running the fund. Lower costs leave more of the portfolio’s gross return in your pocket, and over long periods, that compounding can matter a lot. Here, all five ETFs are priced competitively by industry standards, especially given their specific dividend and real‑estate focuses. This cost structure is a real strength and supports better long‑term outcomes compared with higher‑fee alternatives.

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