Concentrated US stock portfolio combining broad market growth with a meaningful tilt toward dividend income
Report created on Jul 21, 2026Risk profile
4/7
Diversification profile
2/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 68.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 32.00%
This portfolio is very simple: two US stock ETFs make up 100% of the holdings, with about two‑thirds in a broad US market index and one‑third in a dividend‑focused fund. That means all of the risk and return comes from shares in listed US companies, with no bonds, cash, or alternatives in the mix. Simple structures like this are easy to understand and track, which many investors appreciate. The trade‑off is that there is less diversification across asset types, so the portfolio tends to move with the stock market. The risk score of 4/7 and “balanced” label reflects this middle‑of‑the‑road but still equity‑heavy profile.
Growth
From mid‑2016 to mid‑2026, $1,000 in this portfolio grew to about $3,761, which is a compound annual growth rate (CAGR) of 14.22%. CAGR is like average speed on a road trip: it smooths out the bumps to show typical yearly growth. Over the same period, the US market did slightly better at 15.01% a year, while the global market was lower at 12.48%. So this portfolio lagged the US benchmark a bit but comfortably beat a global mix. The worst drop, or max drawdown, was about ‑34%, very similar to both benchmarks, showing equity‑like downside risk during sharp sell‑offs.
Projection
The forward projection uses a Monte Carlo simulation, which is basically a thousand “what if” scenarios built from past returns and volatility. It doesn’t try to predict a single future, but instead maps out a range of possible outcomes. Here, the median 15‑year outcome for $1,000 is about $2,782, with most simulations landing between roughly $1,790 and $4,134. The average annual return across simulations is 8.04%, lower than the historical 14% because the model builds in variability and includes weaker paths too. As always, this relies on the past as a guide, so it illustrates possibilities rather than promises.
Asset classes
- Stocks 100%
All of the portfolio sits in one asset class: stocks. That makes the asset mix very straightforward but also means there’s no built‑in cushion from bonds or cash when markets are rough. Asset classes are like different engines in a plane: if one stalls, others can keep you aloft. Here, everything depends on the equity engine. Compared with a classic “multi‑asset” mix that blends stocks and bonds, this portfolio takes on more market swings but keeps full exposure to stock market growth. The diversification score of 2/5 reflects this: diversified within equities, but not across different asset types.
Sectors
- Technology 32%
- Health Care 12%
- Financials 11%
- Consumer Staples 9%
- Telecommunications 9%
- Consumer Discretionary 9%
- Industrials 8%
- Energy 7%
- Utilities 2%
- Real Estate 1%
- Basic Materials 1%
Sector‑wise, the portfolio leans strongly into technology at 32%, with health care, financials, consumer staples, telecom, and consumer discretionary all playing mid‑sized roles. Smaller slices in industrials, energy, utilities, real estate, and materials round things out. This pattern is broadly consistent with many US large‑cap benchmarks, where tech is a major driver of returns. A notable point is that technology plus communication‑related areas together take up a large share, which often leads to higher sensitivity to changes in interest rates and innovation cycles. Still, having meaningful exposure to defensive areas like health care and staples helps balance out pure growth‑driven swings.
Regions
- North America 100%
Geographically, this portfolio is 100% in North America, specifically US‑listed companies. Geography matters because different regions can have distinct economic cycles, currencies, and policy environments. Compared with a global equity benchmark, which spreads across many countries, this is a clear home bias toward the US. That has worked well over the last decade, as seen in the outperformance versus the global market. The flip side is that all equity risk here is tied to one economy and one currency, so if US stocks underperform other regions in a future period, this portfolio won’t naturally benefit from strength elsewhere.
Market capitalization
- Large-cap 47%
- Mega-cap 30%
- Mid-cap 20%
- Small-cap 2%
By market capitalization, the portfolio is dominated by large and mega‑cap companies, with about 77% in those two buckets, 20% in mid‑caps, and a small 2% in small‑caps. Market cap is simply company size in the stock market, and size affects behavior: big firms tend to be more stable and widely researched, while smaller ones can be more volatile but sometimes faster‑growing. This structure is similar to many broad US index funds, so it’s well‑aligned with typical benchmarks. The limited small‑cap exposure means fewer very sharp swings from tiny companies, but also less potential benefit if small‑caps outperform at some point.
True holdings
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NV NVIDIA Corporation 5.11%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc. 4.48%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.92%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.46%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 2.21%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.88%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.76%
Part of fund(s):- Vanguard S&P 500 ETF
-
AB Abbott Laboratories 1.44%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
UN UnitedHealth Group Incorporated 1.41%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
MR Merck & Company Inc 1.39%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 25.07%
Looking through the top holdings of the ETFs, several large US names appear prominently, including NVIDIA, Apple, Microsoft, Amazon, and Alphabet (both share classes). Combined, these top positions account for noticeable single‑company exposures, with NVIDIA and Apple each above 4% of the portfolio on a look‑through basis. Overlap between the two ETFs in these giants creates a form of hidden concentration: if one of these big names has a strong or weak period, it can influence the whole portfolio more than the simple two‑ETF structure suggests. Because this only uses top‑10 ETF holdings, true overlap is likely somewhat higher than reported.
Factors
Factor exposure shows how the portfolio leans toward certain characteristics that research links to long‑term returns. Here, value, size, momentum, and low volatility all sit around neutral, meaning they behave broadly like the wider market. The notable tilts are in quality and yield, both at 60%, which is a mild tilt above the market average. Quality refers to financially robust companies, often with stable earnings and solid balance sheets, while yield reflects higher dividend payments. Together, this suggests a focus on strong, cash‑generating businesses. Such a profile can offer some resilience in choppy markets while still participating in equity growth, especially when income is valued.
Risk contribution
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Vanguard S&P 500 ETF
Weight: 68.00% 70.8% -
Schwab U.S. Dividend Equity ETF
Weight: 32.00% 29.2%
Risk contribution looks at how much each holding drives the portfolio’s ups and downs, which can differ from its weight. Here, the broad S&P 500 ETF is 68% of the portfolio but contributes about 71% of total risk, so it slightly dominates the overall volatility. The dividend ETF is 32% of assets and 29% of risk, so it adds somewhat less volatility than its size alone would suggest. This pattern is consistent with a dividend‑tilted fund often being a bit steadier than the broad market. Overall, risk is shared roughly in line with weights, with no single position wildly dominating beyond its share.
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‑versus‑return chart shows the current portfolio is on or very close to the efficient frontier, which is the curve of the best possible return for each risk level using just these two ETFs in different mixes. The Sharpe ratio, a measure of risk‑adjusted return, is 0.63 for the current mix, versus 0.81 for the optimal and 0.76 for the minimum‑variance mix. Sharpe works like “miles per unit of risk.” Even though there is some room for higher Sharpe with alternative weightings, being on the frontier means the existing blend is already an efficient use of these specific holdings for its level of volatility.
Dividends
- Schwab U.S. Dividend Equity ETF 3.20%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.77%
The overall dividend yield for the portfolio is about 1.77%, combining roughly 1.10% from the broad market ETF and 3.20% from the dividend ETF. Dividend yield is the annual cash payout as a percentage of the current investment value, like rent from a property. The dedicated dividend fund lifts the portfolio’s income above what a pure S&P 500 allocation would produce. While the yield is still moderate rather than high, it forms a meaningful part of total return when reinvested over time. Historically, dividends have contributed a significant share of long‑term equity growth, especially when markets move sideways.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.04%
Portfolio costs are impressively low, with an overall TER (Total Expense Ratio) of about 0.04%. TER is the annual fee charged by funds to cover management and operating expenses, taken directly from fund assets. Here, the S&P 500 ETF charges 0.03% and the dividend ETF 0.06%, both at the very low end of the cost spectrum. Keeping costs low is powerful because fees compound in reverse: every fraction of a percent saved stays invested and can grow over years. This cost structure is a clear strength, closely aligned with best‑practice indexing and supportive of better long‑term net returns.
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