Income focused equity portfolio with strong low volatility tilt and moderate global diversification

Report created on May 5, 2026

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is built mainly from equity funds with a clear income and defensiveness flavor. Around three quarters of the risk comes from three core positions: a US dividend ETF, a broad US index fund, and an equity premium income ETF that writes options for extra income. These are complemented by a dedicated utilities ETF, an international equity ETF, and a gold fund. Together, they create a structure that leans toward established, dividend‑paying companies plus a ballast from gold and utilities. This type of mix typically aims for smoother equity exposure rather than maximum growth. The cautious risk score and moderate diversification rating match what the holdings already suggest: meaningful stock exposure but with multiple “shock absorbers” built in.

Growth Info

Over the period since mid‑2020, a hypothetical $1,000 in this portfolio grew to about $2,268, which translates to a compound annual growth rate (CAGR) of 14.83%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. The portfolio lagged the US market benchmark by about 2.9 percentage points per year and was slightly behind the global market by around 0.8 points. In return for that underperformance, its worst peak‑to‑trough loss (max drawdown) was shallower at –17.24% versus –24% to –26% for the benchmarks. That pattern is typical of more defensive, income‑oriented portfolios: they often give up some upside during strong bull runs but may decline less in rough markets.

Projection Info

The forward projection uses a Monte Carlo simulation, which means the computer takes the portfolio’s historical return and volatility patterns and then “re‑rolls the dice” 1,000 times to see many possible 15‑year paths. It does not predict the future; it simply shows a range of outcomes if history rhymed. The median outcome turns $1,000 into about $2,600, or roughly 7.5% annualized, with a wide possible range from around $949 to $6,464 between the 5th and 95th percentiles. About 73% of runs end positive. This highlights how even a relatively cautious equity mix can still experience very different long‑term results, depending mainly on when big up and down years occur.

Asset classes Info

  • Stocks
    88%
  • Other
    10%
  • Not classified
    2%

By asset class, about 88% of the portfolio sits in stocks, 10% in “other” (primarily gold here), and 2% is not classified. This means the portfolio is still predominantly an equity portfolio, even though its risk label is cautious. The 10% allocation to gold is a notable diversifier because gold often behaves differently from stocks during stress periods. Having some non‑equity exposure can help reduce overall volatility, especially when combined with option‑based income strategies and defensive sectors. Compared with a pure stock market benchmark, this structure is slightly more diversified across asset types, while still keeping the main growth engine in equities rather than cash or bonds.

Sectors Info

  • Technology
    17%
  • Utilities
    12%
  • Health Care
    11%
  • Financials
    10%
  • Consumer Staples
    9%
  • Industrials
    8%
  • Energy
    7%
  • Telecommunications
    6%
  • Consumer Discretionary
    5%
  • Consumer Discretionary
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

This breakdown covers the equity portion of your portfolio only.

Sector exposure is quite distinctive. Utilities at 12% are far above typical broad‑market weights, supported by a dedicated utilities ETF, while technology at 17% sits well below many broad US indices in recent years. There is high representation in traditionally defensive sectors like consumer staples, health care, and utilities, with smaller weights in more cyclical areas such as consumer discretionary and real estate. This composition tends to make returns less tied to aggressive growth booms led by tech or speculative areas. The trade‑off is that when high‑growth sectors surge, this portfolio may lag, but when markets are driven by earnings stability and dividends, these sector tilts can provide more consistent experience and fewer sharp swings.

Regions Info

  • North America
    80%
  • Europe Developed
    4%
  • Japan
    2%
  • Asia Developed
    1%
  • Asia Emerging
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, about 80% of the equity exposure is in North America, with only modest allocations to Europe, Japan, and other developed and emerging Asian regions. This US‑heavy stance is common among portfolios anchored in US index and dividend funds, and it has historically done well over the last decade. However, it does mean the portfolio’s fortunes are heavily linked to the US economy, currency, and policy environment. The international stock ETF introduces some global diversification, which is positive and improves the diversification score, but the bulk of performance will still follow US market dynamics. Relative to a fully global equity benchmark, this is a noticeable tilt rather than a global market‑cap replica.

Market capitalization Info

  • Large-cap
    46%
  • Mid-cap
    22%
  • Mega-cap
    17%
  • No data
    10%
  • Small-cap
    2%

This breakdown covers the equity portion of your portfolio only.

By market capitalization, the portfolio leans strongly toward large and mega‑cap companies, which together make up over 60% of exposure, with smaller slices in mid‑caps and only about 2% in small‑caps. Large and mega‑caps are often more established businesses, with deeper liquidity and more stable earnings, which can contribute to lower volatility and stronger dividend profiles. The relatively low small‑cap presence means the portfolio captures less of the high‑risk, high‑reward segment that can sometimes drive outsized gains during economic recoveries. Overall, this market‑cap profile is consistent with the cautious risk score and the focus on income and stability rather than speculative growth.

True holdings Info

  • Nextera Energy Inc
    1.74%
    Part of fund(s):
    • JPMorgan Equity Premium Income ETF
    • Utilities Select Sector SPDR® Fund
  • Texas Instruments Incorporated
    1.65%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • UnitedHealth Group Incorporated
    1.50%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Qualcomm Incorporated
    1.46%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Chevron Corp
    1.23%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • The Coca-Cola Company
    1.19%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • ConocoPhillips
    1.17%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • PepsiCo Inc
    1.15%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Verizon Communications Inc
    1.11%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Procter & Gamble Company
    1.10%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Top 10 total 13.31%

This breakdown covers the equity portion of your portfolio only.

Looking through to the top holdings of the ETFs, a handful of defensive, high‑quality US companies repeat across funds, such as utilities, major consumer brands, and large health care names. Each of the listed top positions—like large integrated energy, beverage, telecom, and consumer products companies—accounts for around 1% to 1.7% of total portfolio exposure. Because only ETF top‑10 holdings are captured, overlap is likely understated, but even from this slice you can see a bias toward steady, cash‑generative businesses. This hidden overlap isn’t necessarily a problem; it simply means that certain stable companies quietly act as anchors across multiple funds, reinforcing the low‑volatility, dividend‑focused profile.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 80%
Size
Exposure to smaller companies
Neutral
Data availability: 90%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 80%
Quality
Preference for financially healthy companies
Neutral
Data availability: 80%
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 pronounced tilts toward yield, value, and especially low volatility. Factors are like personality traits of investments—value favors cheaper stocks, yield focuses on higher dividends, and low volatility seeks steadier price movements. High yield and value tilts align neatly with the dividend and income objectives embedded in the fund selection. The very strong low‑volatility tilt suggests the holdings have historically swung less than the broader market, which helps explain the shallower drawdowns versus benchmarks. Size, momentum, and quality sit around neutral, so they behave broadly like the overall market on those dimensions. Together, this factor mix points to an equity portfolio designed to prioritize smoother income and downside cushioning over chasing hot trends.

Risk contribution Info

  • Schwab U.S. Dividend Equity ETF
    Weight: 30.00%
    34.1%
  • Fidelity 500 Index Fund
    Weight: 20.00%
    25.2%
  • JPMorgan Equity Premium Income ETF
    Weight: 20.00%
    16.1%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 10.00%
    10.9%
  • Utilities Select Sector SPDR® Fund
    Weight: 10.00%
    9.3%
  • Top 5 risk contribution 95.6%

Risk contribution reveals how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. The US dividend ETF and the broad US index fund together contribute close to 60% of total risk, even though they make up 50% of the capital. The equity premium income ETF, in contrast, contributes less risk than its 20% weight, reflecting the dampening effect of its option strategy. The top three holdings generate about 75% of total volatility, showing that risk is meaningfully concentrated in a few core funds. This is common in compact portfolios and isn’t inherently negative, but it’s useful to understand where the real “engine” of movement sits.

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 optimization chart shows the current portfolio earning an expected return of about 14.9% with volatility of 12.35%, resulting in a Sharpe ratio of 0.88. The Sharpe ratio measures return per unit of risk above a risk‑free rate; higher is better. The efficient frontier curve suggests that, using only these existing holdings, different weightings could potentially reach a Sharpe ratio above 1.3 at roughly the same risk level, or reduce risk to under 10% while still improving risk‑adjusted returns. The current allocation sits about 2.3 percentage points below that frontier. This doesn’t mean the portfolio is bad; rather, it indicates that the mix is decent but not mathematically “optimized” given the building blocks available.

Dividends Info

  • Fidelity 500 Index Fund 1.10%
  • JPMorgan Equity Premium Income ETF 8.40%
  • Schwab U.S. Dividend Equity ETF 3.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Utilities Select Sector SPDR® Fund 2.60%
  • Weighted yield (per year) 3.43%

Dividend yield for the overall portfolio is around 3.43%, which is significantly higher than many broad equity indices. This is largely driven by the equity premium income ETF’s very high yield and the dedicated dividend and utilities funds. Dividends matter because they provide a steady cash stream that can be spent or reinvested, and historically they have been a major component of long‑term stock returns. High income strategies, however, sometimes trade off some capital growth, as option writing can cap upside and dividend screens can underweight fast‑growing companies. Even so, for a portfolio that clearly emphasizes income and stability, this above‑average yield is well aligned with its structure and factor tilts.

Ongoing product costs Info

  • Fidelity 500 Index Fund 0.02%
  • iShares Gold Trust 0.25%
  • JPMorgan Equity Premium Income ETF 0.35%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Utilities Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.13%

Costs are impressively low for an actively income‑oriented, multi‑ETF setup. The overall total expense ratio (TER) is about 0.13% per year, with the core S&P 500 index fund and major index ETFs charging just 0.02% to 0.09%. The options‑based income ETF is the most expensive at 0.35%, but because it is only a slice of the portfolio, its impact on overall costs is modest. Lower fees mean more of the portfolio’s gross return stays in your pocket and can compound over time. Relative to typical active funds and even many income‑focused products, this fee structure is a real strength and supports better long‑term performance potential.

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