Diversified income focused portfolio with strong factor tilts and moderate risk below stock market levels

Report created on Apr 15, 2026

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

The portfolio mixes growth and stability with 65% in stocks, 25% in bonds, 5% in gold, and 5% cash. That creates a clear tilt toward long‑term growth, but with a meaningful cushion from fixed income, gold, and cash. For a cautious risk score of 3/7, this is a relatively assertive but still tempered structure. The blend of fundamental, quality, small value, dividend, international, and defensive bond ETFs means returns are driven by many different engines rather than one big bet. Overall, this is a broadly diversified, factor‑aware “core plus income” setup that aims to smooth the ride without completely giving up on equity‑like returns over time.

Growth Info

From late 2020 to early 2026, $1,000 grew to about $1,901, a compound annual growth rate (CAGR) of 13.01%. CAGR is just the “average speed” your money grew each year. That’s slightly behind the US market but almost identical to the global market, while having a much smaller max drawdown: about -16% versus roughly -24% to -26% for the benchmarks. So you gave up a bit of peak return relative to the US, but took noticeably smaller hits in rough patches. That trade‑off fits a cautious profile: accepting a little underperformance in hot markets in exchange for softer drawdowns and a smoother experience.

Projection Info

The Monte Carlo projection uses past volatility and returns to simulate 1,000 different future paths for the next 15 years. Think of it as running the clock forward many times to see a range of possible outcomes, not a single prediction. The median outcome grows $1,000 to about $2,461, with a “likely” middle band from around $1,867 to $3,268. There’s roughly a three‑in‑four chance of finishing ahead of cash. This suggests a reasonable balance between growth potential and downside risk, but it’s all based on history. Real‑world returns can be better or worse, especially if markets behave very differently from the last few decades.

Asset classes Info

  • Stocks
    65%
  • Bonds
    25%
  • Other
    5%
  • Cash
    5%

With 65% in stocks, the portfolio still leans clearly toward growth, but the 25% bond slice plus 5% gold and 5% cash add meaningful ballast. Many cautious or balanced setups might sit closer to a 50/50 stock‑bond split, so this is slightly more growth‑oriented than a classic conservative mix. The structure is well‑balanced and aligns closely with global standards that use bonds and cash to dampen volatility while leaving room for capital appreciation. For someone with a multi‑year horizon, this level of risk can be reasonable, provided they understand that equities will still drive most of the ups and downs.

Sectors Info

  • Technology
    12%
  • Financials
    11%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Discretionary
    7%
  • Energy
    7%
  • Consumer Staples
    6%
  • Telecommunications
    5%
  • Basic Materials
    3%
  • Utilities
    1%
  • Real Estate
    1%

This breakdown covers the equity portion of your portfolio only.

Sector exposure is nicely spread: technology is the largest at 12%, with financials, industrials, health care, consumer areas, and energy all in mid‑single digits. This looks more balanced than many modern portfolios that are heavily dominated by technology. A spread like this limits the damage if one part of the economy struggles, because other areas may hold up better or even benefit. It also means you’re not overly betting on any single long‑term theme. This sector composition matches benchmark data quite closely, which is a strong indicator of diversification and reduces the risk of being blindsided by a sector‑specific downturn.

Regions Info

  • North America
    53%
  • Europe Developed
    6%
  • Japan
    2%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

This breakdown covers the equity portion of your portfolio only.

Around 53% of equity exposure is in North America, with the rest spread across Europe, Japan, and other developed and emerging regions. That’s a bit more global than a pure US‑centric portfolio, yet still acknowledges that US markets are a large share of global equity value. Compared with common global benchmarks, the overseas allocation is slightly smaller but still meaningful, which helps reduce reliance on a single economy and currency. This setup can cushion against US‑specific issues while still letting you benefit if US companies continue to perform well. It’s a sensible, broadly diversified geographic stance for a cautious but return‑seeking investor.

Market capitalization Info

  • Large-cap
    25%
  • Mega-cap
    17%
  • Mid-cap
    13%
  • Small-cap
    8%
  • Micro-cap
    5%

This breakdown covers the equity portion of your portfolio only.

Market cap exposure runs across the spectrum: mega and large caps together around 42%, with mid, small, and micro caps adding a notable 26%. Bigger companies tend to be more stable and mature, while smaller ones can be more volatile but offer higher long‑term growth potential. That small‑cap and micro‑cap slice, boosted by a dedicated small value ETF, gives you some extra return potential and factor exposure without dominating the portfolio. The balance means you’re not over‑concentrated in either mega‑cap giants or tiny speculative names, which helps smooth risk while still tapping into the small‑company return premium documented over decades.

True holdings Info

  • Apple Inc
    1.45%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
    • iShares MSCI USA Quality Factor ETF
  • Microsoft Corporation
    0.89%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
    • iShares MSCI USA Quality Factor ETF
  • Chevron Corp
    0.75%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
    • Schwab U.S. Dividend Equity ETF
  • NVIDIA Corporation
    0.64%
    Part of fund(s):
    • iShares MSCI USA Quality Factor ETF
  • Exxon Mobil Corp
    0.52%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
  • Taiwan Semiconductor Manufacturing Co. Ltd.
    0.51%
    Part of fund(s):
    • Vanguard Total International Stock Index Fund ETF Shares
  • Texas Instruments Incorporated
    0.43%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • UnitedHealth Group Incorporated
    0.43%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Alphabet Inc Class A
    0.43%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
  • Merck & Company Inc
    0.42%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Top 10 total 6.48%

This breakdown covers the equity portion of your portfolio only.

The look‑through shows modest concentration in mega names like Apple, Microsoft, and NVIDIA, each under 1.5% in total. That’s a healthy sign: you get exposure to the big global winners, but no single company quietly dominates risk. Because only ETF top‑10 holdings are captured, real overlap is higher than reported, especially in broad US funds. Still, nothing here screams hidden single‑stock risk. The takeaway is you’re getting a diversified slice of major global companies while avoiding the common pitfall of over‑relying on one or two headline names to drive the whole portfolio outcome.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 68%
Size
Exposure to smaller companies
High
Data availability: 68%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 68%
Quality
Preference for financially healthy companies
High
Data availability: 79%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 84%

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 is where this portfolio really stands out. Value and size are both high, meaning a tilt toward cheaper, smaller companies. Quality and yield scores are high too, showing a preference for profitable, stable firms that pay solid income. Low volatility also screens high, suggesting a lean toward steadier stocks that historically swing less. Factor exposure is like choosing ingredients in a recipe; here you’ve favored sturdy, income‑generating, less frothy names. In strong growth or speculative bubbles, this profile might lag, but in choppier or value‑friendly markets it can shine and often delivers a calmer ride than a pure market‑cap approach.

Risk contribution Info

  • Schwab Fundamental U.S. Large Company Index ETF
    Weight: 21.05%
    28.9%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 10.53%
    20.5%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 15.79%
    20.3%
  • iShares MSCI USA Quality Factor ETF
    Weight: 10.53%
    15.0%
  • Schwab U.S. Dividend Equity ETF
    Weight: 10.53%
    12.9%
  • Top 5 risk contribution 97.6%

Risk contribution shows how much each holding adds to total portfolio volatility, which can differ a lot from its weight. Your three biggest risk drivers are the fundamental US large‑cap ETF, the small‑cap value fund, and the international index fund, together adding about 70% of total risk. The small‑cap value ETF, at ~10.5% weight but 20.5% of risk, punches well above its size because small value stocks are naturally more volatile. That’s not automatically bad; it just means most of the “action” comes from those three engines. If a smoother ride becomes a priority, tweaking these weights is the main lever.

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 efficient frontier chart compares your current risk/return mix to what’s mathematically possible using just these holdings in different weights. Your current Sharpe ratio of 0.79 sits below the frontier, with an “optimal” version of this same lineup showing a Sharpe of 1.57 at slightly lower return but much lower risk. Sharpe ratio just measures return per unit of volatility. Being 3.61 percentage points below the frontier means the same ingredients could be rearranged to get a better risk‑adjusted deal. No new funds needed; it’s about reweighting, especially those top risk‑contributors, to move closer to that efficient curve.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.30%
  • Schwab Fundamental U.S. Large Company Index ETF 1.60%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.10%
  • iShares MSCI USA Quality Factor ETF 0.90%
  • Schwab U.S. Dividend Equity ETF 3.40%
  • WisdomTree Floating Rate Treasury Fund 4.00%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.54%

The overall dividend yield sits around 2.54%, helped by dedicated dividend, value, and bond income exposures. Some bond holdings yield 4–5%, and the dividend ETF adds a 3%+ equity income stream. Dividends matter because they provide a built‑in cash return that doesn’t rely on selling shares, which can be comforting in down markets. For cautious investors, this moderate yield can support partial withdrawals or reinvestment without overly sacrificing growth. It’s not a high‑yield income machine, but more of a balanced “total return” approach where dividends contribute meaningfully alongside capital appreciation from both stocks and bonds.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab Fundamental U.S. Large Company Index ETF 0.25%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • iShares MSCI USA Quality Factor ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • abrdn Physical Gold Shares ETF 0.17%
  • WisdomTree Floating Rate Treasury Fund 0.15%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.16%

The total expense ratio (TER) of about 0.16% is impressively low for such a factor‑rich, diversified mix. TER is the annual fee the funds charge, taken directly out of returns. Keeping this small is critical because fees compound against you over time, just like returns compound for you. Here, costs are well below many actively managed or niche funds that can easily run 0.50% to 1%+. That low‑cost foundation supports better long‑term performance and gives you more of the market’s return. The costs are impressively low and very much in line with best practices for long‑term, ETF‑based investing.

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