Income focused global mix with short term bonds and a strong tilt to low volatility stocks

Report created on May 24, 2026

Risk profile Info

2/7
Conservative
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio blends income‑oriented stocks with short‑term bonds and cash‑like holdings. Around half sits in dividend‑focused equity ETFs, while roughly a quarter is in short‑maturity bonds and about a fifth in ultra‑short Treasury exposure that behaves a lot like cash. This structure lines up well with a conservative risk profile, because a big slice is in assets that usually move less than the stock market. The equity side is split between US and international funds, with an emphasis on companies that pay and grow dividends. Overall, it’s a relatively simple line‑up that still covers many parts of the market, which helps explain the high diversification score.

Growth Info

From mid‑2020 to mid‑2026, $1,000 in this portfolio grew to about $1,782, a compound annual growth rate (CAGR) of 10.19%. CAGR is like average speed on a road trip — it smooths the bumps to show how fast you moved overall. The portfolio lagged both the US and global equity markets, which had higher CAGRs, but it also suffered a much smaller max drawdown at about ‑12.4% versus mid‑20% drops for the benchmarks. That shallower decline is consistent with its bond and cash sleeves. Only 38 days made up 90% of returns, underlining how a handful of strong days did most of the heavy lifting over this period.

Projection Info

The Monte Carlo projection uses many random “what if” paths, based on historical behaviour, to estimate future ranges. Starting from $1,000 over 15 years, the median outcome lands around $2,415, with a broad “likely” band between roughly $1,888 and $3,140. The average annual return across simulations is about 6.34%, lower than the historical 10.19%, which reflects more conservative assumptions. This type of modelling can’t predict specific results; it just shows plausible scenarios if markets behave somewhat like the past. Notably, about 77% of simulations end with a positive return, which is consistent with a portfolio where income and lower‑volatility holdings play a big role.

Asset classes Info

  • Stocks
    54%
  • Bonds
    25%
  • Cash
    21%

By asset class, the mix is 54% stocks, 25% bonds, and 21% cash‑like exposure. That’s a relatively equity‑light profile compared with broad market indices, which are mostly stocks, and it fits a conservative stance where preserving capital and smoothing swings matter. Short‑term bonds and cash segments usually move less when markets get rough, while equities drive most of the long‑term growth and dividend income. Having over 40% in fixed income and cash‑style instruments adds a meaningful buffer against large drawdowns. It also means return expectations are naturally lower than for a portfolio that leans almost fully into equities, especially during strong bull markets.

Sectors Info

  • Cash
    21%
  • Financials
    9%
  • Technology
    8%
  • Health Care
    8%
  • Consumer Staples
    7%
  • Energy
    6%
  • Industrials
    6%
  • Consumer Discretionary
    3%
  • Utilities
    2%
  • Telecommunications
    2%
  • Basic Materials
    1%

This breakdown covers the equity portion of your portfolio only.

Sector‑wise, the equity slice leans into traditionally steady areas like financials, health care, consumer staples, and utilities, alongside meaningful allocations to technology, energy, and industrials. The 21% listed as “cash” reflects the Treasury cash‑like ETF and is separate from stock sectors. Compared with broad market benchmarks that are heavily tilted toward growth‑oriented sectors, this mix is more balanced across defensive and cyclical areas. Portfolios with notable exposure to staples, health care, and utilities can sometimes hold up better when economic growth slows, while energy and industrials can be more tied to business cycles. This combination is consistent with the dividend‑income focus visible across the holdings.

Regions Info

  • North America
    66%
  • Cash
    21%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Developed
    1%
  • Australasia
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, about two‑thirds of the portfolio is in North America, with most of the rest in developed international markets like Europe, Japan, and Australasia. The 21% “cash” again reflects the short‑term US Treasury ETF. Compared with global equity indices where the US typically sits around 60%, this portfolio has a slightly higher North American tilt but still a meaningful international slice. That international exposure can help when different regions move on different economic cycles or policy paths. At the same time, the strong home‑region focus reduces currency swings versus the US dollar, since most of the risk and return is tied to familiar markets and currency.

Market capitalization Info

  • Large-cap
    30%
  • Mega-cap
    11%
  • Mid-cap
    10%
  • Small-cap
    1%

This breakdown covers the equity portion of your portfolio only.

By market capitalization, the portfolio is dominated by larger companies: around 41% in mega and large caps combined, with smaller portions in mid and small caps. Large and mega‑cap stocks tend to be more established businesses with more stable earnings and easier trading, which often leads to lower volatility than tiny companies. The modest mid‑cap slice adds some growth potential without heavily shifting the risk profile toward smaller, more volatile names. Only about 1% is in small caps, so this portfolio is not relying on that segment for returns. This large‑company focus aligns neatly with the conservative risk rating and low‑volatility tilt.

True holdings Info

  • BlackRock Cash Funds Treasury SL Agency
    1.55%
    Part of fund(s):
    • iShares 0-3 Month Treasury Bond ETF
  • UnitedHealth Group Incorporated
    1.53%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • iShares Core Dividend Growth ETF
  • Texas Instruments Incorporated
    1.24%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Qualcomm Incorporated
    1.16%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Procter & Gamble Company
    1.12%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • iShares Core Dividend Growth ETF
  • Chevron Corp
    0.88%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • The Coca-Cola Company
    0.86%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • ConocoPhillips
    0.82%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Merck & Company Inc
    0.78%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Verizon Communications Inc
    0.76%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Top 10 total 10.69%

This breakdown covers the equity portion of your portfolio only.

Looking through the ETFs’ top holdings, there is some concentration in a handful of well‑known US companies, but no single stock dominates the overall portfolio. Names like UnitedHealth, Texas Instruments, Qualcomm, Procter & Gamble, Chevron, Coca‑Cola, and Merck each sit well under 2% of total exposure, even when counting overlap across funds. That overlap can still create “hidden” concentration because the same company appears in multiple ETFs, but here it’s moderate rather than extreme. Coverage is limited to ETF top‑10s, so true overlap is higher than shown, yet the data suggests risk is spread across many individual stocks instead of being driven by one or two outsized positions.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 54%
Size
Exposure to smaller companies
Neutral
Data availability: 79%
Momentum
Exposure to recently outperforming stocks
Low
Data availability: 45%
Quality
Preference for financially healthy companies
High
Data availability: 45%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
Very high
Data availability: 79%

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 clear tilts toward value, quality, yield, and especially low volatility. Factors are like an investment’s personality traits — characteristics such as cheapness (value), stability (low volatility), or high payouts (yield) that research links to returns over time. This portfolio scores high on value and yield, meaning it leans into relatively cheaper, income‑producing companies. The very high low‑volatility exposure lines up with the focus on steadier, less bumpy stocks. Momentum is on the low side, so it’s not chasing recent winners. In practice, this mix often means smaller drawdowns and smoother rides, but it may lag during strong, growth‑led bull runs.

Risk contribution Info

  • Schwab U.S. Dividend Equity ETF
    Weight: 21.00%
    41.3%
  • iShares Core Dividend Growth ETF
    Weight: 18.00%
    33.7%
  • Franklin International Low Volatility High Dividend Index ETF
    Weight: 9.00%
    11.2%
  • Schwab International Equity ETF
    Weight: 6.00%
    11.2%
  • iShares Core 1-5 Year USD Bond
    Weight: 25.00%
    2.6%
  • Top 5 risk contribution 100.0%

Risk contribution shows how much each holding drives overall ups and downs, which can differ a lot from its weight. Here, the two main US dividend ETFs plus the international high‑dividend fund make up 48% of capital but more than 86% of portfolio risk. The biggest single driver is the Schwab US Dividend ETF: at 21% of assets, it contributes over 41% of total volatility. In contrast, the short‑term bond fund is 25% of the portfolio but only about 3% of the risk, reflecting its stability. This pattern is normal — equities usually dominate risk — but it’s helpful to see exactly which funds are steering 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 efficient frontier chart, the current portfolio has a Sharpe ratio of 0.7, which measures return per unit of risk above the risk‑free rate. The “optimal” version using only these same holdings reaches a much higher Sharpe of 1.41 by accepting more risk for proportionally more return, while the minimum‑variance mix almost eliminates risk but with very low expected return. The key point is that the current allocation sits about 2.96 percentage points below the best possible frontier at its risk level. That means, in theory, different weights among the existing funds could have delivered higher expected return for the same volatility, without changing the lineup itself.

Dividends Info

  • iShares Core Dividend Growth ETF 2.00%
  • iShares Core 1-5 Year USD Bond 4.20%
  • Franklin International Low Volatility High Dividend Index ETF 4.40%
  • Schwab U.S. Dividend Equity ETF 3.30%
  • Schwab International Equity ETF 3.00%
  • iShares 0-3 Month Treasury Bond ETF 3.90%
  • Weighted yield (per year) 3.50%

The overall dividend yield is about 3.5%, combining payouts from both the stock and bond ETFs. Yield is the income an investment pays out each year as a percentage of its price, like rent on a property. Here, individual yields range from roughly 2% on the US dividend‑growth ETF up to around 4.4% on the international low‑volatility dividend fund, with short‑term bonds and cash‑like Treasuries also contributing. For an income‑oriented portfolio, this is a meaningful component of total return, especially when capital gains are more modest. It also means a portion of returns is realized as cash flow rather than solely from price appreciation.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • iShares Core 1-5 Year USD Bond 0.06%
  • Franklin International Low Volatility High Dividend Index ETF 0.40%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • iShares 0-3 Month Treasury Bond ETF 0.07%
  • Weighted costs total (per year) 0.10%

The portfolio’s costs are impressively low, with a total expense ratio (TER) around 0.10%. TER is the annual fee charged by the funds, taken out of assets rather than billed directly, so you never see an invoice but it quietly reduces returns. Most holdings sit in the 0.06–0.08% range, with only one international dividend ETF at 0.40%. Relative to typical active funds, this cost level is very competitive and supports better long‑term compounding. Low ongoing fees are one of the few factors investors can fully control, and here the structure is doing what it should: delivering broad diversification and factor tilts without a heavy fee drag.

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