Income focused portfolio with very high low volatility tilt and strong allocation to cash and ultra short bonds
Report created on Jul 10, 2026Risk profile
2/7
Diversification profile
5/5
Positions
-
PU PGIM Ultra Short Bond
PULS - US69344A1079 27.50% -
SG iShares 0-3 Month Treasury Bond ETF
SGOV - US46436E7186 27.50% -
DG iShares Core Dividend Growth ETF
DGRO - US46434V6213 17.10% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 13.90% -
FN Schwab Fundamental International Large Company Index ETF
FNDF - US8085247554 8.40% -
LV Franklin International Low Volatility High Dividend Index ETF
LVHI - US52468L5057 5.60%
This portfolio mixes income‑oriented stocks with a big allocation to ultra short bond and cash‑like ETFs. Roughly 55% sits in two very low‑volatility bond and Treasury funds, while the remaining 45% is in dividend‑focused equity ETFs split between US and international markets. That structure keeps a clear tilt toward capital preservation and steadier income rather than aggressive growth. Understanding this split matters because it largely drives how bumpy the ride feels and how quickly the portfolio reacts to market swings. In practice, this means a relatively calm experience during large equity sell‑offs, while also limiting the upside when stock markets rally strongly.
Growth
From mid‑2020 to mid‑2026, $1,000 grew to about $1,775, a compound annual growth rate (CAGR) of 9.88%. CAGR is like average speed on a road trip: it smooths out all the ups and downs into one yearly number. The max drawdown, or worst peak‑to‑trough drop, was about –10%, noticeably shallower than the roughly –25% drawdowns in the US and global benchmarks. The trade‑off is clear: the portfolio lagged the US market by about 7.7 percentage points a year and the global market by 5.7, but experienced much smaller declines, consistent with its conservative, income‑heavy setup.
Projection
The forward projection uses Monte Carlo simulation, which runs 1,000 “what if” scenarios based on historical behavior to estimate a range of future outcomes. It suggests that $1,000 might most likely end around $2,320 after 15 years, with a central “likely” band between roughly $1,874 and $2,939. The wider $1,282–$4,206 range shows less probable but still possible paths. Overall, about three‑quarters of simulations end positive, and the average annual return across all paths is 6%. These numbers are not promises; they simply illustrate how a portfolio with this risk profile has historically tended to behave over long stretches.
Asset classes
- Stocks 45%
- Bonds 28%
- Cash 28%
By asset class, around 45% is in stocks, 28% in bonds, and 28% in cash‑like instruments. This is quite conservative compared with a typical global equity benchmark, which is nearly 100% stocks. Bonds and cash generally move less than stocks and can act as a buffer in downturns, but they usually offer lower long‑term growth. This mix lines up with the “conservative” risk rating and supports steadier portfolio values. It also means that most of the long‑term growth potential is coming from less than half of the capital, while the rest primarily works to limit drawdowns and provide income.
Sectors
- Cash 28%
- Technology 8%
- Financials 7%
- Health Care 6%
- Consumer Staples 5%
- Industrials 5%
- Energy 5%
- Consumer Discretionary 3%
- Utilities 2%
- Basic Materials 2%
- Telecommunications 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure is heavily shaped by the equity ETFs, with a noticeable overlay of cash from the ultra short bond and Treasury positions. The largest sectors after cash are technology, financials, health care, consumer staples, industrials, and energy, all in single‑digit percentages. That spread resembles a broadly diversified equity basket rather than a narrow bet on one area. Sector balance matters because different parts of the market lead at different times. A diversified sector profile like this helps avoid relying on a single theme, while the dividend focus may tilt slightly toward more mature, cash‑generating businesses that can support regular payouts.
Regions
- North America 33%
- Cash 28%
- Europe Developed 7%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, the portfolio is anchored in North America at about 33%, with additional exposure to developed Europe, Japan, other developed Asia, and Australasia. Cash and ultra short positions add another 28% that isn’t tied to equity geography. Compared with global equity indices, which are strongly but not exclusively US‑tilted, this mix looks reasonably aligned with developed markets overall while leaving out most emerging markets. Geographic spread is important because economies grow and stumble at different times. This allocation provides solid exposure to major developed markets, supporting diversification across currencies, regulations, and economic cycles.
Market capitalization
- Large-cap 24%
- Mega-cap 10%
- Mid-cap 9%
- Small-cap 1%
This breakdown covers the equity portion of your portfolio only.
Market capitalization is skewed toward larger companies: about 34% combined in mega‑ and large‑caps, with smaller weights in mid‑ and small‑caps. Larger firms tend to have more established businesses, steadier earnings, and better access to financing, which can reduce volatility compared to portfolios packed with smaller, more speculative companies. Mid‑ and small‑cap slices add some growth and diversification, but they don’t dominate. This pattern fits with a conservative, dividend‑oriented approach, where the focus is often on stability and consistent cash flows rather than chasing early‑stage growth stories that can swing more sharply.
True holdings
-
XT BlackRock Cash Funds Treasury SL Agency 2.03%
Part of fund(s):- iShares 0-3 Month Treasury Bond ETF
-
UN UnitedHealth Group Incorporated 1.19%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- iShares Core Dividend Growth ETF
-
TX Texas Instruments Incorporated 0.80%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
QC Qualcomm Incorporated 0.76%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
KO The Coca-Cola Company 0.57%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
MR Merck & Company Inc 0.55%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
CV Chevron Corp 0.54%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AA Apple Inc 0.53%
Part of fund(s):- iShares Core Dividend Growth ETF
-
AV Broadcom Inc 0.51%
Part of fund(s):- iShares Core Dividend Growth ETF
-
JP JPMorgan Chase & Co 0.51%
Part of fund(s):- iShares Core Dividend Growth ETF
- Top 10 total 7.98%
This breakdown covers the equity portion of your portfolio only.
The look‑through data, even with only ETF top‑10 holdings, shows modest concentration in a few large names like UnitedHealth, Texas Instruments, and Apple, each well under 2% of the overall portfolio. The largest single underlying holding is a cash‑like BlackRock Treasury fund at about 2%. Overlap appears limited, suggesting hidden concentration in individual equities is relatively low. That’s helpful because if one company runs into trouble, it has a small impact on total value. It’s worth remembering that this overlap is likely understated, since only top‑10 ETF holdings are visible, but the initial picture points to broad underlying diversification.
Factors
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 very high tilts toward low volatility and yield, plus a high tilt toward quality. Factors are like underlying “personalities” of investments – value, size, momentum, quality, low volatility, and yield – that research links to long‑term returns. Strong low‑volatility and yield tilts mean the portfolio tends to favor steadier, income‑producing stocks and defensive strategies. That often helps during market stress but can lag in fast, speculative rallies. The quality tilt, associated with stronger balance sheets and profitability, further supports resilience. Size and momentum sit around neutral, so the main drivers here are stability, dividends, and financial strength.
Risk contribution
-
iShares Core Dividend Growth ETF
Weight: 17.10% 38.4% -
Schwab U.S. Dividend Equity ETF
Weight: 13.90% 32.8% -
Schwab Fundamental International Large Company Index ETF
Weight: 8.40% 19.9% -
Franklin International Low Volatility High Dividend Index ETF
Weight: 5.60% 8.5% -
PGIM Ultra Short Bond
Weight: 27.50% 0.4% - Top 5 risk contribution 100.0%
Risk contribution shows that the three main equity ETFs, together just under 40% of the weight, generate over 90% of the portfolio’s total volatility. Risk contribution measures how much each holding adds to overall ups and downs, which can differ a lot from simple weights. The US and international dividend equity funds each contribute more than twice their weight in risk, while the ultra short bond and Treasury funds, more than half the portfolio by weight, barely move the risk needle. This pattern is typical: the equity sleeve effectively sets the portfolio’s behavior, while the fixed income sleeve mainly dampens swings.
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 vs. return chart, the current portfolio sits below the efficient frontier, with a Sharpe ratio of 0.79 compared with 1.4 for the optimal mix. The Sharpe ratio measures risk‑adjusted returns, like how much extra return you get for each unit of volatility above the risk‑free rate. Being about 1.95 percentage points below the frontier at the same risk level means that, using only the existing holdings, a different weighting could historically have delivered more return for similar volatility. The minimum variance portfolio shows just how low risk could go with this fund set, although at a much lower expected return.
Dividends
- iShares Core Dividend Growth ETF 1.90%
- Schwab Fundamental International Large Company Index ETF 3.10%
- Franklin International Low Volatility High Dividend Index ETF 4.70%
- PGIM Ultra Short Bond 4.50%
- Schwab U.S. Dividend Equity ETF 3.20%
- iShares 0-3 Month Treasury Bond ETF 3.80%
- Weighted yield (per year) 3.58%
The overall dividend yield is 3.58%, combining stock dividends with interest‑like distributions from the ultra short bond and Treasury ETFs. Individual yields range from about 1.9% on the core dividend growth fund up to around 4.7% on the international low‑volatility high‑dividend ETF and 4.5% on the PGIM ultra short bond. Dividends and interest can be a significant part of total return, especially when reinvested over time, and can also offer a psychological cushion when markets are choppy. This yield profile fits well with the portfolio’s strong tilt toward income and low volatility rather than purely capital appreciation.
Ongoing product costs
- iShares Core Dividend Growth ETF 0.08%
- Schwab Fundamental International Large Company Index ETF 0.25%
- Franklin International Low Volatility High Dividend Index ETF 0.40%
- PGIM Ultra Short Bond 0.15%
- Schwab U.S. Dividend Equity ETF 0.06%
- iShares 0-3 Month Treasury Bond ETF 0.07%
- Weighted costs total (per year) 0.13%
The portfolio’s total expense ratio (TER) is about 0.13%, which is impressively low for a multi‑fund setup. Individual fund TERs run from 0.06% to 0.40%, but the heavier weights sit in lower‑cost vehicles, bringing down the blended average. TER is the annual fee charged by funds, expressed as a percentage of assets, and it quietly comes out of returns each year. Keeping this number low is a strong positive because even small fee differences compound meaningfully over long periods. Here, costs are well‑controlled, aligning with best practices for diversified, index‑style and rules‑based portfolios.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey