Broad equity mix with strong US focus and a tilt toward dividend income and stability

Report created on Apr 21, 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

This portfolio is built from four broad, low-cost equity ETFs, each at an even 25% weight. Three funds cover different slices of the US market, while one adds exposure to international stocks, giving a simple but wide-reaching stock allocation. Structurally, this is a “core index plus dividend tilt” setup: broad market trackers form the backbone, and the dedicated dividend ETF leans the mix toward income and lower volatility. Having only four positions makes the portfolio easy to follow and maintain. The even split also means no single fund dominates the mix, which helps keep decision-making straightforward and aligns well with a buy-and-hold approach.

Growth Info

From 2016 to early 2026, $1,000 in this portfolio grew to about $3,357, a compound annual growth rate (CAGR) of 12.93%. CAGR is the “average speed” of growth per year over the whole period, smoothing out the bumps. Over the same stretch, the US market benchmark grew faster at 14.82%, while the global market lagged slightly at 12.21%. So this mix underpaced the pure US benchmark but edged out the global one. The worst drop, or max drawdown, was about -34% during early 2020, very similar to both benchmarks, showing that big market shocks hit this portfolio about as hard as broad indices.

Projection Info

The Monte Carlo projection uses past return and volatility patterns to simulate many possible 15-year paths for $1,000, giving a range of outcomes instead of a single forecast. Here, the median result lands around $2,748, with a wide “likely” range from roughly $1,862 to $4,316. This highlights how uncertainty grows over time: long-term outcomes can differ a lot even if average assumptions stay the same. The overall average annualized return across simulations is 8.17%, lower than the historical CAGR, which is a conservative touch. As always, these are statistical what-ifs, not promises; real markets may behave differently than in the historical sample used.

Asset classes Info

  • Stocks
    100%

All of this portfolio is in stocks, with 0% in bonds, cash, or alternatives. That makes it a pure equity portfolio, which typically means more growth potential over long periods but also larger swings along the way. Within equities, the mix spans both US and international markets and includes large, mid, small, and micro companies, so diversification is gained inside the stock bucket rather than across different asset classes. Compared with many “balanced” allocations that blend stocks and bonds, this one leans more toward growth and volatility. The risk score of 4/7 reflects that the ride can be bumpy, even though the holdings themselves are broad, diversified index funds.

Sectors Info

  • Technology
    24%
  • Financials
    14%
  • Health Care
    12%
  • Industrials
    11%
  • Consumer Discretionary
    9%
  • Consumer Staples
    9%
  • Telecommunications
    8%
  • Energy
    7%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is fairly broad: technology is the largest slice at 24%, followed by financials, health care, and industrials. This resembles many mainstream equity benchmarks where tech and related industries have grown significantly, but here dividend and quality tilts slightly rebalance the picture toward more established, cash-generative businesses. A tech tilt can drive long-term growth but often reacts more strongly to changes in interest rates and sentiment. Meanwhile, exposure to defensive areas like consumer staples and health care can help soften some market downturns. Overall, this sector mix is well-balanced and aligns closely with global standards, offering both growth engines and more stable business models in the same portfolio.

Regions Info

  • North America
    77%
  • Europe Developed
    9%
  • Japan
    4%
  • Asia Developed
    4%
  • Asia Emerging
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 77% of the portfolio sits in North America, with smaller allocations to developed Europe, Japan, and other regions, plus a modest slice in emerging markets. This is a clear home bias toward the US, which is common and also roughly in line with many global equity indices where US companies are a large share of total market value. The international ETF ensures some exposure to other economies and currencies, which can help if non-US markets have stretches of stronger performance. At the same time, a high US weight means portfolio results will still be heavily influenced by US economic conditions, policies, and market cycles.

Market capitalization Info

  • Large-cap
    43%
  • Mega-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio leans heavily toward bigger companies: mega- and large-caps together make up around three-quarters of the exposure, with mid-caps meaningful and only a small presence in small- and micro-caps. Larger firms tend to be more established, with steadier earnings and better access to capital markets, which can translate into lower volatility compared with very small companies. This size mix helps keep the portfolio’s behavior closer to broad benchmarks and reduces the influence of any single smaller, more volatile stock. At the same time, the mid- and small-cap slice adds some additional growth potential and diversification beyond the household names that dominate mega-cap indices.

True holdings Info

  • NVIDIA Corporation
    3.50%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Apple Inc
    3.15%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Microsoft Corporation
    2.32%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Amazon.com Inc
    1.71%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class A
    1.41%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Broadcom Inc
    1.24%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Texas Instruments Incorporated
    1.13%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Alphabet Inc Class C
    1.13%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • UnitedHealth Group Incorporated
    1.11%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Meta Platforms Inc.
    1.06%
    Part of fund(s):
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Top 10 total 17.75%

Looking through the ETFs’ top holdings, several big names appear repeatedly, such as Nvidia, Apple, Microsoft, Amazon, Alphabet, and Meta. Because these companies show up in multiple funds, their combined weights in the overall portfolio become meaningful, even if each ETF has them in modest amounts. For example, Nvidia alone adds up to about 3.5% of the total portfolio in the covered portion, and Apple around 3.15%. This creates some hidden concentration in large US growth and tech-related companies. The actual overlap is likely higher than shown, since only top-10 positions are counted, but even this partial view highlights how index-based funds can converge on the same giants.

Factors Info

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

Factor exposure is generally close to market-like across value, size, momentum, and quality, with scores around the neutral range. The standouts are yield and low volatility, both in the “high” range. Yield factor exposure means a tilt toward stocks that pay relatively higher dividends; these can provide a steadier income stream and sometimes cushion total returns when prices move sideways. Low volatility exposure suggests a bias toward stocks that have historically swung less than the market, which can translate into smoother ride during some downturns. Factor investing treats these characteristics as underlying drivers of returns; here, the dividend and stability ingredients are clearly more prominent than in a pure market-weighted portfolio.

Risk contribution Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Weight: 25.00%
    26.9%
  • Vanguard S&P 500 ETF
    Weight: 25.00%
    26.5%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 25.00%
    23.5%
  • Schwab U.S. Dividend Equity ETF
    Weight: 25.00%
    23.2%

Risk contribution shows how much each ETF adds to the portfolio’s overall ups and downs, which can differ from its simple weight. All four holdings are equally weighted at 25%, and their risk contributions are remarkably close, ranging from about 23% to 27%. That means no single fund is dominating the volatility profile; they share risk in a fairly balanced way. The three US-oriented funds together contribute just over three quarters of the total risk, broadly in line with their combined weight and high correlation. This even spread is a positive sign: position sizing and the similarity of the holdings are not creating any outsized single-fund risk hotspots.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

Correlation measures how investments move in relation to each other; a value close to 1 means they tend to move almost in lockstep. In this portfolio, the S&P 500 ETF and the Total Stock Market ETF are highly correlated, reflecting that both track very similar baskets of US stocks, with the broader fund just adding more mid- and small-caps. High correlation between these two limits the diversification benefit they provide relative to each other, even though they are different tickers. The main diversification comes instead from pairing US-focused funds with the international fund and the dividend ETF, which have somewhat different compositions and behavior.

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 vs. return chart plots this portfolio against an “efficient frontier,” which shows the best achievable returns for each risk level using these same holdings in different weights. The current mix has a Sharpe ratio of 0.57, while the optimal combination of these ETFs (by weight only) reaches a Sharpe of 0.81 with slightly higher risk and return. The minimum-variance mix has lower risk and a Sharpe of 0.68. Because the current allocation sits on or very near the efficient frontier, it’s considered efficient: for its current risk level, the tradeoff between volatility and expected return is already close to the best achievable without adding new funds.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.40%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.08%

The blended dividend yield of the portfolio is about 2.08%, reflecting the mix of a higher-yield dividend ETF and broad market funds with lower yields. Dividends are cash payments from companies to shareholders and can be an important part of long-term total return, especially when reinvested. The dedicated dividend ETF, with a yield around 3.4%, pulls the overall income level up compared with a pure broad-market US allocation. Meanwhile, the international fund’s higher yield also contributes. This structure strikes a balance between growth-oriented exposure and a meaningful, though not extreme, level of ongoing cash income from the equity holdings.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio’s total expense ratio (TER) is about 0.04%, which is very low by industry standards. TER is the annual fee charged by a fund, expressed as a percentage of the invested amount; it quietly reduces returns each year, so lower is generally better over time. Here, all four ETFs are inexpensive index products, with individual TERs between 0.03% and 0.06%. Over long horizons, keeping costs this low can make a noticeable difference because every fraction of a percent saved has a chance to compound. The costs are impressively low, supporting better long-term performance compared with higher-fee alternatives tracking similar markets.

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