Diversified dividend focused portfolio with strong low volatility tilt and moderate long term growth potential

Report created on May 18, 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‑maturity bonds and cash‑like instruments. Around two thirds is in equity ETFs focused on dividends and dividend growth, while just over a quarter sits in short term bonds and the rest in ultra short Treasuries that behave much like cash. This structure is consistent with a conservative, income‑leaning approach: stocks provide growth and dividends, while bonds and cash dampen swings. The use of broad, low‑cost ETFs also spreads exposure across many underlying companies rather than a few single names. Overall, the mix creates a base that aims for steadier progress and ongoing payouts rather than chasing the highest possible growth or taking large concentrated equity bets.

Growth Info

From mid‑2020 to mid‑2026, $1,000 grew to about $1,860, giving an annualized return (CAGR) of 11%. CAGR, or Compound Annual Growth Rate, is like average speed on a road trip: it smooths out ups and downs into one yearly pace. The portfolio’s maximum drawdown was about ‑14%, meaning its largest peak‑to‑trough fall was noticeably milder than the US and global markets, which dropped around a quarter. However, those benchmarks also compounded faster, so this portfolio underperformed them by roughly 5–7 percentage points per year. That trade‑off—lower downside but lower long‑term growth—fits a defensive, income‑tilted structure. As always, past returns don’t guarantee similar results going forward.

Projection Info

The Monte Carlo projection looks at many possible 15‑year paths based on how this mix behaved historically. Monte Carlo is basically a big set of “what if” simulations: a computer repeatedly shuffles returns, within a realistic range, to see where $1,000 might end up. Here, the median outcome is about $2,499, with most simulations falling between roughly $1,861 and $3,393, and a wider band from about $1,226 to $5,191. The average annual return across all simulations is about 6.7%, and around three‑quarters of paths finish with a gain. These numbers don’t predict a single future; they show a spread of plausible scenarios, reminding you that even steady‑looking portfolios can still experience a wide range of outcomes.

Asset classes Info

  • Stocks
    62%
  • Bonds
    26%
  • Cash
    12%

Asset‑class‑wise, about 62% of the portfolio is in stocks, 26% in bonds, and 12% in cash‑like Treasuries. This tilt toward equities still leaves a meaningful slice in fixed income and cash, which tend to be less volatile and can cushion equity downturns. Compared with a pure stock market benchmark, this is a clearly more conservative mix, trading some growth potential for smoother ride characteristics. The bond allocation is focused on short maturities, which typically react less to interest rate changes, and the cash allocation adds further stability. This balance is well‑aligned with a lower‑risk stance where preservation and income matter alongside growth, rather than maximizing equity exposure.

Sectors Info

  • Cash
    12%
  • Financials
    11%
  • Technology
    9%
  • Health Care
    9%
  • Consumer Staples
    8%
  • Industrials
    7%
  • Energy
    6%
  • Consumer Discretionary
    4%
  • Utilities
    3%
  • Telecommunications
    2%
  • Basic Materials
    2%

This breakdown covers the equity portion of your portfolio only.

Sector exposure across the equity slice is broad, with meaningful weights in financials, technology, health care, consumer staples, industrials, and energy, plus smaller allocations to utilities, telecoms, and basic materials. No single sector dominates the entire portfolio, which helps reduce the impact of a downturn in any one part of the economy. Compared with broad equity benchmarks, there’s a noticeable lean toward traditionally defensive, dividend‑rich areas such as consumer staples, utilities, and some financials, while more cyclical growth sectors are present but not overwhelming. Dividend‑focused portfolios often look like this, as companies in steady, cash‑generating industries are more likely to pay regular dividends and keep them going through different market cycles.

Regions Info

  • North America
    70%
  • Cash
    12%
  • Europe Developed
    10%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, about 70% of the portfolio’s equity exposure is in North America, with most of the rest in developed markets such as Europe, Japan, and other Asia‑Pacific regions. This pattern is quite close to many global equity benchmarks, which also tend to be heavily North America‑weighted, so the regional split is broadly aligned with global market size. That alignment is a positive sign for diversification because it avoids extreme regional bets. The presence of multiple developed regions helps spread economic and currency risk beyond a single country. Meanwhile, the 12% cash‑like position sits outside this equity geography view and acts more as a stabilizer than a regional exposure.

Market capitalization Info

  • Large-cap
    33%
  • Mega-cap
    16%
  • Mid-cap
    11%
  • Small-cap
    2%

This breakdown covers the equity portion of your portfolio only.

By market size, the portfolio leans clearly toward larger companies: roughly 49% in mega‑ and large‑caps, with more modest exposure to mid‑caps and just a small slice in small‑caps. Larger firms tend to be more established, with steadier earnings and more frequent dividend payments, which fits the dividend and low‑volatility themes running through this portfolio. Having less in small‑caps usually reduces volatility but can also mean less exposure to some faster‑growing, more niche businesses. This large‑cap tilt is very much in line with many broad index funds and helps keep the portfolio’s behavior closer to mainstream equity markets rather than highly speculative or thinly traded areas.

True holdings Info

  • UnitedHealth Group Incorporated
    1.56%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • iShares Core Dividend Growth ETF
  • Qualcomm Incorporated
    1.30%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Procter & Gamble Company
    1.18%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • iShares Core Dividend Growth ETF
  • Texas Instruments Incorporated
    1.18%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • BlackRock Cash Funds Treasury SL Agency
    0.89%
    Part of fund(s):
    • iShares 0-3 Month Treasury Bond ETF
  • The Coca-Cola Company
    0.80%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Chevron Corp
    0.79%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Merck & Company Inc
    0.74%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Verizon Communications Inc
    0.74%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • PepsiCo Inc
    0.73%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Top 10 total 9.91%

This breakdown covers the equity portion of your portfolio only.

Looking through the ETFs, the top underlying holdings show modest single‑name concentrations. The largest look‑through position, UnitedHealth, is about 1.6% of the portfolio, with others like Qualcomm, Procter & Gamble, Texas Instruments, Coca‑Cola, Chevron, Merck, Verizon, and PepsiCo each under 1.5%. These are widely held, mature companies, often associated with stable cash flows and dividends. Overlap across ETFs is present but not extreme at the top‑10 level, suggesting that hidden single‑stock concentration is limited. Because only ETF top‑10 holdings are captured, actual overlap is likely higher under the surface, but even so, there’s no sign that one or two companies dominate the portfolio’s overall risk or return profile.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 62%
Size
Exposure to smaller companies
Neutral
Data availability: 88%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 53%
Quality
Preference for financially healthy companies
High
Data availability: 53%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
Very high
Data availability: 88%

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 strong tilts toward low volatility (very high), yield (high), value (high), and quality (high), with size and momentum roughly neutral. Factors are like the “ingredients” that help explain why investments move the way they do—things like cheapness (value), payout level (yield), or price stability (low volatility). This mix suggests a bias toward steadier, dividend‑paying, reasonably valued companies with solid fundamentals, rather than high‑flyer growth names or speculative small‑caps. Portfolios with this pattern often hold up relatively well in choppy or falling markets but may lag in very strong, fast‑rising markets led by high‑growth stocks. The consistent, income‑oriented factor profile is a clear defining feature here.

Risk contribution Info

  • iShares Core Dividend Growth ETF
    Weight: 22.00%
    35.8%
  • Schwab U.S. Dividend Equity ETF
    Weight: 20.00%
    33.8%
  • Schwab International Equity ETF
    Weight: 11.00%
    18.3%
  • Franklin International Low Volatility High Dividend Index ETF
    Weight: 9.00%
    9.8%
  • iShares Core 1-5 Year USD Bond
    Weight: 26.00%
    2.4%
  • Top 5 risk contribution 100.0%

Risk contribution highlights how much each holding drives the portfolio’s ups and downs, which can differ a lot from simple weight. Here, the three equity funds—two US dividend ETFs and one international equity ETF—make up 53% of the weight but contribute about 88% of total risk. By contrast, the 26% allocation to short‑term bonds adds only about 2% of overall volatility, showing how stabilizing that position is. Risk/weight ratios above 1.6 for the main equity funds confirm they punch above their size in driving movement. This pattern is typical: stocks dominate risk, bonds calm things down. The key takeaway is that risk is concentrated in the dividend equity sleeves, not in the fixed income or cash components.

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 chart shows the current portfolio earning about 10.2% expected return with 8.6% volatility, for a Sharpe ratio of 0.72. The Sharpe ratio compares return to risk after subtracting a risk‑free rate, like checking how much “extra” you get per unit of bumpiness. The efficient frontier line marks the best trade‑offs possible using these same holdings in different weights. Here, the portfolio sits about 3.4 percentage points below that frontier at its current risk level, and well below the “optimal” mix with Sharpe 1.41. That means simply reweighting what’s already here—without adding new funds—could potentially improve the balance between risk and return, at least based on past data and assumptions.

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 4.50%
  • Schwab U.S. Dividend Equity ETF 3.30%
  • Schwab International Equity ETF 3.10%
  • iShares 0-3 Month Treasury Bond ETF 3.90%
  • Weighted yield (per year) 3.41%

The portfolio’s overall yield is about 3.41%, combining equity dividends with income from bonds and ultra‑short Treasuries. Individual components range from around 2% on dividend growth stocks up to 4–4.5% on the higher‑yielding bond and international dividend ETFs. Dividends can play two roles: they provide regular cash flow, and when reinvested, they can meaningfully boost total return over time. In a portfolio that’s not chasing maximum capital appreciation, this level of yield is a key part of the story. It offers a tangible, ongoing return component that doesn’t rely solely on price gains, which can help make the experience feel more rewarding even during periods of flat or choppy markets.

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%

Costs are impressively low overall, with a blended expense ratio of about 0.10%. TER, or Total Expense Ratio, is the annual fee charged by a fund as a percentage of your investment—like a small yearly “membership fee” taken out behind the scenes. Most holdings are in the 0.06–0.08% range, with one international low‑volatility dividend ETF at 0.40%, which is typical for more specialized strategies. Low fees matter because they come off returns every single year and compound over time. Being close to rock‑bottom index‑fund pricing supports better long‑term outcomes and means more of the portfolio’s yield and growth stays in your pocket rather than going to fund providers.

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