Balanced dividend-focused portfolio with a strong emphasis on US equities

Report created on Jul 26, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equity ETFs, with a significant 70% allocation to the Schwab U.S. Dividend Equity ETF, indicating a focus on dividend-generating stocks. The remaining 30% is split between the JPMorgan Nasdaq Equity Premium Income ETF and the Vanguard S&P 500 ETF, highlighting a preference for income alongside broad market exposure. This composition suggests a strategy centered around income generation through dividends, with a secondary emphasis on capital appreciation from the broader market.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 8.83%, with a maximum drawdown of -16.18%. These numbers indicate a relatively stable performance with moderate volatility, aligning well with the balanced risk profile. The days contributing to 90% of returns being limited to just eight suggests that performance peaks were driven by specific, high-impact market events.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, project an annualized return of 12.90% across all simulations. With 991 out of 1,000 simulations showing positive returns, the forward projection is optimistic. However, it's crucial to remember that these simulations are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    97%
  • No data
    3%

The asset allocation is nearly entirely in stocks (97%), with a minimal portion not classified (3%). This heavy equity concentration enhances growth potential but also increases volatility and risk. The absence of significant allocations to other asset classes, like bonds or real estate, limits diversification benefits.

Sectors Info

  • Technology
    21%
  • Consumer Staples
    15%
  • Energy
    14%
  • Health Care
    13%
  • Consumer Discretionary
    11%
  • Industrials
    9%
  • Financials
    8%
  • Telecommunications
    7%
  • Basic Materials
    1%
  • Utilities
    1%

The sectoral allocation covers a broad range, with technology, consumer defensive, and energy sectors leading. This balanced sector exposure can help mitigate sector-specific risks, though the 21% allocation to technology indicates a higher sensitivity to tech sector volatility.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographic allocation is predominantly in North America (99%), with a nominal exposure to developed Europe (1%). This heavy domestic focus enhances exposure to US market growth but limits global diversification, potentially increasing vulnerability to US-specific economic downturns.

Market capitalization Info

  • Large-cap
    51%
  • Mid-cap
    26%
  • Mega-cap
    14%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a preference for larger companies, with 51% in big-cap stocks. This bias towards larger, potentially more stable companies may reduce volatility but could also limit exposure to the high growth potential of smaller firms.

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.

Using the Efficient Frontier to optimize this portfolio could potentially improve the risk-return ratio. Currently, the portfolio's heavy tilt towards dividend stocks and large-cap equities suggests room for diversification into other asset classes or geographic regions to enhance returns for the given level of risk.

Dividends Info

  • JPMorgan Nasdaq Equity Premium Income ETF 11.20%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 5.02%

The focus on dividend-yielding ETFs, with a total portfolio yield of 5.02%, underscores a strategy prioritizing income generation. This approach can provide regular income streams but may also focus the portfolio on slower-growing, dividend-paying companies.

Ongoing product costs Info

  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.12%

The overall portfolio cost (Total TER) is relatively low at 0.12%, which is beneficial for long-term growth as lower costs translate directly into higher net returns. The low expense ratios of the chosen ETFs are commendable, enhancing the portfolio's efficiency.

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