A cautious and dividend-focused portfolio with a strong tilt towards US equities

Report created on Jun 25, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is predominantly invested in US equities and cash equivalents, with a significant allocation towards ETFs that track major indices and dividend-paying stocks. The largest position is in a Vanguard S&P 500 ETF, making up 28% of the portfolio, indicating a strong tilt towards large-cap US stocks. The inclusion of short-term Treasury Bond ETFs suggests a cautious approach to risk management. The focus on dividend-paying assets, through both specific ETFs and Berkshire Hathaway shares, underscores an income-generating strategy within a conservative risk framework.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 12.96%, with a maximum drawdown of -17.29%. These figures point to robust performance, especially considering the portfolio's cautious risk classification. The days contributing to 90% of returns highlight the impact of significant market movements on performance. However, it's crucial to remember that past performance is not a reliable indicator of future results, and such returns may not be replicable moving forward.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of outcomes, with the median scenario indicating a potential 604.5% increase. While these simulations provide a broad sense of possible future states, they rely heavily on historical data, which may not account for future market conditions. Therefore, while encouraging, these projections should be viewed as one of many tools in assessing potential portfolio performance.

Asset classes Info

  • Stocks
    75%
  • Cash
    25%

The portfolio's asset allocation is split between 75% in stocks and 25% in cash equivalents, lacking direct exposure to bonds (outside of short-term Treasury ETFs) and alternative assets. This distribution supports the portfolio's income-focused yet cautious approach but may limit diversification benefits and exposure to potential growth in other asset classes. Expanding into other asset classes could provide additional sources of return and risk mitigation.

Sectors Info

  • Technology
    18%
  • Financials
    18%
  • Health Care
    8%
  • Consumer Discretionary
    6%
  • Consumer Staples
    6%
  • Industrials
    6%
  • Telecommunications
    5%
  • Energy
    4%
  • Utilities
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

Sector allocation is diversified across technology and financial services, each comprising 18% of the portfolio, followed by healthcare and consumer-oriented sectors. This sector spread indicates a balance between growth-oriented and defensive investments. However, the heavy weighting in technology and financial services sectors may expose the portfolio to sector-specific risks, suggesting a potential review to ensure alignment with the investor's risk tolerance and investment horizon.

Regions Info

  • North America
    75%

With 75% of assets allocated to North America, the portfolio demonstrates a strong home country bias, lacking exposure to international markets. This concentration in a single geographic region can increase vulnerability to local market fluctuations and miss out on potential gains from global economic growth. Broadening geographic exposure could enhance diversification and potentially reduce risk.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    26%
  • Mid-cap
    13%
  • Small-cap
    2%

The focus on mega and big-cap stocks, constituting 60% of the portfolio, aligns with the cautious risk profile by investing in established, large-scale companies. However, the limited exposure to medium, small, and micro-cap stocks may restrict opportunities for higher growth, which these segments can offer. A more balanced market cap allocation could improve the portfolio's growth prospects while maintaining a core of stability.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    iShares S&P 100 ETF
    Vanguard S&P 500 ETF
    High correlation
  • Vanguard High Dividend Yield Index Fund ETF Shares
    Schwab U.S. Dividend Equity ETF
    High correlation

The high correlation observed between certain ETFs and individual stocks in the portfolio, particularly within the large-cap US equity space, suggests redundancy that may not contribute to diversification. Reducing overlap by consolidating investments in highly correlated assets could streamline the portfolio and potentially enhance risk-adjusted returns.

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 current portfolio's risk-return profile suggests room for optimization, particularly by addressing the overlap in highly correlated assets. An optimal portfolio, maintaining the same risk level but potentially offering a higher expected return of 2.83%, could be achieved through careful reallocation. This process involves balancing the desire for income with the need for diversification and growth potential.

Dividends Info

  • iShares S&P 100 ETF 0.90%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • iShares® 0-3 Month Treasury Bond ETF 4.60%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard High Dividend Yield Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.34%

The portfolio's focus on dividend-yielding investments is evident, with a total yield of 2.34%. This strategy not only provides a steady income stream but also contributes to total return. However, it's important to balance the pursuit of dividends with the overall growth and risk objectives, ensuring that dividend-paying investments do not overly concentrate the portfolio in slower-growth sectors or companies.

Ongoing product costs Info

  • iShares S&P 100 ETF 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard High Dividend Yield Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.05%

The portfolio's total expense ratio (TER) of 0.05% is impressively low, supporting better long-term performance by minimizing the drag on returns. Keeping costs low is a critical component of investment success, particularly in a cautious, income-focused portfolio where every basis point of cost savings can contribute to net income.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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