Balanced dividend tilted portfolio with strong quality focus and room to refine global diversification

Report created on Mar 24, 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 entirely from broad, low-cost ETFs, with a clear tilt toward dividend and quality stocks. Two large core positions dominate: a U.S. dividend equity ETF at 35% and a broad S&P 500 ETF at 30%. Around 20% is in additional factor-tilted U.S. ETFs (dividend appreciation and momentum), and 10% adds world ex‑US exposure. A small 5% slice sits in another low-cost equity ETF. This structure keeps things simple while still layering in different styles. The main takeaway is that the portfolio is equity-heavy and U.S.-centric, aiming for growth and income, so its ups and downs will largely track stock markets rather than bonds or cash.

Growth Info

From May 2020 to March 2026, the portfolio turned $1,000 into about $2,212, a compound annual growth rate (CAGR) of 14.73%. CAGR is like your “average speed” over the full journey, smoothing out bumps. That’s slightly behind the U.S. market (15.82%) but ahead of the global market (13.87%), while experiencing a smaller max drawdown (-20.5% vs around -24% to -26%). Max drawdown is the worst peak‑to‑trough fall and shows how painful a downturn can feel. This profile suggests a solid balance: returns competitive with the U.S. market but with somewhat softer downside, which fits a balanced risk score. Remember, this period was unusually strong for equities; past returns don’t guarantee future results.

Projection Info

The Monte Carlo projection uses the portfolio’s historical pattern of returns and volatility to simulate 1,000 possible 10‑year paths. Think of it as re‑rolling the last few years’ market dice in many different orders. The median outcome (50th percentile) is a cumulative return of about 486%, while the pessimistic 5th percentile is still around 110%, and only 2 simulations are negative. The average simulated annual return is about 14.26%, roughly in line with history. These results show a wide range of possible futures: strong upside, but still real risk. The key limitation is that simulations assume the future will behave somewhat like the recent past, which may not hold if market regimes shift.

Asset classes Info

  • Stocks
    65%
  • Cash
    5%

The asset class split shows roughly 65% in stocks and a modest 5% in cash, with small other classes under 2% not counted. For a “Balanced” risk profile, this is on the equity-heavy side, since many balanced allocations sit closer to a 60/40 stock/bond mix. Being mostly in stocks means higher expected long‑term growth but more volatility and bigger drawdowns than a portfolio with significant bonds. The small cash slice can help with short‑term needs but doesn’t meaningfully buffer equity swings. For someone with a multi‑year horizon who can ride through downturns, this equity bias is sensible; those needing shorter‑term stability might typically want more in bonds or cash-like assets.

Sectors Info

  • Technology
    10%
  • Energy
    9%
  • Financials
    9%
  • Consumer Staples
    9%
  • Health Care
    8%
  • Industrials
    8%
  • Consumer Discretionary
    5%
  • Telecommunications
    4%
  • Basic Materials
    2%
  • Utilities
    1%

Sector exposure is pleasantly spread, with Technology at 10% rather than dominating the way it does in some broad indexes. Energy, Financials, Consumer Defensive, Healthcare, and Industrials each sit around 8–9%, with smaller allocations to Consumer Cyclicals, Communication Services, and Basic Materials. Utilities are minor at 1%. This more even sector mix, combined with a dividend tilt, tends to lean toward mature, cash‑generating businesses rather than speculative growth. That can help during periods of high interest rates or when growth stocks fall out of favor. The trade‑off is that if high‑growth areas boom, the portfolio might lag. Overall, this sector composition looks well‑balanced and aligns closely with diversified equity standards.

Regions Info

  • North America
    56%
  • Europe Developed
    5%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographically, about 56% is in North America, with modest slices in developed Europe, Japan, and other developed Asia and Australasia. Compared to many global equity benchmarks, this is a clear U.S./North America overweight and a notable underweight to the rest of the world, particularly emerging markets. A home-country tilt like this has worked well in the last decade because U.S. stocks outperformed many regions. The flip side is that portfolio fortunes are tightly tied to the North American economic and policy environment. Adding more international exposure would typically reduce reliance on one region, but it also introduces currency and foreign market risk. The current mix is reasonable for a U.S.-based, U.S.-focused investor.

Market capitalization Info

  • Large-cap
    33%
  • Mid-cap
    16%
  • Mega-cap
    12%
  • Small-cap
    2%
  • Micro-cap
    1%

Market capitalization exposure is tilted toward larger companies: about 12% in “mega” caps, 33% in big caps, and 16% in mid caps, with only small allocations to small and micro caps. Large and mega caps tend to be more stable, widely followed, and often more resilient in crises, which aligns nicely with a balanced risk score. Smaller caps can bring higher growth potential but also sharper swings and liquidity risk. Here, the modest small‑cap exposure adds a bit of return potential without dominating the ride. This cap‑size profile is very similar to typical broad market indexes, which is a strong indicator of healthy diversification by company size.

True holdings Info

  • NVIDIA Corporation
    3.12%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • State Street® SPDR® Portfolio S&P 500® ETF
  • Apple Inc
    2.38%
    Part of fund(s):
    • State Street® SPDR® Portfolio S&P 500® ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
  • Broadcom Inc
    2.30%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • State Street® SPDR® Portfolio S&P 500® ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
  • Microsoft Corporation
    1.83%
    Part of fund(s):
    • State Street® SPDR® Portfolio S&P 500® ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
  • ConocoPhillips
    1.78%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Lockheed Martin Corporation
    1.75%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
  • Chevron Corp
    1.71%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Cisco Systems Inc
    1.66%
    Part of fund(s):
    • Invesco S&P 500® Momentum ETF
    • Schwab U.S. Dividend Equity ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
  • Verizon Communications Inc
    1.58%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Merck & Company Inc
    1.57%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • Vanguard Dividend Appreciation Index Fund ETF Shares
  • Top 10 total 19.67%

Looking through the ETFs, the biggest underlying positions are familiar large U.S. names like NVIDIA, Apple, Microsoft, Broadcom, ConocoPhillips, and other blue chips. None of these are held directly; they show up through multiple ETFs, which creates “hidden” overlap. For example, Apple or Microsoft likely appear in both the S&P 500 ETF and some dividend or factor funds. Overlap matters because if the same stock is owned via several funds, a hit to that stock can ripple more than the fund list suggests. Coverage is about two‑thirds of the portfolio, so actual overlap may be higher. It’s worth being comfortable with concentration in big U.S. leaders.

Factors Info

Value
Preference for undervalued stocks
Very high
Data availability: 35%
Size
Exposure to smaller companies
Very low
Data availability: 30%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 100%
Quality
Preference for financially healthy companies
No data
Data availability: 0%
Yield
Preference for dividend-paying stocks
Very high
Data availability: 45%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 95%

Factor exposure is where the portfolio really stands out. Factor exposure means how much the holdings lean into traits like value, size, momentum, quality, low volatility, and yield—think of them as return “ingredients.” There’s a strong tilt toward Value (85%), Yield (85%), and Low Volatility (71%), with moderate Momentum (55%) and limited Size bias. This suggests a focus on cheaper, income‑producing, more stable stocks, plus a momentum sleeve for trend‑followers. In practice, this blend often holds up better in choppy or rate‑sensitive markets but may lag during speculative growth booms. Signal coverage is about 51%, so readings aren’t perfect, but the dominant style is clearly conservative, income and quality focused.

Risk contribution Info

  • Schwab U.S. Dividend Equity ETF
    Weight: 35.00%
    34.7%
  • State Street® SPDR® Portfolio S&P 500® ETF
    Weight: 30.00%
    34.3%
  • Invesco S&P 500® Momentum ETF
    Weight: 10.00%
    11.4%
  • Vanguard Dividend Appreciation Index Fund ETF Shares
    Weight: 10.00%
    9.8%
  • SPDR S&P World ex US
    Weight: 10.00%
    9.8%
  • Top 5 risk contribution 100.0%

Risk contribution measures how much each holding adds to total portfolio volatility, which can differ from simple weight. Here, the three biggest positions—U.S. dividend ETF, S&P 500 ETF, and momentum ETF—make up 75% of the weight but about 80% of the risk, with risk‑to‑weight ratios around 1.0–1.14. That means risk is fairly proportional to size, with the S&P 500 and momentum ETFs punching slightly above their weight. Nothing screams extreme concentration in a single satellite fund, which is good. Still, with two large U.S. core funds driving most of the risk, any major U.S. market event will dominate the experience. Adjusting these weights would be the main lever to dial risk up or down.

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 at about 14.72% expected return and 14.25% risk, with a Sharpe ratio of 0.89. The Sharpe ratio measures return per unit of volatility, like miles per gallon for risk. The efficient frontier represents the best possible tradeoff between risk and return using only the existing holdings at different weights. Since the current allocation is below that frontier, there’s room to improve efficiency by reweighting, without adding new funds. The same‑risk optimized portfolio shows a higher expected return (about 20.26%) for slightly higher risk, and the minimum‑variance or “optimal” solutions cluster at very low risk. The main takeaway: some reshuffling among the existing ETFs could potentially improve your risk‑adjusted outcome.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.40%
  • iShares Trust 4.00%
  • SPDR S&P World ex US 3.30%
  • Invesco S&P 500® Momentum ETF 0.80%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
  • State Street® SPDR® Portfolio S&P 500® ETF 1.40%
  • Weighted yield (per year) 2.39%

The overall dividend yield of about 2.39% is meaningfully higher than a pure growth‑oriented equity portfolio, driven by the 35% allocation to a 3.4%‑yielding dividend ETF and a 5% slice yielding around 4%. The momentum ETF yields only 0.8%, while the dividend appreciation and S&P 500 funds are in the 1.4–1.7% range. Dividends can be a valuable component of total return, especially for investors who like seeing cash flow or reinvesting regularly. They also often signal more established, profitable businesses. The flip side is that focusing on yield can underweight fast‑growing companies that reinvest profits instead of paying dividends. Here, the blend strikes a nice balance between current income and growth potential.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • iShares Trust 0.07%
  • SPDR S&P World ex US 0.03%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.05%

The weighted total expense ratio (TER) is impressively low at about 0.05%. TER is the annual fund fee, taken from assets rather than billed directly, like a tiny membership fee. Individual ETF costs range from 0.03% to 0.13%, all comfortably in low‑cost territory. Keeping costs down is one of the most reliable ways to improve long‑term outcomes because fees compound against you year after year. Over decades, even a 0.3% difference in annual fees can add up to a meaningful gap in ending wealth. This cost structure is a strong positive: it aligns very well with best practices and supports better long‑run performance without needing to change anything here.

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