Diversified income focused portfolio with strong value and low volatility tilts and efficient construction

Report created on Apr 10, 2026

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is built around a 75% stock and 25% short‑term bond mix, using only broad, low‑cost ETFs. Within stocks, the bulk goes to diversified dividend and dividend‑growth funds, plus smaller slices in utilities, health care, industrials, and international high‑yield. This structure leans clearly toward income and stability rather than aggressive growth. That’s relevant because the overall risk classification is “cautious,” and the mix lines up well with that goal. For someone wanting moderate growth while keeping swings in check, this kind of stocks‑plus‑bonds approach is a solid foundation that usually feels more emotionally manageable in sharp market sell‑offs.

Growth Info

From 2016 to early 2026, $1,000 grew to about $2,517, a compound annual growth rate (CAGR) of 9.71%. CAGR is like your average speed on a long road trip, smoothing out the bumps along the way. The portfolio lagged the US market and global market, which delivered roughly 14.24% and 11.73% per year, but it also had a slightly smaller maximum drawdown than both during the 2020 crash. That tradeoff fits an income‑and‑stability style. Underperforming high‑octane benchmarks is normal when prioritizing dividends and lower volatility, and the historical path shows the portfolio still compounded at a healthy pace.

Projection Info

The Monte Carlo projection uses past return and volatility patterns to simulate 1,000 possible 15‑year futures, like running many alternate timelines. The median result turns $1,000 into about $2,608, an annualized 7.26% across all simulations, with a roughly three‑in‑four chance of ending positive. The “likely range” runs from about $1,867 to $3,671, and extreme outcomes are wider still. This highlights how even a cautious portfolio can have a big spread of possible results. It’s helpful as a planning tool, but not a promise: markets rarely repeat history exactly, and periods of lower or higher returns than the past are entirely possible.

Asset classes Info

  • Stocks
    75%
  • Bonds
    25%

With 75% in stocks and 25% in short‑term USD bonds, the asset mix lands in a classic balanced but conservative zone. Stocks are the main growth engine, while the 1‑5 year bond position acts as ballast, dampening volatility and providing income around 4%+. Short‑term bonds tend to be less sensitive to interest rate swings than longer‑term bonds, which supports stability for cautious investors. Compared with a pure‑equity allocation, this structure will usually lag in roaring bull markets but hold up better in sharp drawdowns. For many people, that smoother ride makes it easier to stay invested through rough patches.

Sectors Info

  • Financials
    14%
  • Health Care
    11%
  • Technology
    9%
  • Industrials
    9%
  • Utilities
    8%
  • Consumer Staples
    8%
  • Energy
    6%
  • Consumer Discretionary
    5%
  • Basic Materials
    3%
  • Telecommunications
    2%

This breakdown covers the equity portion of your portfolio only.

Sector exposure is nicely spread: financials, health care, technology, industrials, utilities, staples, and energy all have meaningful slices, with no single sector dominating. This balance is a strength and broadly in line with diversified equity benchmarks, especially given the extra tilt to defensive areas like utilities and consumer staples. Sector diversification matters because economic cycles hit industries differently; for example, utilities and staples may hold up when more cyclical areas wobble. The portfolio’s mix means it can participate in a wide range of economic environments while leaning slightly toward sectors historically associated with steadier cash flows and dividend support.

Regions Info

  • North America
    78%
  • Europe Developed
    11%
  • Japan
    5%
  • Asia Developed
    2%
  • Australasia
    2%
  • Asia Emerging
    1%
  • Africa/Middle East
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, around 78% is in North America, with the rest spread across developed regions and a small slice in emerging markets. That’s somewhat more home‑biased toward the US than a typical global market index, which gives the US a bit over half of global equity weight. A US tilt has been rewarding for the last decade, but it also ties results strongly to a single economy and currency. The non‑US exposure still adds useful diversification, especially across Europe and Japan. This mix works well for someone who wants global reach but still prefers the familiarity and legal protections of US‑listed markets.

Market capitalization Info

  • Large-cap
    36%
  • Mega-cap
    19%
  • Mid-cap
    16%
  • Small-cap
    3%

This breakdown covers the equity portion of your portfolio only.

The portfolio leans heavily into larger companies, with mega‑ and large‑caps together making up most of the exposure, plus a solid mid‑cap allocation and only a small slice in small‑caps. Larger firms tend to be more established, more liquid, and often pay more reliable dividends, which fits the overall income and stability theme. Smaller companies can offer higher growth but also more volatility and business risk. By underweighting small‑caps, the portfolio trades some long‑term return potential for smoother performance. For a cautious investor profile, that’s a very reasonable compromise and aligns with the defensive flavor elsewhere.

True holdings Info

  • Broadcom Inc
    1.19%
    Part of fund(s):
    • Vanguard High Dividend Yield Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Merck & Company Inc
    1.03%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • Vanguard Health Care Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Johnson & Johnson
    1.01%
    Part of fund(s):
    • Vanguard Health Care Index Fund ETF Shares
    • Vanguard High Dividend Yield Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • UnitedHealth Group Incorporated
    1.00%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • Vanguard Health Care Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • JPMorgan Chase & Co
    0.94%
    Part of fund(s):
    • Vanguard High Dividend Yield Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Exxon Mobil Corp
    0.93%
    Part of fund(s):
    • Vanguard High Dividend Yield Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • AbbVie Inc
    0.82%
    Part of fund(s):
    • Vanguard Health Care Index Fund ETF Shares
    • Vanguard High Dividend Yield Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Chevron Corp
    0.73%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    • Vanguard High Dividend Yield Index Fund ETF Shares
  • Nextera Energy Inc
    0.60%
    Part of fund(s):
    • Fidelity® MSCI Utilities Index ETF
  • Procter & Gamble Company
    0.59%
    Part of fund(s):
    • Vanguard High Dividend Yield Index Fund ETF Shares
    • iShares Core Dividend Growth ETF
  • Top 10 total 8.83%

This breakdown covers the equity portion of your portfolio only.

Looking through the ETFs’ top holdings, exposure is spread across well‑known large companies like Broadcom, Merck, Johnson & Johnson, UnitedHealth, JPMorgan, Exxon Mobil, and Procter & Gamble. None of these show up as an outsized single‑name bet, and overlap appears moderate, which limits hidden concentration risk. Because only top‑10 ETF holdings are captured, total overlap is probably a bit higher than reported, but still seems broadly diversified across sectors and business types. The key point: risk is driven by a basket of stable, mature firms rather than speculative names, which usually pairs well with a cautious, income‑oriented posture.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 70%
Size
Exposure to smaller companies
Neutral
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 70%
Quality
Preference for financially healthy companies
Neutral
Data availability: 70%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 100%

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 to value, yield, and low volatility, with size, momentum, and quality roughly neutral. Factors are like underlying “personality traits” of investments that research links to long‑term returns. A high value tilt means favoring companies that look cheaper relative to fundamentals; this can underperform trendy markets but often shines when expensive growth stumbles. High yield emphasizes income from dividends, which can be comforting during flat markets but can lag if investors chase non‑dividend growth. The strong low‑volatility tilt suggests the portfolio is built to mute sharp swings, especially in downturns, aligning well with a risk‑score of 3/7.

Risk contribution Info

  • iShares Core Dividend Growth ETF
    Weight: 20.00%
    27.3%
  • Schwab International Equity ETF
    Weight: 15.00%
    19.8%
  • Schwab U.S. Dividend Equity ETF
    Weight: 13.00%
    17.4%
  • Vanguard High Dividend Yield Index Fund ETF Shares
    Weight: 10.00%
    13.3%
  • Vanguard International High Dividend Yield Index Fund ETF Shares
    Weight: 9.00%
    11.6%
  • Top 5 risk contribution 89.2%

Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the three main equity building blocks—Core Dividend Growth, Schwab International Equity, and Schwab US Dividend Equity—make up 48% of the weight but about 64% of the total risk. That’s not extreme, but it does show these funds are the main “engine” of volatility. For someone wanting to fine‑tune risk, small changes in those three positions would matter more than tweaking the smaller slices. The bond ETF, while large by weight, likely adds relatively little to overall risk.

Redundant positions Info

  • iShares Core Dividend Growth ETF
    Schwab U.S. Dividend Equity ETF
    Vanguard High Dividend Yield Index Fund ETF Shares
    High correlation
  • Schwab International Equity ETF
    Vanguard International High Dividend Yield Index Fund ETF Shares
    High correlation

Several core equity funds move very closely together: the US dividend and dividend‑growth ETFs and the broad high‑dividend ETF are highly correlated, meaning they tend to rise and fall in tandem. Similarly, the two international funds behave quite alike. Correlation is about how assets dance together; when they move in sync, diversification benefits shrink, especially during stress. In this case, the similarity is expected because they target related dividend‑oriented universes. The main diversifiers are the short‑term bond fund and, to a lesser degree, sector‑specific funds. This structure still works, but it means equities here act more like one big dividend‑equity bet.

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.

On the risk‑return chart, the current portfolio sits on or very close to the efficient frontier, meaning that for its level of volatility, it’s getting about as much expected return as possible from these holdings. The Sharpe ratio of 0.48 is lower than the theoretical optimal mix’s 0.75, but that optimal point takes more risk (higher volatility) to get a higher return. The minimum‑variance version is much calmer but barely grows. So within the chosen risk level, the structure is already efficient. Any future tweaks are more about adjusting your comfort with risk than fixing an inefficient allocation.

Dividends Info

  • iShares Core Dividend Growth ETF 2.00%
  • Fidelity® MSCI Industrials Index ETF 1.00%
  • Fidelity® MSCI Utilities Index ETF 2.40%
  • iShares Core 1-5 Year USD Bond 4.20%
  • Schwab U.S. Dividend Equity ETF 3.40%
  • Schwab International Equity ETF 3.10%
  • Vanguard Health Care Index Fund ETF Shares 1.70%
  • Vanguard High Dividend Yield Index Fund ETF Shares 2.30%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 3.50%
  • Weighted yield (per year) 3.07%

The overall dividend yield sits around 3.07%, supported by several high‑yield and dividend‑growth funds, plus the bond ETF yielding about 4.2%. That’s a healthy cash‑flow profile compared with broad equity markets, which can be attractive for investors who like seeing regular income hit their account. Dividend yield is just one part of total return—price changes still matter a lot—but a steadier income stream can help smooth the experience, especially in sideways or choppy markets. The balance between classic high‑yield and dividend‑growth funds also helps, since growers may sustain and increase payouts over time rather than just paying a high yield today.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • Fidelity® MSCI Industrials Index ETF 0.08%
  • Fidelity® MSCI Utilities Index ETF 0.08%
  • iShares Core 1-5 Year USD Bond 0.06%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • Vanguard Health Care Index Fund ETF Shares 0.10%
  • Vanguard High Dividend Yield Index Fund ETF Shares 0.06%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.08%

The weighted total expense ratio (TER) is about 0.08%, which is impressively low for a multi‑fund portfolio. TER is the annual fee the ETFs charge behind the scenes; you never see it as a separate line, but it quietly reduces returns. Keeping costs this low is a big positive because every 0.1% saved compounds over decades. For the exposure style—dividend, sector, and international ETFs—these fees are right at the efficient end of what’s normally available. From a cost perspective, the portfolio is very well‑built and already taking advantage of one of the few things investors can reliably control: fees.

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