Balanced and broadly diversified portfolio with a strong focus on dividend-yielding stocks

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is composed of three ETFs: Schwab U.S. Dividend Equity ETF (40%), Vanguard Total Stock Market Index Fund ETF Shares (40%), and Vanguard Total International Stock Index Fund ETF Shares (20%). This allocation suggests a balanced approach, emphasizing income through dividends while also seeking growth through broad market exposure. The heavy allocation towards U.S. assets (80%) with a significant portion in dividend-yielding stocks indicates a preference for stable, income-generating investments.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 11.84%, with a maximum drawdown of -33.94%. These figures highlight a strong performance with a relatively high resilience during market downturns. The days contributing most to returns are relatively few, which is typical for equity markets, where a handful of strong days can significantly impact overall performance.

Projection Info

Using Monte Carlo simulations, the forward projection shows a wide range of outcomes, with the median at a 298.5% increase. This method, while not predictive, uses historical data to simulate potential future returns, offering a spectrum of possible outcomes. It's important to remember that these projections are hypothetical and actual future performance can vary.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily weighted towards stocks (99%), with a minimal cash holding (1%). This high equity exposure aligns with the portfolio's balanced risk profile, aiming for growth while accepting moderate levels of volatility. However, it's crucial to ensure this aligns with the investor's risk tolerance and investment horizon.

Sectors Info

  • Technology
    19%
  • Financials
    14%
  • Health Care
    12%
  • Industrials
    11%
  • Consumer Staples
    11%
  • Consumer Discretionary
    10%
  • Energy
    10%
  • Telecommunications
    7%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation spans technology, financial services, healthcare, industrials, and consumer sectors, among others. This diversification across sectors can help mitigate risk, as different sectors react differently to economic changes. However, the technology sector's prominence could expose the portfolio to higher volatility, given the sector's cyclical nature.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic allocation is predominantly in North America (81%), with minor exposures to developed Europe, emerging Asia, and Japan. This heavy domestic focus may limit exposure to potential growth in emerging markets and diversification benefits from international economies. Considering a slight increase in international exposure could enhance growth potential and reduce geographic concentration risk.

Market capitalization Info

  • Large-cap
    42%
  • Mega-cap
    25%
  • Mid-cap
    24%
  • Small-cap
    6%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a balanced mix of big (42%), mega (25%), medium (24%), small (6%), and micro (1%) cap stocks. This distribution suggests a balanced approach, leaning slightly towards larger companies known for stability and lower volatility but still maintaining exposure to the growth potential of smaller companies.

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 allocation aligns closely with the Efficient Frontier, suggesting the portfolio is optimized for the best possible risk-return ratio given its current assets. While it's well-positioned now, ongoing reviews and adjustments are essential to maintain this optimization, as market conditions and the investor's financial goals evolve.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.62%

The dividend yields of the ETFs (Schwab U.S. Dividend Equity ETF at 3.90%, Vanguard Total Stock Market Index Fund ETF Shares at 1.20%, and Vanguard Total International Stock Index Fund ETF Shares at 2.90%) contribute to a total portfolio yield of 2.62%. This focus on dividends supports the portfolio's income-generating goal, providing a steady income stream alongside potential capital appreciation.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio's total expense ratio (TER) of 0.05% is impressively low, enhancing the potential for net returns over the long term. Keeping costs low is crucial in maximizing investment returns, as even small differences in fees can significantly impact long-term growth.

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