Cautious multi asset portfolio with strong factor tilts and solid diversification across income and growth

Report created on Apr 18, 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

The portfolio mixes growth assets with stabilizers: roughly two thirds in stocks, a quarter in bonds, a small slice in gold, and a modest cash buffer. Within stocks, there is a clear bias toward rule-based and factor ETFs rather than broad, plain-vanilla index funds. Bonds are split between floating rate Treasuries and high quality CLO exposure, both designed to manage interest rate and credit risk differently. This blend creates a structure that can participate in equity upside while dialing down some of the sharp edges. The main takeaway is that the overall build matches a cautious risk score while still pursuing real growth after inflation instead of just capital preservation.

Growth Info

From late 2020 to mid-2026, $1,000 grew to about $2,056, a compound annual growth rate (CAGR) of 14.41%. CAGR is the “average speed” of growth per year, smoothing the bumps along the way. The portfolio’s max drawdown, or worst peak-to-trough fall, was -16.09%, noticeably smaller than both the US and global market. It slightly lagged the US market in return but beat the global market, all while being less painful in downturns. That’s a strong result for a cautious profile. The key message: the portfolio traded a bit of upside for meaningfully softer drawdowns, which lines up well with a lower-risk approach.

Projection Info

The Monte Carlo projection uses past return and volatility patterns to simulate many possible 15‑year futures. Think of it as rolling the dice 1,000 times using historical behavior as a guide, not a guarantee. The median outcome grows $1,000 to about $2,499, with a wide but reasonable range around that. The average simulated annual return of 6.84% is well above the assumed cash path, but outcomes vary a lot, reflecting market uncertainty. Importantly, about three quarters of simulations end positive, but a meaningful minority do not. This highlights that even solid portfolios can experience long flat or weak periods, especially over intermediate horizons.

Asset classes Info

  • Stocks
    67%
  • Bonds
    25%
  • Other
    5%
  • Cash
    3%

Asset allocation is the main driver of long‑term behavior, and here it’s thoughtfully mixed: 67% stocks for growth, 25% bonds for stability and income, 5% other (mainly gold) for diversification, and 3% cash as a small buffer. Many global balanced benchmarks sit near 60/40 stocks to bonds, so this lands a bit more growth‑oriented but still conservative relative to pure equity. The bond slice includes floating rate and AAA CLO exposure, which can help when interest rates move or credit conditions shift. Overall, this allocation is well‑balanced and aligns closely with global standards for a cautious but return‑seeking investor.

Sectors Info

  • Technology
    11%
  • Financials
    11%
  • Industrials
    8%
  • Energy
    8%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Telecommunications
    5%
  • Basic Materials
    4%
  • Utilities
    1%
  • Real Estate
    1%

This breakdown covers the equity portion of your portfolio only.

Sector exposure is nicely spread out, with no single area overwhelming the portfolio. Technology and financials lead but at modest levels around 11%, followed by industrials, energy, and consumer-related areas in the high single digits. This looks more balanced than many market cap indices that lean heavily into tech. The benefit is that returns are not overly dependent on one theme, like high growth or interest‑rate sensitive sectors. On the flip side, being broadly spread means the portfolio won’t fully capture big rallies in any single hot sector. Still, the sector composition matches benchmark data, which is a strong indicator of sensible diversification.

Regions Info

  • North America
    55%
  • Europe Developed
    7%
  • Japan
    4%
  • Asia Developed
    1%
  • Australasia
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, North America dominates at 55%, with meaningful though smaller allocations to developed Europe and Japan, and tiny exposures elsewhere. That home‑bias toward the US is common and has been rewarded recently, since US markets outperformed much of the world. However, the global market includes a larger slice of non‑US companies than shown here, so there is some under‑exposure to other developed and emerging regions. The risk is that if the US underperforms for a stretch, the portfolio will feel that. Still, the presence of international large and small value funds gives it a real, diversified foothold outside the US, which supports longer‑term balance.

Market capitalization Info

  • Large-cap
    23%
  • Mid-cap
    15%
  • Mega-cap
    14%
  • Small-cap
    10%
  • Micro-cap
    6%

This breakdown covers the equity portion of your portfolio only.

Market cap exposure spans the full spectrum: mega and large caps together sit around the high 30s, with mid, small, and even micro caps making up the rest. This is more tilted to smaller companies than a typical global index, which is usually dominated by mega and large caps. Smaller companies tend to be more volatile but historically have offered higher return potential over long periods. This tilt can boost long‑term growth but can also mean sharper swings in rough markets. For a cautious investor, pairing this size tilt with solid bond and quality exposures, as done here, helps keep overall risk in check.

True holdings Info

  • Apple Inc
    1.43%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
    • iShares MSCI USA Quality Factor ETF
  • Microsoft Corporation
    0.92%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
    • iShares MSCI USA Quality Factor ETF
  • Chevron Corp
    0.76%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
    • Schwab U.S. Dividend Equity ETF
  • NVIDIA Corporation
    0.65%
    Part of fund(s):
    • iShares MSCI USA Quality Factor ETF
  • Exxon Mobil Corp
    0.51%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
  • UnitedHealth Group Incorporated
    0.44%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Texas Instruments Incorporated
    0.44%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Alphabet Inc Class A
    0.43%
    Part of fund(s):
    • Schwab Fundamental U.S. Large Company Index ETF
  • Merck & Company Inc
    0.41%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • The Coca-Cola Company
    0.40%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
  • Top 10 total 6.40%

Looking through ETF top holdings, no single company dominates overall exposure: the largest, Apple, is only about 1.4% of the portfolio, with other giants like Microsoft, Chevron, and NVIDIA each under 1%. That’s a good sign for avoiding stock-specific blowups. There is some overlap in mega-cap names across the US-oriented funds, which is normal because big companies sit in many indexes. Since this analysis only captures top-10 ETF positions, real overlap is likely a bit higher, but still looks broadly diversified. The practical takeaway is that risk is driven more by factors and asset mix than by any one company.

Factors Info

Value
Preference for undervalued stocks
High
Data availability: 69%
Size
Exposure to smaller companies
High
Data availability: 69%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 69%
Quality
Preference for financially healthy companies
High
Data availability: 79%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 85%

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 is where this portfolio really stands out. It leans clearly toward value, size (smaller companies), quality, yield, and low volatility. Factors are like the “personality traits” of investments that research has tied to returns over decades. High value and yield tilts mean a focus on cheaper, more income‑oriented stocks rather than expensive growth names. High quality and low volatility suggest a bias toward stable, profitable businesses that tend to hold up better in stress. The strong size tilt toward smaller companies adds return potential but also some choppiness. Altogether, these tilts support the cautious profile while still giving room for attractive long‑term returns.

Risk contribution Info

  • Schwab Fundamental U.S. Large Company Index ETF
    Weight: 20.62%
    27.5%
  • Avantis® U.S. Small Cap Value ETF
    Weight: 12.37%
    23.8%
  • iShares MSCI USA Quality Factor ETF
    Weight: 10.31%
    14.0%
  • Schwab Fundamental International Large Company Index ETF
    Weight: 10.31%
    13.3%
  • Schwab U.S. Dividend Equity ETF
    Weight: 10.31%
    12.4%
  • Top 5 risk contribution 90.9%

Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ a lot from its simple weight. The Schwab US large fundamental ETF is just over 20% of the portfolio but contributes about 28% of total risk. The Avantis US small cap value ETF is even more striking: around 12% weight but nearly 24% of risk. That’s expected because small value stocks are more volatile. The top three holdings together drive about two‑thirds of total risk, even though they’re a smaller share by dollars. Rebalancing or slightly trimming the highest risk/weight positions could further align risk with the cautious target, if desired.

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 efficient frontier analysis compares your current mix with the best possible combinations of the same holdings. The Sharpe ratio, which measures return per unit of risk after adjusting for a risk‑free rate, is 0.87 for the current portfolio. The optimal mix of these holdings could reach a Sharpe of 1.59 at lower volatility, and the portfolio currently sits about 2.85 percentage points below that frontier at its risk level. In plain terms, there’s room to tweak weights to get a smoother ride for similar expected return. The good news is that no new funds are needed; it’s about adjusting the proportions of what’s already there.

Dividends Info

  • Avantis® International Small Cap Value ETF 2.80%
  • Avantis® U.S. Small Cap Value ETF 1.30%
  • Schwab Fundamental International Large Company Index ETF 3.00%
  • Schwab Fundamental U.S. Large Company Index ETF 1.50%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.10%
  • iShares MSCI USA Quality Factor ETF 0.90%
  • Schwab U.S. Dividend Equity ETF 3.40%
  • WisdomTree Floating Rate Treasury Fund 4.00%
  • Weighted yield (per year) 2.51%

The blended yield of about 2.51% is a nice side benefit. Yield is the annual income from dividends and interest as a percentage of your investment, like rent from owning a property. Some parts pull more weight here: the CLO ETF and floating rate Treasuries offer yields in the 4–5% range, while the dividend equity and international value funds sit around 3%. Others, like the quality and small cap value funds, are lower but focused more on growth or factor exposure. For an income‑minded investor, this level of yield helps support cash flow without forcing a shift into very high‑risk or ultra‑high‑yield products.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab Fundamental International Large Company Index ETF 0.25%
  • Schwab Fundamental U.S. Large Company Index ETF 0.25%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • iShares MSCI USA Quality Factor ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • abrdn Physical Gold Shares ETF 0.17%
  • WisdomTree Floating Rate Treasury Fund 0.15%
  • Weighted costs total (per year) 0.20%

Total ongoing costs around 0.20% per year are impressively low for a portfolio using several factor and active‑style ETFs. The Total Expense Ratio (TER) is like a management fee paid to fund providers; even small differences compound meaningfully over decades. Here, many funds sit in the 0.15–0.25% range, and the core dividend ETF is extremely cheap at 0.06%. Keeping costs subdued means more of the portfolio’s gross return stays in your pocket, which is especially important when expected future equity returns may be lower than the last decade. Overall, the cost structure is a real strength and supports better long‑term performance.

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