A focused high-dividend yield portfolio with a balanced risk profile and limited diversification

Report created on Aug 5, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily concentrated in two ETFs, both targeting dividend growth and high yield, split evenly between them. This concentration in dividend-focused ETFs indicates a pursuit of steady income through dividends, alongside potential capital appreciation. However, the limited diversification across asset classes and sectors, with a complete allocation to stocks, presents a significant concentration risk.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.10%, with a maximum drawdown of -35.09%. These figures suggest a resilient performance in diverse market conditions, with the drawdown indicating potential volatility. The days contributing most to returns highlight the portfolio's sensitivity to market movements, underscoring the importance of timing in investment decisions.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of outcomes, with a median increase of 358.3% in value. While the high number of simulations ending in positive returns is encouraging, it's crucial to remember that these projections are based on historical data, which may not accurately predict future performance.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, offering no cushion against market downturns through bonds or other asset classes. This lack of diversification can amplify risks during market volatility, though it may also offer higher returns during bullish markets.

Sectors Info

  • Financials
    21%
  • Technology
    17%
  • Health Care
    15%
  • Consumer Staples
    12%
  • Industrials
    11%
  • Energy
    7%
  • Consumer Discretionary
    7%
  • Utilities
    6%
  • Basic Materials
    2%
  • Telecommunications
    2%

Sector allocation is fairly diversified within the stock component, covering financial services, technology, healthcare, and consumer sectors among others. However, the absence of significant exposure to real estate and minimal allocations to basic materials and communication services could limit the portfolio's ability to benefit from sector-specific growth trends.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely invested in North America, with a negligible exposure to developed Europe. This heavy concentration in a single region increases vulnerability to region-specific economic downturns and political events, potentially missing out on growth opportunities in emerging markets and other developed regions.

Market capitalization Info

  • Large-cap
    50%
  • Mid-cap
    24%
  • Mega-cap
    20%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a balanced mix of big, medium, and mega-cap stocks, with a small allocation to small and micro-cap stocks. This composition suggests a moderate risk profile, balancing stability with growth potential, though the limited exposure to smaller companies may reduce opportunities for outsized gains.

Redundant positions Info

  • iShares Core Dividend Growth ETF
    Vanguard High Dividend Yield Index Fund ETF Shares
    High correlation

The high correlation between the two ETFs indicates overlapping investments, which diminishes the benefits of diversification. This redundancy suggests that the portfolio may not be as resilient to market swings as it could be with more varied holdings.

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.

Optimizing the portfolio involves addressing the high correlation between the ETFs to improve diversification. Exploring opportunities to diversify by asset class, geography, and sector could enhance resilience against market volatility and improve the risk-return profile.

Dividends Info

  • iShares Core Dividend Growth ETF 2.20%
  • Vanguard High Dividend Yield Index Fund ETF Shares 2.60%
  • Weighted yield (per year) 2.40%

The portfolio's focus on dividend-yielding ETFs, with a total yield of 2.40%, aligns with an income-generating investment strategy. This approach can provide a steady income stream, though it's important to balance the pursuit of dividends with the need for capital growth and diversification.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • Vanguard High Dividend Yield Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio is cost-efficient, minimizing the drag on returns from management fees. This low-cost approach enhances net returns, a crucial factor in long-term investment success.

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