Focused us large cap dividend and core index blend with efficient risk return balance
Report created on Apr 9, 2026Risk 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
-
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 84.90% -
SW Schwab S&P 500 Index Fund
SWPPX - US8085098551 15.10%
The portfolio is extremely simple: roughly 85% in a US dividend equity ETF and about 15% in a broad US index fund. That means everything is in listed stocks, with a strong tilt toward dividend payers and a smaller slice tracking the overall market. This kind of two-fund structure is easy to monitor and understand, which many investors value. The trade-off is that diversification is limited by both the small number of funds and the single-country focus. As a general takeaway, simple lineups like this can work very well, but it’s worth being aware of what risks you’re concentrating in when you lean so heavily on one style.
Growth
From 2016 to early 2026, $1,000 grew to about $3,299, which is solid long-term compounding. The portfolio’s CAGR, or compound annual growth rate, was 12.73% per year—like averaging your speed over a long road trip. That lagged the US market’s 14.29% but beat the global market’s 11.82%. Max drawdown was about -33%, very similar to the US market’s drop in 2020, and it recovered in roughly five months after bottoming. This shows the portfolio behaves much like mainstream equities in crashes. The key takeaway is: returns have been competitive with global stocks, but you gave up a bit of upside versus a pure US market approach. Past performance, of course, can’t guarantee that pattern continues.
Projection
The Monte Carlo projection uses historical data and randomizes many possible future return paths to see a range of outcomes. Think of it as running 1,000 alternate timelines for this portfolio over 15 years. The median outcome turns $1,000 into about $2,767, with a typical middle range from roughly $1,751 to $4,227. There’s also a wide tail: in harsh scenarios it ends near $941, and in great ones above $8,000. The average simulated annual return is about 8.15%. This illustrates that even with a solid, stock-heavy mix, future results can vary a lot. It’s a reminder to plan around ranges and probabilities, not single-point forecasts, and to remember that simulations rely on the past, which may not repeat.
Asset classes
- Stocks 100%
All of the portfolio is in stocks, with no bonds, cash-like vehicles, or alternative assets. Equities historically offer higher long-run returns but also sharper ups and downs, especially over shorter periods. For a “balanced investor” profile, this mix leans growth-oriented rather than truly balanced, which would typically include some fixed income to cushion volatility. The benefit is a strong link to long-term economic growth and corporate profits. The trade-off is that in big downturns there’s no dedicated defensive bucket to soften the ride. For someone using this as a core long-horizon investment, that can be fine; for folks closer to needing the money, adding a steadier asset class is often how people reduce shock risk.
Sectors
- Health Care 18%
- Technology 17%
- Consumer Staples 17%
- Energy 15%
- Financials 10%
- Industrials 8%
- Telecommunications 7%
- Consumer Discretionary 5%
- Consumer Discretionary 2%
Sector exposure skews toward health care, technology, consumer staples, and energy, with less in areas like consumer discretionary and smaller slices elsewhere. This is quite different from a typical broad market split, which usually has a heavier weight in tech and more spread into cyclical consumer and other growth areas. The stronger positions in health care, staples, and telecom are consistent with a dividend and “steady cash flow” tilt, often holding up relatively better in choppy markets. However, that can mean missing some of the most explosive gains in more growth-heavy parts of the market during big bull runs. The sector mix overall is sensibly diversified but clearly favors stability and income over aggressive growth themes.
Regions
- North America 100%
Geographically, everything is in North America, effectively the US market. That single-region focus has worked very well over the past decade, as US stocks have outperformed much of the world. It also keeps currency risk simple if expenses and goals are in dollars. The flip side is no exposure to other major economies that might lead in different periods. Global benchmarks typically allocate well over 40% outside the US, so this is a meaningful home bias. In practice, that means your fortunes are tightly tied to the US economy, policy, and corporate landscape. That’s not inherently bad, but it does reduce the potential diversification benefit you’d get from owning multiple regions.
Market capitalization
- Large-cap 71%
- Mid-cap 18%
- Mega-cap 7%
- Small-cap 3%
- Micro-cap 1%
Most of the portfolio sits in large-cap and mega-cap stocks, with smaller slices in mid, small, and micro caps. Large caps are typically well-established firms with more stable earnings and deeper liquidity, which can translate into smoother trading and somewhat lower volatility than tiny companies. Having at least some allocation to mid and small caps is helpful because they often drive a portion of long-term growth and can behave differently across cycles. The current breakdown still clearly favors size and stability over aggressive small-cap risk. For many investors, that’s a comfortable mix: anchored in big names, with only a modest tilt into the bumpier small-end of the market.
True holdings
-
CV Chevron Corp 3.76%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
CO ConocoPhillips 3.61%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
MR Merck & Company Inc 3.53%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
KO The Coca-Cola Company 3.45%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
VZ Verizon Communications Inc 3.39%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
TX Texas Instruments Incorporated 3.38%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
PE PepsiCo Inc 3.37%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
UN UnitedHealth Group Incorporated 3.34%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AM Amgen Inc 3.22%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AB Abbott Laboratories 3.20%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 34.25%
Looking through the top holdings, a big chunk of exposure sits in large, mature companies like Chevron, Merck, Coca-Cola, Verizon, PepsiCo, and UnitedHealth. Many of these are classic dividend names with long histories and relatively stable earnings. Because both funds own broad baskets, some firms likely appear in more than one fund, even though only top-10 ETF data is shown. That “hidden overlap” means fewer truly distinct bets than the fund count suggests. In practical terms, when those large stocks move together, your whole portfolio leans with them. The upside is familiarity and quality; the downside is more concentration in a relatively small group of big brand-name businesses.
Factors
Factor exposure shows clear tilts toward value, quality, yield, and low volatility, with size and momentum roughly neutral. Factors are like underlying “traits” of your holdings—value means cheaper versus fundamentals, quality means strong balance sheets and profitability, yield means higher dividends, and low volatility means smoother price moves. This profile suggests a preference for durable, established companies that pay meaningful dividends and are less jumpy than the market. In strong growth-led rallies, such a tilt can lag the hottest names, but it often holds up better when markets get nervous. This alignment is very consistent with a dividend-focused strategy and is a solid match for someone prioritizing steadier compounding rather than chasing the latest trend.
Risk contribution
-
Schwab U.S. Dividend Equity ETF
Weight: 84.90% 85.1% -
Schwab S&P 500 Index Fund
Weight: 15.10% 14.9%
Risk contribution, which measures how much each holding drives overall ups and downs, basically mirrors the weights here: the dividend ETF is about 85% of both capital and risk, and the S&P 500 fund around 15%. A single position contributing over four-fifths of portfolio risk shows how dominant that income-focused ETF really is. The positive spin: there’s no surprise hidden risk source; what you see by weight is what you get in risk. But it also means any issue specific to that strategy—like dividend payers falling out of favor—will fully define the experience. Rebalancing between growth and dividend styles, if desired, would be the main lever to shift where your risk is coming from.
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 your current mix has a Sharpe ratio of 0.57, while the best combination of these same holdings would reach about 0.78, and the minimum-variance version about 0.75. The Sharpe ratio is a way of measuring return per unit of risk above a risk-free rate, like checking how efficiently each unit of volatility is being used. The nice part: the portfolio already sits on or very near the efficient frontier, meaning for this set of funds you’re getting close to the best possible trade-off. Any improvements would be about fine-tuning, not fixing a broken structure. That’s a reassuring sign that the basic allocation is doing its job well.
Dividends
- Schwab U.S. Dividend Equity ETF 3.50%
- Schwab S&P 500 Index Fund 1.10%
- Weighted yield (per year) 3.14%
The overall dividend yield around 3.14% is comfortably above the broad US market’s roughly 1–2%. The main driver is the dividend equity ETF with a 3.5% yield, while the S&P 500 fund sits near 1.1%. For income-focused investors, that steady cash flow can be attractive, especially when reinvested to buy more shares over time. Dividends don’t guarantee safety—prices can still swing—but they do contribute a meaningful portion of total return, particularly in flat or slow-growth markets. This yield level is a real strength of the current setup and lines up nicely with a strategy that wants both participation in equity growth and a tangible income stream along the way.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab S&P 500 Index Fund 0.02%
- Weighted costs total (per year) 0.05%
Total costs are impressively low, with a blended expense ratio of about 0.05%. That’s like paying 5 cents per year on every $100 invested, which is well below average for actively managed funds and even very competitive among index products. Fees compound just like returns, so keeping them minimal leaves more of the market’s growth in your pocket over decades. The current lineup is genuinely strong on this front; there’s no obvious drag from excessive expenses. For long-term investors, low costs plus a clear, rules-based approach is exactly the combination that tends to support better outcomes versus similar strategies with higher annual charges.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
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