High yielding US focused dividend equity portfolio with strong value and low volatility tilts
Report created on May 8, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 34.00% -
CG Capital Group Dividend Value ETF
CGDV - US14020W1062 33.00% -
FD Fidelity® High Dividend ETF
FDVV - US3160928400 33.00%
This portfolio is very concentrated in approach but nicely even in sizing, with three US-focused dividend equity ETFs each around one‑third of the total. That structure keeps things simple: every holding is an equity income strategy, all with a value and dividend flavor. A compact lineup like this is easy to follow and means each ETF has a meaningful impact on performance. The flip side is that there’s no built‑in cushion from bonds or cash here, so the portfolio will move broadly with stock markets. Overall, this is a straightforward, high‑equity dividend mix rather than a multi‑asset blend.
Growth
Over the period shown, a $1,000 investment grew to about $1,750, which is strong absolute growth. The portfolio’s CAGR, or compound annual growth rate, of 14.37% is slightly behind the US market but ahead of the global market, meaning it kept up well with a strong domestic benchmark while beating a broader world basket. Its max drawdown of about -19% was milder than both benchmarks, so the worst peak‑to‑trough fall was smaller. That combination—near‑market returns with somewhat shallower dips—is consistent with a quality and dividend tilt, though it’s always worth remembering that past performance doesn’t guarantee the same pattern ahead.
Projection
The Monte Carlo projection takes the past return and volatility pattern and simulates many possible future paths to show a range of outcomes. Here, the median path turns $1,000 into about $2,756 over 15 years, with most simulations landing between roughly $1,774 and $4,093. Monte Carlo is basically a “what if” engine: it scrambles returns in realistic ways to see how often different results show up. The wide possible band—from around $921 to $7,803—highlights how uncertain long‑term equity investing can be. The overall average annualized return across simulations is just over 8%, lower than the backtest, underlining that future results could be more modest than the recent period.
Asset classes
- Stocks 101%
Asset‑class wise, this is effectively a 100% stock portfolio—everything is in equity ETFs, with no bonds, cash, or alternatives in the mix. Equities tend to offer higher long‑term growth potential than fixed income, but with more frequent and deeper swings along the way. A “Balanced” label here refers more to style and risk profile than to a classic stock‑bond split. Because there’s no offsetting asset class, diversification is happening entirely within equities: different sectors, companies, and styles. That’s an important distinction, since in sharp equity selloffs there’s no separate asset bucket expected to behave very differently.
Sectors
- Technology 25%
- Consumer Staples 12%
- Health Care 11%
- Financials 11%
- Consumer Discretionary 11%
- Industrials 9%
- Energy 7%
- Telecommunications 5%
- Utilities 4%
- Real Estate 4%
- Basic Materials 1%
Sector exposure is fairly broad, with notable tilts. Technology is the single largest slice at about a quarter of the portfolio, followed by meaningful weights in consumer staples, health care, financials, consumer discretionary, and industrials. Smaller allocations to energy, telecom, utilities, real estate, and basic materials provide additional spread. Compared with a generic broad‑market index, this lineup leans more toward dividend‑friendly areas like staples, utilities, and energy, and slightly less toward highly speculative growth pockets. That kind of sector mix can sometimes dampen extremes—both big surges and deep drawdowns—though tech and cyclical sectors still leave room for meaningful volatility in changing economic or interest‑rate environments.
Regions
- North America 96%
- Europe Developed 4%
- Asia Developed 1%
Geographically, the portfolio is overwhelmingly US‑centric, with around 96% in North America and only a small slice in developed Europe and Asia. This creates a clear home‑country focus: results will be closely tied to the US economy, corporate earnings, and dollar movements. Many global benchmarks now have roughly 60%–65% in US stocks, so this is a much heavier domestic tilt than the global market. That can work well when US companies outperform, but it also means the portfolio captures relatively little from other regions if leadership shifts abroad. The small non‑US portions add just a touch of diversification, but not enough to significantly change the portfolio’s US‑driven character.
Market capitalization
- Large-cap 54%
- Mega-cap 22%
- Mid-cap 19%
- Small-cap 4%
By market cap, the mix leans heavily toward larger companies: about three‑quarters is in mega‑ and large‑caps, with smaller slices in mid‑ and small‑caps. Bigger firms often have more stable earnings, established dividend records, and deeper trading liquidity, which can contribute to smoother behavior compared with a small‑cap‑heavy portfolio. The mid‑ and small‑cap exposure adds some growth and diversification potential, since these companies can move differently from giants. Relative to a broad market, this skew toward large dividend payers is consistent with a value and income focus. It may mean the portfolio reacts more to news about blue‑chip names than to shifts in smaller, more speculative areas.
True holdings
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NV NVIDIA Corporation 4.12%
Part of fund(s):- Capital Group Dividend Value ETF
- Fidelity® High Dividend ETF
-
MS Microsoft Corporation 3.34%
Part of fund(s):- Capital Group Dividend Value ETF
- Fidelity® High Dividend ETF
-
AV Broadcom Inc 2.63%
Part of fund(s):- Capital Group Dividend Value ETF
- Fidelity® High Dividend ETF
-
KO The Coca-Cola Company 1.96%
Part of fund(s):- Fidelity® High Dividend ETF
- Schwab U.S. Dividend Equity ETF
-
TX Texas Instruments Incorporated 1.89%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AA Apple Inc 1.86%
Part of fund(s):- Fidelity® High Dividend ETF
-
PG Procter & Gamble Company 1.85%
Part of fund(s):- Fidelity® High Dividend ETF
- Schwab U.S. Dividend Equity ETF
-
QC Qualcomm Incorporated 1.74%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
UN UnitedHealth Group Incorporated 1.70%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
CV Chevron Corp 1.41%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 22.50%
Looking through the ETFs’ top holdings, a handful of big names appear prominently: NVIDIA, Microsoft, Broadcom, Coca‑Cola, Texas Instruments, Apple, Procter & Gamble, Qualcomm, UnitedHealth, and Chevron. Some of these show up via more than one ETF, creating overlap that concentrates exposure even though it’s spread across funds. For instance, the combined weights in NVIDIA and Microsoft alone add up to over 7% of the portfolio in the covered portion. Because only top‑10 ETF holdings are captured, real overlap is likely higher. That means portfolio behavior is meaningfully influenced by a relatively small group of large, dividend‑oriented US companies, even if the ETF list looks diversified at first glance.
Factors
Factor exposure shows pronounced tilts toward value, yield, and low volatility, with neutral readings for size, momentum, and quality. Factors are like underlying “personality traits” of the portfolio; for example, a high value score means more emphasis on stocks trading at lower prices relative to fundamentals. Here, the strong value and yield tilts line up with the dividend‑focused strategy: the portfolio emphasizes companies that pay above‑average dividends and look reasonably priced. The high low‑volatility tilt suggests a preference for historically steadier stocks, which can sometimes cushion downturns but may lag in speculative rallies. Overall, this is not a market‑like factor mix; it has a clear income‑and‑stability orientation within equities.
Risk contribution
-
Capital Group Dividend Value ETF
Weight: 33.00% 33.9% -
Fidelity® High Dividend ETF
Weight: 33.00% 33.5% -
Schwab U.S. Dividend Equity ETF
Weight: 34.00% 32.6%
Risk contribution, which shows how much each holding drives overall ups and downs, is very evenly spread. Each ETF is around one‑third of the weight and contributes roughly one‑third of total risk, with risk‑to‑weight ratios hovering right around 1. That means no single ETF is punching far above its weight in volatility terms. All three funds move in somewhat similar ways, so the portfolio’s risk is shared but not deeply diversified across very different behaviors. The top three holdings account for 100% of portfolio risk simply because they are the entire portfolio. In practice, overall risk is being shaped more by shared style and region than by any one standout position.
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 suggests the current portfolio sits on or very near the frontier, meaning that, given these three ETFs, the existing mix is already an efficient trade‑off between risk and return. The Sharpe ratio—return per unit of risk—of the current portfolio (0.71) is below the theoretical maximum Sharpe (1.1) but matches an allocation that’s considered efficient for this particular risk level. The minimum‑variance mix would deliver slightly lower risk with a modestly lower expected return. The key point is that, within this limited set of holdings, there isn’t a glaringly “wasteful” structure; the portfolio is making reasonably good use of its ingredients in risk/return terms.
Dividends
- Capital Group Dividend Value ETF 1.20%
- Fidelity® High Dividend ETF 2.80%
- Schwab U.S. Dividend Equity ETF 3.30%
- Weighted yield (per year) 2.44%
The blended dividend yield of about 2.44% sits comfortably above the broader US market’s recent average, reflecting the high‑dividend focus of all three ETFs. Dividends can be an important part of total return, especially over long periods, because reinvested payouts effectively buy more shares along the way. Here, the Schwab fund has the highest yield, followed by the Fidelity ETF, with the Capital Group fund offering a lower but still meaningful payout. This spread in yields shows that not every dividend strategy aims for maximum income—some balance dividend level with other goals like growth or quality. Overall, the portfolio is clearly oriented toward getting a noticeable share of return from cash distributions.
Ongoing product costs
- Capital Group Dividend Value ETF 0.33%
- Fidelity® High Dividend ETF 0.15%
- Schwab U.S. Dividend Equity ETF 0.06%
- Weighted costs total (per year) 0.18%
On costs, the portfolio is very competitive. The overall TER, or total expense ratio, is around 0.18% per year, which is low by active and even many ETF standards. The Schwab ETF is especially cheap at 0.06%, the Fidelity fund is modest at 0.15%, and the Capital Group ETF is higher at 0.33% but still reasonable for its style. Lower ongoing fees mean more of any gross return stays in the portfolio instead of going to providers, and this effect compounds over time. This cost profile is a real strength and provides a solid foundation, since fees are one of the few factors investors can reliably control.
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