Balanced stock and bond portfolio with strong value tilt and low cost broadly diversified holdings
Report created on May 21, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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SC Schwab U.S. Large-Cap ETF
SCHX - US8085242019 44.00% -
SC Schwab International Equity ETF
SCHF - US8085248057 19.00% -
SC Schwab U.S. Small-Cap ETF
SCHA - US8085246077 14.00% -
SC Schwab Intermediate-Term U.S. Treasury ETF
SCHR - US8085248545 13.50% -
SW Schwab Value Advantage Money Fund
SWVXX 9.50%
This portfolio is built around a simple five-fund mix, with most of the money in stock ETFs and a smaller slice in bonds and cash-like holdings. The largest piece is a broad US large-cap ETF at 44%, complemented by international stocks and a dedicated US small-cap fund. Around 13.5% is in intermediate-term US Treasuries and 9.5% in a money market fund. This creates a classic “balanced” structure where growth assets dominate, but there is a clear stabilizing sleeve. Structurally, this is straightforward to understand: three growth engines, one bond buffer, and one liquidity bucket, which generally helps make behavior during market swings more predictable and easier to interpret.
Growth
From 2016 to 2026, $1,000 in this portfolio grew to about $3,005, a compound annual growth rate (CAGR) of 11.72%. CAGR is like the steady yearly speed your money would have needed to travel to reach today’s value. The portfolio’s max drawdown was about -29% during early 2020, meaning the biggest peak-to-trough fall in this period. That was slightly gentler than the US and global benchmarks, which fell more but also grew faster long term. So, historically, this mix traded some return versus the US market for somewhat smaller dips, especially around sharp shocks like the COVID crash.
Projection
The Monte Carlo projection uses thousands of simulated futures to estimate where a $1,000 investment might end up over 15 years. It feeds in historical return and volatility patterns, then “shuffles the deck” many times to see a range of outcomes rather than one forecast. The median result of about $2,444 suggests a 7% annualized return across all simulations, with a wide but reasonable range between roughly $1,100 and $5,965. Importantly, these simulations rely on past behavior continuing in some form, which is never guaranteed. They are best viewed as a map of possible paths and their likelihoods, not a promise of any single outcome.
Asset classes
- Stocks 77%
- Bonds 14%
- No data 10%
By asset class, about 77% of the portfolio is in stocks, 14% in bonds, and around 10% in “no data” holdings where the asset class isn’t classified. Stocks drive most of the long-term growth potential, while bonds typically act as a stabilizer, especially in equity sell-offs. A roughly three-quarters equity share is consistent with a balanced but growth-oriented approach. Compared with a pure stock benchmark, the bond slice naturally dampens both upside and downside. That tradeoff is visible in the historical record: slightly lower long-run returns than equity-only indices but also somewhat milder drawdowns during stressful periods.
Sectors
- Technology 22%
- Financials 12%
- Industrials 10%
- Consumer Discretionary 7%
- Health Care 7%
- Telecommunications 6%
- Consumer Staples 4%
- Energy 3%
- Basic Materials 3%
- Real Estate 2%
- Utilities 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure is broad, with technology the largest slice at 22%, followed by financials at 12% and industrials at 10%. Other areas like healthcare, consumer-related sectors, telecom, energy, and real estate are all represented at lower weights. This pattern isn’t unusual for a portfolio built from broad market index funds, where tech tends to dominate due to company size. A tech-leaning portfolio may benefit when innovation and growth stocks lead but can be more sensitive to interest rates or regulatory shifts. The good news is that the remaining sectors provide diversification, spreading economic risks across many different business types.
Regions
- North America 60%
- Europe Developed 9%
- Japan 4%
- Asia Developed 2%
- Australasia 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, about 60% of the equity exposure is in North America, with smaller allocations to developed Europe, Japan, other developed Asia, and Australasia. This creates a clear home bias toward North American markets, which is common among US-focused portfolios and similar to many global equity indices that the US naturally dominates. The presence of international holdings still adds helpful diversification since companies abroad can respond differently to local economic cycles, currencies, and policy changes. Compared with a fully global-cap-weighted mix, this portfolio leans somewhat more heavily into North America, emphasizing that region’s influence on overall results.
Market capitalization
- Mega-cap 29%
- Large-cap 21%
- Mid-cap 12%
- Small-cap 9%
- Micro-cap 4%
This breakdown covers the equity portion of your portfolio only.
The market cap breakdown shows a healthy spread: 29% mega-cap, 21% large-cap, 12% mid-cap, 9% small-cap, and 4% micro-cap. Market capitalization is simply the total value of a company’s shares, and it often shapes how “big and established” a company is. Larger companies tend to provide stability and dominate broad indexes, while smaller ones can be more volatile but sometimes offer higher growth potential. This mix combines the steadiness of mega and large caps with a meaningful, though not overwhelming, dose of smaller firms. That balance can smooth the ride compared with a pure small-cap focus while still capturing a size spectrum.
True holdings
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NV NVIDIA Corporation 3.42%
Part of fund(s):- Schwab U.S. Large-Cap ETF
-
AA Apple Inc 2.80%
Part of fund(s):- Schwab U.S. Large-Cap ETF
-
MS Microsoft Corporation 2.08%
Part of fund(s):- Schwab U.S. Large-Cap ETF
-
AM Amazon.com Inc 1.76%
Part of fund(s):- Schwab U.S. Large-Cap ETF
-
GO Alphabet Inc Class A 1.54%
Part of fund(s):- Schwab U.S. Large-Cap ETF
-
AV Broadcom Inc 1.30%
Part of fund(s):- Schwab U.S. Large-Cap ETF
-
GO Alphabet Inc Class C 1.23%
Part of fund(s):- Schwab U.S. Large-Cap ETF
-
ME Meta Platforms Inc. 0.90%
Part of fund(s):- Schwab U.S. Large-Cap ETF
-
TS Tesla Inc 0.77%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Large-Cap ETF
-
SN Sandisk Corp 0.60%
Part of fund(s):- Schwab U.S. Small-Cap ETF
- Top 10 total 16.39%
This breakdown covers the equity portion of your portfolio only.
Looking through to the top holdings, many familiar large US growth names show up: NVIDIA, Apple, Microsoft, Amazon, Alphabet (both share classes), Broadcom, Meta, Tesla, and Sandisk. These appear via the ETFs, not as direct single-stock bets. Even though only ETF top-10 holdings are included (about 20% coverage), it’s already clear that a handful of big tech and communication names drive a noticeable part of the underlying exposure. This kind of overlap is typical of broad US large-cap funds and subtly increases concentration in those giants. Still, the overall portfolio remains diversified across hundreds of smaller holdings not listed here.
Factors
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 shows a mild tilt toward value (63%) and low volatility (60%), with other factors sitting close to neutral. Factors are like underlying “personality traits” of investments, such as being cheap (value) or stable (low volatility). A value tilt means the portfolio, on average, leans slightly toward companies trading at lower valuations relative to fundamentals. Historically, such stocks have at times lagged growth but offered periods of catch-up. The low volatility tilt suggests a preference for steadier names that have historically swung less than the market. That aligns with the observed drawdowns being somewhat softer than those of pure equity benchmarks.
Risk contribution
-
Schwab U.S. Large-Cap ETF
Weight: 44.00% 56.9% -
Schwab International Equity ETF
Weight: 19.00% 21.7% -
Schwab U.S. Small-Cap ETF
Weight: 14.00% 21.6% -
Schwab Value Advantage Money Fund
Weight: 9.50% 0.0% -
Schwab Intermediate-Term U.S. Treasury ETF
Weight: 13.50% 0.0%
Risk contribution reveals that the three equity ETFs account for essentially all portfolio volatility, despite representing 77% of the weight. The US large-cap ETF, at 44% weight, contributes about 57% of the total risk, while the small-cap ETF, at 14% weight, adds roughly 22% of risk, making it punch above its size. Risk contribution measures how much each holding drives the portfolio’s ups and downs, not just its dollar share. The bond ETF and money market fund together contribute essentially zero measured risk, acting as ballast. This setup means the experience of the portfolio is largely dictated by how those three stock funds behave.
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 shows the current portfolio has a Sharpe ratio of 0.54, below both the maximum Sharpe portfolio (0.83) and even the minimum-variance option (1.42, given today’s high risk-free rate). The Sharpe ratio measures risk-adjusted return, or how much excess return you earn per unit of volatility. At its current risk level, the portfolio sits about 1.3 percentage points below the frontier, meaning there exists a mix of these same funds that could, in theory, deliver higher expected return for similar risk. This is about weighting, not adding new funds, suggesting the ingredients are solid but not optimally combined.
Dividends
- Schwab U.S. Small-Cap ETF 1.00%
- Schwab International Equity ETF 3.00%
- Schwab Intermediate-Term U.S. Treasury ETF 3.90%
- Schwab U.S. Large-Cap ETF 1.00%
- Schwab Value Advantage Money Fund 3.80%
- Weighted yield (per year) 2.04%
The overall dividend yield of the portfolio is about 2.04%, coming from a blend of stock dividends and interest-like income from Treasuries and the money market fund. Dividend yield is simply the cash paid out each year as a percentage of the investment’s price. Here, yields vary: around 1% for US equities, 3% for international stocks, and closer to 3.8–3.9% for the bond and money market holdings. This combination means a meaningful slice of total return has historically come from regular payouts rather than price changes alone, which can help smooth the experience even when markets are choppy.
Ongoing product costs
- Schwab U.S. Small-Cap ETF 0.04%
- Schwab International Equity ETF 0.06%
- Schwab Intermediate-Term U.S. Treasury ETF 0.03%
- Schwab U.S. Large-Cap ETF 0.03%
- Weighted costs total (per year) 0.03%
Portfolio costs are impressively low, with a total expense ratio around 0.03% for the ETFs. The total expense ratio (TER) is the annual fee charged by a fund, taken out of its assets, so you never see a separate bill. For context, 0.03% is far below many actively managed funds and even lower than many index peers. Over long periods, keeping costs this low can add up significantly because every fraction of a percent saved has the chance to compound. This aligns closely with best practices for broad, diversified ETF portfolios aiming to capture market returns efficiently.
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