Income tilted US focused equity portfolio with strong dividend yield and efficient risk balance
Report created on Sep 8, 2026Risk profile
4/7
Diversification profile
3/5
Positions
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VO Vanguard S&P 500 ETF
VOO - US9229083632 60.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 20.00% -
VY Vanguard International High Dividend Yield Index Fund ETF Shares
VYMI - US9219467944 20.00%
This portfolio is made of three broad stock ETFs, with 60% in a core US index, 20% in US dividend stocks, and 20% in international high dividend shares. So it’s a single-asset-class mix, but not a single-fund portfolio. The core holding does most of the heavy lifting for growth, while the two dividend funds tilt the overall mix toward income and a value style. This structure is simple and easy to understand, which can be helpful for tracking and maintenance. It also means risk and return are dominated by the behavior of global large companies, rather than narrower niches or very small stocks.
Growth
From 2016 to 2026, $1,000 in this mix grew to about $3,772, a compound annual growth rate (CAGR) of 14.26%. CAGR is like your average speed on a long road trip, smoothing out all the ups and downs. That’s slightly behind the US market reference (15.44%) but ahead of the global market (12.79%). The worst loss from peak to bottom was around -34%, very similar to the benchmarks during the 2020 crash. This shows the portfolio has behaved much like a broad stock market holding: strong long-term growth with sizable but not extreme drawdowns when markets fall sharply.
Projection
The Monte Carlo projection uses the past as a guide to randomly simulate many possible 15-year futures. Think of it as rolling the dice 1,000 times using historical risk and return patterns. The median outcome turns $1,000 into about $2,728, with a wide “likely” range from roughly $1,796 to $4,181. Extreme cases stretch from near break-even to strong growth. The average simulated return of 8.08% per year is lower than the historical number, reflecting some caution. As always, these are models, not promises; real markets can be better or worse than any simulation suggests.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with no bonds or cash-like assets in the mix. That’s why the overall risk rating still lands in the middle range but clearly on the equity side. A 100% equity allocation usually means bigger swings in value, but also higher expected growth over long periods compared with mixed stock–bond portfolios. Because everything here is in broadly diversified equity funds rather than individual names, stock-specific risk is reduced, but market-wide ups and downs still flow straight through. The balance between growth and dividend strategies within stocks adds a bit of internal diversification.
Sectors
- Technology 26%
- Financials 18%
- Health Care 11%
- Consumer Discretionary 8%
- Consumer Staples 8%
- Telecommunications 8%
- Industrials 8%
- Energy 7%
- Utilities 2%
- Basic Materials 2%
- Real Estate 1%
Sector allocation is fairly broad, with technology the largest slice at 26%, followed by financials at 18%, then health care, consumer, telecom, and industrials all with meaningful weight. This mirrors a diversified global equity mix quite closely and is a strong indicator of healthy sector diversification. Technology being the top sector means sensitivity to growth and innovation cycles, but the sizeable allocations to financials, staples, and utilities bring in more defensive, income-oriented characteristics. Tech-heavy allocations can be more volatile during interest-rate spikes, while dividend-heavy sectors may hold up relatively better in slower growth environments.
Regions
- North America 81%
- Europe Developed 9%
- Japan 2%
- Asia Emerging 2%
- Asia Developed 2%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographically, around 81% of the portfolio is in North America, with the rest spread across Europe, Japan, developed Asia, emerging Asia, and smaller slices in other regions. This is a clear US tilt compared with a truly global market, where the US is a bit more than half rather than over four-fifths. The international dividend ETF does add non-US exposure and income from abroad, which broadens the opportunity set beyond a single economy. Still, portfolio results are mainly driven by US companies and the US dollar. That has helped over the past decade but also concentrates economic and currency exposure.
Market capitalization
- Large-cap 41%
- Mega-cap 37%
- Mid-cap 19%
- Small-cap 1%
Market-cap exposure leans strongly to the largest companies: about 37% in mega-caps and 41% in large-caps, with mid-caps at 19% and only 1% in small-caps. Mega-cap stocks are the household-name giants that often dominate index returns and typically offer more stability and liquidity than smaller names. This tilt means the portfolio is mostly riding on the performance of the world’s biggest firms, which can dampen some risk but also reduces the “small-cap premium” some investors target. The moderate mid-cap slice provides a bit of extra growth potential and diversification between mega companies and niche small businesses.
True holdings
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NV NVIDIA Corporation 4.51%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc. 3.95%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 2.58%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.17%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.95%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.66%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.55%
Part of fund(s):- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 1.21%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.15%
Part of fund(s):- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.10%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Top 10 total 21.85%
Looking through the ETFs, the top underlying exposures include major tech and growth names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Micron, Meta, and Tesla. Several of these show up in more than one fund, creating some overlap and hidden concentration even though they appear only via ETFs. For example, Apple and Microsoft together are already a meaningful slice of the total portfolio. Because only ETF top-10 holdings are shown, true overlap is likely higher. This is normal for index-based funds, but it means big market leaders have an outsized say in the portfolio’s day-to-day moves.
Factors
Factor exposure shows clear tilts toward value (60%) and yield (63%), both marked as “High,” while size, momentum, quality, and low volatility sit in neutral ranges. Factors are like underlying “personality traits” of stocks that research has linked to returns over time. A value tilt means more exposure to companies priced lower relative to fundamentals, which can help in periods when cheaper stocks rebound. A high yield tilt reflects a focus on dividend-paying companies, aligning with the portfolio’s income theme. Neutral readings elsewhere suggest the portfolio behaves broadly like the market on those other dimensions, without strong extra tilts.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 60.00% 64.0% -
Schwab U.S. Dividend Equity ETF
Weight: 20.00% 18.4% -
Vanguard International High Dividend Yield Index Fund ETF Shares
Weight: 20.00% 17.6%
Risk contribution shows how much each holding adds to overall ups and downs, which can differ from its weight. The S&P 500 ETF is 60% of the portfolio but contributes about 64% of total risk, slightly more than its size, reflecting its broad growth exposure. Each of the 20% dividend funds contributes less risk than weight, at roughly 18% each. This indicates the income-tilted funds are a bit steadier relative to their share of the portfolio. All three holdings together account for 100% of portfolio risk, with no “hidden” positions adding extra volatility beyond these main components.
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 the current mix sitting on or very near the efficient frontier. The efficient frontier is the curve of “best possible” return for each risk level using only the existing holdings with different weights. The portfolio’s Sharpe ratio of 0.65, which measures return per unit of risk, is slightly below the maximum Sharpe (0.84) but above the minimum-variance option (0.75) once you factor in their different risks. This tells us the current blend is already balanced effectively, delivering solid risk-adjusted returns without obvious inefficiencies in how these three ETFs are combined.
Dividends
- Schwab U.S. Dividend Equity ETF 3.00%
- Vanguard S&P 500 ETF 1.00%
- Vanguard International High Dividend Yield Index Fund ETF Shares 3.40%
- Weighted yield (per year) 1.88%
The overall dividend yield is about 1.88%, higher than the S&P 500 ETF’s 1% yield because of the two income-focused funds. The US dividend ETF yields around 3%, and the international high dividend ETF about 3.4%, giving the portfolio a noticeable income tilt. Dividends can play two roles: providing regular cash flow and contributing meaningfully to total returns over long horizons, especially when reinvested. This yield level won’t eliminate volatility, but it does mean a larger share of returns comes from ongoing cash distributions rather than purely from price appreciation.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Vanguard S&P 500 ETF 0.03%
- Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
- Weighted costs total (per year) 0.07%
The total expense ratio (TER) for the portfolio is about 0.07%, which is impressively low. TER is the annual fee charged by the funds, and it quietly chips away at returns every year. Here, the core S&P ETF costs 0.03%, the US dividend ETF 0.06%, and the international dividend ETF 0.22%. Because the lowest-cost fund has the biggest weight, the blended cost stays very modest. Over long periods, even small fee differences compound, so having such a low overall TER supports better net performance and aligns well with best practices in low-cost, index-based investing.
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