Income focused global equity portfolio with strong US tilt and quality large cap bias
Report created on Apr 24, 2026Risk profile
3/7
Diversification profile
3/5
Positions
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FU Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
FUSD - IE00BYXVGX24 60.00% -
JE JPM Global Equity Premium Income Active UCITS ETF - USD (dist)
JEPG - IE0003UVYC20 30.00% -
VH Vanguard FTSE All-World High Dividend Yield UCITS USD
VHYL - IE00B8GKDB10 10.00%
This portfolio is made up of three equity income ETFs, with 60% in a US quality income fund, 30% in a global equity premium income fund, and 10% in a global high dividend ETF. So it is simple, fully invested in shares, and leans clearly toward cash-flow‑oriented strategies rather than broad market trackers. A concentrated set of funds like this is easy to monitor and understand. At the same time, because all three are income‑focused equity products, their behaviour will be more similar to each other than to a mix of very different asset types. The structure balances simplicity with a moderate spread across income styles, but it does mean the overall experience is still firmly driven by global stock markets.
Growth
Over the period from December 2023 to April 2026, £1,000 in this portfolio grew to about £1,421, giving a compound annual growth rate (CAGR) of 16.05%. CAGR is like average speed on a road trip: it smooths bumps to show the typical yearly pace. This return lagged both the US market and the global market by a bit over 2 percentage points a year, but with a smaller maximum drawdown of -13.07% versus deeper falls for the benchmarks. That suggests the portfolio traded some upside for a gentler ride. The fact that 90% of returns came from just 19 days also highlights how a handful of strong days can drive long‑term results.
Projection
The Monte Carlo projection uses thousands of simulated paths based on historical behaviour to estimate where £1,000 might end up after 15 years. Think of it as replaying history with small random twists to see a range of plausible futures, not a prediction. The median outcome of about £2,752 implies an annualised return around 8.17%, but results vary widely, from roughly £951 at the pessimistic 5th percentile to £8,124 at the optimistic 95th percentile. Around three quarters of simulations end positive. This shows how even with the same starting point and strategy, long‑term results can differ a lot simply because markets are uncertain and do not repeat perfectly.
Asset classes
- Stocks 100%
All of this portfolio sits in stocks, with no bonds, cash, or alternative assets included. Equities are ownership stakes in companies and historically have offered higher long‑term growth than safer assets, but with more ups and downs along the way. A 100% equity mix usually means returns will move broadly with global share markets rather than providing strong protection in market stress. Compared with many multi‑asset blends that mix in bonds or cash, this structure is more growth‑oriented. Within the equity sleeve, though, the focus on income and option‑based strategies can slightly damp volatility compared with pure growth funds, softening what a typical all‑stock allocation might feel like.
Sectors
- Technology 27%
- Financials 14%
- Health Care 11%
- Telecommunications 10%
- Industrials 9%
- Consumer Discretionary 8%
- Consumer Staples 7%
- Utilities 4%
- Basic Materials 4%
- Energy 3%
- Real Estate 2%
Sector exposure is fairly spread out but leans meaningfully toward technology at 27%, followed by financials at 14% and health care at 11%. Telecommunications, industrials, and consumer areas add more balance, and even smaller slices like utilities, basic materials, and real estate are represented. This looks reasonably diversified and not dominated by a single non‑tech sector. Tech‑heavy allocations can benefit when innovation and earnings growth in that area are strong, but they may be more sensitive when interest rates rise or when markets rotate toward more cyclical or defensive sectors. The presence of dividend‑focused strategies often nudges the mix slightly toward steadier, cash‑generating businesses within each sector.
Regions
- North America 84%
- Europe Developed 9%
- Japan 4%
- Asia Emerging 1%
- Asia Developed 1%
Geographically, the portfolio is strongly tilted to North America at 84%, with smaller allocations to developed Europe, Japan, and only modest exposure to other parts of Asia. That means most of the companies here earn a large share of their revenues in or from the US market, and performance will often resemble a US‑led global equity pattern. Compared to global benchmarks, this is a heavier North American tilt and lighter elsewhere. Such a stance has worked well in the recent decade when US markets, especially large growth and quality names, outperformed. But it does mean the portfolio is more tied to one region’s economic cycle, policy changes, and currency movements than a fully global balance.
Market capitalization
- Large-cap 38%
- Mega-cap 35%
- Mid-cap 23%
- Small-cap 4%
By company size, the portfolio is dominated by mega‑cap and large‑cap holdings, together making up about 73% of exposure, with mid‑caps at 23% and only 4% in small‑caps. Large and mega‑cap companies tend to be more mature, widely followed, and often less volatile than very small firms, which can smooth the ride somewhat. They’re also the main focus of many dividend and quality strategies. The relatively low small‑cap share means the portfolio is less exposed to the higher growth potential but bumpier behaviour that smaller companies can bring. Overall, this size mix aligns fairly closely with global indices, which are also heavily driven by the biggest listed companies.
True holdings
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NV NVIDIA Corporation 4.63%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
-
AA Apple Inc 3.79%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
-
GO Alphabet Inc Class A 3.44%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
-
MS Microsoft Corporation 3.05%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
-
AV Broadcom Inc 1.98%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
-
ME Meta Platforms Inc. 1.60%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
-
JP JPMorgan Chase & Co 1.33%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
- Vanguard FTSE All-World High Dividend Yield UCITS USD
-
LL Eli Lilly and Company 0.88%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
-
CA Caterpillar Inc 0.82%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
-
V Visa Inc. Class A 0.82%
Part of fund(s):- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
- Top 10 total 22.34%
Looking through to the largest underlying holdings, the portfolio’s top exposures include familiar global giants like NVIDIA, Apple, Alphabet, Microsoft, Broadcom, Meta, and JPMorgan Chase. Each of these appears via ETFs rather than as direct single‑stock picks. The combined weight in the biggest names is meaningful but not extreme: the top individual stock, NVIDIA, sits at about 4.6% of the portfolio. Some overlap exists across ETFs, especially in mega‑cap technology and financial stocks, which can create hidden concentration. Because only ETF top‑10 holdings are captured, the true overlap is likely somewhat higher, but this snapshot still shows the portfolio leans on a core group of very large, well‑known companies.
Risk contribution
-
Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF
Weight: 60.00% 70.3% -
JPM Global Equity Premium Income Active UCITS ETF - USD (dist)
Weight: 30.00% 22.2% -
Vanguard FTSE All-World High Dividend Yield UCITS USD
Weight: 10.00% 7.5%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the 60% allocation to the US quality income ETF contributes about 70% of total risk, so it punches slightly above its size. By contrast, the 30% and 10% positions in the other two ETFs contribute 22% and 7.5% of risk respectively, a bit less than their weights. This means the first fund has a bigger say in day‑to‑day volatility and long‑term outcomes than the others. When a single position dominates risk, changes in its behaviour or strategy can noticeably shift how the whole portfolio feels.
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 portfolio sitting below the efficient frontier built from these same three holdings. The efficient frontier represents the best expected return for each level of risk achievable just by changing weights. Here, the current Sharpe ratio of 1.09 (a measure of return per unit of risk above the risk‑free rate) is lower than both the optimal portfolio’s 1.6 and even the minimum variance portfolio’s 1.42. Being about 2 percentage points below the frontier at the same risk level suggests the existing mix isn’t making full use of the available combinations. In other words, an alternative blend of the same funds could, historically, have offered a stronger risk‑adjusted tradeoff.
Dividends
- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF 1.40%
- Weighted yield (per year) 0.84%
This portfolio explicitly targets income, but the reported overall dividend yield of 0.84% is currently modest, with the main US quality income ETF showing around 1.40%. Dividend yield is the annual cash paid out as a percentage of the investment’s value, a bit like an interest rate on savings but not guaranteed. Income‑orientated strategies can still show relatively low yields when share prices have risen or when companies retain more earnings for growth. Over time, total return comes from both price changes and dividends reinvested or withdrawn. For an equity income mix, it’s the combination of cash distributions and capital growth that matters, not just the headline yield at a single point.
Ongoing product costs
- Fidelity UCITS SICAV - Fidelity US Quality Income UCITS ETF 0.25%
- Vanguard FTSE All-World High Dividend Yield UCITS USD 0.29%
- Weighted costs total (per year) 0.18%
Costs in this portfolio are impressively low. The total ongoing fee (often called TER, or Total Expense Ratio) is around 0.18% a year, with the underlying ETFs ranging from roughly 0.25% to 0.29%. TER is what the fund manager charges annually to run the product, taken directly from fund assets rather than billed separately. In practice, lower costs mean more of each year’s return stays in the portfolio instead of going to fees, and that effect compounds over time. These figures compare favourably with many active or specialist strategies, and they support long‑term net performance by keeping the drag from expenses relatively small.
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