Income focused US equity portfolio with strong yield and quality tilt and modest global diversification
Report created on Sep 17, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 35.00% -
GP Goldman Sachs Nasdaq-100 Core Premium Income ETF
GPIQ - US38149W6306 20.00% -
GP Goldman Sachs S&P 500 Core Premium Income ETF
GPIX - US38149W6223 20.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 17.50% -
SC Schwab International Equity ETF
SCHF - US8085248057 5.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 2.50%
This portfolio is a 100% stock mix with a clear emphasis on US dividend and option-income strategies. The largest holding is a US dividend equity ETF at 35%, supported by two premium income ETFs tied to major US indices at a combined 40%. A US large-cap growth fund at 17.5% adds capital appreciation exposure, while small allocations to international equity and US small-cap value bring modest diversification. Structurally, this is a concentrated lineup of six ETFs, so most behaviour comes from a handful of broad, rules-based strategies rather than many individual securities. That kind of setup can be easier to monitor and understand, because each ETF has a clear role: income, growth, or diversification beyond the US large-cap core.
Growth
Over the period from late 2023 to September 2026, a hypothetical $1,000 investment grew to about $1,822. That translates to a Compound Annual Growth Rate (CAGR) of 23.33%, which is slightly below both the US and global market benchmarks in this timeframe. CAGR is like your average speed on a road trip: it smooths the ups and downs into a single annual number. The portfolio’s maximum drawdown, or worst peak-to-trough drop, was -17.68%, a bit milder than the US market but slightly harsher than the global market. It’s also notable that 90% of returns came from just 27 days, highlighting how a small number of strong days can drive overall results.
Projection
The Monte Carlo projection uses 1,000 simulations based on historical return and volatility patterns to estimate a range of 15-year outcomes. Think of it as running the same portfolio through many different “weather forecasts” for markets, then seeing where things often land. The median simulation grows $1,000 to about $2,793, with a wide middle range from roughly $1,886 to $4,253. The broad possible band from $1,053 to $8,077 shows how uncertain long-term equity outcomes can be, even with similar starting conditions. An average simulated annual return of 8.29% is much lower than the recent backtest, illustrating that unusually strong past periods should not be treated as a baseline for the future.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with no bonds, cash surrogates, or alternative assets in the mix. That means returns are fully tied to equity markets rather than being cushioned by more defensive asset classes. Equity-only portfolios can grow quickly in strong markets but usually experience sharper swings when conditions deteriorate. Here, “Balanced” in the risk classification comes from the style and structure of the equity exposure, not from mixing stocks and bonds. The relatively high income focus and low-volatility tilt help moderate the ride compared to a pure high-growth equity basket, but the fundamental risk level still reflects being 100% invested in shares.
Sectors
- Technology 33%
- Health Care 12%
- Consumer Staples 10%
- Telecommunications 10%
- Consumer Discretionary 9%
- Financials 9%
- Energy 7%
- Industrials 7%
- Basic Materials 1%
- Utilities 1%
- Real Estate 1%
Sector exposure is clearly tilted toward Technology at 33%, above what many broad global indices carry, while still giving meaningful room to areas like Health Care, Consumer Staples, Telecommunications, Consumer Discretionary, Financials, and Energy. This creates a mix of growth-oriented and more defensive sectors. Tech-heavy allocations can benefit strongly when innovation-driven companies outperform, but they also tend to be more sensitive to interest rate changes and shifts in market sentiment about future earnings. The broad, though not perfectly balanced, spread across sectors helps avoid over-reliance on just one economic story, with smaller slices in Industrials, Materials, Utilities, and Real Estate rounding out the exposure.
Regions
- North America 95%
- Europe Developed 3%
- Japan 1%
- Asia Developed 1%
Geographically, the portfolio is very US-centric, with about 95% in North America and only small allocations to Europe, Japan, and other developed parts of Asia. That’s a much stronger home bias than a typical global market index, where the US is large but not quite this dominant. High US exposure can be beneficial when US companies outperform and the dollar is strong, but it also ties the portfolio closely to one economy, currency, and regulatory environment. The modest 5% international slice does introduce some non-US earnings and currency diversification, yet overall behaviour will largely mirror US equity conditions rather than a broad global mix.
Market capitalization
- Large-cap 44%
- Mega-cap 33%
- Mid-cap 19%
- Small-cap 3%
- Micro-cap 2%
Most of the portfolio sits in mega- and large-cap companies, which together make up around 77% of the allocation. Mid-caps account for 19%, while small- and micro-caps together hold only about 5%. Larger companies often have more diversified business lines, established cash flows, and deeper trading liquidity, which can lead to somewhat lower volatility compared to very small firms. However, heavy large-cap orientation also means returns are closely tied to the biggest, most widely followed names in the market. The small-cap value ETF introduces a modest tilt toward smaller, cheaper companies, but not enough to materially change the overall large-cap character of the portfolio.
True holdings
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NV NVIDIA Corporation 5.23%
Part of fund(s):- Goldman Sachs Nasdaq-100 Core Premium Income ETF
- Goldman Sachs S&P 500 Core Premium Income ETF
- Schwab U.S. Large-Cap Growth ETF
-
AA Apple Inc. 4.59%
Part of fund(s):- Goldman Sachs Nasdaq-100 Core Premium Income ETF
- Goldman Sachs S&P 500 Core Premium Income ETF
- Schwab U.S. Large-Cap Growth ETF
-
MS Microsoft Corporation 3.41%
Part of fund(s):- Goldman Sachs Nasdaq-100 Core Premium Income ETF
- Goldman Sachs S&P 500 Core Premium Income ETF
- Schwab U.S. Large-Cap Growth ETF
-
AM Amazon.com Inc 2.64%
Part of fund(s):- Goldman Sachs Nasdaq-100 Core Premium Income ETF
- Goldman Sachs S&P 500 Core Premium Income ETF
- Schwab U.S. Large-Cap Growth ETF
-
GO Alphabet Inc Class A 2.37%
Part of fund(s):- Goldman Sachs Nasdaq-100 Core Premium Income ETF
- Goldman Sachs S&P 500 Core Premium Income ETF
- Schwab U.S. Large-Cap Growth ETF
-
AV Broadcom Inc 1.82%
Part of fund(s):- Goldman Sachs Nasdaq-100 Core Premium Income ETF
- Goldman Sachs S&P 500 Core Premium Income ETF
- Schwab U.S. Large-Cap Growth ETF
-
MR Merck & Company Inc 1.67%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AB Abbott Laboratories 1.56%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
ME Meta Platforms Inc. 1.53%
Part of fund(s):- Goldman Sachs Nasdaq-100 Core Premium Income ETF
- Goldman Sachs S&P 500 Core Premium Income ETF
- Schwab U.S. Large-Cap Growth ETF
-
KO The Coca-Cola Company 1.50%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 26.30%
Looking through the ETFs’ top holdings, a meaningful portion of exposure is concentrated in a handful of major US companies like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, and Meta. Several of these names appear across multiple funds, which boosts “hidden” concentration beyond any single ETF’s weight. For example, NVIDIA alone adds up to over 5% of the portfolio within the top-10 coverage, and Apple is close behind. Because only the top 10 holdings of each ETF are included, actual overlap is likely higher. This means that moves in a small group of mega-cap leaders may drive portfolio performance more than the number of ETFs suggests.
Factors
Factor-wise, the portfolio is broadly market-like across value, size, momentum, and quality, but shows notable tilts toward yield and low volatility. Factor exposure is like looking at the ingredients behind performance rather than just the final dish. A high yield tilt (63%) reflects the strong emphasis on dividend and option-based income strategies, which prioritize cash payouts. The high low-volatility tilt (60%) suggests holdings that historically fluctuate a bit less than the broader market. Together, these tilts point to a style that leans toward steadier, income-generating stocks rather than pure growth or speculative themes, which can help smooth returns in choppy markets while still keeping full equity exposure.
Risk contribution
-
Schwab U.S. Dividend Equity ETF
Weight: 35.00% 25.8% -
Goldman Sachs Nasdaq-100 Core Premium Income ETF
Weight: 20.00% 24.1% -
Schwab U.S. Large-Cap Growth ETF
Weight: 17.50% 22.9% -
Goldman Sachs S&P 500 Core Premium Income ETF
Weight: 20.00% 19.6% -
Schwab International Equity ETF
Weight: 5.00% 4.6% - Top 5 risk contribution 96.9%
Risk contribution shows how much each ETF drives the portfolio’s overall ups and downs, which can differ from its simple weight. Here, the top three positions by risk share contribute about 73% of total volatility. Notably, the Nasdaq-100 premium income ETF and the large-cap growth ETF both punch above their weights, with risk/weight ratios above 1, meaning they add more volatility than their percentage allocations alone might suggest. In contrast, the large dividend ETF contributes less risk than its size, reflecting its steadier profile. This pattern underlines that income strategies can still be meaningful risk drivers when linked to concentrated or growth-heavy underlying indices.
Redundant positions
-
High correlationGoldman Sachs Nasdaq-100 Core Premium Income ETFSchwab U.S. Large-Cap Growth ETF
The Nasdaq-100 premium income ETF and the US large-cap growth ETF have moved almost identically historically, indicating very high correlation. Correlation measures how assets move relative to each other, from -1 (opposite directions) to +1 (in lockstep). When two positions are highly correlated, they tend to rise and fall together, which limits diversification benefits between them even if their strategies differ on paper. In this case, both funds are tied to growth-oriented US large-cap technology and related sectors, so their similar behaviour is unsurprising. The practical takeaway is that these two holdings act more like a single growth engine than two independent sources of return.
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 optimization chart shows the current portfolio lying on or very close to the efficient frontier built from these six holdings. The efficient frontier represents the best expected return for each level of risk using only different weight combinations of the existing assets. With a Sharpe ratio of 1.34 compared to 1.63 for the mathematically optimal mix, the present allocation is already using the components quite efficiently, especially given real-world frictions like taxes and trading costs. The minimum-variance portfolio would reduce volatility somewhat, but at the cost of lower expected return. Overall, the structure balances risk and reward well within its chosen building blocks.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.60%
- Goldman Sachs Nasdaq-100 Core Premium Income ETF 10.30%
- Goldman Sachs S&P 500 Core Premium Income ETF 8.30%
- Schwab U.S. Dividend Equity ETF 3.10%
- Schwab International Equity ETF 3.10%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Weighted yield (per year) 5.07%
The portfolio’s overall dividend yield of about 5.07% is significantly higher than broad equity market averages, driven mainly by the two premium income ETFs with yields above 8% and 10%, plus the dedicated US dividend fund. Dividend yield is the annual cash payout as a percentage of current value, like rent from a property relative to its price. This high-income profile means a substantial portion of total return may come from regular distributions rather than only from price appreciation. That can be appealing for investors who value cash flow, while also meaning the portfolio may lag in very strong growth-led rallies where lower-yield, high-growth stocks dominate.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Goldman Sachs Nasdaq-100 Core Premium Income ETF 0.29%
- Goldman Sachs S&P 500 Core Premium Income ETF 0.29%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab International Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Weighted costs total (per year) 0.15%
Portfolio costs are impressively low, with a weighted average Total Expense Ratio (TER) of about 0.15%. TER is the ongoing annual fee charged by funds, expressed as a percentage of assets; lower fees leave more of the return in the investor’s pocket. Here, the very low-cost Schwab ETFs balance out the slightly higher, but still reasonable, fees on the premium income and small-cap value funds. Over long periods, even a few tenths of a percent in fees can compound into a meaningful difference in outcomes, so this cost structure is a real strength. It provides a solid foundation for keeping more of whatever returns the markets deliver.
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