Concentrated US stock exposure with quality tilt and moderate diversification plus a small cash buffer
Report created on May 13, 2026Risk profile
4/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 65.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 25.00% -
VM Vanguard Money Market Reserves - Vanguard Cash Reserves Federal Money Market Fund
VMRXX 10.00%
This portfolio is built around two core US equity ETFs with a modest cash-like position on the side. About 65% sits in a broad S&P 500 tracker, 25% in a US dividend equity ETF, and 10% in a money market mutual fund. That means most of the risk and return come from the stock portion, while the cash-like slice slightly softens volatility and offers liquidity for short‑term needs. Structurally, this is a fairly simple setup: one broad “market” piece, one income‑tilted piece, and one stability bucket. Simpler portfolios can be easier to monitor and understand, and here the main trade‑off is between growth from equities and steadiness from the money market allocation.
Growth
From 2016 to 2026, a hypothetical $1,000 in this portfolio grew to about $3,700, a compound annual growth rate (CAGR) of 14.13%. CAGR is like average speed on a long road trip, showing smoothed yearly growth. Over the same period, the US market benchmark did better at 15.51% a year, while the global market did 12.87%. So the portfolio lagged a pure US market index but beat a global mix. The worst peak‑to‑trough drop was about -31.6%, similar to major indices during early 2020. That level of drawdown shows the portfolio behaves very much like an equity‑heavy allocation when markets fall.
Projection
The forward projection uses a Monte Carlo simulation, which basically runs 1,000 “what if” scenarios by shuffling historical return patterns. It doesn’t try to predict specific events; it just explores a wide range of plausible paths based on past ups and downs. Over 15 years, $1,000 has a median simulated outcome of about $2,614, with most paths falling between roughly $1,765 and $3,879. The average simulated annual return is 7.58%, noticeably lower than the historical 14% CAGR, illustrating that past performance can be much stronger than what models assume going forward. These numbers are rough guides, not promises, and real‑world results can land outside even the 5%–95% range.
Asset classes
- Stocks 90%
- No data 10%
Asset‑class‑wise, about 90% of the portfolio is in stocks, with 10% in a “no data” category that here corresponds to the money market mutual fund. High equity exposure is what drives both the strong historical returns and the fairly deep drawdowns seen in the performance section. A money market position is typically very low volatility and tends to move independently of stocks, so even a 10% slice can slightly damp overall swings. Compared to many broad benchmarks that are nearly 100% equities, this portfolio is just a bit more conservative, though the dominant characteristic remains equity‑driven growth and risk.
Sectors
- Technology 26%
- Health Care 11%
- Financials 10%
- Telecommunications 8%
- Consumer Staples 8%
- Consumer Discretionary 8%
- Industrials 7%
- Energy 6%
- Utilities 2%
- Real Estate 1%
- Basic Materials 1%
Sector exposure is spread across the main parts of the economy, with technology at 26% leading the way, followed by health care, financials, telecom, staples, and discretionary all in mid‑single to low‑double digits. This pattern is quite similar to common US large‑cap benchmarks, which are also tech‑heavy right now. Tech‑tilted portfolios often benefit when innovation and growth stocks are in favor but can feel sharper moves during periods of rising interest rates or changing sentiment. The rest of the sectors together create a decent balance, helping ensure that returns are not solely driven by one industry, even though technology clearly has an outsized influence.
Regions
- North America 90%
Geographically, about 90% of the portfolio is in North America, which essentially means heavy US exposure. That mirrors many US market indices, so it lines up well with domestic benchmarks but is much more concentrated than global indices where the US is a large but not exclusive share. A strong US tilt has been rewarded over the last decade, which is reflected in the portfolio’s solid historical returns. The flip side is that outcomes are closely tied to the US economy, policy decisions, and dollar movements. When the US market outperforms other regions, this concentration helps; when it lags, there is less offset from other parts of the world.
Market capitalization
- Large-cap 41%
- Mega-cap 30%
- Mid-cap 17%
- Small-cap 1%
By market capitalization, the portfolio leans heavily into the largest companies, with about 30% in mega‑caps and 41% in large‑caps, plus a smaller slice in mid‑caps and very little in small‑caps. This pattern is typical for index‑based US equity strategies where weights are linked to company size. Larger firms often have more diversified businesses, stronger balance sheets, and more stable earnings, which can make returns less erratic than a small‑cap‑heavy portfolio. However, it also means that a relatively small group of very big companies has an outsized effect on performance. This aligns closely with how current US market indices behave.
True holdings
-
NV NVIDIA Corporation 4.93%
Part of fund(s):- Vanguard S&P 500 ETF
-
AA Apple Inc 4.33%
Part of fund(s):- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.20%
Part of fund(s):- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.37%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class A 1.94%
Part of fund(s):- Vanguard S&P 500 ETF
-
AV Broadcom Inc 1.70%
Part of fund(s):- Vanguard S&P 500 ETF
-
GO Alphabet Inc Class C 1.56%
Part of fund(s):- Vanguard S&P 500 ETF
-
ME Meta Platforms Inc. 1.46%
Part of fund(s):- Vanguard S&P 500 ETF
-
TX Texas Instruments Incorporated 1.42%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
QC Qualcomm Incorporated 1.40%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 24.30%
Looking through the ETFs’ top holdings, a handful of mega‑cap names stand out: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, and a couple of large chipmakers. These combine to roughly 24% of the covered slice, and because both ETFs can hold some of the same giants, there is overlapping exposure. That overlap is a hidden concentration: different funds, but many of the same underlying companies steering returns. And since only ETF top‑10 positions are included, real overlap is likely somewhat higher. This structure is very similar to many US index‑plus‑dividend portfolios where a small group of leaders drives a big share of the performance.
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 is mostly close to neutral across value, size, momentum, yield, and low volatility, meaning it broadly resembles the overall market on those traits. The standout is a mild tilt toward the quality factor at 60%. Quality in this context means companies with stronger profitability, more stable earnings, and healthier balance sheets. Research suggests that quality‑tilted portfolios can hold up relatively better during periods of stress, even though they still fluctuate with markets. Because the other factors hover around the 50% “market average” mark, the portfolio behaves much like a standard core US equity allocation with a slight bias toward financially stronger businesses.
Risk contribution
-
Vanguard S&P 500 ETF
Weight: 65.00% 74.9% -
Schwab U.S. Dividend Equity ETF
Weight: 25.00% 25.1% -
Vanguard Money Market Reserves - Vanguard Cash Reserves Federal Money Market Fund
Weight: 10.00% 0.0%
Risk contribution highlights how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. The S&P 500 ETF is 65% of the portfolio but contributes about 75% of the risk, showing it’s the main volatility engine. The dividend ETF lines up closely, at 25% weight and 25% risk, suggesting its behavior is similar in intensity to its size. The money market fund, while 10% of assets, contributes essentially zero to risk, acting as a brake on volatility. Overall, this is a concentrated three‑fund structure where one broad ETF dominates risk, which is consistent with its central role in the allocation.
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 mix has a Sharpe ratio of 0.65, with expected return around 14.14% and volatility of 15.55%. The Sharpe ratio measures risk‑adjusted return, like how much extra return you get per unit of volatility above a risk‑free rate. The analysis indicates the portfolio sits on or very near the efficient frontier, meaning that for its current holdings and risk level, it’s using them in an efficient way. There is an “optimal” mix with a higher Sharpe but also higher risk, and a very low‑risk minimum‑variance mix with low expected return. Within these three funds, the present weights form a solid, efficient compromise.
Dividends
- Schwab U.S. Dividend Equity ETF 3.30%
- Vanguard Money Market Reserves - Vanguard Cash Reserves Federal Money Market Fund 3.90%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.93%
The overall portfolio yield is about 1.93%, coming from the mix of the dividend ETF at 3.30%, the money market fund at 3.90%, and the S&P 500 ETF at 1.10%. Yield is the income paid out as dividends or interest, expressed as a percentage of the amount invested. Here, the dedicated dividend ETF and the money market holding do the heavy lifting for income, while the broad S&P 500 ETF contributes more to growth than to cash flow. This blend creates a modest income stream without fully shifting the portfolio away from capital appreciation. It’s a middle‑ground profile between pure growth and pure income.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.03%
Costs in this portfolio are impressively low. The S&P 500 ETF charges a total expense ratio (TER) of 0.03%, and the dividend ETF charges 0.06%, with the combined equity TER working out to about 0.03%. TER is the annual fee the fund takes to cover management and operating costs, deducted from returns in the background. These levels are well below the long‑term industry averages and support better compounding over time, since less performance is lost to fees each year. For a simple, index‑anchored structure, this is very cost‑efficient and aligns nicely with best‑practice expectations around keeping ongoing costs minimal.
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