A concentrated United States stock portfolio with balanced risk tilts toward quality low volatility and dividends

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This setup fits an investor who is comfortable with full equity exposure but likes a bit of downside cushioning through quality and dividend tilts. A typical profile would be someone with a medium-to-long time horizon, perhaps ten years or more, who wants growth as the main objective but does not want the most aggressive possible swings. Risk tolerance is moderate: okay with sizeable drawdowns but preferring something slightly steadier than a pure growth or small-cap-heavy approach. Goals might include long-term wealth building, retirement savings, or compounding a lump sum, where day-to-day volatility is less important than strong, inflation-beating returns over many years.

Positions

  • SPDR S&P 500 ETF Trust
    SPY - US78462F1030
    50.00%
  • Invesco S&P 500® Low Volatility ETF
    SPLV - US46138E3541
    25.00%
  • Vanguard High Dividend Yield Index Fund ETF Shares
    VYM - US9219464065
    25.00%

This portfolio is built from just three broad ETFs, all focused on large United States companies, with half in a broad market fund and the rest split between low volatility and high dividend strategies. Structurally, it is 100 percent stock and extremely simple, which makes it easy to understand and maintain. Compared with a more “classic” balanced benchmark that mixes stocks and bonds, this setup is clearly more growth-oriented and more volatile. For someone wanting a truly balanced profile, adding a meaningful dose of stabilizing assets could help smooth the ride. The current mix is still coherent though: it leans into quality and income to moderate risk while keeping strong exposure to broad market growth.

Growth Info

Historically, this mix has been very strong, with a compound annual growth rate (CAGR) of about 13.9 percent. CAGR is just the average yearly “speed” of growth over time, like averaging your speed on a long road trip. A hypothetical 10,000 dollars invested over a decade at that rate would have grown several times over, roughly in line with or slightly better than a typical large United States equity benchmark. The max drawdown of about minus 34 percent shows that in deep downturns the portfolio can fall a lot, though less than some pure high-growth tilts. It is useful to remember that these figures are backward-looking and cannot guarantee similar results ahead.

Projection Info

Forward projections use Monte Carlo simulation, which basically takes past return and volatility patterns, scrambles them thousands of times, and estimates a range of future outcomes. Here, 1,000 simulations show a median ending value of around 480 percent of the starting amount, with the low-end 5th percentile just above break-even and an average simulated annual return of 14.27 percent. That spread highlights both upside potential and real downside risk. While the high share of positive simulations is encouraging, such models still rely heavily on history, which may not repeat. These projections work best as a guide to possible ranges, not as promises, so position sizing and time horizon stay very important.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%

All of the money sits in one asset class: stocks. This creates strong exposure to long-term growth but also leaves the portfolio fully exposed to equity market swings. Compared to a more diversified benchmark that blends stocks with bonds, cash, or alternatives, this structure will typically rise more in strong markets and fall more in severe downturns. The classification as “balanced” on risk reflects the quality and dividend tilts helping a bit, but it is still equity-only. For many investors, adding a cushion of defensive assets can lower emotional stress in bad markets while barely denting long-term outcomes, especially when the investing horizon is shorter than fifteen to twenty years.

Sectors Info

  • Technology
    23%
  • Financials
    16%
  • Health Care
    10%
  • Industrials
    9%
  • Consumer Staples
    9%
  • Consumer Discretionary
    9%
  • Utilities
    8%
  • Telecommunications
    7%
  • Energy
    4%
  • Real Estate
    4%
  • Basic Materials
    2%

Sector exposure is fairly broad across major parts of the economy, with technology around the low twenties and healthy weight in financials, healthcare, industrials, and both defensive and cyclical consumer areas. This composition is actually quite close to common large-cap benchmarks, which is a good sign for diversification across industries. The tilt toward utilities and higher-dividend areas adds a slightly more conservative flavor than a pure growth setup. A tech-driven market may still drive a lot of returns, so swings in that area will matter, but no single sector dominates to an extreme degree. This is a strong alignment with best practices for sector balance while still keeping a slight quality and income tilt.

Regions Info

  • North America
    99%
  • Europe Developed
    1%
  • Asia Emerging
    0%
  • Latin America
    0%
  • Africa/Middle East
    0%

Geographically, this is almost a pure North America portfolio, with roughly 99 percent in that region and only a token allocation elsewhere. That makes performance highly tied to United States economic and policy conditions. Many global benchmarks usually hold a meaningful slice of non-United States markets, which can help if leadership rotates internationally. The heavy domestic tilt has been beneficial in recent years, as United States stocks have outperformed many regions. Still, relying so heavily on one economy can increase vulnerability if its markets go through a prolonged weaker phase. For some investors, mixing in more international exposure may help spread geographic risk while still keeping the United States as the core engine.

Market capitalization Info

  • Large-cap
    38%
  • Mid-cap
    30%
  • Mega-cap
    28%
  • Small-cap
    3%
  • Micro-cap
    0%

The portfolio leans toward large and mega-cap companies, with smaller exposure to mid-caps and minimal small caps. This is very similar to major broad equity benchmarks and is generally positive, since large firms tend to be more stable, more liquid, and easier to hold through full market cycles. The mid-cap slice adds a bit of extra growth potential without the extreme swings that pure small caps can bring. The absence of small and micro caps slightly limits diversification but also avoids the higher volatility and business risk those tiny companies carry. Overall, this market cap mix is well-balanced and aligns closely with global standards for a core equity allocation.

Dividends Info

  • Invesco S&P 500® Low Volatility ETF 2.00%
  • SPDR S&P 500 ETF Trust 1.10%
  • Vanguard High Dividend Yield Index Fund ETF Shares 2.30%
  • Weighted yield (per year) 1.62%

The portfolio’s overall dividend yield around 1.62 percent comes from blending a lower-yield broad index fund with higher-yield low volatility and dividend-focused funds. Dividends are cash payments from companies and can provide a steady contribution to total return, which combines price gains plus income. For investors who like some cash flow without going all-in on income strategies, this level is a solid middle ground. It is high enough to matter but low enough that the portfolio can still prioritize growth and quality. Yield levels do change as markets move, and firms can cut or raise payouts, so it is helpful to see dividends as a bonus layer of return rather than something fully guaranteed or fixed.

Ongoing product costs Info

  • Invesco S&P 500® Low Volatility ETF 0.25%
  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard High Dividend Yield Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.13%

The blended total expense ratio (TER) of roughly 0.13 percent is impressively low. TER is the annual fee charged by funds as a percentage of invested assets, similar to a tiny yearly membership fee. Costs matter because every fraction of a percent saved can compound into a big difference over decades. This fee level is much lower than many actively managed products and is well aligned with best practices for cost-conscious investing. Keeping expenses this lean helps ensure more of the portfolio’s gross return ends up in the investor’s pocket. There is no urgent pressure to trim fees further; this side of the setup is already a notable strength.

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.

On a risk versus return basis, this portfolio sits in a solid spot but could be nudged closer to the Efficient Frontier. The Efficient Frontier is the set of portfolios that offer the best expected return for each level of risk, given only the current building blocks and different weightings between them. Here, tweaking the mix among broad market, low volatility, and dividend exposure could slightly reduce overall volatility without a big hit to expected returns, or vice versa. “Efficiency” here is purely about the tradeoff between risk and reward, not necessarily about maximizing diversification, income, or other personal goals that might still justify the current structure.

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