The following portfolio was sent in by an ITA member who is interested in an analysis of this combination of ETFs and dividend stocks. There are variations one might build from the stocks submitted. The following is one portfolio.
There are a number of strengths to the following portfolio. 1) The projected return of 7.6% exceeds that projected for the S&P 500. 2) The projected volatility (SD) is a low 11.7%. I give the portfolio very high marks for this value. 3) Check the historical records and one sees a high yield 2.9% and very good performance results with low risk. 4) Diversification requirements are met as DM is greater than 40%. 5) Portfolio Autocorrelation is a very low number.
Special Note: VCLT does not have a three-year record so this skews the overall results slightly, making the numbers look a tad bit better than they would be otherwise.