Dividend Income Portfolio
The Dividend Income Portfolio is a well-rounded, income-focused investment strategy that combines three key income-producing asset classes: high-yield corporate bonds, real estate, and dividend-paying equities. By allocating equal portions to the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), the Vanguard Real Estate ETF (VNQ), and the Invesco High Yield Equity Dividend Achievers™ ETF (PEY), this portfolio aims to generate a consistent stream of income with an emphasis on dividends while offering the potential for capital appreciation.
The HYG component provides exposure to a diversified pool of high-yield corporate bonds, offering attractive yields. The VNQ allocation grants investors access to a wide range of real estate investment trusts (REITs), known for their steady income generation through dividends and property appreciation. Lastly, the PEY portion targets high-quality dividend-paying stocks with a history of increasing their dividends over time.
This portfolio is designed for investors seeking a balance between income generation through dividends and capital appreciation, with a higher risk tolerance than conservative income-focused investors.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | High Yield Bonds | 33.33% |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | All Cap Equities, Dividend | 33.33% |
VNQ Vanguard Real Estate ETF | REIT | 33.33% |
Performance
Performance Chart
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The earliest data available for this chart is Apr 11, 2007, corresponding to the inception date of HYG
Returns By Period
As of May 11, 2025, the Dividend Income Portfolio returned -0.36% Year-To-Date and 6.28% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | -3.77% | 7.44% | -5.60% | 8.37% | 14.12% | 10.46% |
| Dividend Income Portfolio | -0.36% | 5.55% | -3.49% | 7.81% | 8.91% | 6.28% |
| Portfolio components: | ||||||
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.81% | 3.19% | 1.32% | 8.32% | 5.19% | 3.96% |
VNQ Vanguard Real Estate ETF | 1.12% | 7.92% | -5.15% | 12.02% | 7.89% | 5.42% |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | -4.00% | 5.70% | -6.71% | 2.67% | 12.78% | 8.66% |
Monthly Returns
The table below presents the monthly returns of Dividend Income Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 1.89% | 2.14% | -2.01% | -3.21% | 0.94% | -0.36% | |||||||
| 2024 | -2.97% | 0.08% | 2.69% | -4.15% | 2.60% | -0.02% | 6.84% | 2.78% | 1.97% | -1.81% | 4.24% | -5.47% | 6.21% |
| 2023 | 5.91% | -3.83% | -0.93% | 0.39% | -4.46% | 4.28% | 2.72% | 0.03% | -5.26% | -3.00% | 8.15% | 7.20% | 10.49% |
| 2022 | -3.20% | -1.46% | 2.71% | -3.87% | 0.83% | -7.07% | 6.22% | -4.36% | -8.57% | 6.05% | 4.78% | -3.42% | -12.04% |
| 2021 | 0.08% | 3.66% | 5.15% | 3.59% | 1.19% | 0.68% | 0.89% | 1.32% | -2.91% | 3.30% | -2.19% | 6.61% | 23.07% |
| 2020 | -0.42% | -6.36% | -16.64% | 8.04% | 2.06% | 0.89% | 3.32% | 0.95% | -2.16% | 0.30% | 8.87% | 3.03% | -0.73% |
| 2019 | 8.28% | 1.97% | 2.30% | 1.11% | -2.74% | 3.77% | 1.12% | 0.20% | 2.25% | 0.23% | 0.41% | 1.98% | 22.58% |
| 2018 | -0.37% | -5.09% | 1.26% | 0.74% | 1.72% | 2.13% | 1.83% | 1.00% | -0.74% | -3.15% | 2.16% | -6.22% | -5.07% |
| 2017 | 0.38% | 2.31% | -1.12% | 0.30% | -0.14% | 0.88% | 1.35% | -0.67% | 1.11% | -0.10% | 2.07% | 0.10% | 6.60% |
| 2016 | -2.24% | 0.83% | 7.07% | 1.83% | 1.18% | 4.09% | 2.68% | -0.83% | 0.12% | -2.90% | 1.64% | 3.28% | 17.62% |
| 2015 | 1.82% | 0.25% | 0.16% | -1.45% | -0.16% | -2.39% | 2.13% | -3.67% | -0.36% | 5.71% | -0.86% | -0.73% | 0.15% |
| 2014 | 0.63% | 3.57% | 1.21% | 1.71% | 1.60% | 1.71% | -2.07% | 3.36% | -3.56% | 5.51% | 0.72% | 1.28% | 16.47% |
Expense Ratio
Dividend Income Portfolio has an expense ratio of 0.38%, placing it in the medium range. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Dividend Income Portfolio is 53, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.45 | 2.08 | 1.30 | 1.74 | 9.20 |
VNQ Vanguard Real Estate ETF | 0.66 | 1.09 | 1.14 | 0.54 | 2.35 |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | 0.16 | 0.47 | 1.06 | 0.24 | 0.76 |
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Dividends
Dividend yield
Dividend Income Portfolio provided a 4.86% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 4.86% | 4.77% | 4.76% | 4.48% | 3.47% | 4.37% | 4.05% | 4.87% | 4.19% | 4.40% | 4.42% | 4.18% |
| Portfolio components: | ||||||||||||
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.89% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% |
VNQ Vanguard Real Estate ETF | 4.07% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | 4.63% | 4.44% | 4.58% | 4.22% | 3.83% | 4.30% | 3.78% | 4.33% | 3.21% | 3.12% | 3.44% | 3.24% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Dividend Income Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Dividend Income Portfolio was 59.63%, occurring on Mar 6, 2009. Recovery took 723 trading sessions.
The current Dividend Income Portfolio drawdown is 5.84%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -59.63% | Apr 26, 2007 | 470 | Mar 6, 2009 | 723 | Jan 18, 2012 | 1193 |
| -35.33% | Feb 18, 2020 | 25 | Mar 23, 2020 | 223 | Feb 9, 2021 | 248 |
| -19.08% | Jan 5, 2022 | 192 | Oct 10, 2022 | 443 | Jul 17, 2024 | 635 |
| -12.76% | Nov 29, 2024 | 88 | Apr 8, 2025 | — | — | — |
| -11.45% | Sep 14, 2018 | 70 | Dec 24, 2018 | 33 | Feb 12, 2019 | 103 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 3 assets, with an effective number of assets of 3.00, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | HYG | VNQ | PEY | Portfolio | |
|---|---|---|---|---|---|
| ^GSPC | 1.00 | 0.65 | 0.68 | 0.77 | 0.79 |
| HYG | 0.65 | 1.00 | 0.50 | 0.54 | 0.66 |
| VNQ | 0.68 | 0.50 | 1.00 | 0.70 | 0.91 |
| PEY | 0.77 | 0.54 | 0.70 | 1.00 | 0.89 |
| Portfolio | 0.79 | 0.66 | 0.91 | 0.89 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified but leans toward concentration due to relatively high correlations among its positions. The correlation matrix reveals that VNQ and PEY have a strong positive correlation of 0.7, indicating these two positions tend to move closely together, which can reduce diversification benefits. HYG shows moderate correlations with both VNQ (0.5) and PEY (0.54), suggesting it provides some diversification but not substantially low correlation.
The portfolio's overall correlation with individual positions is quite high: 0.91 with VNQ, 0.89 with PEY, and 0.66 with HYG. This pattern suggests that VNQ and PEY have a dominant influence on the portfolio's behavior, with VNQ being the most influential. The high correlations between the portfolio and these two positions imply that the portfolio's returns are largely driven by VNQ and PEY, reducing the impact of diversification.
While HYG offers a somewhat lower correlation with the portfolio and other holdings, its moderate correlations mean it only partially offsets the concentration risk. Therefore, the portfolio is not highly diversified; it is more concentrated in real estate and dividend equity exposures represented by VNQ and PEY, with limited diversification benefits from the high-yield bond exposure in HYG.