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Conservative Portfolio

Last updated Sep 23, 2023

This conservative portfolio consists of four ETFs, diversified across domestic and international equity and bond markets. It emphasizes capital preservation and income generation with a higher allocation to bonds (60%) than equities (40%). Exposure to domestic and international assets offers diversification benefits, while the relatively lower allocation to equities reduces overall risk and volatility. This portfolio is suitable for risk-averse investors seeking modest growth and income over the long term.

Asset Allocation


BND 48%IGOV 12%VTI 26%VEA 14%BondBondEquityEquity
PositionCategory/SectorWeight
BND
Vanguard Total Bond Market ETF
Total Bond Market48%
IGOV
iShares International Treasury Bond ETF
International Government Bonds12%
VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities26%
VEA
Vanguard FTSE Developed Markets ETF
Foreign Large Cap Equities14%

Performance

The chart shows the growth of an initial investment of $10,000 in Conservative Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly


0.00%5.00%10.00%15.00%AprilMayJuneJulyAugustSeptember
-0.12%
7.69%
Conservative Portfolio
Benchmark (^GSPC)
Portfolio components

Returns

As of Sep 23, 2023, the Conservative Portfolio returned 4.02% Year-To-Date and 4.04% of annualized return in the last 10 years.


1 month6 monthsYear-To-Date1 year5 years (annualized)10 years (annualized)
Benchmark-1.55%9.05%12.97%17.44%8.37%9.90%
Conservative Portfolio-1.47%0.38%3.61%8.07%2.79%3.99%
VEA
Vanguard FTSE Developed Markets ETF
-0.73%2.51%7.51%23.38%3.25%4.07%
IGOV
iShares International Treasury Bond ETF
-2.86%-6.92%-4.47%1.71%-4.94%-2.53%
BND
Vanguard Total Bond Market ETF
-1.33%-3.22%-0.66%0.03%0.14%1.12%
VTI
Vanguard Total Stock Market ETF
-1.51%9.46%13.49%18.32%9.36%11.30%

Asset Correlations Table

The table below shows the correlation coefficients between the assets in the portfolio.

BNDIGOVVTIVEA
BND1.000.40-0.17-0.13
IGOV0.401.000.120.31
VTI-0.170.121.000.84
VEA-0.130.310.841.00

Sharpe Ratio

The current Conservative Portfolio Sharpe ratio is 0.62. A Sharpe ratio between 0 and 1.0 is considered sub-optimal.

-1.000.001.002.003.004.000.62

The Sharpe ratio of Conservative Portfolio lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio-0.500.000.501.00AprilMayJuneJulyAugustSeptember
0.68
0.89
Conservative Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Conservative Portfolio granted a 2.31% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Conservative Portfolio2.31%2.14%1.82%1.83%2.41%2.66%2.38%2.59%2.63%3.02%2.90%3.55%
VEA
Vanguard FTSE Developed Markets ETF
3.14%2.97%3.32%2.22%3.38%3.84%3.27%3.71%3.66%4.75%3.47%4.08%
IGOV
iShares International Treasury Bond ETF
0.11%0.11%0.39%0.00%0.24%0.31%0.19%0.70%0.22%1.31%1.36%2.22%
BND
Vanguard Total Bond Market ETF
3.03%2.65%2.06%2.36%2.97%3.15%2.93%2.97%3.12%3.46%3.56%4.26%
VTI
Vanguard Total Stock Market ETF
1.56%1.68%1.25%1.48%1.88%2.21%1.88%2.15%2.27%2.06%2.07%2.58%

Expense Ratio

The Conservative Portfolio has an expense ratio of 0.07% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.


0.35%
0.00%2.15%
0.05%
0.00%2.15%
0.03%
0.00%2.15%

Risk-Adjusted Performance

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 ratioSortino ratioOmega ratioCalmar ratioUlcer Index
VEA
Vanguard FTSE Developed Markets ETF
1.11
IGOV
iShares International Treasury Bond ETF
-0.01
BND
Vanguard Total Bond Market ETF
-0.03
VTI
Vanguard Total Stock Market ETF
0.92

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-16.00%-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%AprilMayJuneJulyAugustSeptember
-13.79%
-9.57%
Conservative Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below shows the maximum drawdowns of the Conservative Portfolio. A maximum drawdown is an indicator of risk. It shows a reduction in portfolio value from its maximum due to a series of losing trades.

The maximum drawdown since January 2010 for the Conservative Portfolio is 22.18%, recorded on Oct 14, 2022. The portfolio has not recovered from it yet.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-22.18%Nov 10, 2021234Oct 14, 2022
-15.68%Feb 20, 202020Mar 18, 202055Jun 5, 202075
-9.93%Feb 10, 200919Mar 9, 200923Apr 9, 200942
-8.07%Jan 29, 2018229Dec 24, 201858Mar 20, 2019287
-7.26%Jul 25, 201150Oct 3, 201183Feb 1, 2012133

Volatility Chart

The current Conservative Portfolio volatility is 1.93%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.


1.00%2.00%3.00%4.00%5.00%AprilMayJuneJulyAugustSeptember
1.93%
3.36%
Conservative Portfolio
Benchmark (^GSPC)
Portfolio components