Conservative Portfolio
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
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
Returns
As of Oct 3, 2023, the Conservative Portfolio returned 2.25% Year-To-Date and 3.85% of annualized return in the last 10 years.
| 1 month | 6 months | Year-To-Date | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | -5.04% | 4.58% | 11.69% | 16.58% | 8.16% | 9.78% |
| Conservative Portfolio | -3.96% | -3.02% | 2.25% | 6.54% | 2.74% | 3.85% |
| Portfolio components: | ||||||
VEA Vanguard FTSE Developed Markets ETF | -5.43% | -3.92% | 4.62% | 19.51% | 3.28% | 3.85% |
IGOV iShares International Treasury Bond ETF | -4.49% | -9.52% | -6.03% | -0.95% | -4.84% | -2.75% |
BND Vanguard Total Bond Market ETF | -2.68% | -5.46% | -1.58% | -0.80% | 0.09% | 1.02% |
VTI Vanguard Total Stock Market ETF | -5.24% | 5.14% | 12.23% | 17.16% | 9.22% | 11.17% |
| Returns over 1 year are annualized | ||||||
Monthly Returns Heatmap
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2.91% | 0.99% | -1.33% | 2.41% | 1.36% | -1.63% | -3.37% |
Dividend yield
Conservative Portfolio granted a 2.37% dividend yield in the last twelve months.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Conservative Portfolio | 2.37% | 2.14% | 1.83% | 1.83% | 2.42% | 2.67% | 2.38% | 2.59% | 2.63% | 3.02% | 2.90% | 3.56% |
| Portfolio components: | ||||||||||||
VEA Vanguard FTSE Developed Markets ETF | 3.23% | 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 | 3.12% | 2.66% | 2.06% | 2.37% | 2.97% | 3.16% | 2.94% | 2.98% | 3.13% | 3.47% | 3.57% | 4.27% |
VTI Vanguard Total Stock Market ETF | 1.58% | 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.
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 ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 1.27 | ||||
IGOV iShares International Treasury Bond ETF | 0.05 | ||||
BND Vanguard Total Bond Market ETF | -0.03 | ||||
VTI Vanguard Total Stock Market ETF | 1.07 |
Asset Correlations Table
| BND | IGOV | VTI | VEA | |
|---|---|---|---|---|
| BND | 1.00 | 0.40 | -0.17 | -0.13 |
| IGOV | 0.40 | 1.00 | 0.12 | 0.31 |
| VTI | -0.17 | 0.12 | 1.00 | 0.84 |
| VEA | -0.13 | 0.31 | 0.84 | 1.00 |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
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, 2021 | 234 | Oct 14, 2022 | — | — | — |
| -15.68% | Feb 20, 2020 | 20 | Mar 18, 2020 | 55 | Jun 5, 2020 | 75 |
| -9.93% | Feb 10, 2009 | 19 | Mar 9, 2009 | 23 | Apr 9, 2009 | 42 |
| -8.07% | Jan 29, 2018 | 229 | Dec 24, 2018 | 58 | Mar 20, 2019 | 287 |
| -7.26% | Jul 25, 2011 | 50 | Oct 3, 2011 | 83 | Feb 1, 2012 | 133 |
Volatility Chart
The current Conservative Portfolio volatility is 1.79%, 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.