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Moderate Portfolio

Last updated Nov 28, 2023

The Moderate Portfolio is a diversified investment strategy that balances capital appreciation and income generation. With a 40% allocation to fixed income (BND and IGOV), the portfolio provides stability and interest income, while the 60% allocation to equities (VTI and VEA) offers potential capital growth and diversification across domestic and international stocks. This portfolio suits investors seeking a balance between stability, income, and moderate growth potential while maintaining a well-diversified mix of assets.

Asset Allocation


BND 32%IGOV 8%VTI 39%VEA 21%BondBondEquityEquity
PositionCategory/SectorWeight
BND
Vanguard Total Bond Market ETF
Total Bond Market32%
IGOV
iShares International Treasury Bond ETF
International Government Bonds8%
VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities39%
VEA
Vanguard FTSE Developed Markets ETF
Foreign Large Cap Equities21%

Performance

The chart shows the growth of an initial investment of $10,000 in Moderate 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


200.00%250.00%300.00%350.00%400.00%450.00%JuneJulyAugustSeptemberOctoberNovember
217.44%
438.42%
Moderate Portfolio
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Jan 29, 2009, corresponding to the inception date of IGOV

Returns

As of Nov 28, 2023, the Moderate Portfolio returned 10.12% Year-To-Date and 5.70% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
N/AN/AN/AN/AN/AN/A
Moderate Portfolio10.12%7.96%3.97%7.46%6.11%5.70%
BND
Vanguard Total Bond Market ETF
1.40%3.62%-0.23%0.86%0.61%1.26%
IGOV
iShares International Treasury Bond ETF
-0.10%6.10%0.90%-1.18%-3.67%-2.13%
VTI
Vanguard Total Stock Market ETF
19.09%10.82%8.84%13.52%11.75%11.13%
VEA
Vanguard FTSE Developed Markets ETF
11.30%10.13%2.37%9.65%5.79%4.11%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
20231.20%-1.23%3.60%2.07%-1.97%-3.82%-2.31%

Sharpe Ratio

The current Moderate Portfolio Sharpe ratio is 0.79. A Sharpe ratio between 0 and 1.0 is considered sub-optimal.

-1.000.001.002.003.000.79

The Sharpe ratio of Moderate 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 Ratio0.000.501.00JuneJulyAugustSeptemberOctoberNovember
0.79
0.91
Moderate Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Moderate Portfolio granted a 2.21% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Moderate Portfolio2.21%2.10%1.80%1.69%2.22%2.43%2.08%2.25%2.23%2.45%2.22%2.66%
BND
Vanguard Total Bond Market ETF
3.09%2.60%1.97%2.22%2.72%2.81%2.54%2.51%2.57%2.79%2.78%3.24%
IGOV
iShares International Treasury Bond ETF
0.11%0.11%0.39%0.00%0.24%0.31%0.19%0.69%0.22%1.28%1.32%2.12%
VTI
Vanguard Total Stock Market ETF
1.48%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%1.74%2.13%
VEA
Vanguard FTSE Developed Markets ETF
3.04%2.91%3.16%2.04%3.04%3.35%2.77%3.05%2.92%3.68%2.60%2.97%

Expense Ratio

The Moderate Portfolio has an expense ratio of 0.06% 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
BND
Vanguard Total Bond Market ETF
0.12
IGOV
iShares International Treasury Bond ETF
-0.12
VTI
Vanguard Total Stock Market ETF
0.93
VEA
Vanguard FTSE Developed Markets ETF
0.71

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

BNDIGOVVTIVEA
BND1.000.41-0.16-0.12
IGOV0.411.000.120.31
VTI-0.160.121.000.84
VEA-0.120.310.841.00

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%JuneJulyAugustSeptemberOctoberNovember
-8.93%
-5.13%
Moderate Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below displays the maximum drawdowns of the Moderate 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 Moderate Portfolio was 23.53%, occurring on Oct 14, 2022. The portfolio has not yet recovered.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-23.53%Nov 9, 2021235Oct 14, 2022
-21.72%Feb 20, 202023Mar 23, 202082Jul 20, 2020105
-14.03%Feb 10, 200919Mar 9, 200923Apr 9, 200942
-12.42%May 2, 2011108Oct 3, 201194Feb 16, 2012202
-11.69%Jan 29, 2018229Dec 24, 201869Apr 4, 2019298

Volatility Chart

The current Moderate Portfolio volatility is 2.85%, 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.


1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%JuneJulyAugustSeptemberOctoberNovember
2.85%
3.31%
Moderate Portfolio
Benchmark (^GSPC)
Portfolio components

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