Moderate Portfolio
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
| Position | Category/Sector | Target Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 32% |
IGOV iShares International Treasury Bond ETF | International Government Bonds | 8% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 21% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 39% |
Performance
Performance Chart
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The earliest data available for this chart is Jan 29, 2009, corresponding to the inception date of IGOV
Returns By Period
As of May 31, 2025, the Moderate Portfolio returned 5.17% Year-To-Date and 6.76% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 0.51% | 6.15% | -2.00% | 12.92% | 14.19% | 10.85% |
| Moderate Portfolio | 5.17% | 3.25% | 2.27% | 11.13% | 7.78% | 6.76% |
| Portfolio components: | ||||||
BND Vanguard Total Bond Market ETF | 2.49% | -0.67% | 0.77% | 5.82% | -1.00% | 1.54% |
IGOV iShares International Treasury Bond ETF | 8.69% | -0.38% | 4.61% | 8.34% | -3.44% | -0.49% |
VTI Vanguard Total Stock Market ETF | 0.38% | 6.25% | -2.68% | 13.67% | 15.23% | 12.13% |
VEA Vanguard FTSE Developed Markets ETF | 16.76% | 5.13% | 12.67% | 14.08% | 11.40% | 6.14% |
Monthly Returns
The table below presents the monthly returns of Moderate 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 | 2.34% | 0.48% | -2.10% | 1.18% | 3.25% | 5.17% | |||||||
| 2024 | -0.11% | 2.14% | 2.37% | -3.45% | 3.50% | 1.08% | 2.40% | 2.14% | 1.59% | -2.47% | 3.10% | -2.75% | 9.58% |
| 2023 | 5.95% | -2.95% | 2.83% | 1.20% | -1.23% | 3.60% | 2.07% | -1.97% | -3.82% | -2.32% | 7.47% | 4.84% | 15.98% |
| 2022 | -4.04% | -1.99% | 0.16% | -6.85% | 0.52% | -5.98% | 5.71% | -4.10% | -7.55% | 4.12% | 6.51% | -3.18% | -16.55% |
| 2021 | -0.68% | 1.03% | 1.45% | 3.03% | 1.06% | 0.90% | 1.31% | 1.26% | -3.00% | 3.26% | -1.53% | 2.20% | 10.57% |
| 2020 | 0.05% | -4.14% | -8.90% | 7.55% | 3.65% | 1.96% | 3.65% | 3.64% | -1.96% | -1.67% | 8.14% | 3.30% | 14.89% |
| 2019 | 5.37% | 1.82% | 1.34% | 2.06% | -2.99% | 4.58% | 0.07% | -0.17% | 1.03% | 1.66% | 1.62% | 1.90% | 19.63% |
| 2018 | 2.84% | -2.97% | -0.51% | -0.02% | 0.83% | -0.09% | 1.72% | 1.14% | -0.01% | -5.09% | 1.12% | -3.86% | -5.09% |
| 2017 | 1.66% | 1.86% | 0.70% | 1.28% | 1.53% | 0.57% | 1.72% | 0.42% | 1.23% | 1.13% | 1.47% | 1.05% | 15.63% |
| 2016 | -2.90% | -0.09% | 4.73% | 1.01% | 0.42% | 0.57% | 2.73% | -0.02% | 0.52% | -2.00% | 0.20% | 1.37% | 6.52% |
| 2015 | -0.36% | 2.99% | -0.67% | 1.12% | 0.05% | -1.67% | 1.26% | -3.94% | -1.57% | 4.51% | -0.23% | -1.25% | -0.04% |
| 2014 | -1.79% | 3.42% | 0.09% | 0.72% | 1.53% | 1.37% | -1.47% | 2.05% | -2.20% | 1.17% | 1.19% | -0.83% | 5.21% |
Expense Ratio
Moderate Portfolio has an expense ratio of 0.06%, which is considered low. 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 Moderate Portfolio is 70, 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 | |
|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 1.10 | 1.60 | 1.19 | 0.47 | 2.79 |
IGOV iShares International Treasury Bond ETF | 0.87 | 1.21 | 1.14 | 0.24 | 1.65 |
VTI Vanguard Total Stock Market ETF | 0.68 | 0.98 | 1.14 | 0.63 | 2.36 |
VEA Vanguard FTSE Developed Markets ETF | 0.83 | 1.18 | 1.16 | 0.98 | 2.96 |
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Dividends
Dividend yield
Moderate Portfolio provided a 2.34% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.34% | 2.42% | 2.21% | 2.10% | 1.80% | 1.69% | 2.22% | 2.43% | 2.08% | 2.25% | 2.23% | 2.45% |
| Portfolio components: | ||||||||||||
BND Vanguard Total Bond Market ETF | 3.74% | 3.67% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% |
IGOV iShares International Treasury Bond ETF | 0.54% | 0.59% | 0.00% | 0.11% | 0.39% | 0.00% | 0.24% | 0.31% | 0.19% | 0.69% | 0.22% | 1.28% |
VTI Vanguard Total Stock Market ETF | 1.29% | 1.27% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% |
VEA Vanguard FTSE Developed Markets ETF | 2.81% | 3.36% | 3.16% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% |
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 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. Recovery took 363 trading sessions.
The current Moderate Portfolio drawdown is 0.11%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -23.53% | Nov 9, 2021 | 235 | Oct 14, 2022 | 363 | Mar 27, 2024 | 598 |
| -21.72% | Feb 20, 2020 | 23 | Mar 23, 2020 | 82 | Jul 20, 2020 | 105 |
| -14.03% | Feb 10, 2009 | 19 | Mar 9, 2009 | 23 | Apr 9, 2009 | 42 |
| -12.42% | May 2, 2011 | 108 | Oct 3, 2011 | 94 | Feb 16, 2012 | 202 |
| -11.69% | Jan 29, 2018 | 229 | Dec 24, 2018 | 69 | Apr 4, 2019 | 298 |
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 4 assets, with an effective number of assets of 3.28, 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 | BND | IGOV | VEA | VTI | Portfolio | |
|---|---|---|---|---|---|---|
| ^GSPC | 1.00 | -0.12 | 0.12 | 0.83 | 0.99 | 0.94 |
| BND | -0.12 | 1.00 | 0.44 | -0.08 | -0.12 | 0.05 |
| IGOV | 0.12 | 0.44 | 1.00 | 0.33 | 0.13 | 0.34 |
| VEA | 0.83 | -0.08 | 0.33 | 1.00 | 0.83 | 0.93 |
| VTI | 0.99 | -0.12 | 0.13 | 0.83 | 1.00 | 0.94 |
| Portfolio | 0.94 | 0.05 | 0.34 | 0.93 | 0.94 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified with a notable concentration in equity positions. The high correlation between VTI (U.S. equities) and VEA (developed international equities) at 0.83 indicates these two positions move closely together, which reduces diversification benefits within the equity portion of the portfolio. Additionally, the portfolio's overall correlation with VTI (0.94) and VEA (0.93) is very high, suggesting that these equity holdings dominate the portfolio’s behavior and risk profile.
On the other hand, the bond positions BND (U.S. aggregate bonds) and IGOV (international government bonds) show moderate correlation with each other (0.44) and low to slightly positive correlations with the equity positions, which supports diversification. BND’s near-zero or slightly negative correlations with VTI (-0.12) and VEA (-0.08) are particularly beneficial, as they provide a counterbalance to equity risk and help reduce overall portfolio volatility.
The portfolio’s low correlation with BND (0.05) compared to its high correlation with equity positions indicates that bonds are a smaller but important diversifying component. IGOV has a moderate correlation with the portfolio (0.34), reflecting its intermediate role between bonds and equities.
In summary, while the portfolio benefits from some diversification through the inclusion of bonds with low correlations to equities, the strong correlation and dominance of the equity positions suggest it is somewhat concentrated in equity risk. The portfolio could improve diversification by reducing overlap between equity holdings or increasing exposure to assets with lower correlations to equities.