Asset Allocation
Find the right asset allocation for 2026 Risk Reduction
Add portfolio to the optimizer to find optimal allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
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Performance Chart
The chart shows the growth of an initial investment of $10,000 in 2026 Risk Reduction, 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 Every year.
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Returns By Period
| Position | 1D | 1M | YTD | 6M | 1Y | 3Y* | 5Y* | 10Y* |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | 0.50% | 0.31% | 8.56% | 8.85% | 24.33% | 19.37% | 11.84% | 13.61% |
Portfolio 2026 Risk Reduction | 0.22% | -0.28% | 7.30% | 7.43% | 16.72% | 13.41% | 7.57% | — |
| Portfolio components: | ||||||||
BNDX Vanguard Total International Bond ETF | 0.17% | 1.69% | 1.02% | 1.22% | 2.27% | 4.32% | 0.32% | 1.72% |
GLDM SPDR Gold MiniShares Trust | 0.11% | -7.40% | -2.40% | -2.09% | 22.58% | 29.27% | 17.41% | — |
PDBC Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | -1.04% | -8.33% | 28.75% | 30.02% | 30.88% | 12.43% | 10.98% | 7.99% |
SCHD Schwab U.S. Dividend Equity ETF | 0.89% | 3.47% | 20.66% | 19.57% | 26.72% | 14.90% | 8.75% | 12.91% |
VBR Vanguard Small-Cap Value ETF | 0.87% | 6.17% | 14.60% | 12.92% | 29.93% | 16.09% | 8.36% | 10.99% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | -0.07% | 0.96% | 0.41% | 0.89% | 6.00% | 6.37% | 1.11% | 2.93% |
VDC Vanguard Consumer Staples ETF | 0.65% | 0.43% | 10.55% | 8.59% | 8.56% | 9.05% | 7.16% | 8.03% |
VGIT Vanguard Intermediate-Term Treasury ETF | -0.12% | 0.67% | -0.29% | 0.04% | 3.43% | 3.69% | 0.01% | 1.20% |
VIG Vanguard Dividend Appreciation ETF | 0.53% | 2.76% | 7.68% | 6.99% | 19.52% | 15.98% | 10.74% | 13.24% |
VNQ Vanguard Real Estate ETF | 0.92% | 4.90% | 12.51% | 12.32% | 14.02% | 10.14% | 2.55% | 5.65% |
Monthly Returns
Based on dividend-adjusted daily data since Jun 26, 2018, 2026 Risk Reduction's average daily return is +0.03%, while the average monthly return is +0.72%. At this rate, an investment would double in approximately 8.1 years.
Historically, 69% of months were positive and 31% were negative. The best month was Apr 2020 with a return of +5.4%, while the worst month was Mar 2020 at -7.3%. The longest winning streak lasted 10 consecutive months, and the longest losing streak was 3 months.
On a daily basis, 2026 Risk Reduction closed higher 57% of trading days. The best single day was Mar 24, 2020 with a return of +3.5%, while the worst single day was Mar 12, 2020 at -5.1%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 4.54% | 3.77% | -3.12% | 3.05% | -0.07% | -0.85% | 7.30% | ||||||
| 2025 | 2.32% | 1.58% | 0.66% | -0.23% | 1.10% | 1.61% | 0.18% | 2.63% | 2.51% | 0.65% | 2.15% | 0.38% | 16.61% |
| 2024 | -0.40% | 0.66% | 3.28% | -1.74% | 2.05% | 0.46% | 3.21% | 1.77% | 2.04% | -0.48% | 1.56% | -2.63% | 10.01% |
| 2023 | 4.03% | -3.22% | 2.28% | 0.65% | -2.20% | 1.87% | 2.32% | -1.31% | -3.02% | -0.51% | 4.61% | 3.49% | 8.93% |
| 2022 | -1.85% | 0.36% | 1.09% | -2.56% | 0.25% | -4.39% | 2.52% | -3.01% | -5.80% | 3.25% | 4.93% | -1.78% | -7.29% |
| 2021 | -0.67% | 0.94% | 2.01% | 2.91% | 2.32% | -0.33% | 1.50% | 0.61% | -2.01% | 2.74% | -1.69% | 3.88% | 12.70% |
Benchmark Metrics
2026 Risk Reduction has an annualized alpha of 3.75%, beta of 0.35, and R2 of 0.66 versus S&P 500 Index. Calculated based on daily prices since June 26, 2018.
- This portfolio participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (43.57%) than losses (43.29%) - typical of diversified or defensive assets.
- This portfolio generated an annualized alpha of 3.75% versus S&P 500 Index - delivering returns beyond what market exposure alone would predict.
- Beta of 0.35 indicates this portfolio moves significantly less than S&P 500 Index - a genuinely defensive profile with reduced participation in both market rallies and downturns.
- Alpha
- 3.75%
- Beta
- 0.35
- R²
- 0.66
- Upside Capture
- 43.57%
- Downside Capture
- 43.29%
Expense Ratio
2026 Risk Reduction has an expense ratio of 0.10%, 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.
Top 10 holdings
Return for Risk
Risk / Return Rank
2026 Risk Reduction ranks 71 for risk / return — better than 71% of Portfolios on our site. You're getting solid returns for the risk taken. A good sign, especially for investors who want growth without excessive volatility.
Return / Risk — by metrics
The table below presents risk-adjusted performance metrics for 2026 Risk Reduction and compares them with S&P 500 Index.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 2.34 | 1.86 | +0.48 |
| Sortino ratioReturn per unit of downside risk | 3.17 | 2.53 | +0.64 |
| Omega ratioGain probability vs. loss probability | 1.44 | 1.34 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 3.32 | 2.53 | +0.78 |
| Martin ratioReturn relative to average drawdown | 12.71 | 11.37 | +1.34 |
How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.
| Position | Risk / Return Rank | Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio |
|---|---|---|---|---|---|---|
BNDX Vanguard Total International Bond ETF | 18 | 0.56 | 0.82 | 1.10 | 0.66 | 1.84 |
GLDM SPDR Gold MiniShares Trust | 26 | 0.90 | 1.26 | 1.19 | 1.00 | 2.87 |
PDBC Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | 62 | 1.84 | 2.44 | 1.32 | 3.55 | 9.49 |
SCHD Schwab U.S. Dividend Equity ETF | 86 | 2.41 | 3.72 | 1.43 | 5.70 | 13.97 |
VBR Vanguard Small-Cap Value ETF | 64 | 1.83 | 2.67 | 1.31 | 3.17 | 11.22 |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 42 | 1.36 | 2.02 | 1.24 | 1.88 | 6.07 |
VDC Vanguard Consumer Staples ETF | 19 | 0.58 | 0.93 | 1.11 | 0.79 | 1.60 |
VGIT Vanguard Intermediate-Term Treasury ETF | 27 | 0.96 | 1.47 | 1.17 | 1.13 | 3.18 |
VIG Vanguard Dividend Appreciation ETF | 58 | 1.80 | 2.61 | 1.32 | 2.32 | 9.34 |
VNQ Vanguard Real Estate ETF | 31 | 0.96 | 1.39 | 1.17 | 1.56 | 4.90 |
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Dividends
Dividend yield
2026 Risk Reduction provided a 2.89% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.89% | 3.08% | 2.99% | 2.86% | 3.40% | 5.82% | 1.80% | 2.28% | 2.43% | 2.20% | 2.35% | 1.69% |
| Portfolio components: | ||||||||||||
BNDX Vanguard Total International Bond ETF | 4.47% | 4.39% | 4.18% | 4.42% | 1.51% | 3.74% | 1.11% | 3.40% | 3.01% | 2.23% | 1.89% | 1.63% |
GLDM SPDR Gold MiniShares Trust | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
PDBC Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | 2.98% | 3.84% | 4.42% | 4.21% | 13.05% | 50.83% | 0.01% | 1.40% | 1.00% | 3.83% | 6.51% | 0.00% |
SCHD Schwab U.S. Dividend Equity ETF | 3.22% | 3.82% | 3.64% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% |
VBR Vanguard Small-Cap Value ETF | 1.71% | 1.95% | 1.98% | 2.12% | 2.03% | 1.75% | 1.68% | 2.06% | 2.35% | 1.79% | 1.77% | 1.99% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.79% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
VDC Vanguard Consumer Staples ETF | 2.08% | 2.26% | 2.33% | 2.65% | 2.37% | 2.14% | 2.50% | 2.44% | 2.78% | 2.52% | 2.39% | 2.55% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.86% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
VIG Vanguard Dividend Appreciation ETF | 1.47% | 1.62% | 1.73% | 1.88% | 1.96% | 1.55% | 1.63% | 1.71% | 2.08% | 1.88% | 2.14% | 2.34% |
VNQ Vanguard Real Estate ETF | 3.54% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
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 2026 Risk Reduction. 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 2026 Risk Reduction was 17.49%, occurring on Mar 20, 2020. Recovery took 88 trading sessions.
The current 2026 Risk Reduction drawdown is 1.39%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
COVID crash2020 | -17.49%Mar 2020 | 25d | 4mo 9d | 5mo 4dFeb 2020 - Jul 2020 |
Bear market2022 | -13.35%Sep 2022 | 6mo | 1y 2mo | 1y 8moMar 2022 - Dec 2023 |
Rate-hike selloffLate 2018 | -6.49%Dec 2018 | 3mo 4d | 1mo 12d | 4mo 16dSep 2018 - Feb 2019 |
2025 selloff2025 | -6.08%Apr 2025 | 5d | 28d | 1mo 3dApr 2025 - May 2025 |
2026 pullback2026 | -5.04%Mar 2026 | 23d | 1mo 16d | 2mo 9dMar 2026 - May 2026 |
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 15 assets, with an effective number of assets of 11.57, reflecting the diversification based on asset allocation. Your capital is well-distributed across most of your holdings, with only mild concentration in a few names. True diversification also depends on the correlations between assets — check the diversification ratio below.
Diversification Ratio
1Y | 3Y | 5Y | All Time | |
|---|---|---|---|---|
Diversification Ratio | 1.66 | 1.59 | 1.56 | 1.51 |
The portfolio has a diversification ratio of 1.51, in line with the typical range across portfolios. There's room to improve by adding less correlated assets.
2026 Risk Reduction correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Jun 26, 2018 | 0.73 |
Benchmark Correlations
Correlation vs. S&P 500 Index. VUG has the highest benchmark correlation at 0.94, while VGIT has the lowest at -0.05.
Asset Correlations Table
Find what 2026 Risk Reduction is missing
See which holdings overlap, where 2026 Risk Reduction is concentrated, and which low-correlation assets could fill the gaps.
Analyze Diversification