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Conservative Portfolio

Last updated Feb 22, 2024

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 Market

48%

IGOV
iShares International Treasury Bond ETF
International Government Bonds

12%

VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities

26%

VEA
Vanguard FTSE Developed Markets ETF
Foreign Large Cap Equities

14%

S&P 500

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


-5.00%0.00%5.00%10.00%SeptemberOctoberNovemberDecember2024February
6.09%
12.30%
Conservative 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 Feb 22, 2024, the Conservative Portfolio returned -0.34% Year-To-Date and 4.38% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
S&P 500
4.44%2.71%12.30%24.63%12.30%10.51%
Conservative Portfolio-0.34%0.53%6.08%9.61%4.35%4.38%
VEA
Vanguard FTSE Developed Markets ETF
0.75%2.90%9.03%11.58%6.58%4.64%
IGOV
iShares International Treasury Bond ETF
-4.52%-0.88%1.65%1.81%-3.97%-2.22%
BND
Vanguard Total Bond Market ETF
-1.97%-0.95%2.62%3.22%0.39%1.38%
VTI
Vanguard Total Stock Market ETF
4.10%2.65%13.11%24.92%13.30%11.88%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
2024-0.32%
20231.36%-1.63%-3.50%-2.03%6.61%4.56%

Sharpe Ratio

The current Conservative Portfolio Sharpe ratio is 1.09. A Sharpe ratio greater than 1.0 is considered acceptable.

-1.000.001.002.003.004.001.09

The Sharpe ratio of Conservative Portfolio is in the bottom 25%, suggesting that this portfolio isn't performing as well in terms of risk-adjusted returns compared to many others. This could be due to lower returns, higher volatility, or both. It might be an indication that the portfolio needs fine-tuning.


Rolling 12-month Sharpe Ratio0.000.501.001.502.00SeptemberOctoberNovemberDecember2024February
1.09
1.79
Conservative Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Conservative Portfolio granted a 2.34% dividend yield in the last twelve months.


TTM20232022202120202019201820172016201520142013
Conservative Portfolio2.34%2.30%2.10%1.75%1.72%2.22%2.39%2.08%2.22%2.19%2.46%2.31%
VEA
Vanguard FTSE Developed Markets ETF
3.13%3.15%2.91%3.16%2.04%3.04%3.35%2.77%3.05%2.92%3.68%2.60%
IGOV
iShares International Treasury Bond ETF
0.00%0.00%0.11%0.39%0.00%0.24%0.31%0.19%0.69%0.22%1.28%1.32%
BND
Vanguard Total Bond Market ETF
3.21%3.09%2.60%1.97%2.22%2.72%2.81%2.54%2.51%2.57%2.79%2.78%
VTI
Vanguard Total Stock Market ETF
1.38%1.44%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%1.74%

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
^GSPC
S&P 500
1.79
Conservative Portfolio
1.09
VEA
Vanguard FTSE Developed Markets ETF
0.75
IGOV
iShares International Treasury Bond ETF
0.04
BND
Vanguard Total Bond Market ETF
0.32
VTI
Vanguard Total Stock Market ETF
1.74

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
BND1.000.42-0.15-0.11
IGOV0.421.000.130.32
VTI-0.150.131.000.84
VEA-0.110.320.841.00

Drawdowns Chart

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


-15.00%-10.00%-5.00%0.00%SeptemberOctoberNovemberDecember2024February
-6.74%
-0.95%
Conservative Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below displays the maximum drawdowns of the Conservative 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 Conservative Portfolio was 22.18%, occurring on Oct 14, 2022. The portfolio has not yet recovered.

The current Conservative Portfolio drawdown is 6.74%.


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 2.28%, 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%SeptemberOctoberNovemberDecember2024February
2.28%
3.37%
Conservative Portfolio
Benchmark (^GSPC)
Portfolio components
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