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Income Portfolio

Last updated Mar 2, 2024

The Income Portfolio is a diversified investment strategy focused on generating income and preserving capital. The portfolio has a high allocation to fixed income (80%) through BND and IGOV, offering stability and interest income. The remaining 20% is allocated to equities (VTI and VEA) for potential capital appreciation and dividend income. This portfolio suits conservative investors prioritizing income generation and capital preservation with modest exposure to equities for diversification and growth potential.

Asset Allocation


BND 64%IGOV 16%VTI 13%VEA 7%BondBondEquityEquity
PositionCategory/SectorWeight
BND
Vanguard Total Bond Market ETF
Total Bond Market

64%

IGOV
iShares International Treasury Bond ETF
International Government Bonds

16%

VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities

13%

VEA
Vanguard FTSE Developed Markets ETF
Foreign Large Cap Equities

7%

S&P 500

Performance

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


100.00%200.00%300.00%400.00%500.00%OctoberNovemberDecember2024FebruaryMarch
86.99%
507.84%
Income 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 Mar 2, 2024, the Income Portfolio returned -0.21% Year-To-Date and 2.63% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
S&P 500
7.70%6.01%13.76%29.03%12.89%10.63%
Income Portfolio-0.21%0.28%5.12%7.27%2.28%2.64%
BND
Vanguard Total Bond Market ETF
-1.11%-0.65%3.31%3.94%0.59%1.48%
VTI
Vanguard Total Stock Market ETF
7.45%3.96%14.35%27.20%14.25%11.99%
IGOV
iShares International Treasury Bond ETF
-4.04%-0.48%2.96%3.09%-3.83%-2.29%
VEA
Vanguard FTSE Developed Markets ETF
2.71%3.49%9.53%12.57%7.00%4.73%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
2024-0.56%0.02%
2023-1.28%-3.18%-1.73%5.76%4.28%

Sharpe Ratio

The current Income Portfolio Sharpe ratio is 1.17. A Sharpe ratio greater than 1.0 is considered acceptable.

0.002.004.001.17

The Sharpe ratio of Income 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 Ratio0.000.501.001.502.002.50OctoberNovemberDecember2024FebruaryMarch
1.17
2.44
Income Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Income Portfolio granted a 2.46% dividend yield in the last twelve months.


TTM20232022202120202019201820172016201520142013
Income Portfolio2.46%2.38%2.10%1.70%1.75%2.22%2.35%2.07%2.18%2.14%2.47%2.40%
BND
Vanguard Total Bond Market ETF
3.24%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
1.34%1.44%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%1.74%
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%
VEA
Vanguard FTSE Developed Markets ETF
3.07%3.15%2.91%3.16%2.04%3.04%3.35%2.77%3.05%2.92%3.68%2.60%

Expense Ratio

The Income Portfolio has an expense ratio of 0.08% 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.


0.50%1.00%1.50%2.00%0.35%
0.50%1.00%1.50%2.00%0.05%
0.50%1.00%1.50%2.00%0.03%
0.50%1.00%1.50%2.00%0.03%

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
2.44
Income Portfolio
1.17
BND
Vanguard Total Bond Market ETF
0.64
VTI
Vanguard Total Stock Market ETF
2.31
IGOV
iShares International Treasury Bond ETF
0.31
VEA
Vanguard FTSE Developed Markets ETF
1.07

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%OctoberNovemberDecember2024FebruaryMarch
-9.13%
0
Income Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below displays the maximum drawdowns of the Income 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 Income Portfolio was 21.20%, occurring on Oct 20, 2022. The portfolio has not yet recovered.

The current Income Portfolio drawdown is 9.13%.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-21.2%Sep 3, 2021285Oct 20, 2022
-10.79%Mar 9, 20209Mar 19, 202049May 29, 202058
-5.77%Feb 10, 200919Mar 9, 200918Apr 2, 200937
-4.59%May 9, 201332Jun 24, 201381Oct 17, 2013113
-4.48%Jan 29, 2018229Dec 24, 201842Feb 26, 2019271

Volatility Chart

The current Income Portfolio volatility is 2.13%, 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.


1.00%2.00%3.00%4.00%5.00%OctoberNovemberDecember2024FebruaryMarch
2.13%
3.47%
Income Portfolio
Benchmark (^GSPC)
Portfolio components
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