A balanced approach with a cautious profile focusing on SPDR S&P 500 and Vanguard Treasury ETFs

Report created on Aug 20, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio exhibits a conservative approach by allocating 60% to the SPDR S&P 500 ETF Trust and 40% to the Vanguard Intermediate-Term Treasury Index Fund ETF Shares. The heavy emphasis on a broad-market equity ETF combined with a significant allocation to intermediate-term treasuries suggests a strategy seeking to balance growth with income and stability. The portfolio's diversification is primarily across two asset classes: stocks and bonds, with a single-focused diversification classification indicating a concentrated strategy rather than a wide-ranging asset allocation.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 9.93% and a maximum drawdown of -23.01%, reflects its resilience and potential for steady growth. The performance metrics suggest that the portfolio has managed to navigate market volatility effectively, likely benefiting from the stabilizing influence of its bond holdings during downturns. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance.

Projection Info

The Monte Carlo simulation, projecting future performance based on 1,000 scenarios, shows a wide range of outcomes with a median increase of 194.5%. This tool helps in understanding potential volatility and the range of outcomes, but it's important to remember that these projections are based on historical data and assumptions, which cannot guarantee future results. The high number of simulations with positive returns underscores the portfolio's conservative stance, aiming for steady growth.

Asset classes Info

  • Stocks
    60%
  • Bonds
    40%

The portfolio's asset class allocation—60% stocks and 40% bonds—provides a balanced mix of growth and income. This allocation is in line with a cautious risk profile, aiming to capture equity market gains while using bonds to mitigate volatility. The absence of alternative assets or cash holdings points to a focused strategy, leveraging the historically lower volatility of bonds against the higher growth potential of equities.

Sectors Info

  • Technology
    21%
  • Financials
    8%
  • Consumer Discretionary
    6%
  • Telecommunications
    6%
  • Health Care
    5%
  • Industrials
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sectoral allocation within the SPDR S&P 500 ETF Trust shows a diversified exposure across technology, financial services, and consumer cyclicals, among others. This sectoral spread is typical for a broad-market equity fund, capturing a cross-section of the economy. However, the technology sector's prominence at 21% reflects the modern economy's tilt towards tech-driven companies, which may introduce sector-specific risks and opportunities.

Regions Info

  • North America
    60%

Geographically, the portfolio's assets are heavily concentrated in North America (60%), with no exposure to developed Europe or Asia. This concentration in a single region, while simplifying the investment strategy, limits geographical diversification and the potential benefits of global exposure, such as reduced risk from regional economic downturns and access to growth in other economies.

Market capitalization Info

  • Mega-cap
    28%
  • Large-cap
    20%
  • Mid-cap
    11%
  • Small-cap
    1%

The market capitalization breakdown—28% mega, 20% big, 11% medium, and 1% small—indicates a preference for larger, more established companies likely to offer stability and reliable dividends. This allocation supports the portfolio's cautious profile but may limit exposure to the higher growth potential of smaller firms.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

Given its current composition, the portfolio appears well-positioned on the Efficient Frontier, indicating an optimized risk-return profile based on historical data. This suggests that the portfolio's allocation between equities and bonds is effectively balanced for its cautious risk classification. However, it's essential to regularly review and adjust the allocation in response to changing market conditions and investment objectives.

Dividends Info

  • SPDR S&P 500 ETF Trust 1.10%
  • Vanguard Intermediate-Term Treasury Index Fund ETF Shares 3.80%
  • Weighted yield (per year) 2.18%

The dividend yield of the portfolio stands at an aggregate of 2.18%, combining the yield from both the SPDR S&P 500 ETF Trust and the Vanguard Intermediate-Term Treasury Index Fund ETF Shares. This yield contributes to the portfolio's total return, offering a source of income alongside potential capital appreciation. For investors with a cautious profile, dividends can provide a steady cash flow and help cushion against market volatility.

Ongoing product costs Info

  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard Intermediate-Term Treasury Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, enhancing its attractiveness by minimizing the drag on returns due to costs. Keeping investment costs low is crucial for long-term performance, especially in a conservative portfolio where the objective is to preserve capital and achieve steady, rather than spectacular, growth.

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