A conservative portfolio with high liquidity and a focus on low-risk investments

Report created on Oct 10, 2025

Risk profile Info

2/7
Conservative
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio shows a predominant allocation towards a money market fund, constituting over 60% of the portfolio, which greatly enhances its liquidity and reduces overall risk. The remainder is invested in a mix of U.S. and international equity ETFs, with a very small portion in a single stock. This composition suggests a conservative approach, prioritizing capital preservation and stability over aggressive growth.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 10.98%, with a maximum drawdown of -7.14%. This performance reflects a balance between risk and return, characteristic of conservative investment strategies. The days contributing most to returns highlight the impact of significant market movements on portfolio performance. It's crucial to note that past performance is not indicative of future results.

Projection Info

Using Monte Carlo simulations, which forecast future performance based on historical data, the portfolio shows a wide range of outcomes. While all simulations predict positive returns, the variance between the 5th and 67th percentiles underscores the uncertainty in projections. This method helps in understanding potential risks and returns but relies on past market behavior, which may not repeat.

Asset classes Info

  • Stocks
    37%

The asset allocation leans heavily towards cash equivalents, with a significant portion in stocks. This mix supports the portfolio's conservative profile, offering stability through the money market fund while seeking growth through equities. Adjusting this balance could further align the portfolio with the investor's risk tolerance and return objectives.

Sectors Info

  • Technology
    11%
  • Financials
    6%
  • Industrials
    5%
  • Consumer Discretionary
    4%
  • Telecommunications
    3%
  • Health Care
    3%
  • Consumer Staples
    2%
  • Energy
    1%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Sectoral allocation is diversified across several industries, with a notable emphasis on technology and financial services. This diversification helps mitigate sector-specific risks. However, the concentration in technology, a sector known for volatility, might not fully align with the conservative nature of the portfolio.

Regions Info

  • North America
    29%
  • Europe Developed
    4%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

Geographic exposure is predominantly in North America, with minimal allocations to developed Europe and emerging Asia. This concentration enhances familiarity and reduces geopolitical risk but may limit potential gains from global diversification. Expanding into more international markets could offer better risk-adjusted returns.

Market capitalization Info

  • Mega-cap
    17%
  • Large-cap
    13%
  • Mid-cap
    6%
  • Small-cap
    1%

The portfolio's market capitalization exposure skews towards mega and big cap stocks, which are typically less volatile than smaller companies. This aligns with the conservative strategy but may limit growth potential. Including more medium or small-cap investments could introduce higher growth prospects with manageable risk.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Vanguard Total World Stock Index Fund ETF suggests redundancy, limiting the benefits of diversification. Reducing overlap by reallocating assets could enhance portfolio efficiency without significantly increasing risk.

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.

The portfolio could benefit from an optimization process focusing on reducing highly correlated assets and rebalancing the asset class mix. By applying the Efficient Frontier concept, it's possible to achieve a more favorable risk-return profile. This optimization seeks to enhance returns for a given level of risk, rather than maximizing diversification per se.

Dividends Info

  • Fidelity Money Market Fund 2.90%
  • Quanta Services Inc 0.10%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.37%

The overall dividend yield contributes to the portfolio's income, complementing capital gains with a steady cash flow. For a conservative portfolio, this balance between growth and income supports the goal of achieving a stable return while mitigating risk.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.01%

With exceptionally low total expense ratios (TERs), the portfolio is positioned to maximize net returns. Keeping investment costs minimal is crucial for long-term growth, especially in a conservative strategy where lower risk might lead to lower returns.

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