Conservative portfolio with a focus on treasuries and global stocks for long-term stability

Report created on Aug 8, 2025

Risk profile Info

2/7
Conservative
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is heavily weighted towards fixed-income securities, with a 55% allocation in bonds, primarily through Vanguard Long-Term Treasury Index Fund ETF Shares and Schwab Intermediate-Term U.S. Treasury ETF. This is complemented by a 38% allocation in stocks, diversified globally via Vanguard Total World Stock Index Fund ETF Shares. The inclusion of 7% in commodities, represented by SPDR Gold Mini Shares, adds a layer of inflation protection. This composition reflects a conservative strategy, aiming for stable returns with reduced volatility.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 5.95%, with a maximum drawdown of -24.32%. This performance indicates a relatively stable growth pattern, with the portfolio experiencing significant downturns infrequently. The days contributing to 90% of returns being concentrated in just 20 days highlights the impact of short-term market movements on overall performance, underscoring the importance of maintaining a long-term perspective.

Projection Info

Monte Carlo simulations, running 1,000 scenarios, project a wide range of outcomes with a median annualized return of 8.73%. The 5th percentile outcome indicates minimal growth, while the 67th percentile suggests potential for substantial returns. This variance underscores the inherent uncertainties in market performance, demonstrating the importance of risk tolerance in investment planning.

Asset classes Info

  • Bonds
    55%
  • Stocks
    38%
  • Other
    7%
  • Cash
    1%

With 55% of the portfolio in bonds and 38% in stocks, the asset class allocation supports a conservative investment approach. The bond allocation, higher than typical conservative portfolios, offers stability and income, while the stock component provides growth potential. The 7% allocation to commodities, specifically gold, serves as a hedge against inflation and market volatility.

Sectors Info

  • Utilities
    9%
  • Technology
    8%
  • Financials
    5%
  • Industrials
    3%
  • Consumer Discretionary
    3%
  • Health Care
    3%
  • Telecommunications
    2%
  • Consumer Staples
    2%
  • Energy
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

Sectoral analysis reveals a diversified spread across utilities, technology, and financial services, among others. The significant allocation to utilities through the Fidelity® MSCI Utilities Index ETF reflects a focus on stable, income-generating investments. However, the technology and financial services sectors suggest a measured approach to capturing growth.

Regions Info

  • North America
    8%

The geographic exposure is predominantly North American, which may limit global diversification benefits. While the Vanguard Total World Stock Index Fund ETF Shares aim to provide global exposure, the overall geographic allocation could be more balanced to mitigate region-specific risks and tap into emerging market growth opportunities.

Market capitalization Info

  • Mega-cap
    13%
  • Large-cap
    12%
  • Mid-cap
    10%
  • Small-cap
    2%

The market capitalization breakdown shows a balanced exposure across mega, big, and medium-sized companies, with a slight tilt towards larger firms. This allocation strategy favors stability and lower volatility associated with larger, established companies but may underrepresent the 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.

Considering the Efficient Frontier, this portfolio appears well-positioned for a conservative investor, optimizing the risk-return ratio within its current asset allocation. While there's always room for fine-tuning, the balance between bonds, stocks, and commodities aligns with a strategy seeking to minimize volatility while providing steady income and some growth potential.

Dividends Info

  • Fidelity® MSCI Utilities Index ETF 2.60%
  • Schwab Intermediate-Term U.S. Treasury ETF 3.80%
  • Vanguard Long-Term Treasury Index Fund ETF Shares 4.40%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 3.05%

The dividend yields across the portfolio, with an overall yield of 3.05%, contribute to the portfolio's income generation. The higher yield from the Vanguard Long-Term Treasury Index Fund ETF Shares and Schwab Intermediate-Term U.S. Treasury ETF reflects the income-focused nature of the portfolio. This steady income stream is crucial for investors prioritizing income over capital appreciation.

Ongoing product costs Info

  • Fidelity® MSCI Utilities Index ETF 0.08%
  • SPDR Gold Mini Shares 0.10%
  • Schwab Intermediate-Term U.S. Treasury ETF 0.03%
  • Vanguard Long-Term Treasury Index Fund ETF Shares 0.04%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.05%

The portfolio's total expense ratio (TER) of 0.05% is impressively low, enhancing net returns. Keeping costs minimal is vital for long-term growth, especially in a conservative portfolio where returns are typically lower. This efficient cost structure is a positive aspect of the portfolio, allowing for more of the investment returns to accrue to the investor.

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