Conservative income focused portfolio with moderate equity tilt and global exposures and low volatility bias

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Conservative Investors

This portfolio best matches an investor seeking conservative income with a modest willingness to accept market upside while prioritizing lower volatility and predictable distributions. Such an investor typically targets capital preservation and steady cash flow rather than aggressive growth and prefers diversified ETFs and high quality bonds to single stock risk. The time horizon is medium to long term where income generation and protection against large drawdowns matter; liquidity needs are moderate and tax sensitivity and fee awareness play a role in fund selection and rebalancing cadence.

Positions

  • PGIM ETF Trust
    PAAA - US69344A8348
    25.00%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    20.00%
  • PGIM Ultra Short Bond
    PULS - US69344A1079
    19.00%
  • Schwab U.S. Large-Cap Growth ETF
    SCHG - US8085243009
    6.00%
  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    5.00%
  • Berkshire Hathaway Inc
    BRK-B - US0846707026
    3.00%
  • Capital Group Dividend Value ETF
    CGDV - US14020W1062
    3.00%
  • Franklin International Low Volatility High Dividend Index ETF
    LVHI - US52468L5057
    3.00%
  • Vanguard Information Technology Index Fund ETF Shares
    VGT - US92204A7028
    3.00%
  • SPDR® S&P Aerospace & Defense ETF
    XAR - US78464A6313
    3.00%
  • WisdomTree Japan Hedged Equity Fund
    DXJ - US97717W8516
    2.00%
  • iShares Evolved U.S. Technology ETF
    IETC - US46431W6488
    2.00%
  • Vanguard Total World Stock Index Fund ETF Shares
    VT - US9220427424
    2.00%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    1.00%
  • Dimensional International Value ETF
    DFIV - US25434V8072
    1.00%
  • Invesco S&P International Developed Momentum ETF
    IDMO - US46138E2220
    1.00%
  • Invesco S&P 500® Quality ETF
    SPHQ - US46137V2410
    1.00%

The portfolio mixes equities ETFs at about 56 percent bonds at 39 percent and cash at 5 percent with several concentrated holdings such as a single 25 percent ETF and a 20 percent large-cap ETF. This structure matters because the mix between stocks bonds and cash largely determines expected volatility and income potential; a higher equity share usually raises long‑term returns and short‑term swings while bonds damp volatility and add income. Recommendation: simplify overlapping exposures and aim for clearer target weights for each asset class so rebalancing is straightforward and allocations stay aligned with the intended conservative profile.

Growth Info

Historically the portfolio shows a compound annual growth rate or CAGR of 14.48 percent and a maximum drawdown of about minus 10 percent; CAGR measures average annual growth over time like average speed on a long trip. A hypothetical $10,000 invested over a multi‑year span at that CAGR would have grown substantially yet the drawdown shows downside episodes were limited but present. This outperformance relative to many balanced benchmarks is notable but past returns do not guarantee future results. Recommendation: avoid basing allocation changes solely on past strong returns and maintain a disciplined rebalancing plan.

Projection Info

A Monte Carlo simulation was run with 1,000 scenarios to project a range of potential outcomes based on historical return patterns; Monte Carlo uses repeated random sampling to estimate possible future paths rather than a single forecast. Results show a wide spread with the median scenario implying strong growth and a low percentile still positive; this highlights both upside potential and variability. Simulations assume history repeats which is a limitation so use projections as one planning tool not a promise. Recommendation: use these outcomes to test whether the portfolio meets income and capital goals under different market conditions.

Asset classes Info

  • Stocks
    56%
  • Bonds
    39%
  • Cash
    5%
  • Other
    0%
  • No data
    0%

The portfolio’s asset class split leans equity heavy for a conservative profile with stocks at 56 percent bonds at 39 percent and cash at 5 percent. This matters because conservative benchmarks often target a higher bond share to reduce volatility; here the lower bond allotment increases long‑term return potential but also ups exposure to equity risk. Recommendation: if the objective is capital preservation and steady income consider shifting toward more fixed income or higher quality bond exposure or maintain current weights with explicit acceptance of higher equity risk and periodic rebalancing to control drift.

Sectors Info

  • Technology
    17%
  • Financials
    9%
  • Industrials
    8%
  • Consumer Discretionary
    5%
  • Health Care
    4%
  • Telecommunications
    4%
  • Consumer Staples
    3%
  • Energy
    3%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Sector exposure shows a meaningful tilt to technology at around 17 percent with additional allocations across financials industrials and consumer areas. Sector mix influences how the portfolio reacts to economic changes for example tech heavy allocations may see bigger swings during rate changes or growth scares. The current sector composition partially aligns with common equity benchmarks which is positive for broad market exposure. Recommendation: review sector concentrations and consider trimming or diversifying sector exposure if the goal is to limit sensitivity to a single industry’s cycle.

Regions Info

  • North America
    48%
  • Europe Developed
    4%
  • Japan
    3%
  • Australasia
    0%
  • Asia Developed
    0%
  • Asia Emerging
    0%
  • Africa/Middle East
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographic allocations are heavily North America focused at roughly 48 percent with modest developed Europe and Japan exposure and little to no emerging market weight. Regional balance matters because different economies and currencies do not move in lockstep so geographic diversification can reduce portfolio volatility. The domestic tilt is common but leaves the portfolio exposed to country specific risks. Recommendation: consider modest increases in international developed or emerging exposures for diversification or accept domestic bias if it reflects a deliberate home‑country preference.

Market capitalization Info

  • Mega-cap
    24%
  • Large-cap
    19%
  • Mid-cap
    10%
  • Small-cap
    2%
  • Micro-cap
    0%

By market capitalization the portfolio is dominated by large caps with mega and big caps making up about 43 percent combined and mid and small caps considerably smaller. Market cap profile affects return and risk characteristics since large caps tend to provide greater stability and liquidity while smaller caps can offer higher growth potential and diversification benefits. Recommendation: if the goal is conservative stability keep the large cap bias but consider a controlled allocation to smaller caps only if the investor accepts additional volatility for potential incremental returns.

Redundant positions Info

  • Vanguard Total World Stock Index Fund ETF Shares
    Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    Vanguard Information Technology Index Fund ETF Shares
    iShares Evolved U.S. Technology ETF
    High correlation

Several equity holdings are highly correlated meaning they have historically moved together for the most part; correlation measures how closely assets track each other where a value near one means near identical moves. High correlation reduces diversification benefits because multiple holdings offer little protection when markets fall. The portfolio contains overlapping U.S. large cap and technology exposures that create redundancy. Recommendation: consolidate or replace overlapping ETFs with broader single funds to improve diversification efficiency and make future optimization more effective.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Capital Group Dividend Value ETF 1.30%
  • Dimensional International Value ETF 2.90%
  • WisdomTree Japan Hedged Equity Fund 3.10%
  • Invesco S&P International Developed Momentum ETF 1.60%
  • iShares Evolved U.S. Technology ETF 0.30%
  • Franklin International Low Volatility High Dividend Index ETF 5.00%
  • PGIM ETF Trust 5.20%
  • PGIM Ultra Short Bond 4.80%
  • Schwab U.S. Dividend Equity ETF 2.80%
  • Schwab U.S. Large-Cap Growth ETF 0.30%
  • Invesco S&P 500® Quality ETF 1.00%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total World Stock Index Fund ETF Shares 1.60%
  • SPDR® S&P Aerospace & Defense ETF 0.60%
  • Weighted yield (per year) 3.00%

The portfolio’s aggregated yield sits near 3 percent with select bond and equity ETFs showing higher individual yields; dividends and coupon payments contribute to total return and can provide steady income which is often important for conservative objectives. Yield figures help set income expectations but are not guaranteed and can fluctuate with market conditions and fund distributions. Recommendation: use dividend yield as one input for income planning but monitor sustainability and tax treatment of distributions and consider a laddered cash or bond approach for predictable income.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Capital Group Dividend Value ETF 0.33%
  • Dimensional International Value ETF 0.27%
  • WisdomTree Japan Hedged Equity Fund 0.48%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • iShares Evolved U.S. Technology ETF 0.18%
  • Franklin International Low Volatility High Dividend Index ETF 0.40%
  • PGIM ETF Trust 0.19%
  • PGIM Ultra Short Bond 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Quality ETF 0.15%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • SPDR® S&P Aerospace & Defense ETF 0.35%
  • Weighted costs total (per year) 0.15%

Total expense ratio or TER across the portfolio averages about 0.15 percent though several niche international and specialty ETFs carry higher fees up to the mid‑forties basis points range; TER is the annual cost to own a fund similar to a maintenance fee. Keeping costs low is relevant because fees compound over time eroding returns. Many core holdings are low cost which is a strong alignment with best practices and helps long‑term performance. Recommendation: where possible consolidate into lower cost equivalents for similar exposure and evaluate whether high fee niche allocations justify their incremental expense.

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.

The portfolio can potentially be moved closer to the Efficient Frontier which is the set of portfolios offering the best expected return for a given level of risk based solely on the available assets; think of it as the most efficient tradeoffs available within the current menu. Optimization should start by removing overlapping highly correlated assets so each holding adds distinct value; then adjust weights to match a targeted risk level. Recommendation: run optimization scenarios only after consolidation and ensure the chosen efficient mix still meets income and liquidity preferences since “efficient” relates strictly to risk‑return balance not other objectives.

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