A Conservative Low-Medium Risk Portfolio

 |  Includes: BIV, EFV, SCZ, TLT, VBR, VNQ, VOE, VTI, VWO
by: Lowell Herr

With this low-medium risk portfolio we move up one notch in aggressiveness. This is still a very conservative portfolio with 60% committed to the bond / income asset class. Moving from 80% in bonds down to 60% brings about an increase in both projected return and projected uncertainty. The Return / Uncertainty ratio is still a respectable 0.62.

The Diversification Metric at 44% exceeds are goal of 40% and the Portfolio Autocorrelation (PA) remains in negative territory, a positive sign. We want PA to be low. This portfolio will keep investors out of trouble, but the projected return lags the 7.0% projected for the S&P 500 by 0.6% or 60 basis points. While this is not much, if accurate, it can up to a lot over a lifetime.

I'm keeping all the parameters the same except for the percentages allocated to the different ETFs. That way readers will have a reference for comparison. In the next portfolio we will move to a medium-high risk portfolio.

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