Asset Class Risk Spectrum

Visualize where each asset class falls on the risk-return spectrum. Lower-risk assets like Treasury bonds provide stability, while higher-risk assets like emerging market equities offer greater growth potential with more volatility.

Lower RiskHigher Risk

Low

Low-Med

Medium

Med-High

High

Very High

Risk	Grade	Asset Class	Category	Ann. Vol	Max DD	Beta	ETFs	Preferred ETF
5 — Medium	—	Broad Commodity	Commodities	—	—	—	3	GSG
5 — Medium	—	Communication Services	Equity Sectors	—	—	—	2	XLC
5 — Medium	—	Consumer Discretionary	Equity Sectors	—	—	—	2	XLY
5 — Medium	—	Consumer Staples	Equity Sectors	—	—	—	2	XLP
5 — Medium	—	Emerging Market Debt (Local)	Fixed Income	—	—	—	2	EMLC
5 — Medium	—	Emerging Market Debt (USD)	Fixed Income	—	—	—	3	EMB
5 — Medium	—	Emerging Markets	Equity	—	—	—	4	VWO
5 — Medium	—	Emerging Markets Small Cap	Equity	—	—	—	1	EEMS
5 — Medium	—	Energy	Equity Sectors	—	—	—	2	XLE
5 — Medium	—	Financials	Equity Sectors	—	—	—	2	XLF
5 — Medium	—	Global Real Estate	Equity	—	—	—	4	VNQ
5 — Medium	—	Gold	Commodities	—	—	—	3	GLD
5 — Medium	—	Healthcare	Equity Sectors	—	—	—	3	XLV
5 — Medium	—	Industrials	Equity Sectors	—	—	—	2	XLI
5 — Medium	—	Intl Developed Bond	Fixed Income	—	—	—	2	BNDX
5 — Medium	—	Intl Developed Large Cap	Equity	—	—	—	4	VEA
5 — Medium	—	Intl Developed Small Cap	Equity	—	—	—	2	VSS
5 — Medium	—	Intl Developed Value	Equity	—	—	—	2	EFV
5 — Medium	—	Intl Quality	Equity Factors	—	—	—	1	IQLT
5 — Medium	—	Materials	Equity Sectors	—	—	—	2	XLB
5 — Medium	—	Real Estate	Equity Sectors	—	—	—	1	XLRE
5 — Medium	—	Technology	Equity Sectors	—	—	—	3	XLK
5 — Medium	—	US Aggregate Bond	Fixed Income	—	—	—	3	BND
5 — Medium	—	US Dividend	Equity Factors	—	—	—	3	VIG
5 — Medium	—	US Floating Rate	Fixed Income	—	—	—	3	FLOT
5 — Medium	—	US High Yield Corp	Fixed Income	—	—	—	4	HYG
5 — Medium	—	US Investment Grade Corp	Fixed Income	—	—	—	3	LQD
5 — Medium	—	US Large Cap	Equity	—	—	—	5	VTI
5 — Medium	—	US Large Cap Growth	Equity	—	—	—	3	VUG
5 — Medium	—	US Large Cap Value	Equity	—	—	—	3	VTV
5 — Medium	—	US Mid Cap	Equity	—	—	—	3	VO
5 — Medium	—	US Min Volatility	Equity Factors	—	—	—	2	USMV
5 — Medium	—	US Momentum	Equity Factors	—	—	—	2	MTUM
5 — Medium	—	US Multi-Factor	Equity Factors	—	—	—	2	LRGF
5 — Medium	—	US Municipal	Fixed Income	—	—	—	3	MUB
5 — Medium	—	US Quality	Equity Factors	—	—	—	2	QUAL
5 — Medium	—	US Securitized (MBS)	Fixed Income	—	—	—	3	MBB
5 — Medium	—	US Small Cap	Equity	—	—	—	4	VB
5 — Medium	—	US TIPS	Fixed Income	—	—	—	3	TIP
5 — Medium	—	US Treasury Intermediate	Fixed Income	—	—	—	3	IEI
5 — Medium	—	US Treasury Long	Fixed Income	—	—	—	3	TLT
5 — Medium	—	US Treasury Short	Fixed Income	—	—	—	3	SHV
5 — Medium	—	Utilities	Equity Sectors	—	—	—	2	XLU

Risk metrics are calculated using monthly returns since each ETF's inception date. Volatility (annualized standard deviation), max drawdown, and beta vs. the broad US stock market (VTI) are the primary risk measures.

Risk grades (0-100) are composite scores weighting: volatility 40%, max drawdown 30%, beta 20%, and liquidity 10%.

Past performance and historical risk measures do not guarantee future results. Risk characteristics may change over time.

Sharpe ratio uses a risk-free rate of 4%. Beta of 1.0 indicates market-level sensitivity.

Preferred ETFs are selected per asset class by lowest expense ratio, with ties broken by highest assets under management.

Asset Class Risk Spectrum

Asset Allocation Guide

Understanding Risk Tolerance

Compare ETF Fees