Name: Yield Portfolio

Description:

The YIELD portfolio seeks to earn income by conservatively investing in income-producing assets. Currently it contains:

1. VCSH - This ETF tracks the Bloomberg U.S. 1-5 Year Corporate Index and invests in high-quality, investment-grade US corporate bonds with maturities between 1 and 5 years. As a short-term bond fund, VCSH aims to provide a higher level of income than money market funds, while minimizing credit risk.

2. SPTS - This ETF tracks the Bloomberg U.S. Treasury 1-3 Year Index. It invests in US Treasury bonds with maturities of 1 to 3 years. As a US Treasury bond fund, SPTS offers a high level of credit quality and lower interest rate risk than corporate bonds.

3. VMBS - This ETF tracks the Bloomberg Barclays U.S. Mortgage-Backed Securities (MBS) Float Adjusted Index. VMBS invests primarily in investment-grade U.S. agency mortgage-backed pass-through securities with a range of maturities issued by government-sponsored entities such as Fannie Mae, Freddie Mac, and Ginnie Mae, providing current income with high credit quality. To be included in the Index, pool aggregates must have at least $1 billion currently outstanding and a weighted average maturity of at least 1 year.

Overall, this portfolio offers a conservative approach to fixed-income investing with a focus on short-term securities from issuers with high credit quality. Rebalances are at the discretion of the investment advisor but will occur less often than quarterly under normal circumstances.

Risks:

This portfolio comprises stock and bond ETFs and is therefore exposed to potential declines in either of these markets. Rising interest rates may reduce this portfolio’s value.

Name: Aggressive Yield Portfolio

Description: 

The HIGHYIELD portfolio seeks to earn income by investing in a diversified set of high-yielding dividend producing assets. Currently it contains:

1. XYLD - This ETF tracks the Cboe S&P 500 BuyWrite Index. It invests in large-cap US stocks and sells covered call options on these stocks, generating income through the premiums received but also limiting potential upside gains if the market rallies.

2. SPHY - This ETF tracks the performance of the ICE BofA U.S. High Yield Index, which includes U.S. dollar-denominated, high-yield corporate bonds. High-yield bonds tend to have higher yields than investment-grade bonds, but also tend to be more volatile and riskier.

3. VWOB - This ETF tracks the Bloomberg USD Emerging Markets Government RIC Capped Index and invests in bonds issued by emerging market governments, government agencies, and government-owned corporations. These bonds can offer higher yields than developed market government bonds but also carry higher risks.

4. REM - This ETF tracks the FTSE Nareit All Mortgage Capped Index. It invests in mortgage real estate investment trusts that hold U.S. residential and commercial mortgages, which generate income from the interest spread between their mortgage investments and their cost of borrowing. These investments are sensitive to changes in interest rates and may suffer from prepayment risk if mortgage holders refinance their loans.

5. SPYD - This ETF tracks the S&P 500 High Dividend Index, which invests in the 80 highest dividend yielding companies in the S&P 500 Index. These stocks are often mature, established companies but may also be sensitive to changes in economic conditions and company-specific risks.

The portfolio's diversification across different asset classes and investment strategies aims to balance risk management with the potential for generating income. Rebalances are at the discretion of the investment advisor but will occur less often than quarterly under normal circumstances.

Risks

This portfolio comprises stock and bond ETFs and is therefore exposed to potential declines in either of these markets. It also contains exposure to the US housing market, which has in the past experienced sharp declines in value, and to international emerging market debt, which is exposed to a variety of economic and geopolitical risks. Rising interest rates may reduce this portfolio’s value.