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Bogleheads Four-fund Portfolio

The Bogleheads Four-fund Portfolio is the extension of the Bogleheads Three-fund Portfolio with the addition of international bonds. It uses four fundamental asset classes: a U.S total stock market fund, a total international stock market fund, a total bond market fund, and a total international bond market. The portfolio could be replicated using four low-cost ETFs.

Expense Ratio

Rank 17 of 53

0.04%
0.00%0.94%
Dividend Yield

Rank 13 of 53

2.28%
0.00%3.84%
10Y Annualized Return

Rank 25 of 53

8.08%
3.30%29.91%
Sharpe Ratio

Rank 28 of 53

-0.63
-1.860.45
Maximum Drawdown

Rank 35 of 53

-28.24%
-48.20%-10.21%

Bogleheads Four-fund PortfolioAsset Allocation


Bogleheads Four-fund PortfolioPerformance

The chart shows the growth of $10,000 invested in Bogleheads Four-fund Portfolio on Jun 5, 2013 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $20,035 for a total return of roughly 100.35%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Four-fund PortfolioReturns

As of May 17, 2022, the Bogleheads Four-fund Portfolio returned -14.59% Year-To-Date and 8.08% of annualized return in the last 10 years.


1MYTD6M1Y5Y10Y
Benchmark-8.76%-15.91%-14.41%-3.97%10.80%10.57%
Bogleheads Four-fund Portfolio-7.06%-14.59%-14.93%-8.43%7.72%8.08%
VTI
Vanguard Total Stock Market ETF
-9.41%-16.94%-16.75%-6.05%12.05%12.18%
BND
Vanguard Total Bond Market ETF
-1.11%-9.57%-9.74%-8.76%1.10%1.66%
VEA
Vanguard FTSE Developed Markets ETF
-7.23%-14.44%-15.81%-12.85%4.01%4.77%
BNDX
Vanguard Total International Bond ETF
-0.78%-7.43%-7.77%-6.89%1.39%2.35%

Bogleheads Four-fund PortfolioSharpe Ratio Chart

The Sharpe ratio shows whether the portfolio's excess returns are due to smart investment decisions or a result of taking a higher risk. The higher a portfolio's Sharpe ratio, the better its risk-adjusted performance.

The current Bogleheads Four-fund Portfolio Sharpe ratio is -0.63. A negative Sharpe ratio means that the risk-free rate is higher than the portfolio's return. This value does not convey any meaningful information.

The chart below displays rolling 12-month Sharpe Ratio.


Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Four-fund PortfolioDividends

Bogleheads Four-fund Portfolio granted a 2.28% dividend yield in the last twelve months, as of May 17, 2022.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

2.28%2.04%1.76%2.49%2.80%2.40%2.65%2.70%2.95%2.57%3.04%3.26%2.93%

Bogleheads Four-fund PortfolioDrawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Four-fund PortfolioWorst Drawdowns

The table below shows the maximum drawdowns of the Bogleheads Four-fund Portfolio. A maximum drawdown is an indicator of risk. It shows a reduction in portfolio value from its maximum due to a series of losing trades.

The maximum drawdown since January 2010 for the Bogleheads Four-fund Portfolio is 28.24%, recorded on Mar 23, 2020. It took 99 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-28.24%Feb 13, 202027Mar 23, 202099Aug 12, 2020126
-16.86%Nov 9, 2021128May 12, 2022
-15.13%Jan 29, 2018229Dec 24, 201875Apr 12, 2019304
-13.8%May 22, 2015183Feb 11, 2016117Jul 29, 2016300
-6.87%Jul 7, 201473Oct 16, 201427Nov 24, 2014100
-6.21%Sep 3, 202014Sep 23, 202033Nov 9, 202047
-4.8%Jun 19, 20134Jun 24, 201312Jul 11, 201316
-4.77%Jul 25, 201915Aug 14, 201945Oct 17, 201960
-4.75%Jan 23, 20148Feb 3, 201410Feb 18, 201418
-4.61%May 6, 201919May 31, 201913Jun 19, 201932

Bogleheads Four-fund PortfolioVolatility Chart

Current Bogleheads Four-fund Portfolio volatility is 8.31%. The chart below shows the rolling 10-day volatility. Volatility is a statistical measure showing how big price swings are in either direction. The higher asset volatility, the riskier it is, because the price movements are less predictable.


Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

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