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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 19 of 53

1.74%
0.00%2.62%
10Y Annualized Return

Rank 18 of 53

10.61%
4.39%40.72%
Sharpe Ratio

Rank 17 of 53

2.46
0.662.96
Maximum Drawdown

Rank 36 of 53

-28.24%
-38.24%-10.21%

Bogleheads Four-fund PortfolioAsset Allocation


S&P 500

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 $22,705 for a total return of roughly 127.05%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


Bogleheads Four-fund Portfolio
Benchmark (S&P 500)
Portfolio components

Bogleheads Four-fund PortfolioReturns

As of Jul 25, 2021, the Bogleheads Four-fund Portfolio returned 11.74% Year-To-Date and 10.61% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Bogleheads Four-fund Portfolio1.70%8.83%11.74%27.83%12.77%10.61%
VTI
Vanguard Total Stock Market ETF
3.24%13.76%17.61%39.22%17.51%15.15%
BND
Vanguard Total Bond Market ETF
1.08%0.07%-0.90%-0.75%3.27%3.34%
VEA
Vanguard FTSE Developed Markets ETF
-0.52%6.63%10.76%29.70%10.47%7.19%
BNDX
Vanguard Total International Bond ETF
1.41%-0.21%-0.83%0.61%3.02%3.76%

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 2.46. A Sharpe ratio higher than 2.0 is considered very good.

The chart below displays rolling 12-month Sharpe Ratio.


Bogleheads Four-fund Portfolio
Benchmark (S&P 500)
Portfolio components

Bogleheads Four-fund PortfolioDividends

Bogleheads Four-fund Portfolio granted a 1.74% dividend yield in the last twelve months, as of May 17, 2020.


PeriodTTM20202019201820172016201520142013201220112010

Dividend yield

1.74%1.74%2.38%2.63%2.24%2.35%2.33%2.48%2.11%2.31%2.53%2.22%

Bogleheads Four-fund PortfolioDrawdowns Chart

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


Bogleheads Four-fund Portfolio
Benchmark (S&P 500)
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
-15.11%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
-4.26%Sep 8, 201642Nov 4, 201622Dec 7, 201664

Bogleheads Four-fund PortfolioVolatility Chart

Current Bogleheads Four-fund Portfolio volatility is 15.71%. 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 (S&P 500)
Portfolio components

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