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.
Asset Allocation
Performance
The chart shows the growth of an initial investment of $10,000 in Bogleheads Four-fund Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly
The earliest data available for this chart is Jun 4, 2013, corresponding to the inception date of BNDX
Returns
As of Dec 2, 2023, the Bogleheads Four-fund Portfolio returned 14.85% Year-To-Date and 7.51% of annualized return in the last 10 years.
| Year-To-Date | 1 month | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
^GSPC | N/A | N/A | N/A | N/A | N/A | N/A |
| Bogleheads Four-fund Portfolio | 14.85% | 8.08% | 5.02% | 9.95% | 8.32% | 7.51% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | 20.72% | 9.25% | 8.07% | 13.58% | 11.92% | 11.34% |
BND Vanguard Total Bond Market ETF | 2.86% | 4.38% | 0.50% | 1.19% | 0.87% | 1.43% |
VEA Vanguard FTSE Developed Markets ETF | 12.86% | 8.81% | 2.61% | 9.46% | 6.25% | 4.41% |
BNDX Vanguard Total International Bond ETF | 6.03% | 3.48% | 2.47% | 2.53% | 0.64% | 2.10% |
Monthly Returns Heatmap
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | -1.08% | 4.69% | 2.75% | -2.25% | -4.01% | -2.57% | 8.18% |
Dividend yield
Bogleheads Four-fund Portfolio granted a 2.20% dividend yield in the last twelve months.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bogleheads Four-fund Portfolio | 2.20% | 2.17% | 2.04% | 1.71% | 2.38% | 2.60% | 2.18% | 2.35% | 2.33% | 2.48% | 2.11% | 2.44% |
| Portfolio components: | ||||||||||||
VTI Vanguard Total Stock Market ETF | 1.46% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% | 2.13% |
BND Vanguard Total Bond Market ETF | 3.11% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% | 3.24% |
VEA Vanguard FTSE Developed Markets ETF | 3.00% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% | 2.97% |
BNDX Vanguard Total International Bond ETF | 2.10% | 1.51% | 3.74% | 1.11% | 3.40% | 3.01% | 2.23% | 1.89% | 1.63% | 1.54% | 0.86% | 0.00% |
Expense Ratio
The Bogleheads Four-fund Portfolio has an expense ratio of 0.04% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 0.96 | ||||
BND Vanguard Total Bond Market ETF | 0.27 | ||||
VEA Vanguard FTSE Developed Markets ETF | 0.74 | ||||
BNDX Vanguard Total International Bond ETF | 0.55 |
Asset Correlations Table
| BNDX | BND | VEA | VTI | |
|---|---|---|---|---|
| BNDX | 1.00 | 0.71 | -0.03 | -0.04 |
| BND | 0.71 | 1.00 | -0.03 | -0.06 |
| VEA | -0.03 | -0.03 | 1.00 | 0.82 |
| VTI | -0.04 | -0.06 | 0.82 | 1.00 |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below displays the maximum drawdowns of the Bogleheads Four-fund Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Bogleheads Four-fund Portfolio was 28.24%, occurring on Mar 23, 2020. Recovery took 99 trading sessions.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -28.24% | Feb 13, 2020 | 27 | Mar 23, 2020 | 99 | Aug 12, 2020 | 126 |
| -24.38% | Nov 9, 2021 | 233 | Oct 12, 2022 | — | — | — |
| -15.13% | Jan 29, 2018 | 229 | Dec 24, 2018 | 75 | Apr 12, 2019 | 304 |
| -13.8% | May 22, 2015 | 183 | Feb 11, 2016 | 117 | Jul 29, 2016 | 300 |
| -6.87% | Jul 7, 2014 | 73 | Oct 16, 2014 | 27 | Nov 24, 2014 | 100 |
Volatility Chart
The current Bogleheads Four-fund Portfolio volatility is 2.70%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.