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Bogleheads Four-fund Portfolio

Last updated Nov 29, 2022

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 18 of 54

0.04%
0.00%0.94%
Dividend Yield

Rank 18 of 54

2.43%
0.00%4.59%
10Y Annualized Return

Rank 26 of 54

8.00%
3.43%53.98%
Sharpe Ratio

Rank 20 of 54

-0.66
-1.170.32
Maximum Drawdown

Rank 28 of 54

-30.27%
-91.88%-19.55%

Bogleheads Four-fund PortfolioAsset Allocation


Bogleheads Four-fund PortfolioPerformance

The chart shows the growth of $10,000 invested in Bogleheads Four-fund Portfolio in Jun 2013 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $19,883 for a total return of roughly 98.83%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


-15.00%-10.00%-5.00%0.00%JulyAugustSeptemberOctoberNovember
-4.51%
-5.25%
Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Four-fund PortfolioReturns

As of Nov 29, 2022, the Bogleheads Four-fund Portfolio returned -16.09% Year-To-Date and 8.00% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark1.45%-4.82%-16.96%-13.86%8.56%9.79%
Bogleheads Four-fund Portfolio4.12%-4.26%-15.24%-13.20%5.86%7.52%
VTI
Vanguard Total Stock Market ETF
1.53%-3.92%-16.94%-14.72%9.81%11.45%
BND
Vanguard Total Bond Market ETF
2.55%-5.20%-13.08%-13.33%-0.01%1.15%
VEA
Vanguard FTSE Developed Markets ETF
9.57%-5.29%-15.05%-11.82%2.08%4.41%
BNDX
Vanguard Total International Bond ETF
2.03%-3.20%-10.53%-11.08%0.36%1.85%

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 -0.66. 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.


-1.20-1.00-0.80-0.60-0.40-0.200.00JulyAugustSeptemberOctoberNovember
-0.73
-0.63
Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Four-fund PortfolioDividends

Bogleheads Four-fund Portfolio granted a 2.43% dividend yield in the last twelve months.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

2.43%2.07%1.78%2.52%2.83%2.43%2.68%2.73%2.99%2.60%3.08%3.30%2.96%

Bogleheads Four-fund PortfolioDrawdowns Chart

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


-25.00%-20.00%-15.00%-10.00%-5.00%0.00%2022FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovember
-15.95%
-17.49%
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
-24.38%Nov 9, 2021233Oct 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 6.33%. 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.


10.00%15.00%20.00%25.00%30.00%35.00%JulyAugustSeptemberOctoberNovember
11.64%
13.39%
Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components