Bogleheads Three-fund Portfolio
The three-fund portfolio is a portfolio popularized by Jack Bogle fans (boggleheads). It uses only three fundamental asset classes: a U.S total stock market fund, a total international stock market fund, and a total bond market fund. The portfolio could be replicated using three low-cost ETFs.
Asset Allocation
| Position | Category/Sector | Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 20% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 50% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 30% |
Performance
The chart shows the growth of $10,000 invested in Bogleheads Three-fund Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $24,460 for a total return of roughly 144.60%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Returns
As of Mar 18, 2023, the Bogleheads Three-fund Portfolio returned 2.24% Year-To-Date and 7.49% of annualized return in the last 10 years.
| 1 month | Year-To-Date | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | -5.31% | 2.01% | 0.39% | -10.12% | 7.32% | 9.71% |
| Bogleheads Three-fund Portfolio | -4.64% | 2.24% | 3.35% | -7.72% | 5.36% | 7.49% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | -5.95% | 2.09% | 0.28% | -9.69% | 8.45% | 11.27% |
BND Vanguard Total Bond Market ETF | 1.47% | 3.10% | 2.05% | -5.27% | 0.94% | 1.32% |
VEA Vanguard FTSE Developed Markets ETF | -6.42% | 1.76% | 8.84% | -7.18% | 1.97% | 4.59% |
| Returns over 1 year are annualized | ||||||
Dividends
Bogleheads Three-fund Portfolio granted a 2.27% dividend yield in the last twelve months.
| Period | TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 2.27% | 2.23% | 2.00% | 1.85% | 2.51% | 2.84% | 2.47% | 2.74% | 2.81% | 3.10% | 2.75% | 3.32% |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below shows the maximum drawdowns of the Bogleheads Three-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 Three-fund Portfolio is 47.74%, recorded on Mar 9, 2009. It took 539 trading sessions for the portfolio to recover.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -47.74% | Nov 1, 2007 | 339 | Mar 9, 2009 | 539 | Apr 27, 2011 | 878 |
| -28.12% | Feb 13, 2020 | 27 | Mar 23, 2020 | 95 | Aug 6, 2020 | 122 |
| -24.47% | Nov 9, 2021 | 235 | Oct 14, 2022 | — | — | — |
| -17.25% | May 2, 2011 | 108 | Oct 3, 2011 | 111 | Mar 13, 2012 | 219 |
| -15.25% | Jan 29, 2018 | 229 | Dec 24, 2018 | 81 | Apr 23, 2019 | 310 |
| -13.84% | May 22, 2015 | 183 | Feb 11, 2016 | 124 | Aug 9, 2016 | 307 |
| -9.48% | Apr 3, 2012 | 42 | Jun 1, 2012 | 67 | Sep 6, 2012 | 109 |
| -6.88% | Jul 7, 2014 | 73 | Oct 16, 2014 | 27 | Nov 24, 2014 | 100 |
| -6.76% | May 22, 2013 | 23 | Jun 24, 2013 | 19 | Jul 22, 2013 | 42 |
| -6.25% | Sep 3, 2020 | 14 | Sep 23, 2020 | 33 | Nov 9, 2020 | 47 |
Volatility Chart
Current Bogleheads Three-fund Portfolio volatility is 10.54%. 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.