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Bogleheads Three-fund Portfolio

Last updated Aug 13, 2022

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.

Expense Ratio

Rank 17 of 54

0.04%
0.00%0.94%
Dividend Yield

Rank 15 of 54

2.25%
0.00%4.34%
10Y Annualized Return

Rank 20 of 54

10.36%
4.13%64.70%
Sharpe Ratio

Rank 29 of 54

-0.39
-0.980.14
Maximum Drawdown

Rank 31 of 54

-31.08%
-91.88%-17.74%

Bogleheads Three-fund PortfolioAsset Allocation


Bogleheads Three-fund PortfolioPerformance

The chart shows the growth of $10,000 invested in Bogleheads Three-fund Portfolio in Jan 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $28,779 for a total return of roughly 187.79%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


-15.00%-10.00%-5.00%0.00%5.00%MarchAprilMayJuneJulyAugust
-4.89%
-2.76%
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Three-fund PortfolioReturns

As of Aug 13, 2022, the Bogleheads Three-fund Portfolio returned -10.68% Year-To-Date and 10.36% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark12.08%-4.97%-10.20%-3.65%11.89%11.81%
Bogleheads Three-fund Portfolio9.45%-6.52%-10.67%-8.45%8.31%9.21%
VTI
Vanguard Total Stock Market ETF
12.82%-4.78%-10.34%-4.99%13.37%13.68%
BND
Vanguard Total Bond Market ETF
1.49%-4.92%-8.75%-9.37%0.97%1.54%
VEA
Vanguard FTSE Developed Markets ETF
9.24%-10.93%-13.06%-14.12%3.91%6.25%

Bogleheads Three-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 Three-fund Portfolio Sharpe ratio is -0.39. 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.


-1.00-0.500.000.501.00MarchAprilMayJuneJulyAugust
-0.54
-0.20
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Three-fund PortfolioDividends

Bogleheads Three-fund Portfolio granted a 2.25% dividend yield in the last twelve months.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

2.25%1.97%1.83%2.48%2.81%2.44%2.71%2.78%3.06%2.71%3.27%3.52%3.22%

Bogleheads Three-fund PortfolioDrawdowns Chart

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


-20.00%-15.00%-10.00%-5.00%0.00%SeptemberOctoberNovemberDecember2022FebruaryMarchAprilMayJuneJulyAugust
-11.43%
-10.77%
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Three-fund PortfolioWorst 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 28.12%, recorded on Mar 23, 2020. It took 95 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-28.12%Feb 13, 202027Mar 23, 202095Aug 6, 2020122
-20.81%Nov 9, 2021152Jun 16, 2022
-17.25%May 2, 2011108Oct 3, 2011111Mar 13, 2012219
-15.25%Jan 29, 2018229Dec 24, 201881Apr 23, 2019310
-13.85%May 22, 2015183Feb 11, 2016124Aug 9, 2016307
-12.58%Apr 16, 201055Jul 2, 201068Oct 8, 2010123
-9.48%Apr 3, 201242Jun 1, 201267Sep 6, 2012109
-7.64%Jan 15, 201016Feb 8, 201025Mar 16, 201041
-6.88%Jul 7, 201473Oct 16, 201427Nov 24, 2014100
-6.76%May 22, 201323Jun 24, 201319Jul 22, 201342

Bogleheads Three-fund PortfolioVolatility Chart

Current Bogleheads Three-fund Portfolio volatility is 10.32%. 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%40.00%MarchAprilMayJuneJulyAugust
14.91%
16.68%
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

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