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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.

Expense Ratio

Rank 15 of 53

0.04%
0.00%0.94%
Dividend Yield

Rank 21 of 53

1.69%
0.00%2.60%
10Y Annualized Return

Rank 22 of 53

10.39%
4.72%40.02%
Sharpe Ratio

Rank 23 of 53

2.94
1.083.46
Maximum Drawdown

Rank 35 of 53

-28.12%
-38.24%-8.85%

Bogleheads Three-fund PortfolioAsset Allocation


S&P 500

Bogleheads Three-fund PortfolioPerformance

The chart shows the growth of $10,000 invested in Bogleheads Three-fund Portfolio on Jan 5, 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $30,781 for a total return of roughly 207.81%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


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

Bogleheads Three-fund PortfolioReturns

As of Jun 12, 2021, the Bogleheads Three-fund Portfolio returned 10.48% Year-To-Date and 10.39% of annualized return in the last 10 years.


1MYTD6M1Y5Y10Y
Bogleheads Three-fund Portfolio2.48%10.48%11.92%33.33%13.41%10.55%
BND
Vanguard Total Bond Market ETF
1.05%-1.86%-1.55%-0.25%3.24%3.25%
VEA
Vanguard FTSE Developed Markets ETF
3.30%13.24%14.68%40.41%11.85%7.11%
VTI
Vanguard Total Stock Market ETF
2.54%13.93%15.82%44.32%17.94%15.09%

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

The chart below displays rolling 12-month Sharpe Ratio.


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

Bogleheads Three-fund PortfolioDividends

Bogleheads Three-fund Portfolio granted a 1.69% dividend yield in the last twelve months, as of Jun 12, 2021.


PeriodTTM20202019201820172016201520142013201220112010

Dividend yield

1.69%1.80%2.34%2.64%2.28%2.38%2.38%2.54%2.21%2.42%2.71%2.41%

Bogleheads Three-fund PortfolioDrawdowns Chart

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


Bogleheads Three-fund Portfolio
Benchmark (S&P 500)
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
-17.25%May 2, 2011108Oct 3, 2011111Mar 13, 2012219
-15.21%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
-6.25%Sep 3, 202014Sep 23, 202033Nov 9, 202047

Bogleheads Three-fund PortfolioVolatility Chart

Current Bogleheads Three-fund Portfolio volatility is 2.84%. 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 Three-fund Portfolio
Benchmark (S&P 500)
Portfolio components

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