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Bogleheads Three-fund Portfolio

Last updated Dec 3, 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 19 of 54

Dividend Yield

Rank 22 of 54

10Y Annualized Return

Rank 21 of 54

Sharpe Ratio

Rank 19 of 54

Maximum Drawdown

Rank 31 of 54


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 $27,993 for a total return of roughly 179.93%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly

Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Three-fund PortfolioReturns

As of Dec 3, 2022, the Bogleheads Three-fund Portfolio returned -13.97% Year-To-Date and 9.64% of annualized return in the last 10 years.

Bogleheads Three-fund Portfolio7.46%-2.09%-13.11%-9.63%6.33%8.57%
Vanguard Total Stock Market ETF
Vanguard Total Bond Market ETF
Vanguard FTSE Developed Markets ETF

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 -0.51. 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.

Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Bogleheads Three-fund PortfolioDividends

Bogleheads Three-fund Portfolio granted a 2.29% dividend yield in the last twelve months.


Dividend yield


Bogleheads Three-fund PortfolioDrawdowns Chart

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

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.



To Bottom


To Recover



-28.12%Feb 13, 202027Mar 23, 202095Aug 6, 2020122
-24.47%Nov 9, 2021235Oct 14, 2022
-17.25%May 2, 2011108Oct 3, 2011111Mar 13, 2012219
-15.25%Jan 29, 2018229Dec 24, 201881Apr 23, 2019310
-13.84%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 6.80%. 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 (^GSPC)
Portfolio components