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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

0.04%
0.00%0.94%
Dividend Yield

Rank 22 of 54

2.29%
0.00%4.45%
10Y Annualized Return

Rank 21 of 54

9.64%
3.67%55.26%
Sharpe Ratio

Rank 19 of 54

-0.51
-1.010.60
Maximum Drawdown

Rank 31 of 54

-31.08%
-91.88%-19.55%

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


-10.00%-5.00%0.00%5.00%JulyAugustSeptemberOctoberNovemberDecember
-0.95%
-1.21%
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.


1M6MYTD1Y5Y10Y
Benchmark5.59%-2.52%-14.57%-9.78%9.04%11.20%
Bogleheads Three-fund Portfolio7.46%-2.09%-13.11%-9.63%6.33%8.57%
VTI
Vanguard Total Stock Market ETF
5.46%-1.68%-14.55%-10.04%10.30%12.95%
BND
Vanguard Total Bond Market ETF
4.85%-2.37%-11.31%-11.78%0.37%1.15%
VEA
Vanguard FTSE Developed Markets ETF
12.44%-3.48%-12.80%-8.55%2.63%5.59%

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.


-1.20-1.00-0.80-0.60-0.40-0.200.00JulyAugustSeptemberOctoberNovemberDecember
-0.57
-0.46
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.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

2.29%1.98%1.84%2.49%2.82%2.45%2.72%2.79%3.07%2.72%3.29%3.54%3.23%

Bogleheads Three-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%2022FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
-13.85%
-15.11%
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
-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.


10.00%15.00%20.00%25.00%30.00%35.00%JulyAugustSeptemberOctoberNovemberDecember
16.01%
20.47%
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components