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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 16 of 53

0.04%
0.00%0.94%
Dividend Yield

Rank 17 of 53

2.19%
0.00%3.84%
10Y Annualized Return

Rank 20 of 53

9.43%
3.30%29.91%
Sharpe Ratio

Rank 29 of 53

-0.63
-1.860.45
Maximum Drawdown

Rank 34 of 53

-28.12%
-48.20%-10.21%

Bogleheads Three-fund PortfolioAsset Allocation


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 $27,481 for a total return of roughly 174.81%. 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 May 17, 2022, the Bogleheads Three-fund Portfolio returned -14.70% Year-To-Date and 9.43% of annualized return in the last 10 years.


1MYTD6M1Y5Y10Y
Benchmark-8.76%-15.91%-14.41%-3.97%10.80%11.90%
Bogleheads Three-fund Portfolio-7.08%-14.70%-15.03%-8.53%7.71%9.43%
VTI
Vanguard Total Stock Market ETF
-9.41%-16.94%-16.75%-6.05%12.05%13.67%
BND
Vanguard Total Bond Market ETF
-1.11%-9.57%-9.74%-8.76%1.10%1.58%
VEA
Vanguard FTSE Developed Markets ETF
-7.23%-14.44%-15.81%-12.85%4.01%7.00%

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 -0.63. 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 2.19% dividend yield in the last twelve months, as of May 17, 2022.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

2.19%1.96%1.81%2.46%2.78%2.42%2.69%2.76%3.03%2.69%3.25%3.49%3.19%

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.


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
-16.98%Nov 9, 2021128May 12, 2022
-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 8.31%. 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

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