Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 20% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 30% |
VTI Vanguard Total Stock Market ETF | Large Cap Blend Equities | 50% |
Performance
Performance Chart
The chart shows the growth of an initial investment of $10,000 in Bogleheads Three-fund Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Every 3 months.
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The earliest data available for this chart is Jul 26, 2007, corresponding to the inception date of VEA
Returns By Period
As of Apr 4, 2026, the Bogleheads Three-fund Portfolio returned -0.38% Year-To-Date and 10.28% of annualized return in the last 10 years.
| 1D | 1M | YTD | 6M | 1Y | 3Y* | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | 0.11% | -4.18% | -3.84% | -1.98% | 21.98% | 16.86% | 10.37% | 12.29% |
Portfolio Bogleheads Three-fund Portfolio | -0.11% | -3.32% | -0.38% | 1.91% | 22.50% | 14.70% | 8.19% | 10.28% |
| Portfolio components: | ||||||||
VTI Vanguard Total Stock Market ETF | 0.16% | -3.97% | -3.13% | -1.30% | 24.10% | 18.10% | 10.66% | 13.75% |
BND Vanguard Total Bond Market ETF | 0.22% | -0.91% | 0.31% | 0.97% | 3.73% | 3.53% | 0.30% | 1.70% |
VEA Vanguard FTSE Developed Markets ETF | -0.77% | -3.90% | 3.65% | 7.84% | 33.16% | 16.09% | 8.76% | 9.49% |
Monthly Returns
Based on dividend-adjusted daily data since Jul 27, 2007, Bogleheads Three-fund Portfolio's average daily return is +0.03%, while the average monthly return is +0.67%. At this rate, your investment would double in approximately 8.7 years.
Historically, 65% of months were positive and 35% were negative. The best month was Nov 2020 with a return of +10.4%, while the worst month was Oct 2008 at -15.6%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 6 months.
On a daily basis, Bogleheads Three-fund Portfolio closed higher 55% of trading days. The best single day was Oct 13, 2008 with a return of +11.6%, while the worst single day was Mar 12, 2020 at -9.1%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2.63% | 1.94% | -5.52% | 0.78% | -0.38% | ||||||||
| 2025 | 2.97% | 0.17% | -2.83% | 0.90% | 4.53% | 3.93% | 0.68% | 2.72% | 2.71% | 1.76% | 0.54% | 0.89% | 20.43% |
| 2024 | 0.20% | 3.21% | 2.92% | -3.68% | 4.11% | 1.22% | 2.32% | 2.23% | 1.60% | -2.40% | 3.75% | -2.90% | 12.88% |
| 2023 | 6.83% | -2.78% | 2.68% | 1.44% | -1.14% | 4.67% | 2.75% | -2.29% | -4.04% | -2.64% | 8.25% | 5.04% | 19.39% |
| 2022 | -4.60% | -2.26% | 1.23% | -7.39% | 0.55% | -7.16% | 6.73% | -4.17% | -8.41% | 5.63% | 7.12% | -3.75% | -16.74% |
| 2021 | -0.55% | 1.99% | 2.43% | 3.61% | 1.32% | 1.14% | 1.26% | 1.79% | -3.46% | 4.31% | -2.09% | 3.14% | 15.63% |
Benchmark Metrics
Bogleheads Three-fund Portfolio has an annualized alpha of 0.81%, beta of 0.77, and R² of 0.95 versus S&P 500 Index. Calculated based on daily prices since July 27, 2007.
- This portfolio participated in 84.65% of S&P 500 Index downside but only 81.50% of its upside — more exposed to losses than it benefited from rallies.
- Alpha
- 0.81%
- Beta
- 0.77
- R²
- 0.95
- Upside Capture
- 81.50%
- Downside Capture
- 84.65%
Expense Ratio
Bogleheads Three-fund Portfolio has an expense ratio of 0.03%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Return for Risk
Risk / Return Rank
Bogleheads Three-fund Portfolio ranks 59 for risk / return — on par with similar portfolios. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.
Return / Risk — by metrics
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.32 | 0.88 | +0.43 |
Sortino ratioReturn per unit of downside risk | 1.94 | 1.37 | +0.57 |
Omega ratioGain probability vs. loss probability | 1.29 | 1.21 | +0.08 |
Calmar ratioReturn relative to maximum drawdown | 2.01 | 1.39 | +0.62 |
Martin ratioReturn relative to average drawdown | 8.93 | 6.43 | +2.50 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.
| Risk / Return Rank | Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 52 | 0.94 | 1.47 | 1.22 | 1.53 | 7.16 |
BND Vanguard Total Bond Market ETF | 47 | 1.00 | 1.42 | 1.18 | 1.71 | 4.64 |
VEA Vanguard FTSE Developed Markets ETF | 81 | 1.73 | 2.36 | 1.35 | 2.64 | 10.14 |
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Dividends
Dividend yield
Bogleheads Three-fund Portfolio provided a 2.24% dividend yield over the last twelve months.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.24% | 2.30% | 2.37% | 2.28% | 2.23% | 1.98% | 1.80% | 2.34% | 2.59% | 2.19% | 2.38% | 2.38% |
| Portfolio components: | ||||||||||||
VTI Vanguard Total Stock Market ETF | 1.16% | 1.12% | 1.27% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% |
BND Vanguard Total Bond Market ETF | 3.92% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VEA Vanguard FTSE Developed Markets ETF | 2.90% | 3.22% | 3.35% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Bogleheads Three-fund Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Bogleheads Three-fund Portfolio was 47.73%, occurring on Mar 9, 2009. Recovery took 539 trading sessions.
The current Bogleheads Three-fund Portfolio drawdown is 5.14%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -47.73% | Nov 1, 2007 | 339 | Mar 9, 2009 | 539 | Apr 27, 2011 | 878 |
| -28.12% | Feb 13, 2020 | 27 | Mar 23, 2020 | 95 | Aug 6, 2020 | 122 |
| -24.44% | Nov 9, 2021 | 235 | Oct 14, 2022 | 329 | Feb 7, 2024 | 564 |
| -17.25% | May 2, 2011 | 108 | Oct 3, 2011 | 111 | Mar 13, 2012 | 219 |
| -15.25% | Jan 29, 2018 | 229 | Dec 24, 2018 | 81 | Apr 23, 2019 | 310 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 3 assets, with an effective number of assets of 2.63, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| Benchmark | BND | VEA | VTI | Portfolio | |
|---|---|---|---|---|---|
| Benchmark | 1.00 | -0.14 | 0.83 | 0.99 | 0.96 |
| BND | -0.14 | 1.00 | -0.08 | -0.14 | -0.06 |
| VEA | 0.83 | -0.08 | 1.00 | 0.83 | 0.94 |
| VTI | 0.99 | -0.14 | 0.83 | 1.00 | 0.97 |
| Portfolio | 0.96 | -0.06 | 0.94 | 0.97 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified with a mix of bond and equity positions that exhibit varying degrees of correlation. The bond position (BND) has a very low or slightly negative correlation with the equity positions (VEA and VTI), which supports diversification by reducing overall portfolio volatility. Specifically, BND's correlations with VEA (-0.08) and VTI (-0.14) indicate that bonds move somewhat independently or inversely relative to these equity holdings, enhancing risk reduction.
Among the equity positions, VEA (an international equity fund) and VTI (a total U.S. equity market fund) are highly correlated at 0.83, which suggests that these two equity components tend to move in tandem. This high correlation somewhat limits diversification benefits within the equity portion of the portfolio, as these positions are likely to respond similarly to market events.
Looking at the portfolio's correlation with individual positions, the portfolio correlates very strongly with VTI (0.97) and VEA (0.94), but only weakly with BND (-0.06). This implies that the portfolio's overall performance is heavily influenced by the equity holdings, particularly VTI, which likely represents the largest allocation or dominant driver of returns and risk. The bond position, while important for diversification, has a minimal direct correlation with the portfolio's total returns, reflecting its role as a stabilizer rather than a performance driver.
In summary, the portfolio benefits from the inclusion of bonds to reduce risk, but the high correlation between the two equity funds indicates a concentration within the equity segment. The dominance of VTI in the portfolio's behavior suggests it is not fully balanced across asset classes. Overall, the portfolio is moderately diversified but leans toward equity concentration, particularly in U.S. equities, which could expose it to market-specific risks.