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Bogleheads Three-fund Portfolio

Last updated Mar 18, 2023

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 20 of 55

0.04%
0.00%0.94%
Dividend Yield

Rank 24 of 55

2.27%
0.00%4.23%
10Y Annualized Return

Rank 22 of 55

7.49%
2.54%52.85%
Sharpe Ratio

Rank 15 of 55

-0.42
-0.920.64
Maximum Drawdown

Rank 43 of 55

-47.74%
-82.98%-16.15%

Asset Allocation


Performance

The chart shows the growth of $10,000 invested in Bogleheads Three-fund Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $24,460 for a total return of roughly 144.60%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


0.00%5.00%10.00%15.00%NovemberDecember2023FebruaryMarch
9.05%
6.47%
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Returns

As of Mar 18, 2023, the Bogleheads Three-fund Portfolio returned 2.24% Year-To-Date and 7.49% of annualized return in the last 10 years.


1 monthYear-To-Date6 months1 year5 years (annualized)10 years (annualized)
Benchmark-5.31%2.01%0.39%-10.12%7.32%9.71%
Bogleheads Three-fund Portfolio-4.64%2.24%3.35%-7.72%5.36%7.49%
VTI
Vanguard Total Stock Market ETF
-5.95%2.09%0.28%-9.69%8.45%11.27%
BND
Vanguard Total Bond Market ETF
1.47%3.10%2.05%-5.27%0.94%1.32%
VEA
Vanguard FTSE Developed Markets ETF
-6.42%1.76%8.84%-7.18%1.97%4.59%

Sharpe 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 -0.42. 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.


-1.20-1.00-0.80-0.60-0.40-0.20NovemberDecember2023FebruaryMarch
-0.42
-0.43
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Dividends

Bogleheads Three-fund Portfolio granted a 2.27% dividend yield in the last twelve months.


PeriodTTM20222021202020192018201720162015201420132012

Dividend yield

2.27%2.23%2.00%1.85%2.51%2.84%2.47%2.74%2.81%3.10%2.75%3.32%

Drawdowns Chart

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


-25.00%-20.00%-15.00%-10.00%NovemberDecember2023FebruaryMarch
-15.60%
-18.34%
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Worst 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 47.74%, recorded on Mar 9, 2009. It took 539 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-47.74%Nov 1, 2007339Mar 9, 2009539Apr 27, 2011878
-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
-9.48%Apr 3, 201242Jun 1, 201267Sep 6, 2012109
-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

Volatility Chart

Current Bogleheads Three-fund Portfolio volatility is 10.54%. 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%NovemberDecember2023FebruaryMarch
15.48%
21.17%
Bogleheads Three-fund Portfolio
Benchmark (^GSPC)
Portfolio components