Bogleheads Four-fund Portfolio
The Bogleheads Four-fund Portfolio is the extension of the Bogleheads Three-fund Portfolio with the addition of international bonds. It uses four fundamental asset classes: a U.S total stock market fund, a total international stock market fund, a total bond market fund, and a total international bond market. The portfolio could be replicated using four low-cost ETFs.
Asset Allocation
Performance
The chart shows the growth of an initial investment of $10,000 in Bogleheads Four-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 Quarterly
Returns
As of Sep 23, 2023, the Bogleheads Four-fund Portfolio returned 9.04% Year-To-Date and 7.33% of annualized return in the last 10 years.
| 1 month | 6 months | Year-To-Date | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | -1.55% | 9.05% | 12.97% | 17.44% | 8.37% | 9.90% |
| Bogleheads Four-fund Portfolio | -1.29% | 4.85% | 8.90% | 16.15% | 6.00% | 7.32% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | -1.91% | 9.02% | 13.03% | 17.85% | 9.27% | 11.26% |
BND Vanguard Total Bond Market ETF | -1.33% | -3.22% | -0.66% | 0.03% | 0.14% | 1.12% |
VEA Vanguard FTSE Developed Markets ETF | -0.35% | 2.91% | 7.92% | 23.85% | 3.33% | 4.11% |
BNDX Vanguard Total International Bond ETF | -0.91% | -0.97% | 2.34% | 1.80% | 0.04% | 1.82% |
| Returns over 1 year are annualized | ||||||
Asset Correlations Table
| BNDX | BND | VEA | VTI | |
|---|---|---|---|---|
| BNDX | 1.00 | 0.70 | -0.04 | -0.04 |
| BND | 0.70 | 1.00 | -0.04 | -0.07 |
| VEA | -0.04 | -0.04 | 1.00 | 0.82 |
| VTI | -0.04 | -0.07 | 0.82 | 1.00 |
Dividend yield
Bogleheads Four-fund Portfolio granted a 2.28% dividend yield in the last twelve months.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bogleheads Four-fund Portfolio | 2.28% | 2.21% | 2.12% | 1.82% | 2.58% | 2.90% | 2.49% | 2.75% | 2.80% | 3.07% | 2.66% | 3.16% |
| Portfolio components: | ||||||||||||
VTI Vanguard Total Stock Market ETF | 1.56% | 1.68% | 1.25% | 1.48% | 1.88% | 2.21% | 1.88% | 2.15% | 2.27% | 2.06% | 2.07% | 2.58% |
BND Vanguard Total Bond Market ETF | 3.03% | 2.65% | 2.06% | 2.36% | 2.97% | 3.15% | 2.93% | 2.97% | 3.12% | 3.46% | 3.56% | 4.26% |
VEA Vanguard FTSE Developed Markets ETF | 3.13% | 2.97% | 3.32% | 2.22% | 3.38% | 3.84% | 3.27% | 3.71% | 3.66% | 4.75% | 3.47% | 4.08% |
BNDX Vanguard Total International Bond ETF | 1.99% | 1.53% | 3.84% | 1.18% | 3.67% | 3.35% | 2.56% | 2.22% | 1.94% | 1.87% | 1.07% | 0.00% |
Expense Ratio
The Bogleheads Four-fund Portfolio has an expense ratio of 0.04% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 0.82 | ||||
BND Vanguard Total Bond Market ETF | -0.03 | ||||
VEA Vanguard FTSE Developed Markets ETF | 1.11 | ||||
BNDX Vanguard Total International Bond ETF | 0.21 |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below shows the maximum drawdowns of the Bogleheads Four-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 Four-fund Portfolio is 28.24%, recorded on Mar 23, 2020. It took 99 trading sessions for the portfolio to recover.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -28.24% | Feb 13, 2020 | 27 | Mar 23, 2020 | 99 | Aug 12, 2020 | 126 |
| -24.38% | Nov 9, 2021 | 233 | Oct 12, 2022 | — | — | — |
| -15.13% | Jan 29, 2018 | 229 | Dec 24, 2018 | 75 | Apr 12, 2019 | 304 |
| -13.8% | May 22, 2015 | 183 | Feb 11, 2016 | 117 | Jul 29, 2016 | 300 |
| -6.87% | Jul 7, 2014 | 73 | Oct 16, 2014 | 27 | Nov 24, 2014 | 100 |
Volatility Chart
The current Bogleheads Four-fund Portfolio volatility is 2.72%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.