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Two Fund Portfolio

Last updated Sep 23, 2023

This two-fund portfolio follows the boglehead concept of simple investing but is specifically for taxable accounts. It contains 60% VTI, which is a total market index fund containing large-cap, mid-cap, and small-cap companies in the united states. It contains 40% VXUS, a total market fund for companies in developed and emerging markets excluding the united states.

Asset Allocation


VTI 65%VXUS 35%EquityEquity
PositionCategory/SectorWeight
VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities65%
VXUS
Vanguard Total International Stock ETF
Foreign Large Cap Equities35%

Performance

The chart shows the growth of an initial investment of $10,000 in Two 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


0.00%5.00%10.00%15.00%AprilMayJuneJulyAugustSeptember
6.84%
8.61%
Two Fund Portfolio
Benchmark (^GSPC)
Portfolio components

Returns

As of Sep 23, 2023, the Two Fund Portfolio returned 10.91% Year-To-Date and 8.62% of annualized return in the last 10 years.


1 month6 monthsYear-To-Date1 year5 years (annualized)10 years (annualized)
Benchmark-2.61%8.79%12.52%14.96%8.09%9.81%
Two Fund Portfolio-2.03%7.21%10.91%16.15%6.97%8.62%
VTI
Vanguard Total Stock Market ETF
-2.56%9.30%13.03%15.82%9.08%11.23%
VXUS
Vanguard Total International Stock ETF
-1.05%3.29%6.91%16.24%2.92%3.69%

Asset Correlations Table

The table below shows the correlation coefficients between the assets in the portfolio.

VTIVXUS
VTI1.000.83
VXUS0.831.00

Sharpe Ratio

The current Two Fund Portfolio Sharpe ratio is 0.92. A Sharpe ratio between 0 and 1.0 is considered sub-optimal.

-1.000.001.002.003.004.000.92

The Sharpe ratio of Two Fund Portfolio lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio-0.500.000.501.00AprilMayJuneJulyAugustSeptember
0.92
0.81
Two Fund Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Two Fund Portfolio granted a 2.33% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Two Fund Portfolio2.33%2.20%1.95%1.77%2.41%2.71%2.35%2.65%2.71%2.87%2.60%3.09%
VTI
Vanguard Total Stock Market ETF
1.94%1.68%1.25%1.48%1.88%2.21%1.88%2.15%2.27%2.06%2.07%2.58%
VXUS
Vanguard Total International Stock ETF
3.06%3.15%3.25%2.32%3.40%3.64%3.23%3.56%3.54%4.37%3.58%4.04%

Expense Ratio

The Two 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.


0.07%
0.00%2.15%
0.03%
0.00%2.15%

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 ratioSortino ratioOmega ratioCalmar ratioUlcer Index
VTI
Vanguard Total Stock Market ETF
0.82
VXUS
Vanguard Total International Stock ETF
0.96

Drawdowns Chart

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


-18.00%-16.00%-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%AprilMayJuneJulyAugustSeptember
-10.11%
-9.93%
Two Fund Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below shows the maximum drawdowns of the Two 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 Two Fund Portfolio is 34.49%, recorded on Mar 23, 2020. It took 107 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-34.49%Feb 13, 202027Mar 23, 2020107Aug 24, 2020134
-26.31%Nov 9, 2021233Oct 12, 2022
-22.68%May 2, 2011108Oct 3, 2011239Sep 13, 2012347
-19.02%Jan 29, 2018229Dec 24, 2018129Jul 1, 2019358
-18.39%May 22, 2015183Feb 11, 2016143Sep 6, 2016326

Volatility Chart

The current Two Fund Portfolio volatility is 3.30%, 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.


2.00%2.50%3.00%3.50%4.00%4.50%5.00%5.50%AprilMayJuneJulyAugustSeptember
3.30%
3.41%
Two Fund Portfolio
Benchmark (^GSPC)
Portfolio components