Two Fund Portfolio
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
| Position | Category/Sector | Weight |
|---|---|---|
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 65% |
VXUS Vanguard Total International Stock ETF | Foreign Large Cap Equities | 35% |
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
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 month | 6 months | Year-To-Date | 1 year | 5 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% |
| Portfolio components: | ||||||
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% |
| Returns over 1 year are annualized | ||||||
Asset Correlations Table
| VTI | VXUS | |
|---|---|---|
| VTI | 1.00 | 0.83 |
| VXUS | 0.83 | 1.00 |
Dividend yield
Two Fund Portfolio granted a 2.33% dividend yield in the last twelve months.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Two Fund Portfolio | 2.33% | 2.20% | 1.95% | 1.77% | 2.41% | 2.71% | 2.35% | 2.65% | 2.71% | 2.87% | 2.60% | 3.09% |
| Portfolio components: | ||||||||||||
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.
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 | ||||
VXUS Vanguard Total International Stock ETF | 0.96 |
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 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, 2020 | 27 | Mar 23, 2020 | 107 | Aug 24, 2020 | 134 |
| -26.31% | Nov 9, 2021 | 233 | Oct 12, 2022 | — | — | — |
| -22.68% | May 2, 2011 | 108 | Oct 3, 2011 | 239 | Sep 13, 2012 | 347 |
| -19.02% | Jan 29, 2018 | 229 | Dec 24, 2018 | 129 | Jul 1, 2019 | 358 |
| -18.39% | May 22, 2015 | 183 | Feb 11, 2016 | 143 | Sep 6, 2016 | 326 |
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.