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Frank Armstrong’s Ideal Index Portfolio

The portfolio proposed by investment advisor Frank Armstrong in his book The Informed Investor: A Hype-Free Guide to Constructing a Sound Financial Portfolio.

Expense Ratio
0.13%
Dividend Yield
1.45%

Frank Armstrong’s Ideal Index PortfolioAsset Allocation


S&P 500

Frank Armstrong’s Ideal Index PortfolioPerformance

The chart shows the growth of $10,000 invested in Frank Armstrong’s Ideal Index Portfolio on Jan 5, 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $23,409 for a total return of roughly 134.09%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


Frank Armstrong’s Ideal Index Portfolio
Benchmark (S&P 500)
Portfolio components

Frank Armstrong’s Ideal Index PortfolioReturns

As of Apr 18, 2021, the Frank Armstrong’s Ideal Index Portfolio returned 9.04% Year-To-Date and 7.22% of annualized return in the last 10 years.


1MYTD6M1Y5Y10Y
Frank Armstrong’s Ideal Index Portfolio2.13%9.04%19.91%36.80%9.52%7.22%
IJS
iShares S&P SmallCap 600 Value ETF
-1.11%26.41%54.52%97.20%13.98%12.31%
IJT
iShares S&P SmallCap 600 Growth ETF
1.10%15.08%38.91%80.15%16.82%13.82%
SHY
iShares 1-3 Year Treasury Bond ETF
0.01%-0.06%-0.01%0.15%1.58%1.14%
VEU
Vanguard FTSE All-World ex-US ETF
3.27%8.15%23.37%49.43%10.41%5.34%
VNQ
Vanguard Real Estate ETF
5.39%13.84%21.55%31.36%7.13%9.24%
VTV
Vanguard Value ETF
3.64%14.40%26.44%41.63%13.01%11.97%
VV
Vanguard Large Cap ETF
7.00%11.59%21.26%50.41%17.60%14.58%

Frank Armstrong’s Ideal Index PortfolioSharpe 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 Frank Armstrong’s Ideal Index Portfolio Sharpe ratio is 2.79. A Sharpe ratio higher than 2.0 is considered very good.

The chart below displays rolling 12-month Sharpe Ratio.


Frank Armstrong’s Ideal Index Portfolio
Benchmark (S&P 500)
Portfolio components

Frank Armstrong’s Ideal Index PortfolioDividends

Frank Armstrong’s Ideal Index Portfolio granted a 1.45% dividend yield in the last twelve months, as of Apr 18, 2021.


PeriodTTM20202019201820172016201520142013201220112010
Dividend yield
1.45%1.68%2.42%2.51%1.96%2.04%1.97%1.98%1.72%1.95%2.13%1.73%

Frank Armstrong’s Ideal Index PortfolioDrawdowns Chart

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


Frank Armstrong’s Ideal Index Portfolio
Benchmark (S&P 500)
Portfolio components

Frank Armstrong’s Ideal Index PortfolioWorst Drawdowns

The table below shows the maximum drawdowns of the Frank Armstrong’s Ideal Index 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 {{portfolioName}} is 25.37%, recorded on Mar 23, 2020. It took 161 trading sessions for the portfolio to recover.


Depth
Start
To Bottom
Bottom
To Recover
End
Total
-25.37%Jan 21, 202044Mar 23, 2020161Nov 9, 2020205
-17.54%May 2, 2011108Oct 3, 2011239Sep 13, 2012347
-13.19%Apr 29, 2015200Feb 11, 2016117Jul 29, 2016317
-12.47%Jan 29, 2018229Dec 24, 201886Apr 30, 2019315
-10.76%Apr 26, 201030Jun 7, 201084Oct 5, 2010114
-7.29%Jan 20, 201014Feb 8, 201021Mar 10, 201035
-6.42%May 22, 201323Jun 24, 201358Sep 16, 201381
-6.02%Jul 7, 201470Oct 13, 201479Feb 5, 2015149
-5.14%Sep 17, 201242Nov 15, 201222Dec 18, 201264
-4.81%Feb 22, 201117Mar 16, 201112Apr 1, 201129

Frank Armstrong’s Ideal Index PortfolioVolatility Chart

Current Frank Armstrong’s Ideal Index Portfolio volatility is 11.86%. 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.


Frank Armstrong’s Ideal Index Portfolio
Benchmark (S&P 500)
Portfolio components

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