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.
Asset Allocation
Performance
The chart shows the growth of $10,000 invested in Frank Armstrong’s Ideal Index Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $20,925 for a total return of roughly 109.25%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Returns
As of Mar 18, 2023, the Frank Armstrong’s Ideal Index Portfolio returned 0.17% Year-To-Date and 5.40% of annualized return in the last 10 years.
| 1 month | Year-To-Date | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | -5.31% | 2.01% | 0.39% | -10.12% | 7.32% | 9.71% |
| Frank Armstrong’s Ideal Index Portfolio | -5.25% | 0.17% | 2.11% | -6.96% | 3.73% | 5.40% |
| Portfolio components: | ||||||
VEU Vanguard FTSE All-World ex-US ETF | -6.43% | 1.08% | 6.32% | -8.17% | 1.24% | 3.89% |
VTV Vanguard Value ETF | -8.04% | -5.43% | 0.15% | -6.20% | 7.15% | 10.13% |
VNQ Vanguard Real Estate ETF | -10.54% | -2.34% | -8.54% | -20.26% | 4.86% | 5.52% |
IJT iShares S&P SmallCap 600 Growth ETF | -9.73% | -2.00% | -2.39% | -14.37% | 4.27% | 9.55% |
IJS iShares S&P SmallCap 600 Value ETF | -12.59% | -1.48% | 0.68% | -10.89% | 4.45% | 8.79% |
VV Vanguard Large-Cap ETF | -5.08% | 2.65% | 0.95% | -9.25% | 9.01% | 11.66% |
SHY iShares 1-3 Year Treasury Bond ETF | 1.66% | 1.75% | 1.92% | -0.34% | 1.04% | 0.69% |
| Returns over 1 year are annualized | ||||||
Dividends
Frank Armstrong’s Ideal Index Portfolio granted a 2.33% dividend yield in the last twelve months.
| Period | TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 2.33% | 2.21% | 1.74% | 1.76% | 2.59% | 2.77% | 2.24% | 2.40% | 2.38% | 2.47% | 2.22% | 2.55% |
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 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 Frank Armstrong’s Ideal Index Portfolio is 44.57%, recorded on Mar 9, 2009. It took 480 trading sessions for the portfolio to recover.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -44.57% | Nov 1, 2007 | 339 | Mar 9, 2009 | 480 | Feb 1, 2011 | 819 |
| -25.37% | Jan 21, 2020 | 44 | Mar 23, 2020 | 161 | Nov 9, 2020 | 205 |
| -19.24% | Nov 9, 2021 | 233 | Oct 12, 2022 | — | — | — |
| -17.54% | May 2, 2011 | 108 | Oct 3, 2011 | 239 | Sep 13, 2012 | 347 |
| -13.19% | Apr 29, 2015 | 200 | Feb 11, 2016 | 117 | Jul 29, 2016 | 317 |
| -12.47% | Jan 29, 2018 | 229 | Dec 24, 2018 | 86 | Apr 30, 2019 | 315 |
| -7.61% | Jul 16, 2007 | 23 | Aug 15, 2007 | 32 | Oct 1, 2007 | 55 |
| -6.42% | May 22, 2013 | 23 | Jun 24, 2013 | 58 | Sep 16, 2013 | 81 |
| -6.02% | Jul 7, 2014 | 70 | Oct 13, 2014 | 79 | Feb 5, 2015 | 149 |
| -5.13% | Sep 17, 2012 | 42 | Nov 15, 2012 | 22 | Dec 18, 2012 | 64 |
Volatility Chart
Current Frank Armstrong’s Ideal Index Portfolio volatility is 29.18%. 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.