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Frank Armstrong’s Ideal Index Portfolio

Last updated Dec 3, 2022

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

Rank 34 of 54

0.12%
0.00%0.94%
Dividend Yield

Rank 25 of 54

2.19%
0.00%4.45%
10Y Annualized Return

Rank 36 of 54

7.45%
3.67%55.26%
Sharpe Ratio

Rank 5 of 54

-0.39
-1.010.60
Maximum Drawdown

Rank 34 of 54

-31.49%
-91.88%-19.55%

Frank Armstrong’s Ideal Index PortfolioAsset Allocation


Frank Armstrong’s Ideal Index PortfolioPerformance

The chart shows the growth of $10,000 invested in Frank Armstrong’s Ideal Index Portfolio in Jan 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $22,183 for a total return of roughly 121.83%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


-10.00%-5.00%0.00%5.00%JulyAugustSeptemberOctoberNovemberDecember
-1.28%
-1.21%
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components

Frank Armstrong’s Ideal Index PortfolioReturns

As of Dec 3, 2022, the Frank Armstrong’s Ideal Index Portfolio returned -10.47% Year-To-Date and 7.45% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark5.59%-2.52%-14.57%-9.78%9.04%11.20%
Frank Armstrong’s Ideal Index Portfolio6.11%-1.98%-9.05%-5.33%4.60%6.44%
VEU
Vanguard FTSE All-World ex-US ETF
12.59%-4.01%-13.18%-9.71%2.25%4.74%
VTV
Vanguard Value ETF
5.61%2.60%1.09%8.77%9.61%12.55%
VNQ
Vanguard Real Estate ETF
5.64%-10.50%-22.74%-13.82%4.57%7.28%
IJT
iShares S&P SmallCap 600 Growth ETF
4.40%0.50%-15.00%-9.46%7.46%12.13%
IJS
iShares S&P SmallCap 600 Value ETF
3.52%-0.62%-5.12%0.29%6.60%11.26%
VV
Vanguard Large-Cap ETF
5.64%-1.90%-15.04%-10.23%10.76%13.21%
SHY
iShares 1-3 Year Treasury Bond ETF
0.99%-1.27%-3.81%-4.02%0.63%0.54%

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 -0.39. A negative Sharpe ratio means that the risk-free rate is higher than the portfolio's return. This value does not convey any meaningful information.

The chart below displays rolling 12-month Sharpe Ratio.


-1.20-1.00-0.80-0.60-0.40-0.200.00JulyAugustSeptemberOctoberNovemberDecember
-0.45
-0.46
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components

Frank Armstrong’s Ideal Index PortfolioDividends

Frank Armstrong’s Ideal Index Portfolio granted a 2.19% dividend yield in the last twelve months.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

2.19%1.72%1.74%2.57%2.74%2.21%2.38%2.36%2.45%2.19%2.53%2.82%2.33%

Frank Armstrong’s Ideal Index PortfolioDrawdowns Chart

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


-25.00%-20.00%-15.00%-10.00%-5.00%0.00%2022FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
-9.73%
-15.11%
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
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 Frank Armstrong’s Ideal Index Portfolio 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
-19.24%Nov 9, 2021233Oct 12, 2022
-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
-5.13%Sep 17, 201242Nov 15, 201222Dec 18, 201264

Frank Armstrong’s Ideal Index PortfolioVolatility Chart

Current Frank Armstrong’s Ideal Index Portfolio volatility is 16.78%. 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.


10.00%15.00%20.00%25.00%30.00%35.00%JulyAugustSeptemberOctoberNovemberDecember
12.17%
20.47%
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components