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Frank Armstrong’s Ideal Index Portfolio

Last updated Mar 18, 2023

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 35 of 55

0.12%
0.00%0.94%
Dividend Yield

Rank 21 of 55

2.33%
0.00%4.23%
10Y Annualized Return

Rank 40 of 55

5.40%
2.54%52.85%
Sharpe Ratio

Rank 26 of 55

-0.48
-0.920.64
Maximum Drawdown

Rank 37 of 55

-44.57%
-82.98%-16.15%

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


0.00%5.00%10.00%15.00%NovemberDecember2023FebruaryMarch
6.69%
6.48%
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components

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 monthYear-To-Date6 months1 year5 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%
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%

Sharpe 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 -0.48. 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.


-1.20-1.00-0.80-0.60-0.40-0.20NovemberDecember2023FebruaryMarch
-0.48
-0.43
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components

Dividends

Frank Armstrong’s Ideal Index Portfolio granted a 2.33% dividend yield in the last twelve months.


PeriodTTM20222021202020192018201720162015201420132012

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.


-25.00%-20.00%-15.00%-10.00%-5.00%NovemberDecember2023FebruaryMarch
-12.30%
-18.34%
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components

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, 2007339Mar 9, 2009480Feb 1, 2011819
-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
-7.61%Jul 16, 200723Aug 15, 200732Oct 1, 200755
-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

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.


5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%NovemberDecember2023FebruaryMarch
13.03%
21.17%
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components