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Frank Armstrong’s Ideal Index Portfolio

Last updated Aug 13, 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 35 of 54

0.12%
0.00%0.94%
Dividend Yield

Rank 28 of 54

2.01%
0.00%4.34%
10Y Annualized Return

Rank 37 of 54

7.98%
4.13%64.70%
Sharpe Ratio

Rank 20 of 54

-0.32
-0.980.14
Maximum Drawdown

Rank 34 of 54

-31.49%
-91.88%-17.74%

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 $22,568 for a total return of roughly 125.68%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


-15.00%-10.00%-5.00%0.00%5.00%MarchAprilMayJuneJulyAugust
-3.58%
-2.76%
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components

Frank Armstrong’s Ideal Index PortfolioReturns

As of Aug 13, 2022, the Frank Armstrong’s Ideal Index Portfolio returned -8.10% Year-To-Date and 7.98% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark12.08%-4.97%-10.20%-3.65%11.89%11.81%
Frank Armstrong’s Ideal Index Portfolio7.07%-4.65%-7.47%-6.07%6.12%6.89%
VEU
Vanguard FTSE All-World ex-US ETF
7.95%-11.91%-12.82%-14.30%3.63%5.38%
VTV
Vanguard Value ETF
8.29%-1.81%-1.93%2.78%10.86%12.36%
VNQ
Vanguard Real Estate ETF
11.15%-1.24%-11.28%-1.33%8.37%8.67%
IJT
iShares S&P SmallCap 600 Growth ETF
15.48%-1.98%-11.50%-8.03%10.98%12.76%
IJS
iShares S&P SmallCap 600 Value ETF
13.51%0.64%-3.34%-1.31%9.84%11.98%
VV
Vanguard Large-Cap ETF
12.45%-5.09%-10.78%-4.45%13.78%13.93%
SHY
iShares 1-3 Year Treasury Bond ETF
-0.00%-1.56%-3.09%-3.70%0.69%0.62%

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 -0.32. 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.


-1.00-0.500.000.501.00MarchAprilMayJuneJulyAugust
-0.48
-0.20
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components

Frank Armstrong’s Ideal Index PortfolioDividends

Frank Armstrong’s Ideal Index Portfolio granted a 2.01% dividend yield in the last twelve months.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

2.01%1.71%1.73%2.55%2.73%2.20%2.36%2.34%2.43%2.18%2.51%2.81%2.31%

Frank Armstrong’s Ideal Index PortfolioDrawdowns Chart

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


-20.00%-15.00%-10.00%-5.00%0.00%SeptemberOctoberNovemberDecember2022FebruaryMarchAprilMayJuneJulyAugust
-8.16%
-10.77%
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
-17.54%May 2, 2011108Oct 3, 2011239Sep 13, 2012347
-15.26%Nov 9, 2021152Jun 16, 2022
-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 18.05%. 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%MarchAprilMayJuneJulyAugust
10.74%
16.68%
Frank Armstrong’s Ideal Index Portfolio
Benchmark (^GSPC)
Portfolio components

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