Four Fund Strategy
Equally divides investments among growth and income, growth, aggressive growth, and international funds. It lacks a bond component, differing from Ramsey's usual advice.
VTIAX VSMAX VFIAX VIMAX
Asset Allocation
Performance
Performance Chart
The chart shows the growth of an initial investment of $10,000 in Four Fund Strategy, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly
The earliest data available for this chart is Nov 29, 2010, corresponding to the inception date of VTIAX
Returns By Period
As of Oct 17, 2024, the Four Fund Strategy returned 16.80% Year-To-Date and 10.29% of annualized return in the last 10 years.
| Year-To-Date | 1 month | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 22.49% | 3.72% | 16.33% | 33.60% | 14.41% | 11.99% |
| Four Fund Strategy | 16.80% | 3.47% | 14.94% | 31.90% | 11.58% | 10.19% |
| Portfolio components: | ||||||
VTIAX Vanguard Total International Stock Index Fund Admiral Shares | 11.21% | 1.52% | 10.84% | 24.36% | 6.90% | 5.65% |
VSMAX Vanguard Small-Cap Index Fund Admiral Shares | 14.76% | 4.10% | 15.75% | 32.80% | 11.09% | 10.10% |
VFIAX Vanguard 500 Index Fund Admiral Shares | 23.80% | 3.78% | 17.36% | 37.33% | 16.21% | 13.92% |
VIMAX Vanguard Mid-Cap Index Fund Admiral Shares | 17.27% | 4.43% | 15.55% | 32.85% | 11.72% | 10.78% |
Monthly Returns
The table below presents the monthly returns of Four Fund Strategy, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | -1.06% | 4.82% | 3.71% | -4.41% | 3.92% | 0.22% | 3.71% | 1.87% | 2.31% | 16.80% | |||
| 2023 | 8.20% | -2.89% | 0.35% | 0.34% | -1.89% | 7.03% | 3.89% | -3.33% | -4.65% | -4.05% | 9.20% | 6.73% | 18.96% |
| 2022 | -5.95% | -1.55% | 1.85% | -7.83% | 0.33% | -8.85% | 8.26% | -3.42% | -9.66% | 7.48% | 7.31% | -4.79% | -17.53% |
| 2021 | 0.13% | 4.13% | 2.50% | 4.25% | 1.17% | 1.27% | 0.24% | 2.45% | -3.84% | 5.29% | -2.97% | 3.99% | 19.74% |
| 2020 | -1.41% | -8.10% | -17.16% | 12.46% | 6.14% | 2.66% | 5.18% | 4.68% | -2.56% | -0.75% | 13.38% | 5.34% | 16.98% |
| 2019 | 9.52% | 3.51% | 0.75% | 3.54% | -6.30% | 6.75% | 0.53% | -2.67% | 2.00% | 2.07% | 3.02% | 2.96% | 27.84% |
| 2018 | 4.63% | -4.24% | -0.56% | 0.34% | 1.84% | 0.08% | 2.66% | 2.00% | -0.30% | -8.42% | 1.96% | -8.73% | -9.32% |
| 2017 | 2.60% | 2.72% | 0.69% | 1.31% | 1.05% | 1.00% | 2.08% | -0.14% | 2.62% | 1.82% | 2.53% | 1.12% | 21.17% |
| 2016 | -6.43% | -0.07% | 7.83% | 1.23% | 1.14% | -0.12% | 4.46% | 0.40% | 0.56% | -2.69% | 3.68% | 1.63% | 11.50% |
| 2015 | -1.73% | 5.77% | -0.40% | 0.98% | 0.83% | -1.83% | 0.56% | -6.06% | -3.63% | 6.59% | 0.27% | -2.62% | -1.95% |
| 2014 | -3.14% | 5.26% | 0.15% | -0.28% | 1.93% | 2.94% | -2.61% | 3.69% | -3.72% | 2.52% | 1.57% | -0.54% | 7.58% |
| 2013 | 5.40% | 0.73% | 3.45% | 1.84% | 1.18% | -1.80% | 5.50% | -2.56% | 5.15% | 3.69% | 1.97% | 2.35% | 30.00% |
Expense Ratio
Four Fund Strategy has an expense ratio of 0.06%, which is considered low compared to other funds. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Four Fund Strategy is 35, suggesting that the investment has average results relative to other portfolios in terms of risk-adjusted performance. This ranking is determined by the cumulative values of the indicators listed below.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
VTIAX Vanguard Total International Stock Index Fund Admiral Shares | 1.84 | 2.58 | 1.33 | 1.23 | 11.58 |
VSMAX Vanguard Small-Cap Index Fund Admiral Shares | 1.77 | 2.48 | 1.30 | 1.28 | 9.46 |
VFIAX Vanguard 500 Index Fund Admiral Shares | 2.84 | 3.77 | 1.52 | 3.04 | 17.61 |
VIMAX Vanguard Mid-Cap Index Fund Admiral Shares | 2.37 | 3.27 | 1.41 | 1.37 | 13.47 |
Dividends
Dividend yield
Four Fund Strategy granted a 1.74% dividend yield in the last twelve months.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Four Fund Strategy | 1.74% | 1.93% | 1.96% | 1.66% | 1.55% | 1.94% | 2.17% | 1.80% | 1.97% | 1.97% | 1.99% | 1.76% |
| Portfolio components: | ||||||||||||
VTIAX Vanguard Total International Stock Index Fund Admiral Shares | 2.84% | 3.21% | 3.04% | 3.05% | 2.10% | 3.04% | 3.16% | 2.73% | 2.93% | 2.84% | 3.40% | 2.71% |
VSMAX Vanguard Small-Cap Index Fund Admiral Shares | 1.36% | 1.56% | 1.54% | 1.24% | 1.14% | 1.39% | 1.67% | 1.35% | 1.49% | 1.48% | 1.43% | 1.31% |
VFIAX Vanguard 500 Index Fund Admiral Shares | 1.26% | 1.45% | 1.68% | 1.24% | 1.53% | 1.87% | 2.05% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
VIMAX Vanguard Mid-Cap Index Fund Admiral Shares | 1.49% | 1.51% | 1.59% | 1.11% | 1.44% | 1.47% | 1.82% | 1.35% | 1.45% | 1.47% | 1.29% | 1.17% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
Worst Drawdowns
The table below displays the maximum drawdowns of the Four Fund Strategy. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Four Fund Strategy was 37.04%, occurring on Mar 23, 2020. Recovery took 114 trading sessions.
The current Four Fund Strategy drawdown is 0.07%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -37.04% | Feb 20, 2020 | 23 | Mar 23, 2020 | 114 | Sep 2, 2020 | 137 |
| -26.25% | Nov 9, 2021 | 235 | Oct 14, 2022 | 344 | Feb 29, 2024 | 579 |
| -24.6% | May 2, 2011 | 108 | Oct 3, 2011 | 239 | Sep 13, 2012 | 347 |
| -20% | Aug 30, 2018 | 80 | Dec 24, 2018 | 89 | May 3, 2019 | 169 |
| -19.79% | May 22, 2015 | 183 | Feb 11, 2016 | 134 | Aug 23, 2016 | 317 |
Volatility
Volatility Chart
The current Four Fund Strategy volatility is 3.07%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
Diversification
Asset Correlations Table
| VTIAX | VSMAX | VFIAX | VIMAX | |
|---|---|---|---|---|
| VTIAX | 1.00 | 0.77 | 0.81 | 0.80 |
| VSMAX | 0.77 | 1.00 | 0.88 | 0.96 |
| VFIAX | 0.81 | 0.88 | 1.00 | 0.93 |
| VIMAX | 0.80 | 0.96 | 0.93 | 1.00 |