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Scott Burns Couch Portfolio

Last updated Dec 2, 2023

The Couch Potato Portfolio is a portfolio by Scott Burns, a finance columnist and co-founder of AssetBuilder.com, proposed in 1991. It's a dead-simple Lazy Portfolios with a 50/50 mix of stocks and bonds. The basic idea behind the portfolio is that stocks drive returns while bonds protect against market crashes and lower the overall portfolio's volatility.

Asset Allocation


TIP 50%VTI 50%BondBondEquityEquity
PositionCategory/SectorWeight
TIP
iShares TIPS Bond ETF
Inflation-Protected Bonds50%
VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities50%

Performance

The chart shows the growth of an initial investment of $10,000 in Scott Burns Couch Portfolio, 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


260.00%280.00%300.00%320.00%340.00%JulyAugustSeptemberOctoberNovemberDecember
279.03%
332.84%
Scott Burns Couch Portfolio
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Dec 5, 2003, corresponding to the inception date of TIP

Returns

As of Dec 2, 2023, the Scott Burns Couch Portfolio returned 11.05% Year-To-Date and 6.84% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
N/AN/AN/AN/AN/AN/A
Scott Burns Couch Portfolio11.05%4.52%3.94%6.05%7.51%6.88%
TIP
iShares TIPS Bond ETF
1.85%2.41%-0.20%-0.55%2.66%1.95%
VTI
Vanguard Total Stock Market ETF
20.72%9.25%8.07%13.58%11.92%11.34%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
2023-0.38%3.24%1.86%-1.38%-3.38%-1.68%6.06%

Sharpe Ratio

The current Scott Burns Couch Portfolio Sharpe ratio is 0.82. A Sharpe ratio between 0 and 1.0 is considered sub-optimal.

-1.000.001.002.003.000.82

The Sharpe ratio of Scott Burns Couch Portfolio lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio0.000.501.00JulyAugustSeptemberOctoberNovemberDecember
0.82
0.91
Scott Burns Couch Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Scott Burns Couch Portfolio granted a 2.29% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Scott Burns Couch Portfolio2.29%4.31%2.75%1.30%1.76%2.37%1.89%1.70%1.16%1.71%1.45%2.18%
TIP
iShares TIPS Bond ETF
3.11%6.96%4.28%1.17%1.75%2.71%2.07%1.48%0.34%1.67%1.15%2.22%
VTI
Vanguard Total Stock Market ETF
1.46%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%1.74%2.13%

Expense Ratio

The Scott Burns Couch Portfolio features an expense ratio of 0.11%, falling within the medium range. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.


0.19%
0.00%2.15%
0.03%
0.00%2.15%

Risk-Adjusted Performance

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 ratioSortino ratioOmega ratioCalmar ratioUlcer Index
TIP
iShares TIPS Bond ETF
0.07
VTI
Vanguard Total Stock Market ETF
0.96

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

TIPVTI
TIP1.00-0.12
VTI-0.121.00

Drawdowns Chart

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


-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%JulyAugustSeptemberOctoberNovemberDecember
-6.69%
-4.21%
Scott Burns Couch Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below displays the maximum drawdowns of the Scott Burns Couch Portfolio. 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 Scott Burns Couch Portfolio was 31.99%, occurring on Mar 9, 2009. Recovery took 393 trading sessions.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-31.99%May 20, 2008202Mar 9, 2009393Sep 28, 2010595
-19.76%Feb 20, 202020Mar 18, 202056Jun 8, 202076
-19.57%Dec 31, 2021189Sep 30, 2022
-10.63%Aug 30, 201880Dec 24, 201859Mar 21, 2019139
-8.3%Jul 25, 201150Oct 3, 201125Nov 7, 201175

Volatility Chart

The current Scott Burns Couch Portfolio volatility is 2.22%, 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.


1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%JulyAugustSeptemberOctoberNovemberDecember
2.22%
2.79%
Scott Burns Couch Portfolio
Benchmark (^GSPC)
Portfolio components
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