Scott Burns Margaritaville Portfolio
Margaritaville Portfolio is a lazy portfolio created by Scott Burns, a popular Dallas Morning News financial columnist, in 2004. it consists of 3 assets weighted equally: a US equity index fund, a broad international equity index fund, and a TIPS index fund. Burns named it the Margaritaville Portfolio after the traditional margarita, which includes equal parts of tequila, triple sec, and lime juice.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
TIP iShares TIPS Bond ETF | Inflation-Protected Bonds | 33.34% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 33.33% |
VXUS Vanguard Total International Stock ETF | Foreign Large Cap Equities | 33.33% |
Performance
Performance Chart
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The earliest data available for this chart is Jan 28, 2011, corresponding to the inception date of VXUS
Returns By Period
As of May 25, 2025, the Scott Burns Margaritaville Portfolio returned 5.12% Year-To-Date and 6.84% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | -1.34% | 5.80% | -2.79% | 9.39% | 14.45% | 10.68% |
| Scott Burns Margaritaville Portfolio | 5.12% | 3.59% | 3.59% | 9.35% | 9.50% | 6.84% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | -1.30% | 5.97% | -3.22% | 10.31% | 15.52% | 11.97% |
VXUS Vanguard Total International Stock ETF | 13.61% | 5.43% | 11.79% | 11.83% | 11.34% | 5.50% |
TIP iShares TIPS Bond ETF | 3.04% | -0.62% | 2.20% | 5.02% | 1.27% | 2.27% |
Monthly Returns
The table below presents the monthly returns of Scott Burns Margaritaville Portfolio, 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2.59% | 0.70% | -1.53% | 0.73% | 2.58% | 5.12% | |||||||
| 2024 | -0.09% | 2.39% | 2.41% | -2.79% | 3.51% | 1.01% | 2.08% | 1.78% | 2.05% | -2.35% | 2.37% | -2.55% | 9.99% |
| 2023 | 5.89% | -2.70% | 2.80% | 1.00% | -1.42% | 3.64% | 2.54% | -2.40% | -3.39% | -2.24% | 6.78% | 4.30% | 15.04% |
| 2022 | -3.65% | -1.48% | 0.30% | -5.92% | 0.07% | -6.38% | 5.76% | -3.64% | -8.61% | 4.30% | 6.70% | -3.13% | -15.73% |
| 2021 | 0.06% | 1.25% | 1.77% | 3.08% | 1.51% | 0.96% | 1.10% | 1.38% | -2.90% | 3.55% | -1.63% | 2.59% | 13.28% |
| 2020 | -0.44% | -4.50% | -10.29% | 7.90% | 3.75% | 2.52% | 4.08% | 4.19% | -1.98% | -1.64% | 8.52% | 3.97% | 15.47% |
| 2019 | 5.89% | 1.72% | 1.36% | 2.31% | -3.43% | 4.48% | -0.09% | -0.64% | 1.09% | 1.84% | 1.70% | 2.53% | 20.10% |
| 2018 | 3.36% | -3.39% | -0.45% | 0.26% | 0.47% | -0.23% | 1.78% | 0.56% | -0.18% | -5.82% | 1.37% | -4.43% | -6.87% |
| 2017 | 2.27% | 1.81% | 1.04% | 1.19% | 1.32% | 0.24% | 1.90% | 0.57% | 1.21% | 1.48% | 1.26% | 1.40% | 16.86% |
| 2016 | -3.18% | -0.37% | 5.54% | 1.01% | 0.03% | 0.54% | 3.05% | 0.11% | 0.87% | -1.55% | 0.13% | 1.33% | 7.50% |
| 2015 | 0.27% | 3.33% | -1.04% | 2.03% | -0.22% | -1.82% | 0.56% | -4.82% | -2.34% | 4.85% | -0.29% | -1.77% | -1.64% |
| 2014 | -2.16% | 3.56% | 0.15% | 0.88% | 2.01% | 1.62% | -1.27% | 1.96% | -3.22% | 1.19% | 0.72% | -1.61% | 3.69% |
Expense Ratio
Scott Burns Margaritaville Portfolio has an expense ratio of 0.10%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Scott Burns Margaritaville Portfolio is 65, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
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 | |
|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 0.55 | 0.82 | 1.12 | 0.51 | 1.90 |
VXUS Vanguard Total International Stock ETF | 0.76 | 1.04 | 1.14 | 0.82 | 2.61 |
TIP iShares TIPS Bond ETF | 1.09 | 1.36 | 1.17 | 0.47 | 2.94 |
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Dividends
Dividend yield
Scott Burns Margaritaville Portfolio provided a 2.39% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.39% | 2.39% | 2.47% | 3.91% | 2.86% | 1.58% | 2.20% | 2.64% | 2.17% | 2.11% | 1.72% | 2.28% |
| Portfolio components: | ||||||||||||
VTI Vanguard Total Stock Market ETF | 1.32% | 1.27% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% |
VXUS Vanguard Total International Stock ETF | 2.92% | 3.37% | 3.25% | 3.09% | 3.10% | 2.14% | 3.06% | 3.17% | 2.73% | 2.93% | 2.83% | 3.40% |
TIP iShares TIPS Bond ETF | 2.92% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% |
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.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Scott Burns Margaritaville 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 Margaritaville Portfolio was 23.92%, occurring on Mar 18, 2020. Recovery took 87 trading sessions.
The current Scott Burns Margaritaville Portfolio drawdown is 1.00%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -23.92% | Feb 13, 2020 | 24 | Mar 18, 2020 | 87 | Jul 22, 2020 | 111 |
| -22.48% | Nov 9, 2021 | 233 | Oct 12, 2022 | 360 | Mar 20, 2024 | 593 |
| -14.2% | May 2, 2011 | 108 | Oct 3, 2011 | 95 | Feb 17, 2012 | 203 |
| -13.75% | Jan 29, 2018 | 229 | Dec 24, 2018 | 122 | Jun 20, 2019 | 351 |
| -13.56% | Apr 28, 2015 | 201 | Feb 11, 2016 | 131 | Aug 18, 2016 | 332 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 3 assets, with an effective number of assets of 3.00, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | TIP | VXUS | VTI | Portfolio | |
|---|---|---|---|---|---|
| ^GSPC | 1.00 | -0.07 | 0.82 | 0.99 | 0.92 |
| TIP | -0.07 | 1.00 | -0.01 | -0.07 | 0.12 |
| VXUS | 0.82 | -0.01 | 1.00 | 0.82 | 0.94 |
| VTI | 0.99 | -0.07 | 0.82 | 1.00 | 0.92 |
| Portfolio | 0.92 | 0.12 | 0.94 | 0.92 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified but leans toward concentration in equity positions. The correlation matrix shows that VXUS (an international equity fund) and VTI (a U.S. total stock market fund) are highly correlated at 0.82, indicating these two equity positions move closely together and thus provide limited diversification benefits relative to each other. This high correlation suggests that the portfolio's equity exposure is somewhat concentrated geographically and by asset class.
TIP (Treasury Inflation-Protected Securities) exhibits very low or slightly negative correlations with VXUS (-0.01) and VTI (-0.07), which is beneficial for diversification. TIP’s low correlation with equities helps reduce overall portfolio risk by providing an asset class that behaves differently under various market conditions.
Looking at the portfolio’s correlation with individual positions, it is strongly correlated with VXUS (0.94) and VTI (0.92), indicating that the portfolio’s performance is heavily influenced by these two equity holdings. In contrast, the portfolio’s correlation with TIP is much lower (0.12), showing that TIP has a smaller influence on the portfolio’s overall returns.
Given the dominance of VXUS and VTI in driving portfolio returns and their high correlation, the portfolio is more concentrated in equities than diversified across truly independent asset classes. While TIP adds some diversification, the portfolio’s risk and return profile will largely mirror global equity markets. To improve diversification, the portfolio could consider increasing allocations to assets with lower correlations to equities or adding alternative asset classes.