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Simple Path to Wealth Portfolio
Performance
Risk-Adjusted Performance
Dividends
Drawdowns
Volatility
Diversification

Asset Allocation


BND 25%VTI 75%BondBondEquityEquity

Performance

Performance Chart


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The earliest data available for this chart is Apr 10, 2007, corresponding to the inception date of BND

Returns By Period

As of May 18, 2025, the Simple Path to Wealth Portfolio returned 1.62% Year-To-Date and 9.71% of annualized return in the last 10 years.


YTD1M6M1Y5Y*10Y*
^GSPC
S&P 500
1.30%12.79%1.49%12.35%15.12%10.89%
Simple Path to Wealth Portfolio1.62%9.71%1.70%11.09%11.96%9.71%
VTI
Vanguard Total Stock Market ETF
1.31%13.07%1.46%13.04%16.29%12.19%
BND
Vanguard Total Bond Market ETF
2.08%0.09%1.92%4.77%-0.92%1.50%
*Annualized

Monthly Returns

The table below presents the monthly returns of Simple Path to Wealth Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.


JanFebMarAprMayJunJulAugSepOctNovDecTotal
20252.42%-0.89%-4.36%-0.45%5.15%1.62%
20240.80%3.65%2.69%-3.86%3.98%2.53%2.01%1.96%1.85%-1.18%5.32%-2.72%17.94%
20236.02%-2.47%2.69%0.96%0.03%5.02%2.72%-1.62%-4.23%-2.36%8.18%4.87%20.74%
2022-5.06%-2.14%1.70%-7.83%0.03%-6.52%7.59%-3.50%-8.01%5.78%4.82%-4.68%-17.80%
2021-0.47%1.98%2.46%4.00%0.38%2.10%1.59%2.10%-3.62%5.02%-1.06%2.76%18.32%
20200.45%-5.55%-10.51%10.53%4.29%1.90%4.68%5.18%-2.78%-1.60%9.15%3.58%18.74%
20196.69%2.70%1.52%2.94%-4.45%5.58%1.10%-0.89%1.18%1.66%2.85%2.11%25.03%
20183.61%-3.11%-1.31%0.13%2.22%0.52%2.48%2.76%0.02%-5.77%1.65%-6.28%-3.63%
20171.44%2.93%0.03%1.00%0.94%0.72%1.51%0.32%1.72%1.62%2.26%1.02%16.62%
2016-3.98%0.22%5.44%0.60%1.30%0.71%3.14%0.08%0.17%-1.88%2.72%1.60%10.26%
2015-1.44%3.90%-0.74%0.38%0.85%-1.54%1.50%-4.64%-1.92%5.97%0.37%-1.65%0.59%
2014-1.99%3.73%0.34%0.25%1.84%1.99%-1.57%3.39%-1.72%2.24%2.07%-0.01%10.86%

Expense Ratio

Simple Path to Wealth Portfolio has an expense ratio of 0.03%, 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 Simple Path to Wealth Portfolio is 49, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.


The Risk-Adjusted Performance Rank of Simple Path to Wealth Portfolio is 4949
Overall Rank
The Sharpe Ratio Rank of Simple Path to Wealth Portfolio is 4848
Sharpe Ratio Rank
The Sortino Ratio Rank of Simple Path to Wealth Portfolio is 4747
Sortino Ratio Rank
The Omega Ratio Rank of Simple Path to Wealth Portfolio is 5050
Omega Ratio Rank
The Calmar Ratio Rank of Simple Path to Wealth Portfolio is 4949
Calmar Ratio Rank
The Martin Ratio Rank of Simple Path to Wealth Portfolio is 4949
Martin Ratio Rank
The risk-adjusted ranks indicate the investment's position relative to the market. A rank closer to 100 signifies top-performing investments, while a rank closer to 0 might suggest underperformance, based on the selected ratio. The values are calculated based on the past 12 months of returns.

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.



Portfolio components
Sharpe ratioSortino ratioOmega ratioCalmar ratioMartin ratio
VTI
Vanguard Total Stock Market ETF
0.661.121.170.742.80
BND
Vanguard Total Bond Market ETF
0.861.371.160.402.40

The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.

Simple Path to Wealth Portfolio Sharpe ratios as of May 18, 2025 (values are recalculated daily):

  • 1-Year: 0.74
  • 5-Year: 0.89
  • 10-Year: 0.69
  • All Time: 0.57

These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns (including price changes and dividends).

Compared to the broad market, where average Sharpe ratios range from 0.57 to 1.05, this portfolio's current Sharpe ratio falls between the 25th and 75th percentiles. This indicates that its risk-adjusted performance is in line with the majority of portfolios, suggesting a balanced approach to risk and return—likely suitable for a wide range of investors.

The chart below shows the rolling Sharpe ratio of Simple Path to Wealth Portfolio compared to the selected benchmark. This view highlights how the investment's risk-adjusted performance has changed over time. For deeper analysis or to customize the calculation, use the Sharpe ratio tool.


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Dividends

Dividend yield

Simple Path to Wealth Portfolio provided a 1.90% dividend yield over the last twelve months.


TTM20242023202220212020201920182017201620152014
Portfolio1.90%1.87%1.85%1.90%1.40%1.62%2.01%2.23%1.92%2.07%2.13%2.02%
VTI
Vanguard Total Stock Market ETF
1.28%1.27%1.44%1.67%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%
BND
Vanguard Total Bond Market ETF
3.76%3.67%3.09%2.60%1.97%2.22%2.72%2.81%2.54%2.51%2.57%2.79%

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 Simple Path to Wealth 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 Simple Path to Wealth Portfolio was 43.49%, occurring on Mar 9, 2009. Recovery took 467 trading sessions.

The current Simple Path to Wealth Portfolio drawdown is 1.99%.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-43.49%Oct 10, 2007355Mar 9, 2009467Jan 12, 2011822
-26.82%Feb 20, 202023Mar 23, 202092Aug 3, 2020115
-22.92%Dec 28, 2021202Oct 14, 2022320Jan 25, 2024522
-14.75%Sep 21, 201865Dec 24, 201866Apr 1, 2019131
-14.54%Feb 20, 202534Apr 8, 2025

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 2 assets, with an effective number of assets of 1.60, 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

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

^GSPCBNDVTIPortfolio
^GSPC1.00-0.160.990.99
BND-0.161.00-0.16-0.07
VTI0.99-0.161.000.99
Portfolio0.99-0.070.991.00
The correlation results are calculated based on daily price changes starting from Apr 11, 2007

AI Insight on Diversification


The portfolio is moderately diversified but leans toward concentration in equity exposure. The correlation matrix reveals that the portfolio has a very high positive correlation with VTI (0.99), indicating that the portfolio's performance closely tracks this equity position. This suggests that VTI is the dominant holding, heavily influencing the portfolio's overall returns and risk profile.

Conversely, the correlation between the portfolio and BND is slightly negative (-0.07), showing that the bond position provides some diversification benefits by moving somewhat independently of the portfolio's main equity exposure. The negative correlation between BND and VTI (-0.16) further supports that bonds serve as a diversifying asset, reducing overall portfolio volatility.

However, the near-perfect correlation between the portfolio and VTI implies limited diversification within the equity portion, as the portfolio essentially behaves like a single equity fund. The modest negative correlation with BND helps, but the portfolio's risk is still largely driven by equity market movements.

In summary, while the inclusion of BND adds a lowly correlated asset that aids diversification, the portfolio remains concentrated due to the dominant equity position in VTI. This structure provides some risk mitigation but is not fully diversified across multiple uncorrelated assets.

Last updated May 18, 2025