PortfoliosLab logo

Simple Path to Wealth Portfolio

Last updated Apr 1, 2023

The Simple Path to Wealth is a lazy portfolio proposed by JL Collins in his book The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life. The author suggests holding only one total market fund while building wealth and adding a total bond fund to the portfolio while preserving wealth.

Expense Ratio

Rank 11 of 55

Dividend Yield

Rank 32 of 55

10Y Annualized Return

Rank 16 of 55

Sharpe Ratio

Rank 31 of 55

Maximum Drawdown

Rank 34 of 55


Asset Allocation

BND 25%VTI 75%BondBondEquityEquity


The chart shows the growth of $10,000 invested in Simple Path to Wealth Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $32,441 for a total return of roughly 224.41%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly

Simple Path to Wealth Portfolio
Benchmark (^GSPC)
Portfolio components


As of Apr 1, 2023, the Simple Path to Wealth Portfolio returned 6.20% Year-To-Date and 9.30% of annualized return in the last 10 years.

1 monthYear-To-Date6 months1 year5 years (annualized)10 years (annualized)
Simple Path to Wealth Portfolio2.70%6.20%11.03%-8.64%8.33%9.30%
Vanguard Total Stock Market ETF
Vanguard Total Bond Market ETF

Sharpe 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 Simple Path to Wealth Portfolio Sharpe ratio is -0.46. 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.

Simple Path to Wealth Portfolio
Benchmark (^GSPC)
Portfolio components


Simple Path to Wealth Portfolio granted a 2.21% dividend yield in the last twelve months.


Dividend yield


Drawdowns Chart

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

Simple Path to Wealth Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below shows the maximum drawdowns of the Simple Path to Wealth 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 Simple Path to Wealth Portfolio is 43.49%, recorded on Mar 9, 2009. It took 467 trading sessions for the portfolio to recover.



To Bottom


To Recover



-43.49%Oct 10, 2007355Mar 9, 2009467Jan 12, 2011822
-26.82%Feb 20, 202023Mar 23, 202092Aug 3, 2020115
-22.92%Dec 28, 2021202Oct 14, 2022
-14.75%Sep 21, 201865Dec 24, 201866Apr 1, 2019131
-14.37%Jul 8, 201161Oct 3, 201178Jan 25, 2012139
-10.63%May 22, 2015183Feb 11, 201646Apr 19, 2016229
-7.76%Jan 29, 20189Feb 8, 2018115Jul 25, 2018124
-7.25%Sep 3, 202014Sep 23, 202033Nov 9, 202047
-7.04%Apr 3, 201243Jun 4, 201248Aug 10, 201291
-6.82%Jul 17, 200722Aug 15, 200732Oct 1, 200754

Volatility Chart

Current Simple Path to Wealth Portfolio volatility is 8.57%. 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.

Simple Path to Wealth Portfolio
Benchmark (^GSPC)
Portfolio components