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Simple Path to Wealth Portfolio

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
0.03%
Dividend Yield
1.57%

Simple Path to Wealth PortfolioAsset Allocation


BND 25%VTI 75%BondBondEquityEquity
S&P 500

Simple Path to Wealth PortfolioPerformance

The chart shows the growth of $10,000 invested in Simple Path to Wealth Portfolio on Jan 5, 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $36,449 for a total return of roughly 264.49%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


Simple Path to Wealth Portfolio
Benchmark (S&P 500)
Portfolio components

Simple Path to Wealth PortfolioReturns

As of Apr 18, 2021, the Simple Path to Wealth Portfolio returned 8.15% Year-To-Date and 11.83% of annualized return in the last 10 years.


1MYTD6M1Y5Y10Y
Simple Path to Wealth Portfolio5.02%8.15%16.63%38.86%14.14%11.83%
BND
Vanguard Total Bond Market ETF
1.25%-2.85%-2.07%-0.41%3.28%3.38%
VTI
Vanguard Total Stock Market ETF
6.28%11.94%23.21%54.15%17.44%14.36%

Simple Path to Wealth PortfolioSharpe 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 2.84. A Sharpe ratio higher than 2.0 is considered very good.

The chart below displays rolling 12-month Sharpe Ratio.


Simple Path to Wealth Portfolio
Benchmark (S&P 500)
Portfolio components

Simple Path to Wealth PortfolioDividends

Simple Path to Wealth Portfolio granted a 1.57% dividend yield in the last twelve months, as of Apr 18, 2021.


PeriodTTM20202019201820172016201520142013201220112010
Dividend yield
1.57%1.66%2.01%2.29%2.02%2.07%2.13%2.02%2.00%2.18%2.33%2.31%

Simple Path to Wealth PortfolioDrawdowns Chart

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


Simple Path to Wealth Portfolio
Benchmark (S&P 500)
Portfolio components

Simple Path to Wealth PortfolioWorst 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 {{portfolioName}} is 26.82%, recorded on Mar 23, 2020. It took 92 trading sessions for the portfolio to recover.


Depth
Start
To Bottom
Bottom
To Recover
End
Total
-26.82%Feb 20, 202023Mar 23, 202092Aug 3, 2020115
-14.75%Sep 21, 201865Dec 24, 201866Apr 1, 2019131
-14.37%Jul 8, 201161Oct 3, 201178Jan 25, 2012139
-11.57%Apr 26, 201049Jul 2, 201074Oct 18, 2010123
-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
-5.88%Jan 20, 201014Feb 8, 201018Mar 5, 201032
-5.56%Sep 17, 201242Nov 15, 201231Jan 2, 201373

Simple Path to Wealth PortfolioVolatility Chart

Current Simple Path to Wealth Portfolio volatility is 3.90%. 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 (S&P 500)
Portfolio components

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