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Simple Path to Wealth Portfolio

Last updated Nov 30, 2022

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 10 of 54

Dividend Yield

Rank 35 of 54

10Y Annualized Return

Rank 15 of 54

Sharpe Ratio

Rank 21 of 54

Maximum Drawdown

Rank 30 of 54


Simple Path to Wealth PortfolioAsset Allocation

BND 25%VTI 75%BondBondEquityEquity

Simple Path to Wealth PortfolioPerformance

The chart shows the growth of $10,000 invested in Simple Path to Wealth Portfolio in Jan 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $33,557 for a total return of roughly 235.57%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly

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

Simple Path to Wealth PortfolioReturns

As of Nov 30, 2022, the Simple Path to Wealth Portfolio returned -16.73% Year-To-Date and 10.74% of annualized return in the last 10 years.

Simple Path to Wealth Portfolio1.66%-4.18%-15.88%-14.23%7.67%9.84%
Vanguard Total Stock Market ETF
Vanguard Total Bond Market ETF

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 -0.68. 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 PortfolioDividends

Simple Path to Wealth Portfolio granted a 1.80% dividend yield in the last twelve months.


Dividend yield


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 (^GSPC)
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 Simple Path to Wealth Portfolio is 26.82%, recorded on Mar 23, 2020. It took 92 trading sessions for the portfolio to recover.



To Bottom


To Recover



-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
-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

Simple Path to Wealth PortfolioVolatility Chart

Current Simple Path to Wealth Portfolio volatility is 6.33%. 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