Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
VTI Vanguard Total Stock Market ETF | Large Cap Blend Equities | 75% |
BND Vanguard Total Bond Market ETF | Total Bond Market | 25% |
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Performance Chart
The chart shows the growth of an initial investment of $10,000 in Simple Path to Wealth Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Every 3 months.
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Returns By Period
As of Jun 3, 2026, the Simple Path to Wealth Portfolio returned 9.37% Year-To-Date and 11.91% of annualized return in the last 10 years.
| Position | 1D | 1M | YTD | 6M | 1Y | 3Y* | 5Y* | 10Y* |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | 0.13% | 5.25% | 11.16% | 11.43% | 28.20% | 21.12% | 12.66% | 13.75% |
Portfolio Simple Path to Wealth Portfolio | 0.21% | 4.18% | 9.37% | 9.66% | 23.81% | 17.79% | 9.92% | 11.91% |
| Portfolio components: | ||||||||
BND Vanguard Total Bond Market ETF | 0.03% | 0.12% | 0.46% | 0.46% | 5.19% | 4.03% | 0.20% | 1.60% |
VTI Vanguard Total Stock Market ETF | 0.26% | 5.37% | 12.01% | 12.40% | 30.01% | 22.37% | 13.05% | 15.13% |
Monthly Returns
Based on dividend-adjusted daily data since Apr 11, 2007, Simple Path to Wealth Portfolio's average daily return is +0.04%, while the average monthly return is +0.80%. At this rate, an investment would double in approximately 7.2 years.
Historically, 68% of months were positive and 32% were negative. The best month was Apr 2020 with a return of +10.5%, while the worst month was Oct 2008 at -14.0%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 5 months.
On a daily basis, Simple Path to Wealth Portfolio closed higher 55% of trading days. The best single day was Oct 13, 2008 with a return of +10.4%, while the worst single day was Mar 12, 2020 at -8.5%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 1.24% | 0.00% | -4.14% | 7.89% | 4.07% | 0.38% | 9.37% | ||||||
| 2025 | 2.42% | -0.89% | -4.36% | -0.45% | 4.51% | 4.29% | 1.65% | 2.06% | 2.85% | 1.81% | 0.35% | -0.09% | 14.72% |
| 2024 | 0.80% | 3.65% | 2.69% | -3.86% | 3.98% | 2.53% | 2.01% | 1.96% | 1.85% | -1.18% | 5.32% | -2.72% | 17.94% |
| 2023 | 6.02% | -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% | 2.80% | 18.37% |
Benchmark Metrics
Simple Path to Wealth Portfolio has an annualized alpha of 2.18%, beta of 0.73, and R2 of 0.98 versus S&P 500 Index. Calculated based on daily prices since April 11, 2007.
- This portfolio participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (80.78%) than losses (78.52%) - typical of diversified or defensive assets.
- This portfolio generated an annualized alpha of 2.18% versus S&P 500 Index - delivering returns beyond what market exposure alone would predict.
- Alpha
- 2.18%
- Beta
- 0.73
- R²
- 0.98
- Upside Capture
- 80.78%
- Downside Capture
- 78.52%
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.
Return for Risk
Risk / Return Rank
Simple Path to Wealth Portfolio ranks 59 for risk / return — on par with similar Portfolios. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.
Return / Risk — by metrics
The table below presents risk-adjusted performance metrics for Simple Path to Wealth Portfolio and compares them with S&P 500 Index.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.53 | 2.39 | +0.15 |
Sortino ratioReturn per unit of downside risk | 3.55 | 3.25 | +0.30 |
Omega ratioGain probability vs. loss probability | 1.46 | 1.43 | +0.03 |
Calmar ratioReturn relative to maximum drawdown | 3.50 | 3.11 | +0.39 |
Martin ratioReturn relative to average drawdown | 16.20 | 14.38 | +1.82 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.
| Position | Risk / Return Rank | Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio |
|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 38 | 1.38 | 2.07 | 1.24 | 1.85 | 5.66 |
VTI Vanguard Total Stock Market ETF | 74 | 2.48 | 3.37 | 1.45 | 3.44 | 15.88 |
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Dividends
Dividend yield
Simple Path to Wealth Portfolio provided a 1.75% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 1.75% | 1.80% | 1.87% | 1.85% | 1.90% | 1.44% | 1.66% | 2.01% | 2.23% | 1.92% | 2.07% | 2.13% |
| Portfolio components: | ||||||||||||
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VTI Vanguard Total Stock Market ETF | 1.01% | 1.12% | 1.27% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% |
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.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
Financial crisis2007–2009 | -43.49%Mar 2009 | 1y 5mo | 1y 10mo | 3y 3moOct 2007 - Jan 2011 |
COVID crash2020 | -26.82%Mar 2020 | 1mo 2d | 4mo 13d | 5mo 15dFeb 2020 - Aug 2020 |
Bear market2022 | -22.92%Oct 2022 | 9mo 20d | 1y 3mo | 2y 28dDec 2021 - Jan 2024 |
Rate-hike selloffLate 2018 | -14.75%Dec 2018 | 3mo 4d | 3mo 8d | 6mo 12dSep 2018 - Apr 2019 |
2025 selloff2025 | -14.54%Apr 2025 | 1mo 17d | 2mo 17d | 4mo 4dFeb 2025 - Jun 2025 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
AI Analysis
Thesis
The portfolio is a classic U.S. balanced sleeve: mostly equities through Vanguard Total Stock Market ETF (VTI), with a quarter in bonds through Vanguard Total Bond Market ETF (BND), so the real bet is on equity-market participation with a modest interest-rate cushion.
The numbers
- The diversification ratio is 1.08 across every window, which sits around the 9th to 22nd percentile on the platform: there is some diversification benefit, but not much.
- The effective number of assets is 1.6 of 2, which says the weights are fairly spread, even if the risk is not.
- VTI’s portfolio correlation is 0.99 while BND’s is -0.05; the bond sleeve is doing the usual bond thing, which is to be somewhat separate from the stock sleeve.
What works
- The negative stock-bond correlation of -0.13 is the entire point here, and it is doing real work in the math.
- The two sleeves sit in separate clusters, so the portfolio is not accidentally doubling up on one factor dressed in different clothes.
What does not
- A 75/25 mix is structurally equity-led, so the diversification benefit remains modest rather than substantial.
- The low DR percentile says the portfolio is not especially diversified relative to the platform, which is not a scandal, just arithmetic.
Stress Scenario
- A regime where both stocks and nominal bonds sell off together, often via inflation surprise or rate shock, would weaken the stock-bond offset and make the portfolio behave more like a single risk bucket.
Worth knowing
- Portfolios with this shape are often used as core holdings because they are simple and legible, which is a quality markets sometimes reward by not surprising anyone.
- The bond sleeve mainly changes drawdown shape, not the basic equity character of the portfolio.
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. Your capital is well-distributed across most of your holdings, with only mild concentration in a few names. True diversification also depends on the correlations between assets — check the diversification ratio below.
Diversification Ratio
1Y | 3Y | 5Y | 10Y | All Time | |
|---|---|---|---|---|---|
Diversification Ratio | 1.07 | 1.08 | 1.08 | 1.08 | 1.08 |
The portfolio has a diversification ratio of 1.08, placing it in the bottom quartile across portfolios — positions are highly correlated. Consider adding assets from different classes or sectors to reduce risk.
Simple Path to Wealth Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | 0.99 |
Benchmark Correlations
Correlation vs. S&P 500 Index. VTI has the highest benchmark correlation at 0.99, while BND has the lowest at -0.14.
Asset Correlations Table
Find what Simple Path to Wealth Portfolio is missing
See which holdings overlap, where Simple Path to Wealth Portfolio is concentrated, and which low-correlation assets could fill the gaps.
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