Scott Burns Couch Portfolio
The Couch Potato Portfolio is a portfolio by Scott Burns, a finance columnist and co-founder of AssetBuilder.com, proposed in 1991. It's a dead-simple Lazy Portfolios with a 50/50 mix of stocks and bonds. The basic idea behind the portfolio is that stocks drive returns while bonds protect against market crashes and lower the overall portfolio's volatility.
Asset Allocation
| Position | Category/Sector | Weight |
|---|---|---|
TIP iShares TIPS Bond ETF | Inflation-Protected Bonds | 50% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 50% |
Performance
The chart shows the growth of an initial investment of $10,000 in Scott Burns Couch 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 Quarterly
Returns
As of Sep 21, 2023, the Scott Burns Couch Portfolio returned 7.69% Year-To-Date and 6.75% of annualized return in the last 10 years.
| 1 month | 6 months | Year-To-Date | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | 0.33% | 11.48% | 14.66% | 16.16% | 8.51% | 9.99% |
| Scott Burns Couch Portfolio | 0.29% | 4.40% | 7.69% | 7.25% | 6.22% | 6.76% |
| Portfolio components: | ||||||
TIP iShares TIPS Bond ETF | 0.14% | -3.05% | 0.36% | -1.78% | 2.15% | 1.71% |
VTI Vanguard Total Stock Market ETF | 0.40% | 12.10% | 15.20% | 16.72% | 9.51% | 11.42% |
| Returns over 1 year are annualized | ||||||
Asset Correlations Table
| TIP | VTI | |
|---|---|---|
| TIP | 1.00 | -0.13 |
| VTI | -0.13 | 1.00 |
Dividend yield
Scott Burns Couch Portfolio granted a 2.16% dividend yield in the last twelve months.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Scott Burns Couch Portfolio | 2.16% | 4.39% | 2.95% | 1.40% | 1.95% | 2.68% | 2.18% | 1.98% | 1.34% | 2.07% | 1.76% | 2.71% |
| Portfolio components: | ||||||||||||
TIP iShares TIPS Bond ETF | 2.42% | 7.09% | 4.64% | 1.32% | 2.01% | 3.16% | 2.49% | 1.81% | 0.42% | 2.08% | 1.45% | 2.84% |
VTI Vanguard Total Stock Market ETF | 1.90% | 1.68% | 1.25% | 1.48% | 1.88% | 2.21% | 1.88% | 2.15% | 2.27% | 2.06% | 2.07% | 2.58% |
Expense Ratio
The Scott Burns Couch Portfolio features an expense ratio of 0.11%, falling within the medium range. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
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.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | -0.22 | ||||
VTI Vanguard Total Stock Market ETF | 0.83 |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below shows the maximum drawdowns of the Scott Burns Couch 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 Scott Burns Couch Portfolio is 31.99%, recorded on Mar 9, 2009. It took 393 trading sessions for the portfolio to recover.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -31.99% | May 20, 2008 | 202 | Mar 9, 2009 | 393 | Sep 28, 2010 | 595 |
| -19.76% | Feb 20, 2020 | 20 | Mar 18, 2020 | 56 | Jun 8, 2020 | 76 |
| -19.57% | Dec 31, 2021 | 189 | Sep 30, 2022 | — | — | — |
| -10.63% | Aug 30, 2018 | 80 | Dec 24, 2018 | 59 | Mar 21, 2019 | 139 |
| -8.3% | Jul 25, 2011 | 50 | Oct 3, 2011 | 25 | Nov 7, 2011 | 75 |
Volatility Chart
The current Scott Burns Couch Portfolio volatility is 1.96%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.