PortfoliosLab logo
Tools
Performance Analysis
Risk Analysis
Optimization
Factor Model
See All Tools
Portfolio Analysis
Portfolios
Lazy PortfoliosUser Portfolios

Scott Burns Couch Portfolio

Last updated Sep 21, 2023

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


TIP 50%VTI 50%BondBondEquityEquity
PositionCategory/SectorWeight
TIP
iShares TIPS Bond ETF
Inflation-Protected Bonds50%
VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities50%

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


0.00%5.00%10.00%15.00%AprilMayJuneJulyAugustSeptember
4.21%
10.86%
Scott Burns Couch Portfolio
Benchmark (^GSPC)
Portfolio components

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 month6 monthsYear-To-Date1 year5 years (annualized)10 years (annualized)
Benchmark0.33%11.48%14.66%16.16%8.51%9.99%
Scott Burns Couch Portfolio0.29%4.40%7.69%7.25%6.22%6.76%
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%

Asset Correlations Table

The table below shows the correlation coefficients between the assets in the portfolio.

TIPVTI
TIP1.00-0.13
VTI-0.131.00

Sharpe Ratio

The current Scott Burns Couch Portfolio Sharpe ratio is 0.59. A Sharpe ratio between 0 and 1.0 is considered sub-optimal.

-1.000.001.002.003.004.000.59

The Sharpe ratio of Scott Burns Couch Portfolio is in the bottom 25%, suggesting that this portfolio isn't performing as well in terms of risk-adjusted returns compared to many others. This could be due to lower returns, higher volatility, or both. It might be an indication that the portfolio needs fine-tuning.


Rolling 12-month Sharpe Ratio-0.500.000.501.00AprilMayJuneJulyAugustSeptember
0.59
0.82
Scott Burns Couch Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Scott Burns Couch Portfolio granted a 2.16% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Scott Burns Couch Portfolio2.16%4.39%2.95%1.40%1.95%2.68%2.18%1.98%1.34%2.07%1.76%2.71%
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.


0.19%
0.00%2.15%
0.03%
0.00%2.15%

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 ratioSortino ratioOmega ratioCalmar ratioUlcer 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.


-18.00%-16.00%-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%AprilMayJuneJulyAugustSeptember
-9.51%
-8.22%
Scott Burns Couch Portfolio
Benchmark (^GSPC)
Portfolio components

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, 2008202Mar 9, 2009393Sep 28, 2010595
-19.76%Feb 20, 202020Mar 18, 202056Jun 8, 202076
-19.57%Dec 31, 2021189Sep 30, 2022
-10.63%Aug 30, 201880Dec 24, 201859Mar 21, 2019139
-8.3%Jul 25, 201150Oct 3, 201125Nov 7, 201175

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.


2.00%3.00%4.00%5.00%AprilMayJuneJulyAugustSeptember
1.96%
3.27%
Scott Burns Couch Portfolio
Benchmark (^GSPC)
Portfolio components