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Bogleheads Four-fund Portfolio

Last updated Mar 2, 2024

The Bogleheads Four-fund Portfolio is the extension of the Bogleheads Three-fund Portfolio with the addition of international bonds. It uses four fundamental asset classes: a U.S total stock market fund, a total international stock market fund, a total bond market fund, and a total international bond market. The portfolio could be replicated using four low-cost ETFs.

Asset Allocation


BND 25%BNDX 5%VTI 50%VEU 20%BondBondEquityEquity
PositionCategory/SectorWeight
BND
Vanguard Total Bond Market ETF
Total Bond Market

25%

BNDX
Vanguard Total International Bond ETF
Total Bond Market

5%

VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities

50%

VEU
Vanguard FTSE All-World ex-US ETF
Foreign Large Cap Equities

20%

VEA
Vanguard FTSE Developed Markets ETF
Foreign Large Cap Equities

0%

S&P 500

Performance

The chart shows the growth of an initial investment of $10,000 in Bogleheads Four-fund 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


100.00%120.00%140.00%160.00%180.00%200.00%220.00%OctoberNovemberDecember2024FebruaryMarch
131.17%
214.89%
Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Jun 4, 2013, corresponding to the inception date of BNDX

Returns

As of Mar 2, 2024, the Bogleheads Four-fund Portfolio returned 3.91% Year-To-Date and 7.58% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
S&P 500
7.70%6.01%13.76%29.03%12.89%10.63%
Bogleheads Four-fund Portfolio3.91%2.63%9.87%16.93%8.77%7.58%
VTI
Vanguard Total Stock Market ETF
7.45%3.96%14.35%27.20%14.25%11.99%
BND
Vanguard Total Bond Market ETF
-1.11%-0.65%3.31%3.94%0.59%1.48%
VEA
Vanguard FTSE Developed Markets ETF
2.71%3.49%9.53%12.57%7.00%4.73%
BNDX
Vanguard Total International Bond ETF
-0.96%-0.11%3.96%6.91%0.39%2.13%
VEU
Vanguard FTSE All-World ex-US ETF
2.62%4.03%8.51%11.51%6.09%4.42%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
20240.16%2.99%
2023-2.02%-3.80%-2.35%7.64%4.69%

Sharpe Ratio

The current Bogleheads Four-fund Portfolio Sharpe ratio is 2.02. A Sharpe ratio higher than 2.0 is considered very good.

0.002.004.002.02

The Sharpe ratio of Bogleheads Four-fund Portfolio lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio0.501.001.502.002.50OctoberNovemberDecember2024FebruaryMarch
2.02
2.44
Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Bogleheads Four-fund Portfolio granted a 2.36% dividend yield in the last twelve months.


TTM20232022202120202019201820172016201520142013
Bogleheads Four-fund Portfolio2.36%2.38%2.18%1.90%1.72%2.36%2.53%2.13%2.28%2.31%2.36%2.14%
VTI
Vanguard Total Stock Market ETF
1.34%1.44%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%1.74%
BND
Vanguard Total Bond Market ETF
3.24%3.09%2.60%1.97%2.22%2.72%2.81%2.54%2.51%2.57%2.79%2.78%
VEA
Vanguard FTSE Developed Markets ETF
3.07%3.15%2.91%3.16%2.04%3.04%3.35%2.77%3.05%2.92%3.68%2.60%
BNDX
Vanguard Total International Bond ETF
4.58%4.42%1.51%3.74%1.11%3.40%3.01%2.23%1.89%1.63%1.54%0.86%
VEU
Vanguard FTSE All-World ex-US ETF
3.23%3.32%3.12%3.08%2.00%3.10%3.27%2.66%2.96%2.95%3.52%2.66%

Expense Ratio

The Bogleheads Four-fund Portfolio has an expense ratio of 0.04% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.


0.50%1.00%1.50%2.00%0.07%
0.50%1.00%1.50%2.00%0.07%
0.50%1.00%1.50%2.00%0.05%
0.50%1.00%1.50%2.00%0.03%
0.50%1.00%1.50%2.00%0.03%

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
^GSPC
S&P 500
2.44
Bogleheads Four-fund Portfolio
2.02
VTI
Vanguard Total Stock Market ETF
2.31
BND
Vanguard Total Bond Market ETF
0.64
VEA
Vanguard FTSE Developed Markets ETF
1.07
BNDX
Vanguard Total International Bond ETF
1.33
VEU
Vanguard FTSE All-World ex-US ETF
1.02

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

BNDXBNDVTIVEUVEA
BNDX1.000.72-0.03-0.02-0.02
BND0.721.00-0.06-0.01-0.02
VTI-0.03-0.061.000.820.82
VEU-0.02-0.010.821.000.98
VEA-0.02-0.020.820.981.00

Drawdowns Chart

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


-15.00%-10.00%-5.00%0.00%OctoberNovemberDecember2024FebruaryMarch00
Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below displays the maximum drawdowns of the Bogleheads Four-fund 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 Bogleheads Four-fund Portfolio was 24.76%, occurring on Mar 23, 2020. Recovery took 92 trading sessions.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-24.76%Feb 20, 202023Mar 23, 202092Aug 3, 2020115
-22.96%Nov 9, 2021235Oct 14, 2022339Feb 22, 2024574
-12.73%Jan 29, 2018229Dec 24, 201859Mar 21, 2019288
-11.89%Apr 27, 2015202Feb 11, 2016104Jul 12, 2016306
-5.87%Sep 3, 202014Sep 23, 202033Nov 9, 202047

Volatility Chart

The current Bogleheads Four-fund Portfolio volatility is 2.70%, 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.


1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%OctoberNovemberDecember2024FebruaryMarch
2.70%
3.47%
Bogleheads Four-fund Portfolio
Benchmark (^GSPC)
Portfolio components
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