Bogleheads Three-fund Portfolio
The three-fund portfolio is a portfolio popularized by Jack Bogle fans (boggleheads). It uses only three fundamental asset classes: a U.S total stock market fund, a total international stock market fund, and a total bond market fund. The portfolio could be replicated using three low-cost ETFs.
Asset Allocation
| Position | Category/Sector | Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 20% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 50% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 30% |
Performance
The chart shows the growth of an initial investment of $10,000 in Bogleheads Three-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
The earliest data available for this chart is Jul 26, 2007, corresponding to the inception date of VEA
Returns
As of Dec 9, 2023, the Bogleheads Three-fund Portfolio returned 14.75% Year-To-Date and 7.46% of annualized return in the last 10 years.
| Year-To-Date | 1 month | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
^GSPC | N/A | N/A | N/A | N/A | N/A | N/A |
| Bogleheads Three-fund Portfolio | 14.75% | 4.97% | 4.62% | 12.60% | 9.06% | 7.60% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | 21.08% | 5.90% | 7.78% | 17.27% | 13.03% | 11.32% |
BND Vanguard Total Bond Market ETF | 2.87% | 2.79% | 0.64% | 0.66% | 0.71% | 1.42% |
VEA Vanguard FTSE Developed Markets ETF | 12.52% | 6.12% | 2.03% | 11.03% | 6.88% | 4.40% |
Monthly Returns Heatmap
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | -1.14% | 4.68% | 2.75% | -2.29% | -4.04% | -2.64% | 8.24% |
Dividend yield
Bogleheads Three-fund Portfolio granted a 2.25% dividend yield in the last twelve months.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bogleheads Three-fund Portfolio | 2.25% | 2.23% | 1.95% | 1.77% | 2.34% | 2.59% | 2.19% | 2.38% | 2.38% | 2.54% | 2.21% | 2.61% |
| Portfolio components: | ||||||||||||
VTI Vanguard Total Stock Market ETF | 1.46% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% | 2.13% |
BND Vanguard Total Bond Market ETF | 3.11% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% | 3.24% |
VEA Vanguard FTSE Developed Markets ETF | 3.00% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% | 2.97% |
Expense Ratio
The Bogleheads Three-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.
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 | |
|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 1.30 | ||||
BND Vanguard Total Bond Market ETF | 0.05 | ||||
VEA Vanguard FTSE Developed Markets ETF | 0.83 |
Asset Correlations Table
| BND | VEA | VTI | |
|---|---|---|---|
| BND | 1.00 | -0.14 | -0.19 |
| VEA | -0.14 | 1.00 | 0.84 |
| VTI | -0.19 | 0.84 | 1.00 |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below displays the maximum drawdowns of the Bogleheads Three-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 Three-fund Portfolio was 47.74%, occurring on Mar 9, 2009. Recovery took 539 trading sessions.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -47.74% | Nov 1, 2007 | 339 | Mar 9, 2009 | 539 | Apr 27, 2011 | 878 |
| -28.12% | Feb 13, 2020 | 27 | Mar 23, 2020 | 95 | Aug 6, 2020 | 122 |
| -24.47% | Nov 9, 2021 | 235 | Oct 14, 2022 | — | — | — |
| -17.25% | May 2, 2011 | 108 | Oct 3, 2011 | 111 | Mar 13, 2012 | 219 |
| -15.25% | Jan 29, 2018 | 229 | Dec 24, 2018 | 81 | Apr 23, 2019 | 310 |
Volatility Chart
The current Bogleheads Three-fund Portfolio volatility is 2.58%, 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.