Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
VOO Vanguard S&P 500 ETF | S&P 500 | 90% |
BSV Vanguard Short-Term Bond Index Fund ETF Shares | Short-Term Bond | 10% |
Find the right asset allocation for Warren Buffett's 90/10 Portfolio
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Performance Chart
The chart shows the growth of an initial investment of $10,000 in Warren Buffett's 90/10 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 Jul 21, 2026, the Warren Buffett's 90/10 Portfolio returned 8.66% Year-To-Date and 13.75% of annualized return in the last 10 years.
| Position | 1D | 1M | 6M | YTD | 1Y | 3Y* | 5Y* | 10Y* | ALL TIME* |
|---|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | -0.19% | -0.76% | 7.25% | 8.73% | 18.21% | 17.95% | 11.30% | 13.09% | 8.08% |
Portfolio Warren Buffett's 90/10 Portfolio | -0.13% | -0.51% | 7.29% | 8.66% | 18.06% | 18.04% | 11.83% | 13.75% | 13.53% |
| Portfolio components: | |||||||||
BSV Vanguard Short-Term Bond Index Fund ETF Shares | -0.08% | 0.16% | 0.58% | 0.49% | 3.09% | 4.51% | 1.65% | 1.92% | 2.52% |
VOO Vanguard S&P 500 ETF | -0.14% | -0.57% | 7.90% | 9.44% | 19.65% | 19.52% | 12.88% | 14.98% | 14.77% |
Monthly Returns
Based on dividend-adjusted daily data since Sep 9, 2010, Warren Buffett's 90/10 Portfolio's average daily return is +0.06%, while the average monthly return is +1.13%. At this rate, an investment would double in approximately 5.1 years.
Historically, 69% of months were positive and 31% were negative. The best month was Apr 2020 with a return of +11.6%, while the worst month was Mar 2020 at -11.1%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 5 months.
On a daily basis, Warren Buffett's 90/10 Portfolio closed higher 55% of trading days. The best single day was Mar 24, 2020 with a return of +8.3%, while the worst single day was Mar 16, 2020 at -10.4%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 1.32% | -0.66% | -4.56% | 9.54% | 4.82% | -0.89% | -0.61% | 8.66% | |||||
| 2025 | 2.47% | -1.04% | -4.99% | -0.64% | 5.62% | 4.75% | 2.05% | 1.98% | 3.23% | 2.19% | 0.25% | 0.10% | 16.68% |
| 2024 | 1.48% | 4.62% | 3.01% | -3.68% | 4.60% | 3.28% | 1.19% | 2.26% | 2.05% | -0.96% | 5.35% | -2.12% | 22.74% |
| 2023 | 5.78% | -2.37% | 3.53% | 1.47% | 0.39% | 5.81% | 3.00% | -1.45% | -4.32% | -1.95% | 8.41% | 4.30% | 24.09% |
| 2022 | -4.82% | -2.73% | 3.18% | -7.99% | 0.31% | -7.47% | 8.37% | -3.87% | -8.49% | 7.27% | 5.12% | -5.21% | -16.86% |
| 2021 | -0.93% | 2.45% | 4.11% | 4.79% | 0.62% | 2.03% | 2.24% | 2.66% | -4.24% | 6.27% | -0.67% | 4.11% | 25.56% |
Benchmark Metrics
Warren Buffett's 90/10 Portfolio has an annualized alpha of 1.83%, beta of 0.89, and R2 of 1.00 versus S&P 500 Index. Calculated based on daily prices since September 09, 2010.
- This portfolio participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (93.96%) than losses (88.20%) - typical of diversified or defensive assets.
- With beta of 0.89 and R2 of 1.00, this portfolio moves broadly in line with S&P 500 Index - much of its variation is explained by market exposure rather than independent behavior.
- Alpha
- 1.83%
- Beta
- 0.89
- R²
- 1.00
- Upside Capture
- 93.96%
- Downside Capture
- 88.20%
Expense Ratio
Warren Buffett's 90/10 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
Warren Buffett's 90/10 Portfolio ranks 48 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 Warren Buffett's 90/10 Portfolio and compares them with S&P 500 Index.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 1.59 | 1.45 | +0.14 |
| Sortino ratioReturn per unit of downside risk | 2.23 | 2.03 | +0.20 |
| Omega ratioGain probability vs. loss probability | 1.29 | 1.26 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.26 | 2.01 | +0.25 |
| Martin ratioReturn relative to average drawdown | 9.84 | 8.68 | +1.16 |
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 |
|---|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 70 | 1.71 | 2.66 | 1.32 | 2.41 | 7.71 |
VOO Vanguard S&P 500 ETF | 65 | 1.57 | 2.19 | 1.28 | 2.22 | 9.63 |
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Dividends
Dividend yield
Warren Buffett's 90/10 Portfolio provided a 1.37% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 1.37% | 1.40% | 1.46% | 1.56% | 1.67% | 1.27% | 1.57% | 1.92% | 2.05% | 1.77% | 1.96% | 2.03% |
| Portfolio components: | ||||||||||||
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 4.01% | 3.83% | 3.38% | 2.46% | 1.50% | 1.45% | 1.79% | 2.29% | 1.99% | 1.65% | 1.48% | 1.40% |
VOO Vanguard S&P 500 ETF | 1.08% | 1.13% | 1.24% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% |
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 Warren Buffett's 90/10 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 Warren Buffett's 90/10 Portfolio was 30.73%, occurring on Mar 23, 2020. Recovery took 95 trading sessions.
The current Warren Buffett's 90/10 Portfolio drawdown is 1.84%.
Drawdown | Fall | Recovery | Underwater | Related event |
|---|---|---|---|---|
-30.73%Mar 2020 | 1mo 2d | 4mo 16d | 5mo 18dFeb 2020 - Aug 2020 | COVID crash2020 |
-22.78%Oct 2022 | 9mo 11d | 1y 2mo | 1y 11moJan 2022 - Dec 2023 | Bear market2022 |
-17.42%Dec 2018 | 3mo 4d | 3mo 12d | 6mo 16dSep 2018 - Apr 2019 | Rate-hike selloffLate 2018 |
-16.84%Oct 2011 | 5mo 4d | 4mo 3d | 9mo 7dMay 2011 - Feb 2012 | — |
-16.81%Apr 2025 | 1mo 17d | 2mo 19d | 4mo 6dFeb 2025 - Jun 2025 | 2025 selloff2025 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
AI Analysis
The gist
The portfolio is mostly the U.S. equity market, with a small short-duration bond sleeve that barely changes the risk picture. The thesis is simple: equity beta first, a little ballast second; the math agrees, and then declines to become exciting.
The numbers
- Diversification ratio: 1.01 across 1Y, 3Y, 5Y, 10Y, and inception, placing it around the 1st-3rd percentile of platform portfolios; this is effectively no diversification benefit.
- Effective number of assets: 1.22 of 2; the portfolio is technically two lines, but economically it behaves like one dominant sleeve and one small offset.
- Correlation: -0.08 between iShares Short-Term Bond ETF (BSV) and Vanguard S&P 500 ETF (VOO); that is mildly helpful, but not enough weight sits in BSV for the negative correlation to matter much.
The good
- VOO gives clean, broad exposure to the equity market rather than a collection of unrelated single-name bets.
- BSV is genuinely different in return driver and tends to be less sensitive to equity drawdowns than stocks are.
The bad
- The weight split leaves VOO as the portfolio’s real identity; the bond sleeve is too small to move the diversification needle.
- The flat 1.01 diversification ratio over every horizon says the two sleeves have not provided meaningful independent behavior in this mix, which is a polite way of saying the portfolio is doing what it looks like it is doing.
The ugly
- In an equity selloff with rates stable or rising, VOO can dominate the portfolio’s behavior while BSV contributes only a small dampener, so the correlation benefit arrives with a very small check attached.
Next steps
- Portfolios with this structure are typically evaluated by how much equity beta they are meant to carry, since the bond sleeve is mostly there for marginal stabilization.
- Portfolios with this correlation profile are often complemented by exposures whose risk is driven by different macro variables than U.S. large caps and short Treasuries.
- The diversification data fits a portfolio built for simplicity more cleanly than one built for risk separation.
Diversification Metrics
Number of Effective Assets
The portfolio contains 2 assets, with an effective number of assets of 1.22, reflecting the diversification based on asset allocation. Your allocation shows noticeable concentration: a few holdings carry significantly more weight than the rest. Rebalancing toward more even weights — or adding less correlated assets — could reduce risk.
Diversification Ratio
1Y | 3Y | 5Y | 10Y | All Time | |
|---|---|---|---|---|---|
Diversification Ratio | 1.01 | 1.01 | 1.02 | 1.01 | 1.01 |
The portfolio has a diversification ratio of 1.01, placing it in the bottom quartile across portfolios — positions are highly correlated. Consider adding assets from different classes or sectors to reduce risk.
Warren Buffett's 90/10 Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 1.00 |
Correlation (3Y) Calculated over the trailing 3-year period | 1.00 |
Correlation (5Y) Calculated over the trailing 5-year period | 1.00 |
Correlation (10Y) Calculated over the trailing 10-year period | 1.00 |
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010 | 1.00 |
Benchmark Correlations
Correlation vs. S&P 500 Index. VOO has the highest benchmark correlation at 1.00, while BSV has the lowest at -0.08.
Asset Correlations Table
Find what Warren Buffett's 90/10 Portfolio is missing
See which holdings overlap, where Warren Buffett's 90/10 Portfolio is concentrated, and which low-correlation assets could fill the gaps.
Analyze Diversification