Last Update: 31 July 2020
The Bogleheads Three Funds Portfolio is exposed for 80% on the Stock Market.
It's a Very High Risk portfolio and it can be replicated with 3 ETFs.
In the last 10 years, the portfolio obtained a 9.11% compound annual return, with a 11.07% standard deviation.
In 2019, the portfolio granted a 2.84% dividend yield. If you are interested in getting periodic income, please refer to the Bogleheads Three Funds Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The Bogleheads Three Funds Portfolio has the following asset allocation:
The Bogleheads Three Funds Portfolio can be replicated with the following ETFs:
| Weight | Ticker | ETF Name | Investment Themes | |
|---|---|---|---|---|
| 50.00 % | VTI | Vanguard Total Stock Market | Equity, U.S., Large Cap | |
| 30.00 % | VEU | Vanguard FTSE All-World ex-US | Equity, Global ex-US, Large Cap | |
| 20.00 % | BND | Vanguard Total Bond Market | Bond, U.S., All-Term |
Portfolio and ETF Returns
The Bogleheads Three Funds Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | |
|---|---|---|---|---|---|---|---|
| Bogleheads Three Funds Portfolio | +4.29 | +11.28 | +1.16 | +8.15 | +7.40 | +7.47 | +9.11 |
| Components | |||||||
| VTI - Vanguard Total Stock Market | +5.74 | +14.00 | +2.15 | +10.85 | +11.37 | +10.87 | +13.59 |
| VEU - Vanguard FTSE All-World ex-US | +3.93 | +13.54 | -3.88 | +1.41 | +1.36 | +3.34 | +4.67 |
| BND - Vanguard Total Bond Market | +1.45 | +2.82 | +5.88 | +10.55 | +5.76 | +4.51 | +3.77 |
- a rebalancing of the components at the beginning of each year (i.e. at every January 1st)
- the reinvestment of dividends
If you are interested in getting periodic income, please refer to the Bogleheads Three Funds Portfolio: Dividend Yield page.
Historical Returns
Bogleheads Three Funds Portfolio - Historical returns and stats.
| Period | Returns Jul 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|
|
1M
|
+4.29%
|
0.00%
|
1 - 0 | |
|
3M
|
+11.28%
|
0.00%
|
3 - 0 | |
|
6M
|
+1.16%
|
-16.46%
Feb 2020 - Mar 2020
|
4 - 2 | |
|
YTD
|
+0.50%
|
-17.02%
Jan 2020 - Mar 2020
|
4 - 3 | |
|
1Y
|
+8.15%
|
17.25%
|
-17.02%
Jan 2020 - Mar 2020
|
8 - 4 |
|
3Y
|
+7.40%
annualized
|
13.31%
|
-17.02%
Jan 2020 - Mar 2020
|
26 - 10 |
|
5Y
|
+7.47%
annualized
|
11.77%
|
-17.02%
Jan 2020 - Mar 2020
|
43 - 17 |
|
10Y
|
+9.11%
annualized
|
11.07%
|
-17.02%
Jan 2020 - Mar 2020
|
82 - 38 |
|
MAX
01 Jan 1987
|
+8.41%
annualized
|
12.11%
|
-43.68%
Nov 2007 - Feb 2009
|
262 - 141 |
* Annualized St.Dev. of monthly returns
Best Very High Risk Porftolios, ordered by 10Y annualized return.
| Portfolio | 10Y Return ▾ | Stocks | Bonds | Comm. | ||
|---|---|---|---|---|---|---|
| Technology |
+20.47% | 100 | 0 | 0 | Compare | |
| US Stocks |
+13.59% | 100 | 0 | 0 | Compare | |
| Warren Buffett |
+12.68% | 90 | 10 | 0 | Compare | |
| Second Grader's Starter Paul Farrell |
+10.04% | 90 | 10 | 0 | Compare | |
| Edge Select Aggressive Merrill Lynch |
+9.65% | 84 | 16 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns
Bogleheads Three Funds Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+8.68% |
+48.26% Mar 2009 - Feb 2010 |
-37.11% Mar 2008 - Feb 2009 |
19.64% |
| 2 Years |
+8.35% |
+33.09% Mar 2009 - Feb 2011 |
-20.26% Mar 2007 - Feb 2009 |
14.21% |
| 3 Years |
+8.20% |
+21.87% Mar 2009 - Feb 2012 |
-12.10% Apr 2000 - Mar 2003 |
13.59% |
| 5 Years |
+8.04% |
+18.37% Mar 2009 - Feb 2014 |
-2.39% Mar 2004 - Feb 2009 |
2.33% |
| 7 Years |
+8.02% |
+15.51% Jan 1993 - Dec 1999 |
+0.64% Mar 2002 - Feb 2009 |
0.00% |
| 10 Years |
+7.82% |
+13.59% Oct 1990 - Sep 2000 |
+0.39% Mar 1999 - Feb 2009 |
0.00% |
| 15 Years |
+7.34% |
+10.23% Nov 1992 - Oct 2007 |
+4.53% Mar 1994 - Feb 2009 |
0.00% |
* Annualized rolling and average returns over full calendar month periods
Yearly Returns - Monthly Returns Heatmap
| Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2020 |
+0.50% | -0.7 | -5.6 | -11.5 | 8.8 | 4.1 | 2.5 | 4.3 | |||||
| 2019 |
+23.65% | 6.8 | 2.3 | 1.4 | 2.9 | -4.7 | 5.6 | 0.2 | -1.3 | 1.6 | 2.2 | 2.3 | 2.7 |
| 2018 |
-6.89% | 4.1 | -3.7 | -1.0 | 0.2 | 0.9 | -0.3 | 2.5 | 1.2 | 0.1 | -6.4 | 1.6 | -5.8 |
| 2017 |
+19.54% | 2.2 | 2.4 | 0.9 | 1.3 | 1.6 | 0.6 | 2.1 | 0.4 | 1.7 | 1.7 | 1.7 | 1.3 |
| 2016 |
+8.39% | -4.3 | -0.6 | 6.1 | 1.0 | 0.6 | 0.3 | 3.4 | 0.3 | 0.6 | -1.8 | 1.1 | 1.7 |
| 2015 |
-1.14% | -0.9 | 4.3 | -0.9 | 1.7 | 0.2 | -1.9 | 0.9 | -5.5 | -2.5 | 5.9 | -0.2 | -1.9 |
| 2014 |
+6.07% | -3.0 | 4.2 | 0.4 | 0.6 | 1.8 | 1.8 | -1.5 | 2.6 | -2.6 | 1.6 | 1.4 | -1.1 |
| 2013 |
+20.56% | 3.3 | 0.3 | 2.2 | 2.1 | -0.1 | -2.1 | 4.5 | -2.4 | 4.4 | 3.4 | 1.5 | 1.8 |
| 2012 |
+14.53% | 4.7 | 3.8 | 1.2 | -0.7 | -6.5 | 4.0 | 0.8 | 2.2 | 2.4 | -0.7 | 1.0 | 2.0 |
| 2011 |
-2.14% | 1.3 | 2.7 | 0.1 | 3.4 | -1.3 | -1.3 | -1.5 | -5.2 | -7.4 | 8.8 | -0.9 | 0.1 |
| 2010 |
+13.50% | -3.3 | 2.2 | 5.1 | 0.8 | -7.0 | -3.1 | 6.7 | -3.0 | 7.7 | 3.1 | -1.1 | 5.7 |
| 2009 |
+26.45% | -8.3 | -8.0 | 7.1 | 9.3 | 7.4 | -0.4 | 7.4 | 3.0 | 4.1 | -2.3 | 4.7 | 1.7 |
| 2008 |
-30.15% | -5.2 | -1.3 | -0.4 | 4.1 | 1.2 | -6.5 | -1.4 | -0.6 | -8.2 | -15.3 | -4.4 | 4.4 |
| 2007 |
+8.73% | 1.2 | -0.5 | 1.4 | 3.3 | 2.7 | -0.8 | -1.9 | 0.8 | 4.0 | 2.9 | -3.4 | -1.0 |
| 2006 |
+16.69% | 3.7 | 0.0 | 1.8 | 2.0 | -3.0 | 0.0 | 0.6 | 2.3 | 1.3 | 3.2 | 2.6 | 1.5 |
| 2005 |
+8.30% | -1.6 | 2.3 | -1.9 | -1.4 | 2.2 | 0.9 | 3.1 | 0.6 | 1.6 | -2.4 | 3.2 | 1.8 |
| 2004 |
+13.49% | 2.0 | 1.7 | -0.2 | -2.6 | 0.8 | 1.9 | -2.6 | 0.6 | 1.8 | 2.1 | 4.4 | 3.3 |
| 2003 |
+28.27% | -2.5 | -1.2 | -0.2 | 7.3 | 5.1 | 1.6 | 1.5 | 2.1 | 0.8 | 4.9 | 1.5 | 4.7 |
| 2002 |
-13.11% | -1.7 | -0.5 | 3.2 | -1.8 | -0.2 | -4.6 | -6.9 | 0.7 | -7.6 | 4.9 | 4.2 | -2.9 |
| 2001 |
-9.84% | 2.6 | -6.8 | -5.3 | 6.1 | -0.4 | -1.8 | -1.0 | -3.4 | -7.1 | 2.5 | 4.2 | 1.1 |
| 2000 |
-7.69% | -4.0 | 2.3 | 4.2 | -4.3 | -2.5 | 3.9 | -2.1 | 4.2 | -3.6 | -1.7 | -5.9 | 2.3 |
| 1999 |
+20.73% | 1.8 | -2.9 | 3.6 | 4.0 | -2.7 | 3.8 | -1.1 | -0.4 | -0.8 | 4.4 | 3.0 | 6.7 |
| 1998 |
+18.03% | 1.4 | 5.7 | 3.6 | 0.8 | -1.7 | 1.9 | -0.8 | -11.8 | 3.0 | 6.7 | 4.8 | 4.3 |
| 1997 |
+17.15% | 2.1 | 0.5 | -2.5 | 2.6 | 5.7 | 4.1 | 5.0 | -4.6 | 4.9 | -4.1 | 1.6 | 1.4 |
| 1996 |
+12.60% | 1.6 | 0.6 | 1.0 | 2.3 | 0.9 | -0.1 | -3.7 | 1.5 | 3.7 | 0.8 | 4.8 | -1.4 |
| 1995 |
+22.72% | 0.3 | 1.0 | 3.3 | 2.6 | 2.1 | 1.2 | 3.6 | -0.1 | 2.6 | -1.0 | 3.2 | 2.1 |
| 1994 |
+2.31% | 4.8 | -1.3 | -3.6 | 1.3 | 0.4 | -0.7 | 2.0 | 2.7 | -2.1 | 1.6 | -3.6 | 1.1 |
| 1993 |
+16.23% | 0.9 | 1.7 | 4.4 | 2.0 | 2.7 | -0.4 | 1.4 | 3.8 | -1.0 | 1.3 | -4.2 | 3.0 |
| 1992 |
+1.54% | -1.0 | -0.3 | -3.4 | 0.7 | 2.6 | -2.0 | 1.5 | 0.9 | 0.1 | -1.1 | 2.4 | 1.4 |
| 1991 |
+22.09% | 3.2 | 6.9 | 0.1 | 0.9 | 2.1 | -4.3 | 3.9 | 0.9 | 1.4 | 1.7 | -3.4 | 7.3 |
| 1990 |
-8.74% | -5.0 | -1.1 | -1.7 | -2.4 | 8.2 | 0.0 | 0.3 | -7.7 | -6.2 | 3.9 | 1.5 | 2.2 |
| 1989 |
+20.64% | 4.2 | -0.9 | 0.4 | 3.3 | 1.1 | -0.2 | 7.7 | -0.2 | 1.4 | -2.1 | 2.3 | 2.2 |
| 1988 |
+17.83% | 3.9 | 4.8 | 0.9 | 1.0 | -1.0 | 2.0 | 0.1 | -3.2 | 3.2 | 3.0 | 1.1 | 0.9 |
| 1987 |
+10.76% | 10.2 | 3.3 | 4.4 | 2.1 | 0.3 | 1.2 | 2.1 | 4.6 | -1.8 | -15.1 | -3.1 | 4.2 |
* Note: Portofolio Returns, up to December 2007, are simulated. They have been calculated using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
In particular, it has been used:
VTI - Vanguard Total Stock Market: simulated historical serie, up to December 2001
VEU - Vanguard FTSE All-World ex-US: simulated historical serie, up to December 2007
BND - Vanguard Total Bond Market: simulated historical serie, up to December 2007