Last Update: 31 December 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 9.33% compound annual return, with a 11.19% standard deviation.
In 2020, the portfolio granted a 2.02% 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 | +4.09 | +12.36 | +19.75 | +15.39 | +9.93 | +11.47 | +9.33 |
Components | |||||||
VTI - Vanguard Total Stock Market | +4.68 | +14.75 | +25.36 | +21.03 | +14.45 | +15.44 | +13.77 |
VEU - Vanguard FTSE All-World ex-US | +5.72 | +16.59 | +24.39 | +11.12 | +5.12 | +9.20 | +5.12 |
BND - Vanguard Total Bond Market | +0.15 | +0.80 | +1.21 | +7.71 | +5.40 | +4.45 | +3.73 |
- 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 Dec 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
---|---|---|---|---|
1M
|
+4.09%
|
0.00%
|
1 - 0 | |
3M
|
+12.36%
|
-1.69%
Oct 2020 - Oct 2020
|
2 - 1 | |
6M
|
+19.75%
|
-3.98%
Sep 2020 - Oct 2020
|
4 - 2 | |
YTD
|
+15.39%
|
20.09%
|
-17.02%
Jan 2020 - Mar 2020
|
7 - 5 |
1Y
|
+15.39%
|
20.09%
|
-17.02%
Jan 2020 - Mar 2020
|
7 - 5 |
3Y
|
+9.93%
annualized
|
14.74%
|
-17.02%
Jan 2020 - Mar 2020
|
24 - 12 |
5Y
|
+11.47%
annualized
|
12.09%
|
-17.02%
Jan 2020 - Mar 2020
|
45 - 15 |
10Y
|
+9.33%
annualized
|
11.19%
|
-17.02%
Jan 2020 - Mar 2020
|
82 - 38 |
MAX
01 Jan 1987
|
+8.74%
annualized
|
12.19%
|
-43.68%
Nov 2007 - Feb 2009
|
265 - 143 |
* Annualized St.Dev. of monthly returns
Best Very High Risk Porftolios, ordered by 10Y annualized return.
Portfolio | 10Y Return ▾ | Stocks | Bonds | Comm. | ||
---|---|---|---|---|---|---|
Technology |
+20.35% | 100 | 0 | 0 | Compare | |
US Stocks |
+13.77% | 100 | 0 | 0 | Compare | |
Warren Buffett |
+12.76% | 90 | 10 | 0 | Compare | |
Stocks/Bonds 80/20 |
+11.86% | 80 | 20 | 0 | Compare | |
Second Grader's Starter Paul Farrell |
+10.28% | 90 | 10 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns ( more details)
Bogleheads Three Funds Portfolio: annualized rolling and average returns
Return (*) | Negative Periods |
|||
---|---|---|---|---|
Rolling Period | Average | Best | Worst | |
1 Year |
+8.72% |
+48.26% Mar 2009 - Feb 2010 |
-37.11% Mar 2008 - Feb 2009 |
19.40% |
2 Years |
+8.39% |
+33.09% Mar 2009 - Feb 2011 |
-20.26% Mar 2007 - Feb 2009 |
14.03% |
3 Years |
+8.20% |
+21.87% Mar 2009 - Feb 2012 |
-12.10% Apr 2000 - Mar 2003 |
13.40% |
5 Years |
+8.07% |
+18.37% Mar 2009 - Feb 2014 |
-2.39% Mar 2004 - Feb 2009 |
2.29% |
7 Years |
+8.02% |
+15.51% Jan 1993 - Dec 1999 |
+0.64% Mar 2002 - Feb 2009 |
0.00% |
10 Years |
+7.85% |
+13.59% Oct 1990 - Sep 2000 |
+0.39% Mar 1999 - Feb 2009 |
0.00% |
15 Years |
+7.35% |
+10.23% Nov 1992 - Oct 2007 |
+4.53% Mar 1994 - Feb 2009 |
0.00% |
* Annualized rolling and average returns over full calendar month periods
If you need a deeper detail about rolling returns, please refer to the Bogleheads Three Funds Portfolio: Rolling Returns page.
Seasonality and Yearly/Monthly Returns
Bogleheads Three Funds Portfolio Seasonality
Months | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
Average | 0.7 | 0.5 | 0.7 | 1.9 | 0.7 | 0.2 | 1.2 | -0.3 | 0.0 | 0.4 | 1.2 | 1.8 |
Best |
10.2 1987 |
6.9 1991 |
7.1 2009 |
9.3 2009 |
8.2 1990 |
5.6 2019 |
7.7 1989 |
4.6 2020 |
7.7 2010 |
8.8 2011 |
9.8 2020 |
7.3 1991 |
Worst |
-8.3 2009 |
-8.0 2009 |
-11.5 2020 |
-4.3 2000 |
-7.0 2010 |
-6.5 2008 |
-6.9 2002 |
-11.8 1998 |
-8.2 2008 |
-15.3 2008 |
-5.9 2000 |
-5.8 2018 |
Gain Frequency |
62 | 56 | 65 | 82 | 65 | 47 | 68 | 59 | 62 | 62 | 71 | 82 |
Detail of Monthly Returns
Months | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
2020 |
+15.39% | -0.7 | -5.6 | -11.5 | 8.8 | 4.1 | 2.5 | 4.3 | 4.6 | -2.3 | -1.7 | 9.8 | 4.1 |
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