Last Update: 31 October 2020
The Frank Armstrong Ideal Index Portfolio is exposed for 70% on the Stock Market.
It's a High Risk portfolio and it can be replicated with 7 ETFs.
In the last 10 years, the portfolio obtained a 5.72% compound annual return, with a 9.59% standard deviation.
In 2019, the portfolio granted a 2.83% dividend yield. If you are interested in getting periodic income, please refer to the Frank Armstrong Ideal Index Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The Frank Armstrong Ideal Index Portfolio has the following asset allocation:
The Frank Armstrong Ideal Index Portfolio can be replicated with the following ETFs:
| Weight | Ticker | ETF Name | Investment Themes | |
|---|---|---|---|---|
| 31.00 % | VEU | Vanguard FTSE All-World ex-US | Equity, Global ex-US, Large Cap | |
| 9.25 % | IJS | iShares S&P Small-Cap 600 Value | Equity, U.S., Small Cap, Value | |
| 9.25 % | VTV | Vanguard Value | Equity, U.S., Large Cap, Value | |
| 8.00 % | VNQ | Vanguard Real Estate | Real Estate, U.S. | |
| 6.25 % | IJT | iShares S&P Small-Cap 600 Growth | Equity, U.S., Small Cap, Growth | |
| 6.25 % | VV | Vanguard Large-Cap | Equity, U.S., Large Cap | |
| 30.00 % | SHY | iShares 1-3 Year Treasury Bond | Bond, U.S., Short Term |
Portfolio and ETF Returns
The Frank Armstrong Ideal Index Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | |
|---|---|---|---|---|---|---|---|
| Frank Armstrong Ideal Index Portfolio | -0.83 | +0.09 | +7.58 | -2.10 | +2.08 | +4.89 | +5.72 |
| Components | |||||||
| VEU - Vanguard FTSE All-World ex-US | -2.06 | +0.54 | +14.15 | -1.75 | +0.07 | +4.64 | +3.67 |
| IJS - iShares S&P Small-Cap 600 Value | +3.66 | +3.27 | +12.52 | -15.41 | -3.61 | +4.25 | +8.66 |
| VTV - Vanguard Value | -1.82 | +0.01 | +5.65 | -6.98 | +3.09 | +7.26 | +10.29 |
| VNQ - Vanguard Real Estate | -3.00 | -5.18 | +2.39 | -15.86 | +1.66 | +3.39 | +7.65 |
| IJT - iShares S&P Small-Cap 600 Growth | +1.62 | +0.25 | +16.23 | -0.61 | +3.47 | +8.19 | +11.70 |
| VV - Vanguard Large-Cap | -2.49 | +1.06 | +14.98 | +11.60 | +11.01 | +12.02 | +13.11 |
| SHY - iShares 1-3 Year Treasury Bond | -0.05 | -0.07 | -0.03 | +3.08 | +2.52 | +1.69 | +1.13 |
- 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 Frank Armstrong Ideal Index Portfolio: Dividend Yield page.
Historical Returns
Frank Armstrong Ideal Index Portfolio - Historical returns and stats.
| Period | Returns Oct 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|
|
1M
|
-0.83%
|
-0.83%
Oct 2020 - Oct 2020
|
0 - 1 | |
|
3M
|
+0.09%
|
-2.65%
Sep 2020 - Oct 2020
|
1 - 2 | |
|
6M
|
+7.58%
|
-2.65%
Sep 2020 - Oct 2020
|
4 - 2 | |
|
YTD
|
-5.52%
|
-17.17%
Jan 2020 - Mar 2020
|
5 - 5 | |
|
1Y
|
-2.10%
|
15.07%
|
-17.17%
Jan 2020 - Mar 2020
|
7 - 5 |
|
3Y
|
+2.08%
annualized
|
11.61%
|
-17.17%
Jan 2020 - Mar 2020
|
23 - 13 |
|
5Y
|
+4.89%
annualized
|
9.79%
|
-17.17%
Jan 2020 - Mar 2020
|
41 - 19 |
|
10Y
|
+5.72%
annualized
|
9.59%
|
-17.17%
Jan 2020 - Mar 2020
|
79 - 41 |
|
MAX
01 Jan 1994
|
+6.67%
annualized
|
10.45%
|
-40.12%
Nov 2007 - Feb 2009
|
209 - 113 |
* Annualized St.Dev. of monthly returns
Best High Risk Porftolios, ordered by 10Y annualized return.
| Portfolio | 10Y Return ▾ | Stocks | Bonds | Comm. | ||
|---|---|---|---|---|---|---|
| Simple Path to Wealth JL Collins |
+10.58% | 75 | 25 | 0 | Compare | |
| Stocks/Bonds 60/40 |
+9.21% | 60 | 40 | 0 | Compare | |
| Talmud Portfolio Roger Gibson |
+8.20% | 66.67 | 33.33 | 0 | Compare | |
| Edge Select Moderately Aggressive Merrill Lynch |
+8.16% | 69 | 31 | 0 | Compare | |
| Yale Endowment David Swensen |
+8.12% | 70 | 30 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns
Frank Armstrong Ideal Index Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+7.36% |
+43.78% Mar 2009 - Feb 2010 |
-34.14% Mar 2008 - Feb 2009 |
23.79% |
| 2 Years |
+7.16% |
+30.28% Mar 2009 - Feb 2011 |
-18.86% Mar 2007 - Feb 2009 |
14.72% |
| 3 Years |
+7.06% |
+20.64% Apr 2003 - Mar 2006 |
-9.11% Mar 2006 - Feb 2009 |
13.24% |
| 5 Years |
+6.79% |
+15.93% Oct 2002 - Sep 2007 |
-1.14% Mar 2004 - Feb 2009 |
1.52% |
| 7 Years |
+6.68% |
+10.74% Apr 2009 - Mar 2016 |
+2.11% Mar 2002 - Feb 2009 |
0.00% |
| 10 Years |
+6.78% |
+10.29% Mar 2009 - Feb 2019 |
+2.74% Mar 1999 - Feb 2009 |
0.00% |
| 15 Years |
+6.60% |
+8.55% Feb 2003 - Jan 2018 |
+4.67% Mar 1994 - Feb 2009 |
0.00% |
* Annualized rolling and average returns over full calendar month periods
Seasonality and Yearly/Monthly Returns
Frank Armstrong Ideal Index Portfolio Seasonality
| Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| Average | 0.1 | 0.1 | 0.8 | 1.9 | 0.2 | 0.4 | 0.8 | -0.3 | 0.2 | 0.6 | 0.9 | 1.5 |
| Best |
6.2 2019 |
4.4 1998 |
5.7 2016 |
10.1 2009 |
6.2 2009 |
4.4 2019 |
7.1 2009 |
3.3 2009 |
6.5 2010 |
8.3 2011 |
4.5 2004 |
5.3 2010 |
| Worst |
-9.0 2009 |
-8.0 2009 |
-11.1 2020 |
-3.4 2004 |
-6.1 2010 |
-5.9 2008 |
-6.6 2002 |
-10.0 1998 |
-7.5 2011 |
-14.0 2008 |
-5.4 2008 |
-5.3 2018 |
| Gain Frequency |
56 | 63 | 74 | 85 | 59 | 56 | 56 | 56 | 59 | 63 | 73 | 81 |
Detail of Monthly Returns
| Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2020 |
-5.52% | -1.7 | -5.2 | -11.1 | 6.0 | 2.6 | 2.0 | 2.7 | 2.8 | -1.8 | -0.8 | ||
| 2019 |
+17.96% | 6.2 | 1.8 | 0.4 | 2.2 | -4.0 | 4.4 | -0.1 | -1.4 | 2.0 | 1.9 | 1.2 | 2.4 |
| 2018 |
-6.68% | 2.5 | -3.6 | 0.1 | 0.4 | 1.0 | -0.1 | 2.1 | 0.8 | -0.6 | -5.4 | 1.6 | -5.3 |
| 2017 |
+13.88% | 1.4 | 1.5 | 0.7 | 0.9 | 0.7 | 1.0 | 1.7 | -0.2 | 2.1 | 1.0 | 1.4 | 0.9 |
| 2016 |
+9.05% | -3.5 | -0.5 | 5.7 | 0.9 | 0.3 | 0.8 | 2.9 | 0.1 | 0.4 | -2.0 | 1.9 | 2.0 |
| 2015 |
-1.66% | -0.4 | 3.1 | -0.2 | 0.8 | 0.0 | -1.4 | 0.4 | -4.7 | -1.9 | 4.6 | -0.1 | -1.6 |
| 2014 |
+4.16% | -2.5 | 3.5 | 0.6 | 0.5 | 1.2 | 1.6 | -1.5 | 1.9 | -3.1 | 2.4 | 0.5 | -0.6 |
| 2013 |
+16.03% | 2.9 | 0.1 | 1.7 | 2.0 | -0.5 | -1.5 | 3.6 | -2.2 | 4.1 | 2.8 | 1.1 | 1.0 |
| 2012 |
+12.36% | 4.4 | 2.5 | 1.0 | -0.7 | -6.0 | 3.8 | 0.4 | 1.7 | 1.8 | -0.4 | 0.7 | 2.7 |
| 2011 |
-2.98% | 0.9 | 2.5 | 0.2 | 3.2 | -1.1 | -1.2 | -1.5 | -5.1 | -7.5 | 8.3 | -1.0 | 0.3 |
| 2010 |
+13.00% | -2.9 | 2.0 | 5.0 | 1.4 | -6.1 | -2.8 | 6.0 | -3.0 | 6.5 | 2.8 | -1.0 | 5.3 |
| 2009 |
+21.58% | -9.0 | -8.0 | 5.6 | 10.1 | 6.2 | -0.8 | 7.1 | 3.3 | 3.8 | -2.7 | 3.7 | 2.4 |
| 2008 |
-24.86% | -3.6 | -1.0 | 0.6 | 3.2 | 1.0 | -5.9 | -0.5 | -0.2 | -5.2 | -14.0 | -5.4 | 4.2 |
| 2007 |
+5.91% | 1.6 | -0.4 | 1.3 | 2.3 | 2.2 | -1.0 | -2.2 | 1.1 | 3.3 | 2.6 | -3.5 | -1.3 |
| 2006 |
+17.74% | 4.5 | 0.0 | 2.5 | 1.7 | -2.8 | 0.4 | 0.6 | 1.9 | 0.9 | 3.2 | 2.5 | 1.2 |
| 2005 |
+8.40% | -1.9 | 2.5 | -1.7 | -1.2 | 1.9 | 1.5 | 3.0 | 0.3 | 1.8 | -2.3 | 2.6 | 1.7 |
| 2004 |
+14.62% | 1.5 | 1.7 | 0.7 | -3.4 | 1.1 | 2.2 | -2.1 | 1.1 | 1.8 | 2.1 | 4.5 | 2.7 |
| 2003 |
+26.78% | -2.4 | -1.4 | -0.2 | 6.0 | 4.8 | 1.7 | 2.3 | 1.9 | 0.8 | 4.4 | 1.9 | 4.4 |
| 2002 |
-7.53% | -1.5 | 0.2 | 4.0 | 0.3 | 0.0 | -2.6 | -6.6 | 0.4 | -5.6 | 2.7 | 3.2 | -1.7 |
| 2001 |
-3.80% | 2.1 | -4.4 | -3.4 | 4.8 | -0.2 | -0.6 | -0.8 | -1.2 | -6.3 | 1.8 | 3.2 | 1.7 |
| 2000 |
+2.04% | -3.1 | 2.0 | 2.7 | -1.5 | -1.2 | 2.5 | -0.5 | 2.5 | -1.6 | -0.8 | -3.3 | 4.6 |
| 1999 |
+13.53% | 0.0 | -2.8 | 2.4 | 4.5 | -1.5 | 2.9 | -0.2 | -0.9 | -0.4 | 1.9 | 1.9 | 5.2 |
| 1998 |
+8.85% | 0.9 | 4.4 | 2.9 | 0.4 | -1.5 | 0.5 | -1.4 | -10.0 | 2.1 | 5.2 | 3.5 | 2.5 |
| 1997 |
+12.22% | 0.6 | 0.4 | -1.3 | 0.9 | 5.1 | 3.7 | 3.3 | -3.2 | 4.8 | -4.0 | 0.5 | 1.3 |
| 1996 |
+11.54% | 0.9 | 0.7 | 1.2 | 2.2 | 0.7 | -0.1 | -3.0 | 1.7 | 2.5 | 0.5 | 3.5 | 0.3 |
| 1995 |
+16.29% | -0.6 | 0.4 | 2.8 | 2.2 | 1.4 | 0.8 | 3.3 | -0.3 | 1.7 | -1.6 | 2.7 | 2.6 |
| 1994 |
+1.99% | 4.5 | -0.7 | -3.1 | 1.2 | 0.0 | -0.3 | 1.3 | 2.1 | -1.8 | 1.0 | -3.4 | 1.4 |
* 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:
VEU - Vanguard FTSE All-World ex-US: simulated historical serie, up to December 2007
IJS - iShares S&P Small-Cap 600 Value: simulated historical serie, up to December 2000
VTV - Vanguard Value: simulated historical serie, up to December 2004
VNQ - Vanguard Real Estate: simulated historical serie, up to December 2004
IJT - iShares S&P Small-Cap 600 Growth: simulated historical serie, up to December 2000
VV - Vanguard Large-Cap: simulated historical serie, up to December 2004
SHY - iShares 1-3 Year Treasury Bond: simulated historical serie, up to December 2002