Couch Potato Portfolio
Dec 5, 2003 – Sep 24, 2026, Rebalanced annually
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| Couch Potato | $52,566 | 7.55% | −30.55% | 0.84 |
| S&P 500 | $109,227 | 11.05% | −55.19% | 0.66 |
| Couch Potato | S&P 500 | |
|---|---|---|
| Final balance | $52,566 | $109,227 |
| CAGR | 7.55% | 11.05% |
| Max drawdown | −30.55% | −55.19% |
| Sharpe ratio | 0.84 | 0.66 |
Allocation
- VTIUS total stock market50%
- TIPInflation-protected Treasuries50%
Loading the growth chart…
Growth of $10,000
- Couch Potato
- S&P 500
Metrics
| Return | Couch Potato | S&P 500 |
|---|---|---|
| Final balance | $52,566 | $109,227 |
| Total return | 425.66% | 992.27% |
| CAGR | 7.55% | 11.05% |
| Calendar years | Couch Potato | S&P 500 |
| Best year | 19.51% | 32.31% |
| Worst year | −18.47% | −36.80% |
| Positive years | 18 of 22 | 19 of 22 |
| Risk | Couch Potato | S&P 500 |
| Max drawdown | −30.55% | −55.19% |
| Longest drawdown | 2.2 years | 4.9 years |
| Volatility (annualized) | 9.19% | 18.59% |
| Risk-adjusted | Couch Potato | S&P 500 |
| Sharpe ratio | 0.84 | 0.66 |
| Sortino ratio | 1.18 | 0.93 |
| Calmar ratio | 0.25 | 0.20 |
| Return | Couch Potato | S&P 500 |
|---|---|---|
| Final balance | $52,566 | $109,227 |
| Total return | 425.66% | 992.27% |
| CAGR | 7.55% | 11.05% |
| Calendar years | Couch Potato | S&P 500 |
| Best year | 19.51% | 32.31% |
| Worst year | −18.47% | −36.80% |
| Positive years | 18 of 22 | 19 of 22 |
| Risk | Couch Potato | S&P 500 |
|---|---|---|
| Max drawdown | −30.55% | −55.19% |
| Longest drawdown | 2.2 years | 4.9 years |
| Volatility (annualized) | 9.19% | 18.59% |
| Risk-adjusted | Couch Potato | S&P 500 |
| Sharpe ratio | 0.84 | 0.66 |
| Sortino ratio | 1.18 | 0.93 |
| Calmar ratio | 0.25 | 0.20 |
Worst drawdowns
| Decline | Peak | Bottom | Recovered |
|---|---|---|---|
| −30.6% | May 2008 | Mar 2009 | Apr 2010 |
| −19.7% | Feb 2020 | Mar 2020 | Jul 2020 |
| −19.6% | Dec 2021 | Sep 2022 | Mar 2024 |
| −11.1% | Aug 2018 | Dec 2018 | Apr 2019 |
| −9.2% | Feb 2025 | Apr 2025 | Jun 2025 |
Annual returns
| Year | Couch Potato | S&P 500 |
|---|---|---|
| 2003* | +2.02% | +4.64% |
| 2004 | +10.53% | +10.70% |
| 2005 | +4.40% | +4.83% |
| 2006 | +7.99% | +15.85% |
| 2007 | +8.65% | +5.15% |
| 2008 | −18.47% | −36.80% |
| 2009 | +18.92% | +26.35% |
| 2010 | +11.78% | +15.06% |
| 2011 | +7.13% | +1.89% |
| 2012 | +11.42% | +15.99% |
| 2013 | +12.48% | +32.31% |
| 2014 | +8.07% | +13.46% |
| 2015 | −0.70% | +1.23% |
| 2016 | +8.75% | +12.00% |
| 2017 | +12.07% | +21.71% |
| 2018 | −3.33% | −4.57% |
| 2019 | +19.51% | +31.22% |
| 2020 | +15.96% | +18.33% |
| 2021 | +15.68% | +28.73% |
| 2022 | −15.89% | −18.18% |
| 2023 | +14.93% | +26.18% |
| 2024 | +12.73% | +24.89% |
| 2025 | +11.93% | +17.72% |
| 2026* | +5.79% | +13.38% |
* Partial year
About the Couch Potato Portfolio
Scott Burns introduced the Couch Potato in the Dallas Morning News in 1991, as half stocks and half bonds. He later offered a version with inflation-protected Treasuries (TIPS) as the bond half. This page uses that one.
Two funds and a yearly rebalance are the whole plan, little enough work for a couch potato.
The Couch Potato Portfolio returned 7.5% a year from Dec 2003 to Sep 2026, against 11.1% for the S&P 500. Its biggest drop was 30.6%, against 55.2% for the S&P 500. It took 1.9 years to recover. It beat the S&P 500 in 5 of 22 full years.
Uses daily closing prices with dividends reinvested. Fund fees are included, but not taxes or trading costs. The backtest starts on Dec 5, 2003, the first day both funds have prices. The S&P 500 is SPY.