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Swensen Portfolio

Jul 26, 2007 – Sep 23, 2026, Rebalanced annually

Backtest it
SwensenS&P 500
Final balance$36,567$73,743
CAGR7.00%10.99%
Max drawdown−43.69%−55.19%
Sharpe ratio0.560.63

Allocation

  • VTIUS total stock market30%
  • VEAInternational developed15%
  • VWOEmerging markets5%
  • VNQUS real estate20%
  • TIPInflation-protected Treasuries15%
  • IEFIntermediate Treasuries15%

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Growth of $10,000

  • Swensen
  • S&P 500

Metrics

ReturnSwensenS&P 500
Final balance$36,567$73,743
Total return265.67%637.43%
CAGR7.00%10.99%
Calendar yearsSwensenS&P 500
Best year22.99%32.31%
Worst year−24.51%−36.80%
Positive years14 of 1815 of 18
RiskSwensenS&P 500
Max drawdown−43.69%−55.19%
Longest drawdown3 years4.9 years
Volatility (annualized)13.96%19.73%
Risk-adjustedSwensenS&P 500
Sharpe ratio0.560.63
Sortino ratio0.780.89
Calmar ratio0.160.20

Worst drawdowns

DeclinePeakBottomRecovered
−43.7%Oct 2007Mar 2009Oct 2010
−24.8%Feb 2020Mar 2020Aug 2020
−24.1%Dec 2021Oct 2022Jul 2024
−13.4%Jul 2011Oct 2011Feb 2012
−11.8%Aug 2018Dec 2018Mar 2019

Annual returns

YearSwensenS&P 500
2007*+2.48%−0.23%
2008−24.51%−36.80%
2009+22.99%+26.35%
2010+15.46%+15.06%
2011+3.57%+1.89%
2012+13.72%+15.99%
2013+11.33%+32.31%
2014+10.85%+13.46%
2015−0.29%+1.23%
2016+7.42%+12.00%
2017+13.70%+21.71%
2018−5.79%−4.57%
2019+21.87%+31.22%
2020+10.74%+18.33%
2021+17.98%+28.73%
2022−18.42%−18.18%
2023+14.45%+26.18%
2024+9.26%+24.89%
2025+14.55%+17.72%
2026*+7.28%+13.47%

* Partial year

About the Swensen Portfolio

David Swensen ran Yale's endowment for 36 years. In his 2005 book Unconventional Success, he suggested this portfolio for individual investors.

Half is in stocks, spread across the US, developed markets and emerging markets. Real estate gets 20%. The other 30% is split between regular and inflation-protected Treasuries.

The Swensen Portfolio returned 7.0% a year from Jul 2007 to Sep 2026, against 11.0% for the S&P 500. Its biggest drop was 43.7%, against 55.2% for the S&P 500. It took 3 years to recover. It beat the S&P 500 in 3 of 18 full years.

Uses daily closing prices with dividends reinvested. Fund fees are included, but not taxes or trading costs. The backtest starts on Jul 26, 2007, the first day all six funds have prices. The S&P 500 is SPY.

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